Is Lovesac Stock a Good Investment?
Lovesac Investment Advice | LOVE |
- Examine Lovesac's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Lovesac's leadership team and their track record. Good management can help Lovesac navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Household Durables space and any emerging trends that could impact Lovesac's business and its evolving consumer preferences.
- Compare Lovesac's performance and market position to its competitors. Analyze how Lovesac is positioned in terms of product offerings, innovation, and market share.
- Check if Lovesac pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Lovesac's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in The Lovesac stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if The Lovesac is a good investment.
Sell | Buy |
Sell
Market Performance | Weakest | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Tiny | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Not Available | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Lovesac Stock
Researching Lovesac's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 93.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.31. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Lovesac has Price/Earnings To Growth (PEG) ratio of 0.96. The entity had not issued any dividends in recent years.
To determine if Lovesac is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Lovesac's research are outlined below:
| Lovesac generated a negative expected return over the last 90 days | |
| Lovesac has high historical volatility and very poor performance | |
| Lovesac has a strong financial position based on the latest SEC filings | |
| Over 93.0% of the company shares are owned by institutional investors |
Lovesac uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in The Lovesac. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Lovesac's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 26th of March 2024 Upcoming Quarterly Report | View | |
| 5th of June 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 26th of March 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Lovesac's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 259.48 M.Lovesac's profitablity analysis
The company has Profit Margin (PM) of 0.02 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of (0.05) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.05.Determining Lovesac's profitability involves analyzing its financial statements and using various financial metrics to determine if Lovesac is a good buy. For example, gross profit margin measures Lovesac's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Lovesac's profitability and make more informed investment decisions.
Please note, the presentation of Lovesac's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Lovesac's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Lovesac's management manipulating its earnings.
Basic technical analysis of Lovesac Stock
As of the 26th of September, Lovesac secures the insignificant Market Risk Adjusted Performance, risk adjusted performance of 0.0062, and Standard Deviation of 3.65. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Lovesac, as well as the relationship between them. Please verify Lovesac mean deviation, treynor ratio, as well as the relationship between the Treynor Ratio and kurtosis to decide if The Lovesac is priced some-what accurately, providing market reflects its recent price of 17.32 per share. Given that Lovesac has information ratio of (0.03), we recommend you to check Lovesac's last-minute market performance to make sure the company can sustain itself at a future point.Lovesac's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Lovesac insiders, such as employees or executives, is commonly permitted as long as it does not rely on Lovesac's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Lovesac insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Lovesac's Outstanding Corporate Bonds
Lovesac issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Lovesac uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Lovesac bonds can be classified according to their maturity, which is the date when The Lovesac has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View |
Understand Lovesac's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Lovesac's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0062 | |||
| Market Risk Adjusted Performance | (0) | |||
| Mean Deviation | 2.47 | |||
| Coefficient Of Variation | (30,456) | |||
| Standard Deviation | 3.65 | |||
| Variance | 13.3 | |||
| Information Ratio | (0.03) | |||
| Jensen Alpha | (0.19) | |||
| Total Risk Alpha | (0.62) | |||
| Treynor Ratio | (0.01) | |||
| Maximum Drawdown | 24.48 | |||
| Value At Risk | (5.12) | |||
| Potential Upside | 5.34 | |||
| Skewness | (0.61) | |||
| Kurtosis | 4.03 |
| Risk Adjusted Performance | 0.0062 | |||
| Market Risk Adjusted Performance | (0) | |||
| Mean Deviation | 2.47 | |||
| Coefficient Of Variation | (30,456) | |||
| Standard Deviation | 3.65 | |||
| Variance | 13.3 | |||
| Information Ratio | (0.03) | |||
| Jensen Alpha | (0.19) | |||
| Total Risk Alpha | (0.62) | |||
| Treynor Ratio | (0.01) | |||
| Maximum Drawdown | 24.48 | |||
| Value At Risk | (5.12) | |||
| Potential Upside | 5.34 | |||
| Skewness | (0.61) | |||
| Kurtosis | 4.03 |
Consider Lovesac's intraday indicators
Lovesac intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Lovesac stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 9721.68 | |||
| Daily Balance Of Power | (0.40) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 17.46 | |||
| Day Typical Price | 17.41 | |||
| Price Action Indicator | (0.24) | |||
| Period Momentum Indicator | (0.21) |
Lovesac Stock media impact
There is far too much social signal, news, headlines, and media speculation about Lovesac that are available to investors today. This information is accessible both publicly - through Lovesac's media outlets and privately, via word of mouth or internal channels. However, regardless of the source, the sheer volume of Lovesac-related data is difficult to distill into actionable insights, especially for investors who are not well-versed in the rapidly evolving tools and techniques of investment management.
A primary focus of Lovesac news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Lovesac relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Lovesac's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Lovesac alpha.
Lovesac Corporate Executives
Elected by the shareholders, the Lovesac's board of directors comprises two types of representatives: Lovesac inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Lovesac. The board's role is to monitor Lovesac's management team and ensure that shareholders' interests are well served. Lovesac's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Lovesac's outside directors are responsible for providing unbiased perspectives on the board's policies.
| Keith Siegner | Executive CFO | Profile | |
| CPA CFA | CFO VP | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in The Lovesac. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Is Household Durables space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lovesac. If investors know Lovesac will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lovesac listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Lovesac is measured differently than its book value, which is the value of Lovesac that is recorded on the company's balance sheet. Investors also form their own opinion of Lovesac's value that differs from its market value or its book value, called intrinsic value, which is Lovesac's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lovesac's market value can be influenced by many factors that don't directly affect Lovesac's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Lovesac's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Lovesac is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lovesac's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.