Lovesac Beneish M Score

LOVE -  USA Stock  

USD 50.61  1.84  3.51%

This module uses fundamental data of Lovesac to approximate the value of its Beneish M Score. Lovesac M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, see Lovesac Piotroski F Score and Lovesac Altman Z Score analysis.

Lovesac Beneish M Score 

 
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Lovesac Debt Current is projected to increase significantly based on the last few years of reporting. The past year's Debt Current was at 175,077. The current year Debt Non Current is expected to grow to about 3 M, whereas Issuance Repayment of Debt Securities is forecasted to decline to (62 K).
At this time, it appears that Lovesac is an unlikely manipulator. The earnings manipulation may begin if Lovesac's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Lovesac executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Lovesac's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.95
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
1.19
Asset Quality
N/A
Expense Coverage
1.04
Gross Margin Strengs
0.98
Accruals Factor
1.04
Depreciation Resistance
1.04
Net Sales Growth
0.81
Financial Leverage Condition
1.35

Lovesac Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Lovesac's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues298.1 M368.8 M
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense148.7 M176.3 M
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations50.3 M46.6 M
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion5.7 MM
Significantly Down
Increasing
Slightly volatile
Total Assets157.2 M196.7 M
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net25.6 M29.7 M
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade ReceivablesM5.2 M
Sufficiently Down
Decreasing
Slightly volatile
Total Liabilities78.3 M72.5 M
Significantly Up
Increasing
Slightly volatile
Current Assets177.9 M164.9 M
Significantly Up
Increasing
Slightly volatile
Assets Non Current27.4 M31.8 M
Fairly Down
Increasing
Slightly volatile
Current Liabilities69.9 M64.8 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current8.4 M7.8 M
Significantly Up
Increasing
Slightly volatile
Total Debt3.2 MM
Significantly Up
Increasing
Slightly volatile
Debt Current188.9 K175.1 K
Significantly Up
Increasing
Slightly volatile
Debt Non CurrentM2.8 M
Significantly Up
Increasing
Slightly volatile
Operating Income18.5 M17.1 M
Significantly Up
Increasing
Slightly volatile
Gross Margin0.480.49
Fairly Down
Increasing
Very volatile

Lovesac Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Lovesac's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Lovesac in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Lovesac's degree of accounting gimmicks and manipulations.

About Lovesac Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

5.75 MillionShare
Lovesac Depreciation Amortization and Accretion is projected to increase significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 7.01 Million

About Lovesac Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze The Lovesac's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Lovesac using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of The Lovesac based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
The Lovesac Company designs, manufactures, and sells furniture. The Lovesac Company was founded in 1995 and is based in Stamford, Connecticut. Lovesac operates under Furnishings, Fixtures Appliances classification in the United States and is traded on NASDAQ Exchange. It employs 369 people.

Lovesac Investors Sentiment

The influence of Lovesac's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Lovesac. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Lovesac Implied Volatility

    
  103.49  
Lovesac's implied volatility exposes the market's sentiment of The Lovesac stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Lovesac's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Lovesac stock will not fluctuate a lot when Lovesac's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Lovesac in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Lovesac's short interest history, or implied volatility extrapolated from Lovesac options trading.

Current Sentiment - LOVE

Lovesac Investor Sentiment

Macroaxis portfolio users are evenly split in their trading attitude regarding investing in The Lovesac. What is your trading attitude regarding investing in The Lovesac? Are you bullish or bearish?
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Additionally, see Lovesac Piotroski F Score and Lovesac Altman Z Score analysis. Note that the Lovesac information on this page should be used as a complementary analysis to other Lovesac's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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When running Lovesac price analysis, check to measure Lovesac's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lovesac is operating at the current time. Most of Lovesac's value examination focuses on studying past and present price action to predict the probability of Lovesac's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Lovesac's price. Additionally, you may evaluate how the addition of Lovesac to your portfolios can decrease your overall portfolio volatility.
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Is Lovesac's industry 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.
Please note, there is a significant difference between Lovesac's value and its price as these two are different measures arrived at by different means. Investors typically determine Lovesac value 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.