Lovesac Story

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LOVE -- USA Stock  

USD 56.20  2.10  3.88%

Lovesac is scheduled to announce its earnings today. The next earnings report is expected on the 15th of April 2021. Although many aggressive traders are getting into consumer cyclical space, The Lovesac may or may not be your first choice. What exactly are Lovesac shareholders getting in January? Here we also measure the ability of Lovesac to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
Published over a month ago
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Will latest Lovesac (NASDAQ:LOVE) debt levels change next week?
The current year Debt to Equity Ratio is expected to grow to 1.23, whereas Average Equity is forecasted to decline to about 52.1 M. On a scale of 0 to 100, Lovesac holds a performance score of 6. The company secures a Beta (Market Risk) of 0.068, which conveys not very significant fluctuations relative to the market. Let's try to break down what Lovesac's beta means in this case. As returns on the market increase, Lovesac returns are expected to increase less than the market. However, during the bear market, the loss on holding Lovesac will be expected to be smaller as well. Although it is vital to follow Lovesac price patterns, it is good to be conservative about what you can do with the information regarding equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Lovesac technical indicators, you can presently evaluate if the expected return of 0.37% will be sustainable into the future. Please exercises The Lovesac variance, as well as the relationship between the value at risk and skewness to make a quick decision on whether Lovesac current price movements will revert.
Lovesac financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Lovesac, including all of Lovesac's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Lovesac assets, the company is considered highly leveraged. Understanding the composition and structure of overall Lovesac debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Lovesac Total Liabilities

Lovesac liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Lovesac has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Lovesac balance sheet include debt obligations and money owed to different Lovesac vendors, workers, and loan providers. Below is the chart of Lovesac short long-term liabilities accounts currently reported on its balance sheet.
You can use The Lovesac financial leverage analysis tool to get a better grip on understanding its financial position

How important is Lovesac's Liquidity

Lovesac financial leverage refers to using borrowed capital as a funding source to finance The Lovesac ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lovesac financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Lovesac's total debt and its cash.

An Additional Perspective On Lovesac

The latest surge in Lovesac short term price appreciation may encourage shareholders to take a closer look at the firm as it is trading at a share price of 33.81 on very low momentum in trading volume. The company executives have successfully maneuvered the firm at convenient times to take advantage of all market conditions in November. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.84. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Lovesac partners.

Asset Breakdown

17.4 M
Assets Non Current
59.7 M
Current Assets
Total Assets77.04 Million
Current Assets59.68 Million
Assets Non Current17.36 Million
Goodwill1.16 Million

Can Lovesac build up on the latest surge?

Latest mean deviation is at 3.38. The Lovesac exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate The Lovesac individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Lovesac future systematic risk.

The Bottom Line

Although some firms within the furnishings, fixtures & appliances industry are still a little expensive, even after the recent corrections, Lovesac may offer a potential longer-term growth to shareholders. On the whole, as of the 9th of December 2020, our concluding 30 days 'Buy-vs-Sell' recommendation on the firm is Hold. We believe Lovesac is currently overvalued with low chance of financial distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of The Lovesac. Please refer to our Terms of Use for any information regarding our disclosure principles.

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