Lovesac Profitability Analysis

LOVE -  USA Stock  

USD 65.81  1.71  2.53%

For Lovesac profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lovesac to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well The Lovesac utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lovesac's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of The Lovesac over time as well as its relative position and ranking within its peers. Additionally, see Stocks Correlation.

Lovesac Current Profitability Trends 

 
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The current year Return on Sales is expected to grow to 0.0496, whereas Price to Sales Ratio is forecasted to decline to 2.28. Lovesac Net Income is projected to increase significantly based on the last few years of reporting. The past year's Net Income was at 14.73 Million. The current year Net Income Common Stock is expected to grow to about 15.9 M, whereas Income Tax Expense is forecasted to decline to about 71.2 K.
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.

Lovesac Price to Earning vs. Shares Owned by Institutions Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lovesac's current stock value. Our valuation model uses many indicators to compare Lovesac value to that of its competitors to determine the firm's financial worth.
The Lovesac is currently regarded as number one stock in shares owned by institutions category among related companies. It is rated second overall in price to earning category among related companies reporting about  0.50  of Price to Earning per Shares Owned by Institutions. The ratio of Shares Owned by Institutions to Price to Earning for The Lovesac is roughly  2.00 . The current year Price to Earnings Ratio is expected to grow to 60.40. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 22.6 M. Comparative valuation analysis is a catch-all model that can be used if you cannot value Lovesac by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lovesac's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lovesac's earnings, one of the primary drivers of an investment's value.

Lovesac Price to Earning vs. Shares Owned by Institutions

Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Lovesac 
Shares Held by Institutions 
 = 
Funds and Banks 
Firms 
106.11 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Lovesac 
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
52.99 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Lovesac Price to Earning Comparison

Lovesac is currently under evaluation in price to earning category among related companies.

Lovesac Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lovesac, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lovesac will eventually generate negative long term returns. The profitability progress is the general direction of Lovesac's change in net profit over the period of time. It can combine multiple indicators of Lovesac, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2021
Consolidated Income14.7 M15.9 M
Net Income14.7 M15.9 M
Net Income Common Stock14.7 M15.9 M
Operating Income14.9 M16.1 M
Income Tax Expense85.7 K71.2 K
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 Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Lovesac. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Lovesac position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Lovesac's important profitability drivers and their relationship over time.

Lovesac Profitability Trends

Lovesac profitability trend refers to the progression of profit or loss within a business. An upward trend means that Lovesac's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Lovesac's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Lovesac Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Lovesac different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Lovesac in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Lovesac's future profitability.

Use Lovesac in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Lovesac position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lovesac will appreciate offsetting losses from the drop in the long position's value.

Lovesac Pair Trading

The Lovesac Pair Trading Analysis

Correlation analysis and pair trading evaluation for Lovesac and Amer Woodmark Cp. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
Run Pair Correlation  

Use Investing Themes to Complement your Lovesac position

In addition to having Lovesac in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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World Allocation
World Allocation Theme
Funds or Etfs investing in stocks, bonds, and cash of domestic markets as well as in markets of Canada, Japan, and Europe. World Allocation theme has 40 constituents.
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Additionally, see Stocks Correlation. 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 Search module to search for activelly traded equities including funds and ETFs from over 30 global markets.

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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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To fully project Lovesac's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lovesac at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Lovesac's income statement, its balance sheet, and the statement of cash flows.
Potential Lovesac investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Lovesac investors may work on each financial statement separately, they are all related. The changes in Lovesac's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Lovesac's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.