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Lovesac Co (LOVE) stock analysis

LOVENasdaqRetail-Furniture StoresFiscal year ends February 4
Financials through Q2 FY2027, quarter ended Aug 2, 2026Last filing: 10-Q on Sep 10, 2026Score 14/3041% below fair value
$15.23−0.55 (-3.49%)

Close on Nov 12, 2026Market cap $219.67MP/E 12.6Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value6Growth2Performance1Health5Dividend0

Mixed14 of 30 checks passed

Lovesac passes 14 of the 30 checks behind our score; 5 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
6/6
Growth
2/6
Past performance
1/6
Financial health
5/6
Dividend
0/6

What stands out

  • Margin of safety over 20%

    The price is 41.1% below fair value, more than the 20% cushion we look for.

  • Trading below fair value

    The share price of $15.78 is below our fair value estimate of $26.77.

  • Return on capital over 10%

    Return on invested capital was 10.5%, above the 10% that usually covers the cost of capital.

  • No debt

    Lovesac has no borrowings on its latest balance sheet.

What to watch

  • Return on equity under 15%

    Return on equity was 8.8% over the last twelve months and averaged 13.9% over five years; we look for 15% on both.

  • Earnings shrank over 5 years

    Net income shrank 22.7% a year on average over the last five fiscal years.

  • Revenue growing under 10% a year

    Revenue grew 2.3% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growing under 10% a year

    Diluted EPS grew -44.7% a year over the last three fiscal years.

Valuation6/6

  • P/E below its 5-year median

    Lovesac's P/E of 13.0 is below its own 5-year median of 17.0.

  • P/E below the industry

    Lovesac's P/E of 13.0 is below the Consumer discretionary median of 19.6.

  • EV/EBITDA below its 5-year median

    Lovesac's EV/EBITDA of 4.1 is below its 5-year median of 8.3.

  • P/B below the industry

    Lovesac's price-to-book of 1.08 is below the Consumer discretionary median of 4.85.

  • Trading below fair value

    The share price of $15.78 is below our fair value estimate of $26.77.

  • Margin of safety over 20%

    The price is 41.1% below fair value, more than the 20% cushion we look for.

Growth2/6

  • Revenue growing under 10% a year

    Revenue grew 2.3% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growing under 10% a year

    Diluted EPS grew -44.7% a year over the last three fiscal years.

  • Earnings growth accelerating

    Net income grew 38.8% over the last twelve months, against a 5-year average of -22.7% a year.

  • Growing slower than the industry

    Revenue grew 1.1% over the last twelve months; the Consumer discretionary median is 2.2%.

  • Guidance lowered

    Lovesac lowered its full year of fiscal 2027 Net sales outlook on Sep 10, 2026.

  • Gross margin improving

    Gross margin was 58.8% over the last twelve months, against 57.7% a year earlier.

Past performance1/6

  • Return on equity under 15%

    Return on equity was 8.8% over the last twelve months and averaged 13.9% over five years; we look for 15% on both.

  • Return on capital over 10%

    Return on invested capital was 10.5%, above the 10% that usually covers the cost of capital.

  • Return on equity below the industry

    Lovesac's return on equity of 8.8% is below the Consumer discretionary median of 15.7%.

  • Earnings shrank over 5 years

    Net income shrank 22.7% a year on average over the last five fiscal years.

  • Net margin below its 5-year average

    Net margin was 2.6% over the last twelve months, against a 5-year average of 3.9%.

  • Net margin below the industry

    Lovesac's net margin of 2.6% is below the Consumer discretionary median of 3.1%.

Financial health5/6

  • No debt

    Lovesac has no borrowings on its latest balance sheet.

  • Debt not rising

    With no debt today, leverage cannot have risen.

  • Debt covered by cash flow

    There is no debt to cover.

  • Interest well covered

    No meaningful interest expense to cover.

  • Short-term assets cover short-term debts

    Current assets are 1.47 times current liabilities.

  • Bankruptcy risk in the grey zone

    The Altman Z-score is 2.05; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Lovesac has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$26.77

The share price is 41% below this estimate.

20%+ below
Near fair value
20%+ above
$15.78Price$26.77Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E18.3×17.0×19.6×$22.1440%
EV/EBITDA9.1×8.3×9.8×$29.0835%
P/B3.3×1.8×4.9×$48.6210%
Earnings power14.9% cost of equity––$19.1615%
Fair value$26.77100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 17.0
  • Consumer discretionary median 19.6

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Medium risk

Average value traded per day
$3.07M
Value traded per 1% price move
$1.19M

Downside

Medium risk

Typical loss in a bad month
19.1%
Volatility (annualized)
58%
Sharpe ratio, 1 year
0.25
Beta to the S&P 500 (5Y)
2.13

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2017 to 2026

Gross margin

56.4%+1.9 pts over 5 years

Operating margin

0.8%−3.9 pts over 5 years

Net margin

0.6%−4.0 pts over 5 years

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