Savers Value Village, Inc. (SVV) stock analysis

P/E below its 5-year median

Savers Value Village's P/E of 24.8 is below its own 5-year median of 55.9.

P/E above the industry

Savers Value Village's P/E of 24.8 is above the Miscellaneous Retail median of 17.9.

EV/EBITDA below its 5-year median

Savers Value Village's EV/EBITDA of 8.9 is below its 5-year median of 11.8.

P/B above the industry

Savers Value Village's price-to-book of 3.24 is above the Miscellaneous Retail median of 2.05.

Trading below fair value

The share price of $9.91 is below our fair value estimate of $11.37.

Margin of safety under 20%

The price is 12.8% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 5.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -37.7% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 10.1% over the last twelve months; the Miscellaneous Retail median is 10.1%.

Guidance issued

The latest outlook (fiscal 2026 Net sales, Aug 6, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 56.0% over the last twelve months, against 55.3% a year earlier.

Return on equity under 15%

Return on equity was 14.1% over the last twelve months and averaged 23.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.0%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Savers Value Village's return on equity of 14.1% is above the Miscellaneous Retail median of -18.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 3.5% over the last twelve months, against a 5-year average of 3.9%.

Net margin above the industry

Savers Value Village's net margin of 3.5% is above the Miscellaneous Retail median of 1.5%.

High debt

Debt is 141% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 39.6% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.67 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.41; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Savers Value Village 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.