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LOV

Lovisa HoldingsASX:LOV Stock Report

Last Price

AU$18.58

Market Cap

AU$2.0b

7D

6.4%

1Y

71.7%

Updated

17 Jan, 2022

Data

Company Financials +
LOV fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance4/6
Financial Health4/6
Dividends1/6

LOV Stock Overview

Lovisa Holdings Limited engages in the retail sale of fashion jewelry and accessories.

Price History & Performance

Summary of all time highs, changes and price drops for Lovisa Holdings
Historical stock prices
Current Share PriceAU$18.58
52 Week HighAU$23.07
52 Week LowAU$10.16
Beta2.11
1 Month Change-2.52%
3 Month Change-10.29%
1 Year Change71.72%
3 Year Change159.14%
5 Year Change385.12%
Change since IPO768.22%

Recent News & Updates

Dec 27
Are Investors Undervaluing Lovisa Holdings Limited (ASX:LOV) By 26%?

Are Investors Undervaluing Lovisa Holdings Limited (ASX:LOV) By 26%?

Today we will run through one way of estimating the intrinsic value of Lovisa Holdings Limited ( ASX:LOV ) by taking...

Shareholder Returns

LOVAU Specialty RetailAU Market
7D6.4%-2.2%-0.5%
1Y71.7%8.4%10.4%

Return vs Industry: LOV exceeded the Australian Specialty Retail industry which returned 8.4% over the past year.

Return vs Market: LOV exceeded the Australian Market which returned 10.4% over the past year.

Price Volatility

Is LOV's price volatile compared to industry and market?
LOV volatility
LOV Average Weekly Movement5.4%
Specialty Retail Industry Average Movement5.2%
Market Average Movement8.4%
10% most volatile stocks in AU Market15.2%
10% least volatile stocks in AU Market3.6%

Stable Share Price: LOV is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LOV's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2010n/aVictor Herrerohttps://www.lovisa.com

Lovisa Holdings Limited engages in the retail sale of fashion jewelry and accessories. It designs, develops, sources, and merchandises fashion jewelry and accessories under the Lovisa brand name. As of June 27, 2021, the company operated 544 retail stores, including 36 franchise stores and 508 owned stores.

Lovisa Holdings Fundamentals Summary

How do Lovisa Holdings's earnings and revenue compare to its market cap?
LOV fundamental statistics
Market CapAU$2.00b
Earnings (TTM)AU$24.83m
Revenue (TTM)AU$288.03m

80.4x

P/E Ratio

6.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LOV income statement (TTM)
RevenueAU$288.03m
Cost of RevenueAU$67.07m
Gross ProfitAU$220.96m
ExpensesAU$196.14m
EarningsAU$24.83m

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.23
Gross Margin76.71%
Net Profit Margin8.62%
Debt/Equity Ratio0%

How did LOV perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

164%

Payout Ratio

Valuation

Is Lovisa Holdings undervalued compared to its fair value and its price relative to the market?

32.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LOV (A$18.58) is trading below our estimate of fair value (A$27.3)

Significantly Below Fair Value: LOV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LOV is poor value based on its PE Ratio (80.4x) compared to the Australian Specialty Retail industry average (11.4x).

PE vs Market: LOV is poor value based on its PE Ratio (80.4x) compared to the Australian market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: LOV is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: LOV is overvalued based on its PB Ratio (43.7x) compared to the AU Specialty Retail industry average (3.6x).


Future Growth

How is Lovisa Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

29.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOV's forecast earnings growth (29.6% per year) is above the savings rate (1.9%).

Earnings vs Market: LOV's earnings (29.6% per year) are forecast to grow faster than the Australian market (11.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LOV's revenue (19.4% per year) is forecast to grow faster than the Australian market (4.9% per year).

High Growth Revenue: LOV's revenue (19.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LOV's Return on Equity is forecast to be very high in 3 years time (96.1%).


Past Performance

How has Lovisa Holdings performed over the past 5 years?

-7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LOV has a large one-off gain of A$12.6M impacting its June 27 2021 financial results.

Growing Profit Margin: LOV's current net profit margins (8.6%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: LOV's earnings have declined by 7% per year over the past 5 years.

Accelerating Growth: LOV's earnings growth over the past year (118.4%) exceeds its 5-year average (-7% per year).

Earnings vs Industry: LOV earnings growth over the past year (118.4%) exceeded the Specialty Retail industry 91.8%.


Return on Equity

High ROE: LOV's Return on Equity (54.3%) is considered outstanding.


Financial Health

How is Lovisa Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LOV's short term assets (A$81.1M) do not cover its short term liabilities (A$101.8M).

Long Term Liabilities: LOV's short term assets (A$81.1M) do not cover its long term liabilities (A$150.7M).


Debt to Equity History and Analysis

Debt Level: LOV is debt free.

Reducing Debt: LOV has no debt compared to 5 years ago when its debt to equity ratio was 139.3%.

Debt Coverage: LOV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LOV has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Lovisa Holdings's current dividend yield, its reliability and sustainability?

1.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LOV's dividend (1.94%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.18%).

High Dividend: LOV's dividend (1.94%) is low compared to the top 25% of dividend payers in the Australian market (5.39%).


Stability and Growth of Payments

Stable Dividend: LOV has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LOV's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (164.5%), LOV's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LOV's dividends in 3 years are forecast to be covered by earnings (70.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Victor Herrero

0.17

Tenure

Mr. Victor Herrero has been Director at Lovisa Holdings Limited since October 14, 2021 and serves as Chief Executive Officer since November 22, 2021. He has vast global experience working with the Inditex...


Leadership Team

Experienced Management: LOV's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: LOV's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LOV insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lovisa Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Lovisa Holdings Limited
  • Ticker: LOV
  • Exchange: ASX
  • Founded: 2010
  • Industry: Specialty Stores
  • Sector: Retail
  • Implied Market Cap: AU$1.997b
  • Shares outstanding: 107.46m
  • Website: https://www.lovisa.com

Number of Employees


Location

  • Lovisa Holdings Limited
  • 818-820 Glenferrie Road
  • Level 1
  • Hawthorn
  • Victoria
  • 3122
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 16:37
End of Day Share Price2022/01/17 00:00
Earnings2021/06/27
Annual Earnings2021/06/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.