Executive Summary
Lovisa Holdings Limited engages in the retail sale of fashion jewelry and accessories. More Details
Rewards
Risk Analysis
Snowflake Analysis
Exceptional growth potential with adequate balance sheet.
Share Price & News
How has Lovisa Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LOV is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 10% a week.
Volatility Over Time: LOV's weekly volatility has decreased from 17% to 10% over the past year.
Market Performance
7 Day Return
-6.0%
LOV
-0.05%
AU Specialty Retail
0.3%
AU Market
1 Year Return
56.6%
LOV
44.1%
AU Specialty Retail
12.5%
AU Market
Return vs Industry: LOV exceeded the Australian Specialty Retail industry which returned 44.1% over the past year.
Return vs Market: LOV exceeded the Australian Market which returned 12.5% over the past year.
Shareholder returns
| LOV | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.0% | -0.05% | 0.3% |
| 30 Day | 32.4% | 0.9% | 2.2% |
| 90 Day | 31.4% | 7.7% | 4.0% |
| 1 Year | 59.6%56.6% | 50.1%44.1% | 16.1%12.5% |
| 3 Year | 72.1%59.2% | 85.5%62.6% | 31.1%15.1% |
| 5 Year | 599.2%497.9% | 101.7%60.3% | 62.5%31.3% |
Long-Term Price Volatility Vs. Market
How volatile is Lovisa Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
The MD & Executive Director of Lovisa Holdings Limited (ASX:LOV), Shane Fallscheer, Just Sold 46% Of Their Holding1 week ago | Simply Wall St
What Type Of Shareholders Own The Most Number of Lovisa Holdings Limited (ASX:LOV) Shares?1 month ago | Simply Wall St
Are Insiders Selling Lovisa Holdings Limited (ASX:LOV) Stock?Valuation
Is Lovisa Holdings undervalued compared to its fair value and its price relative to the market?
16.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LOV (A$14.41) is trading below our estimate of fair value (A$17.2)
Significantly Below Fair Value: LOV is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: LOV is poor value based on its PE Ratio (376.4x) compared to the AU Specialty Retail industry average (15x).
PE vs Market: LOV is poor value based on its PE Ratio (376.4x) compared to the Australian market (20x).
Price to Earnings Growth Ratio
PEG Ratio: LOV is poor value based on its PEG Ratio (10.4x)
Price to Book Ratio
PB vs Industry: LOV is overvalued based on its PB Ratio (26.1x) compared to the AU Specialty Retail industry average (3x).
Next Steps
Future Growth
How is Lovisa Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
36.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LOV's forecast earnings growth (36.3% per year) is above the savings rate (2%).
Earnings vs Market: LOV's earnings (36.3% per year) are forecast to grow faster than the Australian market (15.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LOV's revenue (23.5% per year) is forecast to grow faster than the Australian market (5.6% per year).
High Growth Revenue: LOV's revenue (23.5% per year) is forecast to grow faster 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 (68.4%).
Next Steps
Past Performance
How has Lovisa Holdings performed over the past 5 years?
-0.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LOV has a large one-off gain of A$4.2M impacting its December 27 2020 financial results.
Growing Profit Margin: LOV's current net profit margins (1.8%) are lower than last year (13.7%).
Past Earnings Growth Analysis
Earnings Trend: LOV's earnings have declined by 0.8% per year over the past 5 years.
Accelerating Growth: LOV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LOV had negative earnings growth (-89.3%) over the past year, making it difficult to compare to the Specialty Retail industry average (35.5%).
Return on Equity
High ROE: LOV's Return on Equity (6.9%) is considered low.
Next Steps
Financial Health
How is Lovisa Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: LOV's short term assets (A$75.0M) do not cover its short term liabilities (A$86.6M).
Long Term Liabilities: LOV's short term assets (A$75.0M) do not cover its long term liabilities (A$127.0M).
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 80.7%.
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
Next Steps
Dividend
What is Lovisa Holdings's current dividend yield, its reliability and sustainability?
2.78%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LOV's dividend (2.78%) is higher than the bottom 25% of dividend payers in the Australian market (2.09%).
High Dividend: LOV's dividend (2.78%) is low compared to the top 25% of dividend payers in the Australian market (5.52%).
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 6 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (522.4%), 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 (73.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average board tenure
CEO
Shane Fallscheer
no data
Tenure
AU$1,222,433
Compensation
Mr. Shane Roland Fallscheer is the Managing Director and founder of Lovisa Holdings Limited. Mr. Fallscheer serves as Chief Executive Officer of Lovisa Pty Ltd. He served as the Chief Executive Officer of ...
CEO Compensation Analysis
Compensation vs Market: Shane's total compensation ($USD943.09K) is below average for companies of similar size in the Australian market ($USD1.41M).
Compensation vs Earnings: Shane's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | no data | AU$1.22m | 2.08% A$ 33.4m | |
| Non-Executive Chairman | 2.33yrs | AU$150.00k | 40.21% A$ 644.2m | |
| Independent Non-Executive Director | 4.83yrs | AU$80.00k | 0.032% A$ 506.9k | |
| Independent Non-Executive Director | 2.08yrs | AU$63.33k | no data | |
| Non-Executive Director | 6.33yrs | AU$80.00k | 1.07% A$ 17.2m | |
| Alternate Director | 2.08yrs | no data | no data | |
| Independent Non-Executive Director | 0.58yr | no data | 0.0046% A$ 74.5k |
2.3yrs
Average Tenure
60yo
Average Age
Experienced Board: LOV's board of directors are not considered experienced ( 2.3 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 only sold shares 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Lovisa Holdings Limited
- Ticker: LOV
- Exchange: ASX
- Founded: 2010
- Industry: Specialty Stores
- Sector: Retail
- Market Cap: AU$1.602b
- Shares outstanding: 107.46m
- Website: https://www.lovisa.com
Number of Employees
Location
- Lovisa Holdings Limited
- 818 Glenferrie Road
- Level 1
- Hawthorn
- Victoria
- 3122
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LOV | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Dec 2014 |
| LOV | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Dec 2014 |
| LO7 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Dec 2014 |
Biography
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 Jun...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/04 07:07 |
| End of Day Share Price | 2021/03/04 00:00 |
| Earnings | 2020/12/27 |
| Annual Earnings | 2020/06/28 |
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.