| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 5/6 |
| Past Performance | 4/6 |
| Financial Health | 4/6 |
| Dividends | 1/6 |
LOV Stock Overview
Lovisa Holdings Limited engages in the retail sale of fashion jewelry and accessories.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$18.58 |
| 52 Week High | AU$23.07 |
| 52 Week Low | AU$10.16 |
| Beta | 2.11 |
| 1 Month Change | -2.52% |
| 3 Month Change | -10.29% |
| 1 Year Change | 71.72% |
| 3 Year Change | 159.14% |
| 5 Year Change | 385.12% |
| Change since IPO | 768.22% |
Recent News & Updates
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
| LOV | AU Specialty Retail | AU Market | |
|---|---|---|---|
| 7D | 6.4% | -2.2% | -0.5% |
| 1Y | 71.7% | 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
| LOV volatility | |
|---|---|
| LOV Average Weekly Movement | 5.4% |
| Specialty Retail Industry Average Movement | 5.2% |
| Market Average Movement | 8.4% |
| 10% most volatile stocks in AU Market | 15.2% |
| 10% least volatile stocks in AU Market | 3.6% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2010 | n/a | Victor Herrero | https://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
| LOV fundamental statistics | |
|---|---|
| Market Cap | AU$2.00b |
| Earnings (TTM) | AU$24.83m |
| Revenue (TTM) | AU$288.03m |
80.4x
P/E Ratio6.9x
P/S RatioIs LOV overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| LOV income statement (TTM) | |
|---|---|
| Revenue | AU$288.03m |
| Cost of Revenue | AU$67.07m |
| Gross Profit | AU$220.96m |
| Expenses | AU$196.14m |
| Earnings | AU$24.83m |
Last Reported Earnings
Jun 27, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.23 |
| Gross Margin | 76.71% |
| Net Profit Margin | 8.62% |
| Debt/Equity Ratio | 0% |
How did LOV perform over the long term?
See historical performance and comparisonDividends
1.9%
Current Dividend Yield164%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/17 16:37 |
| End of Day Share Price | 2022/01/17 00:00 |
| Earnings | 2021/06/27 |
| Annual Earnings | 2021/06/27 |
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.