Executive Summary
Lovisa Holdings Limited engages in the retail sale of fashion jewelry and accessories.
Snowflake
Fundamentals
Flawless balance sheet with reasonable growth potential.
Share Price & News
How has Lovisa Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
11.0%
LOV
-0.9%
AU Specialty Retail
0.4%
AU Market
1 Year Return
48.0%
LOV
23.1%
AU Specialty Retail
9.8%
AU Market
Return vs Industry: LOV exceeded the Australian Specialty Retail industry which returned 23.1% over the past year.
Return vs Market: LOV exceeded the Australian Market which returned 9.8% over the past year.
Shareholder returns
| LOV | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.0% | -0.9% | 0.4% |
| 30 Day | 8.8% | 2.4% | -1.1% |
| 90 Day | 17.6% | 16.9% | -0.6% |
| 1 Year | 52.6%48.0% | 28.7%23.1% | 16.1%9.8% |
| 3 Year | 361.1%316.2% | 19.9%4.5% | 36.1%17.9% |
| 5 Year | n/a | 83.7%49.7% | 49.4%15.7% |
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
1 week ago | Simply Wall St
Estimating The Intrinsic Value Of Lovisa Holdings Limited (ASX:LOV)2 weeks ago | Simply Wall St
Does Lovisa Holdings Limited's (ASX:LOV) CEO Pay Reflect Performance?3 weeks ago | Simply Wall St
Lovisa Holdings Limited (ASX:LOV) Delivered A Better ROE Than Its IndustryValuation
Is Lovisa Holdings undervalued compared to its fair value and its price relative to the market?
39.61x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Undervalued: LOV (A$13.9) is trading above our estimate of fair value (A$13.79)
Significantly Undervalued: LOV is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: LOV is poor value based on its PE Ratio (39.6x) compared to the Specialty Retail industry average (15.6x).
PE vs Market: LOV is poor value based on its PE Ratio (39.6x) compared to the Australian market (18.2x).
Price to Earnings Growth Ratio
Low PEG Ratio: LOV is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: LOV is overvalued based on its PB Ratio (27.4x) compared to the AU Specialty Retail industry average (2.2x).
Next Steps
Future Growth
How is Lovisa Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
19.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LOV's forecast earnings growth (19.6% per year) is above the savings rate (2.3%).
Earnings vs Market: LOV's earnings (19.6% per year) are forecast to grow faster than the Australian market (10.3% per year).
High Growth Earnings: LOV's earnings are forecast to grow, but not significantly.
Revenue vs Market: LOV's revenue (17.9% per year) is forecast to grow faster than the Australian market (3.6% per year).
High Growth Revenue: LOV's revenue (17.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: LOV's Return on Equity is forecast to be very high in 3 years time (75.6%).
Next Steps
Past Performance
How has Lovisa Holdings performed over the past 5 years?
20.4%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: LOV's earnings have grown significantly by 20.4% per year over the past 5 years.
Accelerating Growth: LOV's earnings growth over the past year (3.1%) is below its 5-year average (20.4% per year).
Earnings vs Industry: LOV earnings growth over the past year (3.1%) exceeded the Specialty Retail industry -2.1%.
Return on Equity
High ROE: LOV's Return on Equity (69%) is considered outstanding.
Return on Assets
ROA vs Industry: LOV has a higher Return on Assets than the Specialty Retail industry average last year.
Return on Capital Employed
ROCE Improving: LOV's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is Lovisa Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: LOV's short term assets (A$50.0M) exceeds its short term liabilities (A$38.1M)
Long Term Liabilities: LOV's short term assets (50.0M) exceeds its long term liabilities (7.5M)
Debt to Equity History and Analysis
Debt Level: LOV's debt to equity ratio (14.9%) is considered satisfactory
Reducing Debt: LOV had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: LOV's debt is well covered by operating cash flow (578.7%).
Interest Coverage: LOV earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: LOV has a high level of physical assets or inventory.
Debt Coverage by Assets: LOV's debt is covered by short term assets (assets are 6.260260x debt).
Next Steps
Dividend
What is Lovisa Holdings's current dividend yield, its reliability and sustainability?
2.37%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: LOV's dividend (2.37%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).
High Dividend: LOV's dividend (2.37%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).
Stable Dividend: Whilst dividend payments have been stable, LOV has been paying a dividend for less than 10 years.
Growing Dividend: LOV's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (94%), 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 (75.6% payout ratio).
Next Steps
Management
What is the CEO of Lovisa Holdings's salary, the management and board of directors tenure and is there insider trading?
1.1yrs
Average board tenure
CEO
Shane Fallscheer 0
0yrs
Tenure
AU$1,959,873
Compensation
Mr. Shane Roland Fallscheer is the Managing Director and founder of Lovisa Holdings Limited. Mr. Fallscheer serves as Chief Executive Officer of Lovisa Pty Ltd. He served as the Chief Executive Officer of  ...
CEO Compensation Analysis
Compensation vs. Market: Shane's total compensation ($USD1.34M) is about average for companies of similar size in the Australian market ($USD992.67K).
Compensation vs Earnings: Shane's compensation has increased by more than 20% in the past year.
Board Age and Tenure
1.1yrs
Average Tenure
55yo
Average Age
Experienced Board: LOV's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: LOV insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 7,990 |
| Max Price | AU$12.56 |
| Entity | Company |
| Shares | 671,128 |
| Max Price | AU$10.31 |
| Entity | Company |
| Shares | 2,659 |
| Max Price | AU$10.00 |
| Entity | Company |
| Shares | 1,218,624 |
| Max Price | AU$10.19 |
| Entity | Individual |
| Role | Chief Executive Officer MD & Executive Director |
| Shares | 900,000 |
| Max Price | AU$9.70 |
| Entity | Company |
| Shares | 1,129,494 |
| Max Price | AU$8.21 |
| Entity | Company |
| Shares | 5,691 |
| Max Price | AU$8.24 |
| Entity | Company |
| Shares | 3,925,894 |
| Max Price | AU$10.31 |
Ownership Breakdown
Management Team
Shane Fallscheer
MD & Executive Director
- Tenure: 0yrs
- Compensation: AU$1.96m
Damian Babic
Chief Operating Officer
- Tenure: 0yrs
Andrea Haynes
Head of Product
- Tenure: 9.8yrs
Chris Lauder
CFO & Company Secretary
- Tenure: 2.1yrs
- Compensation: AU$521.39k
Board Members
Brett Blundy (59yo)
Chairman
- Tenure: 0.9yrs
- Compensation: AU$100.00k
Jim King (67yo)
Independent Non-Executive Director
- Tenure: 3.4yrs
- Compensation: AU$80.00k
John Armstrong (51yo)
Independent Non-Executive Director
- Tenure: 1.1yrs
- Compensation: AU$61.33k
Sei Alt (47yo)
Independent Non-Executive Director
- Tenure: 0.7yrs
- Compensation: AU$20.00k
Shane Fallscheer
MD & Executive Director
- Tenure: 0yrs
- Compensation: AU$1.96m
Tracey Blundy
Non-Executive Director
- Tenure: 4.9yrs
- Compensation: AU$80.00k
Nico Van Der Merwe
Director
- Tenure: 0.7yrs
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$1.470b
- Shares outstanding: 105.77m
- 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 to fashion ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/20 10:40 |
| End of Day Share Price | 2019/10/18 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/06/30 |
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.