AMEX:LOV

Stock Analysis Report

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Executive Summary

Spark Networks SE operates online dating sites and mobile applications.


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Spark Networks's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LOV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

25.8%

LOV

2.9%

US Interactive Media and Services

2.5%

US Market


1 Year Return

-41.0%

LOV

28.0%

US Interactive Media and Services

15.9%

US Market

Return vs Industry: LOV underperformed the US Interactive Media and Services industry which returned 30.1% over the past year.

Return vs Market: LOV underperformed the US Market which returned 14.9% over the past year.


Shareholder returns

LOVIndustryMarket
7 Day25.8%2.9%2.5%
30 Day44.3%4.2%5.8%
90 Day63.0%15.9%18.2%
1 Year-41.0%-41.0%28.1%28.0%18.4%15.9%
3 Yearn/a42.8%42.7%39.9%30.9%
5 Yearn/a114.4%113.9%72.9%54.2%

Price Volatility Vs. Market

How volatile is Spark Networks's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Spark Networks undervalued compared to its fair value and its price relative to the market?

0.78x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: LOV ($5.02) is trading above our estimate of fair value ($0.85)

Significantly Below Fair Value: LOV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LOV is unprofitable, so we can't compare its PE Ratio to the US Interactive Media and Services industry average.

PE vs Market: LOV is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LOV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LOV is good value based on its PB Ratio (0.8x) compared to the US Interactive Media and Services industry average (2.2x).


Next Steps

Future Growth

How is Spark Networks forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

130.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOV is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: LOV is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LOV's is expected to become profitable in the next 3 years.

Revenue vs Market: LOV's revenue (15.2% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: LOV's revenue (15.2% 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 low in 3 years time (4.8%).


Next Steps

Past Performance

How has Spark Networks performed over the past 5 years?

-64.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LOV is currently unprofitable.

Growing Profit Margin: LOV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LOV is unprofitable, and losses have increased over the past 5 years at a rate of 64.6% per year.

Accelerating Growth: Unable to compare LOV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LOV is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (-39.3%).


Return on Equity

High ROE: LOV has a negative Return on Equity (-10.68%), as it is currently unprofitable.


Next Steps

Financial Health

How is Spark Networks's financial position?


Financial Position Analysis

Short Term Liabilities: LOV's short term assets (€27.7M) do not cover its short term liabilities (€93.6M).

Long Term Liabilities: LOV's short term assets (€27.7M) do not cover its long term liabilities (€96.3M).


Debt to Equity History and Analysis

Debt Level: LOV's debt to equity ratio (67.4%) is considered high.

Reducing Debt: Insufficient data to determine if LOV's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable LOV has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: LOV is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 24.4% per year.


Next Steps

Dividend

What is Spark Networks's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LOV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LOV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LOV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LOV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LOV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Eric Eichmann (53 yo)

0.75

Tenure

Mr. Eric Eichmann serves as Managing Director and Chief Executive Officer at Spark Networks, Inc. since November 18, 2019. Mr. Eichmann serves as Chief Executive Officer at Spark Networks SE since November ...


Leadership Team

NamePositionTenureCompensationOwnership
Eric Eichmann
MD, CEO & Director0.75yrno datano data
Bert Althaus
MD & CFO0.92yrno datano data
Benjamin Hoskins
Chief Technology Officer3.58yrsno datano data
Gitte Bendzulla
MD & General Counsel1.75yrsno data0.0042%
€ 5.5k
Kirill Priyatel
Chief Commercial Officer0.58yrno datano data
Cristina Ceballos
Corporate Controllerno datano datano data

0.9yrs

Average Tenure

44.5yo

Average Age

Experienced Management: LOV's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Eric Eichmann
MD, CEO & Director0.75yrno datano data
Deepak Kamra
Director1.08yrsno datano data
Colleen Brown
Independent Member of Administrative Board2.75yrsno datano data
Axel Hefer
Member of Administrative Board2.75yrsno datano data
Bradley Goldberg
Vice Chairman of Administrative Boardno datano data0.098%
€ 128.1k
David Khalil
Chairman of Administrative Boardno datano datano data
Jeronimo Folgueira
Member of the Administrative Board2.75yrsno data0.086%
€ 112.3k
Cheryl Law
Member of Administrative Board2.17yrsno datano data

2.5yrs

Average Tenure

49.5yo

Average Age

Experienced Board: LOV's board of directors are not considered experienced ( 2.5 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: Insufficient data to determine if 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

Spark Networks SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spark Networks SE
  • Ticker: LOV
  • Exchange: AMEX
  • Founded:
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$130.806m
  • Shares outstanding: 26.06m
  • Website: https://www.spark.net

Number of Employees


Location

  • Spark Networks SE
  • Kohlfurter Strasse 41/43
  • Berlin
  • Berlin
  • 10999
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LOVAMEX (NYSE MKT LLC)YesSPONSORED ADRUSUSDNov 2017

Biography

Spark Networks SE operates online dating sites and mobile applications. It focuses on catering professionals and highly educated singles with serious relationship intentions in North America and other inte ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 23:50
End of Day Share Price2020/08/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.