Investors Will Want Lovesac's (NASDAQ:LOVE) Growth In ROCE To Persist
Investors Will Want Lovesac's (NASDAQ:LOVE) Growth In ROCE To Persist
What are the early trends we should look for to identify a stock that could multiply in value over the long term? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So on that note, Lovesac (NASDAQ:LOVE) looks quite promising in regards to its trends of return on capital.
要確定可以長期價值成倍增長的股票,我們應該尋找哪些早期趨勢?在一個完美的世界中,我們希望看到一家公司向其業務投資更多的資本,理想情況下,從這些資本中獲得的回報也在增加。如果你看到這一點,那通常意味着它是一家擁有良好商業模式和大量盈利再投資機會的公司。因此,從這個角度來看,Lovesac(納斯達克股票代碼:LOVE)的資本回報率趨勢看起來相當樂觀。
Return On Capital Employed (ROCE): What Is It?
資本使用回報率(ROCE):這是什麼?
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Lovesac is:
如果你以前沒有與ROCE合作過,它可以衡量一家公司從其業務中使用的資本中產生的 “回報”(稅前利潤)。在 Lovesac 上進行此計算的公式爲:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
已動用資本回報率 = 息稅前收益 (EBIT) ¥(總資產-流動負債)
0.085 = US$28m ÷ (US$436m - US$106m) (Based on the trailing twelve months to October 2023).
0.085 = 2800 萬美元 ¥(4.36 億美元-1.06 億美元) (基於截至2023年10月的過去十二個月)。
Therefore, Lovesac has an ROCE of 8.5%. Ultimately, that's a low return and it under-performs the Consumer Durables industry average of 14%.
因此,Lovesac的投資回報率爲8.5%。歸根結底,這是一個低迴報,其表現低於耐用消費品行業14%的平均水平。
Check out our latest analysis for Lovesac
查看我們對 Lovesac 的最新分析
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231208/0-46225f12976e94d41dada49e28e88864-0-6f9a9683c20b2671c0b07b2c8e240e8d.png/big)
In the above chart we have measured Lovesac's prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free report for Lovesac.
在上面的圖表中,我們對Lovesac之前的投資回報率與之前的表現進行了比較,但可以說,未來更爲重要。如果你想了解分析師對未來的預測,你應該查看我們爲Lovesac提供的免費報告。
What Does the ROCE Trend For Lovesac Tell Us?
Lovesac 的 ROCE 趨勢告訴我們什麼?
We're delighted to see that Lovesac is reaping rewards from its investments and is now generating some pre-tax profits. The company was generating losses five years ago, but now it's earning 8.5% which is a sight for sore eyes. Not only that, but the company is utilizing 360% more capital than before, but that's to be expected from a company trying to break into profitability. This can tell us that the company has plenty of reinvestment opportunities that are able to generate higher returns.
我們很高興看到Lovesac正在從其投資中獲得回報,並且現在正在產生一些稅前利潤。該公司在五年前出現虧損,但現在的收入爲8.5%,真是令人眼花繚亂。不僅如此,該公司利用的資本比以前增加了360%,但對於一家試圖實現盈利能力的公司來說,這是可以預料的。這可以告訴我們,該公司擁有大量能夠產生更高回報的再投資機會。
The Bottom Line
底線
Overall, Lovesac gets a big tick from us thanks in most part to the fact that it is now profitable and is reinvesting in its business. Since the stock has only returned 17% to shareholders over the last five years, the promising fundamentals may not be recognized yet by investors. So with that in mind, we think the stock deserves further research.
總體而言,Lovesac從我們那裏獲得了很大的成功,這在很大程度上要歸功於它現在已經盈利並且正在對其業務進行再投資。由於該股在過去五年中僅向股東回報了17%,因此投資者可能尚未認識到前景良好的基本面。因此,考慮到這一點,我們認爲該股值得進一步研究。
On a final note, we've found 1 warning sign for Lovesac that we think you should be aware of.
最後一點,我們發現了Lovesac的1個警告信號,我們認爲你應該注意。
If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.
如果你想尋找收益豐厚的穩健公司,可以免費查看這份資產負債表良好且股本回報率可觀的公司名單。
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。