LOVE (The Lovesac Co) Beneish M-Score: -2.95 (As of Jun. 24, 2026)


LOVE The Lovesac Co LOVE
78 GF Score
Price $16.34
GF Value $23.79
Valuation Significantly Undervalued
! 4 Warning Signs
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What is The Lovesac Co Beneish M-Score?

The Lovesac Co LOVE +12.07% 78 Beneish M-Score is -2.95 as of Jun. 24, 2026. GuruFocus rates LOVE with a GF Score™ of 78/100 and a GF Value™ of $23.79 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 419 Furnishings, Fixtures & Appliances companies, The Lovesac Co ranks better than 80.67% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.95 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for The Lovesac Co's Beneish M-Score or its related term are showing as below:

LOVE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.74   Med: -2.16   Max: 0.4
Current: -2.95

During the past 11 years, the highest Beneish M-Score of The Lovesac Co was 0.40. The lowest was -3.74. And the median was -2.16.


The Lovesac Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for The Lovesac Co's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The Lovesac Co Beneish M-Score Chart

The Lovesac Co Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.86 -1.24 -2.62 -2.51 -3.14

The Lovesac Co Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.61 -2.49 -2.41 -3.14 -2.95

LOVE vs FLXS, LCUT, COOK: Beneish M-Score Comparison

For the Furnishings, Fixtures & Appliances subindustry, The Lovesac Co's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Lovesac Co Beneish M-Score vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, The Lovesac Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where The Lovesac Co's Beneish M-Score falls into.


LOVE
78GF Score
The Lovesac Co LOVE
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

The Lovesac Co Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of The Lovesac Co for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9951+0.528 * 1.0397+0.404 * 0.9869+0.892 * 1.0154+0.115 * 0.9378
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9937+4.679 * -0.102874-0.327 * 1.0097
=-2.95

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Apr26) TTM:Last Year (Apr25) TTM:
Total Receivables was $13.2 Mil.
Revenue was 138.196 + 248.046 + 150.166 + 160.53 = $696.9 Mil.
Gross Profit was 71.974 + 144 + 84.237 + 90.608 = $390.8 Mil.
Total Current Assets was $199.0 Mil.
Total Assets was $501.0 Mil.
Property, Plant and Equipment(Net PPE) was $248.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.8 Mil.
Selling, General, & Admin. Expense(SGA) was $372.1 Mil.
Total Current Liabilities was $128.4 Mil.
Long-Term Debt & Capital Lease Obligation was $166.6 Mil.
Net Income was -11.093 + 32.106 + -10.551 + -6.65 = $3.8 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -35.356 + 83.421 + -4.881 + 12.165 = $55.3 Mil.
Total Receivables was $13.0 Mil.
Revenue was 138.373 + 241.49 + 149.905 + 156.59 = $686.4 Mil.
Gross Profit was 74.37 + 145.782 + 87.639 + 92.369 = $400.2 Mil.
Total Current Assets was $181.5 Mil.
Total Assets was $483.7 Mil.
Property, Plant and Equipment(Net PPE) was $249.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.8 Mil.
Selling, General, & Admin. Expense(SGA) was $368.8 Mil.
Total Current Liabilities was $113.1 Mil.
Long-Term Debt & Capital Lease Obligation was $169.0 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(13.158 / 696.938) / (13.022 / 686.358)
=0.01888 / 0.018973
=0.9951

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(400.16 / 686.358) / (390.819 / 696.938)
=0.583019 / 0.560766
=1.0397

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (198.991 + 248.07) / 500.973) / (1 - (181.453 + 249.539) / 483.74)
=0.107615 / 0.109042
=0.9869

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=696.938 / 686.358
=1.0154

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(14.821 / (14.821 + 249.539)) / (15.774 / (15.774 + 248.07))
=0.056064 / 0.059785
=0.9378

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(372.102 / 696.938) / (368.789 / 686.358)
=0.53391 / 0.537313
=0.9937

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((166.602 + 128.373) / 500.973) / ((169.037 + 113.065) / 483.74)
=0.588804 / 0.583169
=1.0097

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(3.812 - 0 - 55.349) / 500.973
=-0.102874

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

The Lovesac Co has a M-score of -2.95 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.95 mean?
The Lovesac Co (LOVE) has a Beneish M-Score of -2.95 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on The Lovesac Co and its competitors. According to the industry distribution chart, The Lovesac Co ranks #81 out of 419 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 19.3%.
Is The Lovesac Co's Beneish M-Score too high?
The Lovesac Co's current Beneish M-Score is -2.95. Based on the distribution chart, The Lovesac Co ranks #81 out of 419 companies in the Furnishings, Fixtures & Appliances industry, which is in the top quartile — a strong position relative to peers. Overall, The Lovesac Co has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Lovesac Co's Beneish M-Score compare to FLXS and LCUT?
According to the Furnishings, Fixtures & Appliances industry distribution chart, The Lovesac Co ranks #81 out of 419 companies for Beneish M-Score. This places The Lovesac Co in the top 19% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Furnishings, Fixtures & Appliances company?
A good Beneish M-Score depends on the Furnishings, Fixtures & Appliances industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on The Lovesac Co and its competitors. The Lovesac Co's current Beneish M-Score is -2.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Lovesac Co stock overvalued right now?
Based on GuruFocus' analysis, The Lovesac Co (LOVE) is currently considered Significantly Undervalued. The stock's GF Value™ is $23.79, compared to a current price of $16.34 — trading 31.3% below its estimated fair value. The current Beneish M-Score is -2.95. The Lovesac Co's overall GF Score™ is 78/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For The Lovesac Co (LOVE), the current Beneish M-Score is -2.95 as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is The Lovesac Co (LOVE) Overvalued in 2026?

Based on GuruFocus' analysis, The Lovesac Co stock appears to be undervalued. The current stock price of $16.34 is trading 31.3% below its estimated GF Value™ of $23.79. GuruFocus considers The Lovesac Co to be Significantly Undervalued.

Key valuation signals for LOVE:

  • Beneish M-Score: -2.95
  • GF Value™: $23.79 vs. price of $16.34 (31.3% below fair value)
  • GF Score™: 78/100 with 4 warning signs

No single metric tells the full story. See the LOVE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


The Lovesac Co Business Description

Address 421 Atlantic Street, Stamford, CT, USA, 06901
The Lovesac Co designs, manufactures and sells alternative furniture which is comprised of modular couches called sactionals and premium foam beanbag chairs called sacs. It also offers other accessories such as sactional-specific drink holders, Footsac blankets, decorative pillows, fitted seat tables, and ottomans. Its products are sold across the United States through its website or company-owned retail stores which are used in homes and offices. The majority of the firm's revenue is derived from the sale of Sactionals.
78GF Score

Get the complete analysis for LOVE

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$16.34
Price
$23.79
GF Value