The Lovesac CoLOVE +9.95%78 Altman Z-Score is 2.10 as of Jun. 24, 2026, which is 40% below its 10-year median of 3.48. 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 429 Furnishings, Fixtures & Appliances companies, The Lovesac Co ranks worse than 69% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Warning Sign:
Altman Z-score of 2.05 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
The Lovesac Co has a Altman Z-Score of 2.10, indicating it is in Grey Zones. This implies that The Lovesac Co is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for The Lovesac Co's Altman Z-Score or its related term are showing as below:
LOVE'
s Altman Z-Score Range Over the Past 10 Years
Min: 0.2 Med: 3.48 Max: 12.28
Current: 2.05
During the past 11 years, The Lovesac Co's highest Altman Z-Score was 12.28. The lowest was 0.20. And the median was 3.48.
The Lovesac Co (NAS:LOVE) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
The Lovesac Co Altman Z-Score Related Terms
The Lovesac Co Altman Z-Score Historical Data
* Premium members only.
The historical data trend for The Lovesac Co's Altman Z-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.
LOVE vs FLXS, LCUT, COOK: Altman Z-Score Comparison
For the Furnishings, Fixtures & Appliances subindustry, The Lovesac Co's Altman Z-Score, along with its competitors' market caps and Altman Z-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 Altman Z-Score vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, The Lovesac Co's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where The Lovesac Co's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The Lovesac Co's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.141
+
1.4
*
0.0208
+
3.3
*
0.0092
+
0.6
*
0.7943
+
1.0
*
1.3912
=
2.10
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
The Lovesac Co (LOVE) has a Altman Z-Score of 2.10 as of Jun. 24, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on The Lovesac Co and its competitors. This is 40% below median its historical median of 3.48. Over the past decade, The Lovesac Co's Altman Z-Score has ranged from 0.20 to 12.28. According to the industry distribution chart, The Lovesac Co ranks #296 out of 429 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 69%.
Is The Lovesac Co's Altman Z-Score too high?
The Lovesac Co's current Altman Z-Score of 2.10 is 40% below median its 10-year median of 3.48. Over the past 10 years, this metric has ranged from a low of 0.20 to a high of 12.28. The Furnishings, Fixtures & Appliances industry median Altman Z-Score is 2.81. The Lovesac Co's value of 2.10 is 25.3% below this industry median. Based on the distribution chart, The Lovesac Co ranks #296 out of 429 companies in the Furnishings, Fixtures & Appliances industry, which is below the industry midpoint. 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 Altman Z-Score compare to FLXS and LCUT?
According to the Furnishings, Fixtures & Appliances industry distribution chart, The Lovesac Co ranks #296 out of 429 companies for Altman Z-Score. This places The Lovesac Co in the lower half of its industry. The industry median Altman Z-Score is 2.81. The Lovesac Co's value of 2.10 is 25.3% below this benchmark. Historically, The Lovesac Co's own Altman Z-Score has ranged from 0.20 to 12.28 over the past decade. While the company's 10-year median is 3.48 vs. the industry median of 2.81, The Lovesac Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z-Score for a Furnishings, Fixtures & Appliances company?
The median Altman Z-Score among Furnishings, Fixtures & Appliances companies is 2.81, based on 429 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Lovesac Co's current Altman Z-Score of 2.10 is 25.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on The Lovesac Co and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Altman Z-Score is 2.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Lovesac Co's current Altman Z-Score is 2.10, which is 40% below median its own 10-year median of 3.48. 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 $16.03 — trading 32.6% below its estimated fair value. The current Altman Z-Score is 2.10, which is 40% below median its 10-year median of 3.48 and 25.3% below the Furnishings, Fixtures & Appliances industry median of 2.81. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For The Lovesac Co (LOVE), the current Altman Z-Score is 2.10 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 $16.03 is trading 32.6% below its estimated GF Value™ of $23.79.
GuruFocus considers The Lovesac Co to be Significantly Undervalued.
Key valuation signals for LOVE:
Altman Z-Score: 2.10 (40% below median its 10-year median of 3.48)
GF Value™: $23.79 vs. price of $16.03 (32.6% below fair value)
Industry Position: 25.3% below the Furnishings, Fixtures & Appliances median (#296 of 429)
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 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
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