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Luvu Brands (Luvu Brands) Piotroski F-Score : 2 (As of May. 11, 2024)


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What is Luvu Brands Piotroski F-Score?

Warning Sign:

Piotroski F-Score of 2 is low, which usually implies poor business operation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Luvu Brands has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

The historical rank and industry rank for Luvu Brands's Piotroski F-Score or its related term are showing as below:

LUVU' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 7
Current: 2

During the past 13 years, the highest Piotroski F-Score of Luvu Brands was 7. The lowest was 2. And the median was 5.


Luvu Brands Piotroski F-Score Historical Data

The historical data trend for Luvu Brands's Piotroski F-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.

* Premium members only.

Luvu Brands Piotroski F-Score Chart

Luvu Brands Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 5.00 5.00 4.00 7.00

Luvu Brands Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-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 5.00 N/A 7.00 6.00 2.00

Competitive Comparison of Luvu Brands's Piotroski F-Score

For the Furnishings, Fixtures & Appliances subindustry, Luvu Brands's Piotroski F-Score, along with its competitors' market caps and Piotroski F-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.


Luvu Brands's Piotroski F-Score Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Luvu Brands's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Luvu Brands's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 0.293 + -0.281 + -0.126 + 0.029 = $-0.09 Mil.
Cash Flow from Operations was -0.496 + -0.245 + 0.172 + 0.198 = $-0.37 Mil.
Revenue was 6.902 + 6.121 + 6.127 + 6.786 = $25.94 Mil.
Gross Profit was 1.769 + 1.191 + 1.483 + 1.818 = $6.26 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(11.218 + 11.671 + 10.611 + 10.553 + 9.972) / 5 = $10.805 Mil.
Total Assets at the begining of this year (Dec22) was $11.22 Mil.
Long-Term Debt & Capital Lease Obligation was $2.60 Mil.
Total Current Assets was $6.10 Mil.
Total Current Liabilities was $4.25 Mil.
Net Income was 0.452 + -0.242 + 0.492 + 0.695 = $1.40 Mil.

Revenue was 6.753 + 6.179 + 8.059 + 8.135 = $29.13 Mil.
Gross Profit was 1.794 + 1.131 + 1.886 + 2.259 = $7.07 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(10.02 + 0 + 10.379 + 10.962 + 11.218) / 5 = $10.64475 Mil.
Total Assets at the begining of last year (Dec21) was $10.02 Mil.
Long-Term Debt & Capital Lease Obligation was $2.60 Mil.
Total Current Assets was $7.03 Mil.
Total Current Liabilities was $5.44 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Luvu Brands's current Net Income (TTM) was -0.09. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Luvu Brands's current Cash Flow from Operations (TTM) was -0.37. ==> Negative ==> Score 0.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=-0.085/11.218
=-0.00757711

ROA (Last Year)=Net Income/Total Assets (Dec21)
=1.397/10.02
=0.13942116

Luvu Brands's return on assets of this year was -0.00757711. Luvu Brands's return on assets of last year was 0.13942116. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Luvu Brands's current Net Income (TTM) was -0.09. Luvu Brands's current Cash Flow from Operations (TTM) was -0.37. ==> -0.37 <= -0.09 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=2.601/10.805
=0.24072189

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=2.601/10.64475
=0.2443458

Luvu Brands's gearing of this year was 0.24072189. Luvu Brands's gearing of last year was 0.2443458. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=6.097/4.254
=1.4332393

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=7.034/5.442
=1.29253951

Luvu Brands's current ratio of this year was 1.4332393. Luvu Brands's current ratio of last year was 1.29253951. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Luvu Brands's number of shares in issue this year was 77.098. Luvu Brands's number of shares in issue last year was 76.481. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=6.261/25.936
=0.24140191

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=7.07/29.126
=0.24273845

Luvu Brands's gross margin of this year was 0.24140191. Luvu Brands's gross margin of last year was 0.24273845. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=25.936/11.218
=2.31199857

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=29.126/10.02
=2.90678643

Luvu Brands's asset turnover of this year was 2.31199857. Luvu Brands's asset turnover of last year was 2.90678643. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+0+0+0+1+1+0+0+0
=2

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Luvu Brands has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

Luvu Brands  (OTCPK:LUVU) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Luvu Brands Piotroski F-Score Related Terms

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Luvu Brands (Luvu Brands) Business Description

Traded in Other Exchanges
N/A
Address
2745 Bankers Industrial Drive, Atlanta, GA, USA, 30360
Luvu Brands Inc designs, manufactures, and markets a portfolio of consumer lifestyle brands including Liberator, a brand category of iconic products for enhancing sensuality and intimacy; Avana, inclined bed therapy products, assistive in relieving medical conditions associated with acid reflux, surgery recovery, and chronic pain; and Jaxx, a diverse range of casual fashion daybeds, sofas, and beanbags made from virgin and re-purposed polyurethane foam. It conducts its business through three primary sales channels: Direct, Wholesale, and Others. The brands of the company involve Avana, Liberator, Jaxx, Panelist, CreAtl and Zipline.
Executives
Martin P Scott officer: Chief Financial Officer SIMPLEPONS, INC., C/O 220 CONGRESS PARK DRIVE, SUITE 304, DELRAY BEACH FL 33445
Alexander A. Sannikov officer: Chief Financial Officer 2745 BANKERS INDUSTRIAL DR, ATLANTA GA 30360
Ronald P Scott director, officer: CFO & Secretary 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Manuel Munoz officer: Chief Information Officer 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Louis S Friedman director, officer: President & CEO 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Sean Hougham officer: Vice President - Manufacturing 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Donald Cohen 10 percent owner 2745 BANKERS INDUSTRIAL DRIVE, DORAVILLE GA 30360
James Blanchard officer: Senior VP-Business Development 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Michael Kane officer: Executive Vice President 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Leslie Vogelman officer: Treasurer 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Rufina Bulatova officer: Vice President Online Market. 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Fyodor Petrenko 10 percent owner, officer: Vice President 204 SALEM CT, APT 5, PRINCETON NJ 08540
David Wirth officer: Vice President - Operations 2745 BANKERS INDUSTRIAL DRIVE, DORAVILLE GA 30360
Belmont Partners, Llc 10 percent owner 360 MAIN STREET, P.O. BOX 393, WASHINGTON VA 22747
Joseph J Meuse director, officer: President 211 FALMOUTH STREET, WARRENTON VA 20186