Is Lovesac Co (LOVE) Halal?

NASDAQ Consumer Cyclical United States $198M
✗ NOT HALAL
Confidence: 90/100
Lovesac Co (LOVE) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 105.2% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Lovesac Co operates in the Consumer Cyclical sector.

Shariah Screening — 5 Standards

Based on financial data from January 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 105.2%
/ 30%
48.1%
/ 30%
9.6%
/ 30%
0.0%
/ 5%
✗ NOT HALAL
DJIM 105.2%
/ 33%
48.1%
/ 33%
9.6%
/ 33%
0.0%
/ 5%
✗ NOT HALAL
MSCI 34.4%
/ 33%
15.7%
/ 33%
3.2%
/ 33%
0.0%
/ 5%
✗ NOT HALAL
S&P 105.2%
/ 33%
48.1%
/ 33%
9.6%
/ 33%
0.0%
/ 5%
✗ NOT HALAL
FTSE 34.4%
/ 33%
15.7%
/ 33%
3.2%
/ 50%
0.0%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
48.3
Forward: 5.0
EPS
$0.28
P/B Ratio
0.9
EV/EBITDA
14.0
EV: $288M
Revenue
$681M
Growth: 2.7%
Beta
2.4
High volatility
Current Ratio
1.6

Profitability

Gross Margin 56.4%
Operating Margin 18.1%
Net Margin 0.6%
Return on Equity (ROE) 1.9%
Return on Assets (ROA) 0.6%

Cash Flow & Balance Sheet

Operating Cash Flow$39M
Free Cash Flow$17M
Total Debt$183M
Debt-to-Equity88.0
Current Ratio1.6
Total Assets$532M

Price & Trading

Last Close$13.76
50-Day MA$12.83
200-Day MA$15.55
Avg Volume252K
Beta2.4
52-Week Range
$10.33
$21.90

About Lovesac Co (LOVE)

CEO
Mr. Shawn David Nelson
Sector
Consumer Cyclical
Industry
Furnishings, Fixtures & Appliances
Country
United States
Exchange
NASDAQ
Market Cap
$198M
Currency
USD

The Lovesac Company designs, manufactures, and sells furniture. It offers sactionals, such as seats and sides; sacs, including foam beanbag chairs; and other products comprising drink holders, footsac blankets, decorative pillows, fitted seat tables, and ottomans. The company also provides StealthTech, a home theater system; and PillowSac, an accent chair. It markets its products primarily through www.lovesac.com website, as well as showrooms, lifestyle centers, mobile concierges, kiosks, and street locations in 42 states in the United States; and in store pop-up-shops and shop-in-shops, and barter inventory transactions. The Lovesac Company was founded in 1995 and is based in Stamford, Connecticut.

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Frequently Asked Questions

Is Lovesac Co (LOVE) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Lovesac Co is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Lovesac Co's debt ratio?

Lovesac Co's debt ratio is 105.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 34.4%.

What are Lovesac Co's key financial metrics?

Lovesac Co has a market capitalization of $198M, trailing P/E ratio of 48.3, and revenue of $681M. The company maintains a gross margin of 56.4% and a net margin of 0.6%. Return on equity stands at 1.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.