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Savers Value Village Inc. (SVV)
NYSE:SVV
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Savers Value Village Inc.
(NYSE:SVV)
75Outperform
Positive Factors
Earnings
The table is set for a beat across both sales and earnings in the first quarter.
Growth Opportunities
Savers is the only scaled for-profit thrift retailer, and the broader resale market is poised to grow at a low-double-digit pace over the next five years.
Store Expansion
Management sees U.S. store expansion as the largest growth opportunity and the best use of capital.
Negative Factors
Canadian Market Challenges
A weaker Canadian market drove overall comp negative in 2024 and compressed margins along with an increase in the number of new stores.
Inflation and Tariffs
The largest risk here is any broader weakness in spending in lower income cohorts, which could be brought on by a higher inflationary environment as certain tariffs remain.
Profitability Pressure
The company reduces its FY25 EPS estimate due to the detrimental impact to profitability from the new store ramp and additional FX pressure from CAD depreciation.
Savers Value Village Inc. (SVV) vs. S&P 500 (SPY)
Market Cap
$1.59B
Dividend YieldN/A
Average Volume (3M)1.22M
Price to Earnings (P/E)68.6
Beta (1Y)0.69
Revenue Growth2.97%
EPS Growth-63.56%
CountryUS
Employees22,700
SectorConsumer Cyclical
Sector Strength73
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.02
Shares Outstanding157,451,570
10 Day Avg. Volume1,509,150
30 Day Avg. Volume1,215,203
Financial Highlights & Ratios
PEG Ratio-4.24
Price to Book (P/B)4.23
Price to Sales (P/S)0.00
P/FCF Ratio47.59
Enterprise Value/Market Cap1.42
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit2.65
Enterprise Value/Ebitda2.96
Forecast
1Y Price Target
$11.83Price Target Upside17.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Savers Value Village Inc. Business Overview & Revenue Model
Company DescriptionSavers Value Village Inc. (SVV) is a prominent for-profit thrift retailer operating in the secondhand goods sector. It offers a wide array of pre-owned merchandise, including clothing, accessories, household items, and furniture. The company is known for its commitment to sustainability and community development, as it promotes recycling and reuse through its retail operations. Savers Value Village operates a network of stores across the United States, Canada, and Australia, providing customers with affordable shopping options while supporting local non-profit organizations.
How the Company Makes MoneySavers Value Village Inc. generates revenue primarily through the sale of pre-owned goods in its retail stores. The company sources its inventory through donations, which are often collected in partnership with local non-profit organizations. In exchange for these donations, SVV pays the partner organizations based on the volume of goods collected, providing them with a sustainable source of funding. The company then sorts, prices, and sells these items in its stores, appealing to budget-conscious consumers and environmentally-aware shoppers. The business model is bolstered by the growing demand for sustainable and affordable shopping options, as well as the increasing popularity of thrift shopping as a lifestyle choice. Additionally, SVV may generate revenue through recycling programs, where unsold items are repurposed or sold to recyclers, further aligning with its environmental sustainability goals.
Savers Value Village Inc. Financial Statement Overview
Summary
Savers Value Village Inc. demonstrates robust revenue growth and a healthy gross profit margin, though there are challenges in profitability due to modest net profit margins and a decrease in return on equity. The high debt-to-equity ratio presents leverage risk, but stable cash flow operations provide a solid foundation for cautious growth.Income Statement
The company exhibits strong revenue growth with a consistent upward trajectory from 2020 to the TTM period. Gross profit margin is healthy, indicating effective cost control, though there is a slight decline in EBIT and net income from the previous year. The TTM net profit margin remains modest, suggesting room for improvement in bottom-line efficiency.78
Positive
Balance Sheet
The balance sheet reflects a relatively high debt-to-equity ratio, indicating a leveraged position which could pose financial risk if not managed properly. However, the equity ratio shows improvement, signaling increased shareholder investment. Return on equity has decreased, revealing that profitability relative to equity is under pressure.65
Positive
Cash Flow
Cash flow generation remains stable with a positive free cash flow, though growth has slowed. The operating cash flow to net income ratio suggests efficient conversion of earnings to cash, yet the free cash flow to net income ratio indicates potential challenges in sustaining cash reserves amid capital expenditures.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.55B | 1.54B | 1.50B | 1.44B | 1.20B | 834.01M | Gross Profit |
| 848.87M | 1.21B | 846.00M | 837.30M | 729.66M | 480.56M | EBIT |
| 125.28M | 130.19M | 141.86M | 206.23M | 182.24M | 6.84M | EBITDA |
| 186.22M | 192.38M | 203.00M | 246.96M | 207.92M | 33.68M | Net Income Common Stockholders |
| 24.77M | 29.03M | 53.12M | 84.72M | 83.39M | -63.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 92.95M | 149.97M | 179.96M | 112.13M | 96.81M | 137.20M | Total Assets |
| 1.71B | 1.89B | 1.87B | 1.71B | 1.22B | 965.62M | Total Debt |
| 1.56B | 1.30B | 1.29B | 1.26B | 803.94M | 607.83M | Net Debt |
| 1.47B | 1.15B | 1.11B | 1.15B | 707.12M | 470.63M | Total Liabilities |
| 1.75B | 1.46B | 1.49B | 1.48B | 1.04B | 791.69M | Stockholders Equity |
| -48.41M | 421.68M | 376.06M | 227.34M | 185.43M | 173.93M |
| Cash Flow | Free Cash Flow | ||||
| 36.53M | 28.40M | 82.77M | 59.26M | 135.22M | 10.74M | Operating Cash Flow |
| 140.50M | 134.28M | 175.16M | 169.43M | 175.76M | 29.91M | Investing Cash Flow |
| -77.37M | -80.52M | -92.36M | -110.50M | -263.17M | -19.17M | Financing Cash Flow |
| -87.50M | -76.63M | -17.04M | -40.22M | 53.00M | 36.81M |
Savers Value Village Inc. Technical Analysis
Positive
10.09
Price Trends
8.54
Positive
9.35
Positive
9.56
Positive
Market Momentum
0.43
Positive
53.63
Neutral
20.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SVV, the sentiment is Positive. The current price of 10.09 is below the 20-day moving average (MA) of 10.11, above the 50-day MA of 8.54, and above the 200-day MA of 9.56, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 53.63 is Neutral, neither overbought nor oversold. The STOCH value of 20.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SVV.
Savers Value Village Inc. Risk Analysis
Savers Value Village Inc. disclosed 43 risk factors in its most recent earnings report. Savers Value Village Inc. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Savers Value Village Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.59B | 68.64 | 6.13% | ― | 2.97% | -63.56% | |
74 Outperform | $765.22M | 31.07 | 14.01% | ― | 35.78% | 23.49% | |
74 Outperform | $1.49B | 29.82 | 11.97% | ― | 9.09% | 106.50% | |
61 Neutral | $6.98B | 11.36 | 2.87% | 3.90% | 2.65% | -21.76% | |
60 Neutral | $845.47M | ― | -69.51% | ― | -10.55% | 9.27% | |
59 Neutral | $1.50B | 37.95 | -118.80% | 0.85% | 0.33% | 1.50% | |
58 Neutral | $617.72M | ― | -0.22% | ― | 24.19% | 95.39% |
* Consumer Cyclical Sector Average
Performance Comparison
SVV
Savers Value Village Inc.
10.09
-2.71
-21.17%
LQDT
Liquidity Services
24.51
4.74
23.98%
WINA
Winmark
424.86
64.13
17.78%
RVLV
Revolve Group
20.96
-0.41
-1.92%
TDUP
thredUP
7.15
5.08
245.41%
RERE
ATRenew Inc. Sponsored ADR
2.81
0.10
3.69%
Savers Value Village Inc. Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 6.10%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive sentiment with strong U.S. sales growth, positive trends in Canada, and expansion of the loyalty program and new stores. However, challenges remain, particularly in Canada due to macroeconomic pressures and the impact of currency fluctuations. Despite these challenges, the company's focus on innovation and expansion positions it well for future growth.Q1-2025 Updates
Positive Updates
U.S. Sales Growth
Nearly double-digit sales growth in the U.S., driven by increases in both transactions and average basket size.
Positive Comp in Canada
First positive comparable store sales growth in Canada since Q4 2023, despite challenging macroeconomic conditions.
Loyalty Program Expansion
Loyalty program reached nearly 6 million total active members by the end of the first quarter.
New Store Openings
Opened 2 new stores in the quarter with plans to open 25 to 30 new stores this year.
Adjusted EBITDA Performance
Generated nearly $43 million of adjusted EBITDA in the quarter, approximately 11.6% of sales.
Central Processing Centers Expansion
Opened sixth CPC in Southern California, ahead of schedule, to support market growth.
Strong Cash Position
Ended the quarter with $73 million in cash and cash equivalents, with a net leverage ratio of 2.4x.
Negative Updates
Canadian Sales Decline
Net sales in Canada declined by 4.1% due to a weaker Canadian dollar, although constant currency sales increased by 2.2%.
Increased Expenses
Cost of merchandise sold as a percentage of net sales increased by 80 basis points, and SG&A expenses increased by 160 basis points.
Net Loss
Reported a GAAP net loss of $4.7 million, or $0.03 per diluted share, including a $2.7 million pretax loss on debt extinguishment.
Macroeconomic Challenges in Canada
Continued macroeconomic challenges in Canada, with tariffs adding uncertainty to consumer spending.
Company Guidance
During the call, management from Savers Value Village outlined several key metrics and strategic initiatives for the first quarter ending March 29, 2025. The U.S. business demonstrated nearly double-digit sales growth, with U.S. net sales increasing by 9.4% to $211 million and comparable store sales up by 4.2%. Conversely, Canadian net sales decreased by 4.1% due to a weaker Canadian dollar; however, on a constant currency basis, Canadian net sales rose 2.2% to $137 million, with a 0.6% increase in comparable store sales. The company highlighted the success of their loyalty program, which reached nearly 6 million active members. Additionally, adjusted EBITDA for the quarter was approximately $43 million, or 11.6% of sales. Looking ahead, the company plans to open 25 to 30 new stores in 2025 and is focusing on expanding its U.S. store portfolio. The fiscal year 2025 guidance includes projected net sales of $1.61 billion to $1.65 billion, with comparable store sales growth anticipated to be between 0.5% and 2.5%. Adjusted EBITDA is expected to range from $245 million to $265 million, and capital expenditures are forecasted at $125 million to $150 million.Savers Value Village Inc. Corporate Events
Private Placements and FinancingStock Buyback
Savers Value Village Completes Secondary Stock Offering
Neutral
May 16, 2025
On May 16, 2025, Savers Value Village, Inc. completed a secondary public offering of 15,000,000 shares of common stock, priced at $9.25 per share, by Ares Management LLC and the company’s CEO. The company also repurchased 2,258,132 shares using existing cash, without receiving proceeds from the offering, which was managed by major financial institutions including J.P. Morgan and Goldman Sachs.
The most recent analyst rating on (SVV) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Savers Value Village Inc. stock, see the SVV Stock Forecast page.
Spark’s Take on SVV Stock
According to Spark, TipRanks’ AI Analyst, SVV is a Outperform.
Savers Value Village Inc. exhibits strong revenue growth and positive market momentum, driven by U.S. sales and strategic expansions. However, profitability challenges and a high P/E ratio present valuation concerns. The positive sentiment from the earnings call, despite some regional challenges, supports a solid overall stock score.
To see Spark’s full report on SVV stock, click here.
Private Placements and FinancingStock Buyback
Savers Value Village Announces Secondary Public Offering
Neutral
May 13, 2025
On May 13, 2025, Savers Value Village, Inc. announced the launch of a secondary public offering of 15,000,000 shares of its common stock, with the shares being offered by Ares Management LLC and the company’s CEO. Additionally, the company plans a concurrent repurchase of up to $20 million of these shares using its existing cash reserves. The offering, managed by major financial institutions, will not involve the company selling any of its own shares, nor will it receive proceeds from the sale. This move is expected to impact the company’s financial strategy and market positioning, as it seeks to manage its share structure and liquidity.
The most recent analyst rating on (SVV) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Savers Value Village Inc. stock, see the SVV Stock Forecast page.
Spark’s Take on SVV Stock
According to Spark, TipRanks’ AI Analyst, SVV is a Outperform.
Savers Value Village Inc. exhibits strong revenue growth and positive market momentum, driven by U.S. sales and strategic expansions. However, profitability challenges and a high P/E ratio present valuation concerns. The positive sentiment from the earnings call, despite some regional challenges, supports a solid overall stock score.
To see Spark’s full report on SVV stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.