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Savers Value Village Inc. (SVV)
NYSE:SVV
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Savers Value Village Inc.
(NYSE:SVV)
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Select Model
Rating:69Neutral
Price Target:
$14.00
▲(8.61% Upside)
Savers Value Village Inc. has a stable financial performance with strong revenue growth and gross margins, but faces risks from high leverage and declining free cash flow. The technical analysis indicates positive momentum, while the earnings call provides a positive outlook with strong U.S. sales growth and expansion plans. However, the high P/E ratio suggests potential overvaluation.
Positive Factors
Strong Revenue Growth
The company's robust revenue growth, particularly in the U.S. market, indicates effective business strategies and strong consumer demand, supporting long-term expansion plans.
Loyalty Program Expansion
The growing loyalty program enhances customer retention and engagement, providing a competitive advantage and stable revenue base over time.
New Store Openings
The strategic expansion through new store openings supports market penetration and revenue growth, positioning the company for sustained long-term success.
Negative Factors
High Debt Levels
The company's high leverage poses financial risks, potentially limiting its ability to invest in growth opportunities and manage economic downturns effectively.
Declining Free Cash Flow
The decline in free cash flow could constrain the company's ability to fund new projects or reduce debt, impacting its financial flexibility and growth potential.
Increased Cost of Merchandise
Rising merchandise costs can pressure profit margins, potentially reducing profitability if not managed through pricing strategies or cost efficiencies.
Savers Value Village Inc. (SVV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.98B
Dividend YieldN/A
Average Volume (3M)1.82M
Price to Earnings (P/E)63.1
Beta (1Y)0.51
Revenue Growth4.47%
EPS Growth-8.19%
CountryUS
Employees22,700
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.14
Shares Outstanding155,555,980
10 Day Avg. Volume1,635,238
30 Day Avg. Volume1,819,436
Financial Highlights & Ratios
PEG Ratio-1.17
Price to Book (P/B)3.91
Price to Sales (P/S)1.07
P/FCF Ratio58.08
Enterprise Value/Market Cap1.48
Enterprise Value/Revenue1.85
Enterprise Value/Gross Profit1.93
Enterprise Value/Ebitda14.69
Forecast
1Y Price Target
$13.00Price Target Upside0.85% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Savers Value Village Inc. Business Overview & Revenue Model
Company DescriptionSavers Value Village, Inc. sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Village des Valeurs, Unique, and 2nd Avenue banners. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners, then processes, selects, prices, merchandises, and sells them in its stores. It serves retail and wholesale customers. The company was formerly known as S-Evergreen Holding LLC and changed its name to Savers Value Village, Inc. in January 2022. Savers Value Village, Inc. was founded in 1954 and is based in Bellevue, Washington.
How the Company Makes MoneySavers Value Village Inc. generates revenue primarily through the resale of donated goods. The company partners with various nonprofit organizations that collect and supply donated items, which are then sold in SVV's thrift stores. Revenue is earned by offering these items at affordable prices to consumers. In addition to selling donated goods, the company may also purchase excess inventory from retailers and manufacturers at a discount, further diversifying its product offerings. Partnerships with nonprofit organizations are a critical component of SVV's business model, as they help ensure a steady supply of merchandise while supporting charitable causes.
Savers Value Village Inc. Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong sales growth in the U.S. and improvements in Canada, with a significant increase in the revenue and earnings outlook. However, challenges such as profit margin impacts in Canada, increased costs, and economic uncertainties were noted. Overall, the positive aspects, including the strong consumer engagement and expansion plans, outweigh the negatives.Q2-2025 Updates
Positive Updates
Strong U.S. Sales Growth
Sales in the U.S. business grew 10.5% with comparable store sales up 6.2%, highlighting strong execution and consumer response.
Canadian Sales Improvement
Canadian business delivered 2.6% comparable store sales growth, marking a third consecutive quarter of improvement despite economic challenges.
Loyalty Program Milestone
Reached over 6 million total active members in the loyalty program, showcasing consumer engagement.
Adjusted EBITDA Performance
Generated nearly $69 million of adjusted EBITDA, approximately 16.5% of sales, indicating strong financial performance.
Increased Revenue and Earnings Outlook
Raised revenue and earnings outlook for 2025 based on strong first-half results.
Successful New Store Openings
Opened 4 new stores in the quarter, with plans to open 25 new stores by the end of 2025, contributing to growth opportunities.
Negative Updates
Canadian Profit Margin Impact
Higher production levels in Canada impacted profit margins, expected to normalize over the coming quarters.
Currency Exchange Impact
Stronger Canadian dollar affected sales, with limited short-term earnings impact due to hedging.
Increased Cost of Merchandise
Cost of merchandise sold as a percentage of net sales increased by 270 basis points to 44.8%, primarily due to higher processing levels in Canada and new stores.
Challenges in Canadian Economic Environment
Ongoing economic challenges in Canada, including elevated unemployment and inflation affecting consumer confidence.
Company Guidance
During Sabre's Value Village second-quarter conference call, the company provided updated guidance reflecting strong performance in the first half of 2025. Total net sales increased by 7.9% to $417 million, with U.S. sales growing by 10.5% and Canadian sales by 3.4%. The company reported a comparable store sales growth of 6.2% in the U.S. and 2.6% in Canada. Sabre opened four new stores and plans to open 25 new stores by the end of the year. The company achieved an adjusted EBITDA of nearly $69 million, accounting for approximately 16.5% of sales. The guidance for the full year 2025 has been raised, with net sales expected to reach between $1.67 billion and $1.69 billion, and adjusted EBITDA projected between $252 million and $267 million. Additionally, Sabre's loyalty program reached a milestone of over 6 million active members. The company emphasized ongoing investments in new store growth and operational improvements to sustain long-term growth, with a targeted store-level contribution margin of 20%.Savers Value Village Inc. Financial Statement Overview
Summary
Savers Value Village Inc. demonstrates strong revenue growth and high gross profit margins, indicating effective cost management. However, the high debt-to-equity ratio and declining free cash flow pose financial risks, requiring careful management of debt and operational costs.Income Statement
Savers Value Village Inc. has demonstrated consistent revenue growth, with a TTM revenue growth rate of 1.97%. The gross profit margin is exceptionally high at 95.48%, indicating strong pricing power or cost efficiency. However, the net profit margin is relatively low at 2.14%, suggesting that operational costs or other expenses are impacting profitability. The EBIT and EBITDA margins are healthy, reflecting solid operational performance.75
Positive
Balance Sheet
The company has a high debt-to-equity ratio of 3.13, indicating significant leverage, which could pose financial risk if not managed properly. Return on equity is moderate at 8.03%, showing decent profitability relative to shareholder equity. The equity ratio is not explicitly calculated but suggests a moderate reliance on equity financing.60
Neutral
Cash Flow
Operating cash flow is positive and covers net income well, with a ratio of 0.54. However, free cash flow has decreased by 21.06% in the TTM, which could be a concern for future investments or debt repayments. The free cash flow to net income ratio is 0.21, indicating that a portion of earnings is being converted into free cash flow.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.58B | 1.54B | 1.50B | 1.44B | 1.20B | 834.01M |
| Gross Profit | 1.51B | 1.21B | 846.00M | 837.30M | 729.66M | 480.56M |
| EBITDA | 199.09M | 192.38M | 203.00M | 246.96M | 178.60M | 66.23M |
| Net Income | 33.98M | 29.03M | 53.12M | 84.72M | 83.39M | -63.48M |
Balance Sheet | ||||||
| Total Assets | 1.94B | 1.89B | 1.87B | 1.71B | 1.22B | 965.62M |
| Cash, Cash Equivalents and Short-Term Investments | 70.55M | 149.97M | 179.96M | 112.13M | 97.92M | 137.20M |
| Total Debt | 1.33B | 1.30B | 1.29B | 1.26B | 803.94M | 607.83M |
| Total Liabilities | 1.52B | 1.46B | 1.49B | 1.48B | 1.04B | 791.69M |
| Stockholders Equity | 423.47M | 421.68M | 376.06M | 227.34M | 185.43M | 173.93M |
Cash Flow | ||||||
| Free Cash Flow | 28.84M | 28.40M | 82.77M | 59.26M | 135.22M | 10.74M |
| Operating Cash Flow | 134.57M | 134.28M | 175.16M | 169.43M | 175.76M | 29.91M |
| Investing Cash Flow | -106.40M | -80.52M | -92.36M | -110.50M | -263.17M | -19.17M |
| Financing Cash Flow | -116.03M | -76.63M | -17.04M | -40.22M | 53.00M | 36.81M |
Savers Value Village Inc. Technical Analysis
Neutral
12.89
Price Trends
12.22
Positive
11.25
Positive
10.30
Positive
Market Momentum
0.23
Positive
52.27
Neutral
23.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SVV, the sentiment is Neutral. The current price of 12.89 is below the 20-day moving average (MA) of 12.99, above the 50-day MA of 12.22, and above the 200-day MA of 10.30, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 52.27 is Neutral, neither overbought nor oversold. The STOCH value of 23.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.54B | 8.02 | 28.94% | ― | -0.38% | 35.78% | |
71 Outperform | $1.54B | 33.69 | 10.36% | ― | 10.68% | 37.84% | |
69 Neutral | $1.98B | 63.15 | 8.06% | ― | 4.47% | -8.19% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.72B | 43.19 | -118.80% | 2.49% | 0.98% | 1.84% | |
60 Neutral | $1.55B | ― | -176.83% | ― | -13.22% | ― | |
52 Neutral | $1.13B | ― | -58.93% | ― | -10.39% | 14.92% |
* Consumer Cyclical Sector Average
SVV
Savers Value Village Inc.
12.89
2.40
22.88%
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17.89%
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450.73
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25.94%
JMIA
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12.88
7.45
137.20%
RVLV
Revolve Group
21.20
-4.15
-16.37%
TDUP
thredUP
9.16
8.34
1017.07%
Savers Value Village Inc. Corporate Events
Executive/Board Changes
Savers Value Village Appoints Brian Ames to Board
Neutral
Aug 25, 2025
On August 25, 2025, Duane C. Woods resigned from the Board of Directors of Savers Value Village, Inc., along with his positions on the Nominating, Governance & Sustainability Committee and the Compensation Committee. His resignation was not due to any disagreements with the company. Brian Ames was appointed to fill the vacancy, bringing strategic expertise and experience from consumer tech, gaming, media, climate tech, and venture capital sectors. Ames, a former Managing Director at Anthos Capital and President of Activision Blizzard Media, is recognized as an independent director under NYSE standards.
The most recent analyst rating on (SVV) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Savers Value Village Inc. stock, see the SVV Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.