Education
About Us
Working with TipRanks
Follow Us
Savers Value Village Inc. (SVV)
NYSE:SVV
Top Page
Savers Value Village Inc.
(NYSE:SVV)
Select Model
Select Model
Rating:61Neutral
Price Target:
$10.00
▲(6.04% Upside)
Action:ReiteratedDate:02/21/26
The score is anchored by moderately positive fundamentals (growth and improving cash flow/deleveraging) and a constructive earnings call with clear FY2026 growth and profitability targets. These are tempered by sharply weaker profitability versus prior years, mixed technical conditions, and limited/negative valuation interpretability due to a negative P/E and no dividend yield provided.
Positive Factors
Asset-light thrift resale model & nonprofit partnerships
The core model sources low-cost inventory through nonprofit partnerships and donated/secondhand goods, providing a durable supply advantage and inherently lower product acquisition costs. This asset-light replenishment supports resilient gross margins and competitive pricing versus traditional retail over time.
Improving cash generation and active deleveraging
Rising operating and free cash flow provides sustainable internal funding for store rollouts, capex and debt paydown. Recent debt repayments and targeted leverage reduction improve financial flexibility, lowering refinance risk and supporting multi-year growth and efficiency investments.
Strong U.S. comp sales, new-store productivity, and loyalty gains
Robust U.S. comp performance, repeatable new-store economics and a large loyalty base (millions of active members) point to durable customer adoption and scalable store productivity. These structural demand drivers enable unit economics to improve as stores mature and network effects increase.
Negative Factors
High absolute leverage and sizable debt load
Material absolute debt keeps the company sensitive to interest-cost and cash-flow shocks; even with improving ratios the balance sheet still constrains capital allocation. Large debt relative to equity limits flexibility for opportunistic investments or absorbing cyclical retail slowdowns.
Sustained profitability compression (weak net margins)
A multiyear decline in net margin shows operating cost and conversion issues that erode earnings power. Even with recent gross-margin improvement, low net margins reduce free cash flow conversion and leave less room to fund growth, repay debt, or withstand margin headwinds.
Mature/soft Canadian market limits near-term growth
Canada's weak comps and a deliberate slowdown in openings reduce a previously meaningful growth runway and concentrate expansion benefits in the U.S. This regional maturity constrains total-company growth potential and forces reliance on U.S. execution and efficiency gains.
Savers Value Village Inc. (SVV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.46B
Dividend YieldN/A
Average Volume (3M)969.26K
Price to Earnings (P/E)69.4
Beta (1Y)0.50
Revenue Growth6.45%
EPS Growth-102.30%
CountryUS
Employees22,700
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.15
Shares Outstanding155,056,720
10 Day Avg. Volume1,505,730
30 Day Avg. Volume969,263
Financial Highlights & Ratios
PEG Ratio-2.94
Price to Book (P/B)3.40
Price to Sales (P/S)0.88
P/FCF Ratio30.44
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue1.23
Enterprise Value/Gross Profit1.68
Enterprise Value/Ebitda11.39
Forecast
1Y Price Target
$14.38Price Target Upside52.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.53
Revenue Forecast (FY)$1.79B
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 sale of secondhand merchandise in its thrift stores. The company acquires inventory through charitable donations, which it either sells directly or processes for resale. Key revenue streams include in-store sales, online sales of select items, and partnerships with nonprofit organizations that provide donation services. These partnerships not only enhance the volume of donated goods but also create a positive community impact, attracting customers who are conscious about sustainability. Additionally, SVV benefits from a loyal customer base that seeks value and unique products, further driving sales and profitability.
Savers Value Village Inc. Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a constructive and improving operational and financial trajectory: a clear earnings inflection with adjusted EBITDA growth, strong U.S. demand (double-digit headline growth and high single-digit comps), successful new store rollouts and an actionable innovation agenda. Headwinds remain — notably a mature/weak Canada market, merchandise and labor cost pressure, front‑loaded preopening expenses and some seasonality/calendar noise — but management provided concrete targets, a conservative Canada plan, and balance sheet actions to de‑risk the business. On balance, the positives around profitability inflection, U.S. momentum, disciplined capital allocation and long‑term margin targets outweigh the challenges outlined.Q4-2025 Updates
Positive Updates
Inflection to Adjusted EBITDA Growth
Posted first year-over-year adjusted EBITDA growth in nearly two years, generating $74M of adjusted EBITDA in the quarter with a 15.9% adjusted EBITDA margin, marking an earnings inflection driven by maturing new stores and profit contribution gains in both countries.
Strong U.S. Sales and Comparable Store Performance
U.S. net sales increased 20.6% to $266M (12.6% excl. the 53rd week) with U.S. comparable store sales up 8.8%, driven by both transaction growth and higher average basket; management cites accelerating thrift adoption and broad-based category/region strength.
Solid Overall Revenue Growth
Total net sales increased 15.6% to $465M for the quarter (8.4% excl. the 53rd week and on a constant currency basis); overall comparable store sales were up 5.4%.
Segment Profit Expansion
U.S. segment profit rose to $60M (up $11M year-over-year) and Canada segment profit increased to $43M (up $4M), reflecting on‑plan new store maturation and improved productivity.
Store Growth and New Store Productivity
Opened 10 new stores in the quarter and 26 in 2025; planning ~25 new stores in 2026 (over 20 in the U.S.) across 11 states. Company guidance indicates typical new store economics (~$3M first-year sales ramping to ~$5M by year five; breakeven by year two, ~20% contribution margin by year five).
Loyalty and Customer Mix Shifts
Loyalty program has 6.1M active members; loyalty data shows roughly 40% of U.S. shoppers under 45 and ~45% of households with income above $100K, indicating younger and more affluent customer acquisition and improving customer mix.
Balance Sheet Strength and Capital Allocation
Ended the quarter with $86M in cash and a net leverage ratio of 2.5x; repaid $20M of debt during the quarter, reduced annual interest expense by ~$17M via refinancing, and repurchased 1.1M shares at a $8.75 weighted average price; targeting net leverage under 2x in the coming years.
Innovation and Efficiency Initiatives
Rolling out ABP Lite (asset-light automated book processing) expected to reach ~85% of fleet by end of Q2; investing in autonomous floor scrubbers, AI-enabled HVAC, and other in-store/off-site efficiency initiatives to improve gross margin and labor productivity.
2026 Financial Outlook
Provided FY2026 guidance: net sales $1.76B–$1.79B; comparable store sales +2.5%–4%; adjusted EBITDA $260M–$275M; adjusted net income $73M–$85M; capex $125M–$145M; ~25 new stores. Management expects adjusted EBITDA growth in 2026 with roughly flat adjusted EBITDA margin.
Negative Updates
Soft and Mature Canadian Market
Canada comparable store sales were only +0.7% in the quarter with net sales up modestly; management is taking a conservative plan for Canada (flat to low single-digit comps expected) and will significantly decelerate new store openings there, reflecting a mature and weaker near-term macro environment.
Rising Cost of Merchandise and Labor Pressure
Cost of merchandise sold increased 30 basis points to 44.6% of net sales (attributed in part to new stores); salaries, wages and benefits were $93M and increased 90 basis points as a percent of sales to 19.2%, driven by new store growth, incentive expense and higher wage rates.
Front-Loaded Preopening and Seasonal Headwinds
Expect preopening expenses to be ~$14M–$16M in 2026 (consistent with 2025) and more front‑loaded due to a more balanced annual opening cadence; 2026 will also lap a 53-week fiscal year creating an ~2% headwind to total sales growth and Q1 faces holiday timing (earlier Easter) and related store closure effects.
Higher Depreciation and Store Closure Charges
Depreciation and amortization increased 32% to $22M, reflecting investments in new stores, the extra week impact and accelerated depreciation on seven stores closed during the quarter.
Weather and Operational Disruptions
Severe weather (late January storms) disrupted U.S. operations and similarly affected Canada in January, creating short-term volatility in comps and operational cadence.
New Stores Unprofitable Initially
New stores are typically unprofitable in year one (first‑year sales ~ $3M), creating near-term EBITDA drag historically; although management says this trend has turned modestly positive in 2026 as stores mature, initial-year losses remain a factor.
Company Guidance
Management guided fiscal 2026 net sales of $1.76–$1.79 billion, comparable store sales growth of 2.5%–4% (assuming mid‑single‑digit U.S. comps and flat to low‑single‑digit Canada comps and lapping a 53rd week that is ~2% headwind to total sales), net income of $66–$78 million ($0.41–$0.48 per diluted share), adjusted net income of $73–$85 million ($0.45–$0.53), adjusted EBITDA of $260–$275 million, capital expenditures of $125–$145 million, roughly 25 new store openings (20+ in the U.S.), preopening expenses of ~$14–$16 million (more front‑loaded), ~$8 million of IPO‑related stock‑based compensation (split evenly between Q1 and Q2), net interest expense of about $50 million, an effective tax rate near 28% (27% on adjusted), weighted average diluted shares of ~163 million, Q1 revenue growth expected mid‑ to high‑single digits with adjusted EBITDA roughly flat to slightly up, and management expects adjusted EBITDA growth for the year with roughly flat margins while progressing toward a long‑term target of high‑teens adjusted EBITDA margins and net leverage under 2x within a couple years.Savers Value Village Inc. Financial Statement Overview
Summary
Steady multi-year revenue growth and improving operating/free cash flow are positives, alongside a recent reduction in leverage. Offsetting factors are meaningful profitability compression (net margin down sharply since 2021–2022) and uneven cash conversion (operating cash flow and free cash flow low relative to net income), which reduces resilience.Income Statement
Revenue has grown steadily since 2020, with the latest annual period showing strong growth (up 3.878). Profitability, however, has compressed meaningfully: net margin declined from 6.9% (2021) to 5.9% (2022) to 3.5% (2023) to 1.9% (2024) and 1.3% (latest). EBITDA margin also trended down versus 2021–2022 levels, indicating higher operating cost pressure. A major positive is the sharp improvement in gross margin in the latest period (79.2% vs ~56% prior years), but the weak net margin suggests those gains are not fully flowing through to the bottom line.64
Positive
Balance Sheet
Leverage remains the key balance sheet constraint. While debt-to-equity improved materially in the latest period (1.55x) versus 2022–2024 (roughly 3.1x–5.6x), absolute debt is still sizable ($673M) relative to equity ($436M). Total assets have risen versus 2020, supporting scale, but the company’s historical pattern of high leverage and declining profitability increases sensitivity to any demand or margin shock. Return on equity has also cooled significantly from very strong levels in 2021–2022 to much lower levels in 2023–2024, consistent with reduced earnings power.58
Neutral
Cash Flow
Cash generation is positive and improving recently: operating cash flow increased to $167M in the latest period (from $134M in 2024), and free cash flow rose to $48.6M with very strong growth (up 90.6). That said, cash flow quality is mixed: operating cash flow relative to net income is below 1.0 across periods provided (about 0.58–0.73 recently), and free cash flow is only a modest portion of net income (about 0.21–0.47 historically and ~0.29 in the latest period), implying working-capital needs and/or reinvestment are limiting cash conversion.61
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.68B | 1.54B | 1.50B | 1.44B | 1.20B |
| Gross Profit | 1.33B | 867.87M | 846.00M | 837.30M | 729.66M |
| EBITDA | 184.99M | 186.77M | 203.00M | 244.79M | 174.16M |
| Net Income | 22.64M | 29.03M | 53.12M | 84.72M | 83.39M |
Balance Sheet | |||||
| Total Assets | 2.01B | 1.89B | 1.87B | 1.86B | 1.22B |
| Cash, Cash Equivalents and Short-Term Investments | 85.90M | 149.97M | 179.96M | 112.13M | 97.92M |
| Total Debt | 673.05M | 1.30B | 1.29B | 1.26B | 803.94M |
| Total Liabilities | 1.58B | 1.46B | 1.49B | 1.63B | 1.04B |
| Stockholders Equity | 435.58M | 421.68M | 376.06M | 227.34M | 185.43M |
Cash Flow | |||||
| Free Cash Flow | 48.64M | 28.40M | 82.77M | 59.26M | 135.22M |
| Operating Cash Flow | 167.28M | 134.28M | 175.16M | 169.43M | 175.76M |
| Investing Cash Flow | -118.47M | -80.52M | -92.36M | -110.50M | -263.17M |
| Financing Cash Flow | -116.02M | -76.63M | -17.04M | -40.22M | 53.00M |
Savers Value Village Inc. Technical Analysis
Negative
9.43
Price Trends
10.17
Negative
10.24
Negative
10.69
Negative
Market Momentum
-0.23
Positive
36.68
Neutral
19.71
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SVV, the sentiment is Negative. The current price of 9.43 is below the 20-day moving average (MA) of 10.58, below the 50-day MA of 10.17, and below the 200-day MA of 10.69, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 36.68 is Neutral, neither overbought nor oversold. The STOCH value of 19.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.63B | 40.37 | ― | 3.35% | 3.35% | 1.97% | |
67 Neutral | $1.78B | 29.39 | 12.98% | ― | 9.24% | 35.68% | |
64 Neutral | $1.56B | 9.12 | 24.38% | ― | -0.42% | 31.64% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.46B | 69.44 | 5.28% | ― | 6.45% | -102.30% | |
51 Neutral | $610.69M | -15.68 | -35.37% | ― | -4.90% | 50.77% | |
50 Neutral | $1.02B | ― | -109.14% | ― | -4.62% | ― |
* Consumer Cyclical Sector Average
SVV
Savers Value Village Inc.
9.43
2.55
37.06%
SBH
Sally Beauty
16.07
7.31
83.45%
WINA
Winmark
456.24
142.39
45.37%
JMIA
Jumia Technologies AG
8.23
5.92
256.28%
RVLV
Revolve Group
25.16
0.16
0.64%
TDUP
thredUP
4.88
2.65
118.83%
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.