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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:61Neutral
Price Target:
$9.50
▲(0.11% Upside)
Savers Value Village Inc. has a stable financial performance with strong revenue growth but faces challenges with high leverage and declining free cash flow. The technical analysis suggests potential bearish momentum, and the valuation metrics are unattractive. The earnings call provided a mixed outlook, with strong U.S. growth offset by Canadian challenges. The new credit agreement is a positive corporate event, enhancing financial flexibility.
Positive Factors
Revenue Growth
Strong U.S. sales growth indicates robust demand and effective market strategies, supporting long-term revenue expansion.
New Store Openings
Continued expansion through new store openings enhances market presence and potential revenue streams, supporting growth.
Financial Flexibility
The new credit agreement improves financial flexibility, enabling strategic investments and operational resilience.
Negative Factors
High Leverage
High leverage can pose financial risks, limiting flexibility and increasing vulnerability to economic downturns.
Declining Free Cash Flow
A decline in free cash flow may constrain future investments and debt repayments, impacting long-term growth.
Increased Operating Expenses
Rising operating expenses can erode profit margins, affecting overall profitability and financial health.
Savers Value Village Inc. (SVV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.53B
Dividend YieldN/A
Average Volume (3M)1.41M
Price to Earnings (P/E)―
Beta (1Y)0.58
Revenue Growth6.45%
EPS Growth-102.30%
CountryUS
Employees22,700
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.14
Shares Outstanding156,227,450
10 Day Avg. Volume996,044
30 Day Avg. Volume1,409,194
Financial Highlights & Ratios
PEG Ratio-1.18
Price to Book (P/B)3.93
Price to Sales (P/S)1.08
P/FCF Ratio58.42
Enterprise Value/Market Cap2.25
Enterprise Value/Revenue2.17
Enterprise Value/Gross Profit3.57
Enterprise Value/Ebitda17.39
Forecast
1Y Price Target
$15.13Price Target Upside59.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.45
Revenue Forecast (FY)$1.67B
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:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mix of positive momentum in the U.S. market and strategic expansion plans, offset by challenges in the Canadian market and increased operating expenses. While there are clear achievements, such as strong U.S. sales growth and successful debt refinancing, the Canadian economy and certain underperforming stores present ongoing challenges.Q3-2025 Updates
Positive Updates
Strong U.S. Sales Growth
Sales in the U.S. business grew 10.5% with comparable store sales up 7.1%, driven by both transactions and average basket size.
Progress in Canadian Market
Canadian business delivered 3.9% comparable store sales growth, marking the fourth consecutive quarter of sequential improvement.
New Store Openings and Expansion Plans
Opened 10 new stores in the quarter and expect to open 25 new stores in 2025, with plans to enter new markets such as North Carolina and Tennessee in 2026.
Improved Financial Metrics
Generated $70 million of adjusted EBITDA or approximately 16.4% of sales. Refinanced debt to significantly reduce interest expense and provide a more flexible capital structure.
Increased Active Loyalty Members
Reached approximately 6.1 million total active members in the loyalty program.
Negative Updates
Canadian Macroeconomic Challenges
The Canadian market remains challenging with high unemployment and inflation affecting performance, particularly in Southwest Ontario.
Store Closures Due to Underperformance
Closed 6 underperforming stores, including 3 Peaches stores, to be EBITDA-accretive in 2026.
Increased Operating Expenses
Selling, general, and administrative expenses increased 19% to $100 million, driven by new store growth and other factors.
Impact of New Store Growth on Margins
Cost of merchandise sold as a percentage of net sales increased 80 basis points due to new store openings and higher processing costs in Canada.
Company Guidance
During the conference call, Savers Value Village provided guidance for the remainder of fiscal 2025. The company reported strong third-quarter results, with total net sales increasing by 8.1% to $427 million and adjusted EBITDA of $70 million, representing 16.4% of sales. In the U.S., net sales grew by 10.5% to $235 million, with comparable store sales increasing by 7.1%. In Canada, despite challenging macroeconomic conditions, comparable store sales improved by 3.9%. The company opened 10 new stores in the quarter and plans to open 25 new stores in 2025. They updated their full-year outlook to include net sales of $1.67 billion to $1.68 billion, comparable store sales growth of 4.0% to 4.5%, adjusted net income of $71 million to $75 million, and adjusted EBITDA of $252 million to $257 million. The guidance was adjusted primarily due to macroeconomic pressures in Canada and the underperformance of certain stores.Savers Value Village Inc. Financial Statement Overview
Summary
Savers Value Village Inc. demonstrates strong revenue growth and gross profit margins, indicating effective cost management and pricing strategies. However, high leverage and declining free cash flow pose challenges, impacting financial flexibility.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 | 963.50M | 867.87M | 846.00M | 837.30M | 729.66M | 480.56M |
| EBITDA | 197.65M | 186.77M | 203.00M | 244.79M | 174.16M | 60.51M |
| Net Income | 33.98M | 29.03M | 53.12M | 84.72M | 83.39M | -63.48M |
Balance Sheet | ||||||
| Total Assets | 1.94B | 1.89B | 1.87B | 1.86B | 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 | 1.63B | 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
Negative
9.49
Price Trends
10.40
Negative
11.16
Negative
10.21
Negative
Market Momentum
-0.08
Negative
51.60
Neutral
74.97
Neutral
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 9.49 is above the 20-day moving average (MA) of 8.80, below the 50-day MA of 10.40, and below the 200-day MA of 10.21, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 74.97 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.04B | 36.94 | 12.19% | ― | 9.24% | 35.68% | |
76 Outperform | $1.52B | 8.20 | 27.54% | ― | -0.42% | 31.64% | |
69 Neutral | $1.58B | 39.63 | ― | 3.10% | 3.35% | 1.97% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.53B | ― | -0.40% | ― | 6.45% | -102.30% | |
55 Neutral | $1.05B | ― | -35.37% | ― | -4.90% | 50.77% | |
45 Neutral | $1.56B | ― | -102.25% | ― | -4.38% | ― |
* Consumer Cyclical Sector Average
SVV
Savers Value Village Inc.
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Savers Value Village Inc. Corporate Events
Private Placements and Financing
Savers Value Village Secures New $750M Credit Agreement
Positive
Sep 19, 2025
On September 18, 2025, Savers Value Village Inc.‘s subsidiaries entered into a new Credit Agreement, establishing a $750 million term loan and $180 million revolving credit facility. This agreement replaces previous financial obligations and aims to enhance the company’s financial structure by securing a first-priority lien on most assets, with the term loan maturing in 2032 and the revolving facility in 2030.
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.