Bassett Furniture (BSET) AI Stock Analysis

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Bassett Furniture

(NASDAQ:BSET)

56Neutral

Bassett Furniture's overall score reflects financial challenges with declining revenues and negative margins, partially balanced by operational improvements and e-commerce growth as noted in the earnings call. Valuation remains a concern due to negative earnings, but the dividend yield is attractive. Technical indicators suggest a neutral market position.

Bassett Furniture (BSET) vs. S&P 500 (SPY)

Market Cap

$153.89M

Dividend Yield4.49%

Average Volume (3M)26.67K

Price to Earnings (P/E)―

Beta (1Y)0.55

Revenue Growth-11.78%

EPS Growth-13.89%

CountryUS

Employees1,228

SectorConsumer Cyclical

Sector Strength57

IndustryFurnishings, Fixtures & Appliances

Share Statistics

EPS (TTM)-0.76

Shares Outstanding8,704,115

10 Day Avg. Volume35,305

30 Day Avg. Volume26,667

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.42

Price to Cash Flow (P/CF)5.50

P/FCF Ratio5.50

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Bassett Furniture Business Overview & Revenue Model

Company DescriptionBassett Furniture Industries, Incorporated engages in the manufacture, marketing, and retail of home furnishings in the United States and internationally. It operates through three segments: Wholesale, Retail company-owned Stores, and Logistical Services. The company engages in the design, manufacture, sourcing, sale, and distribution of furniture products to a network of company-owned retail stores and licensee-owned stores, and independent furniture retailers; and wood and upholstery operations. As of November 27, 2021, it operated a network of 63 company-owned stores and 34 licensee-owned stores. It also provides shipping, and warehousing services to customers in the furniture industry. In addition, the company owns and leases retail store properties; and distributes its products through other multi-line furniture stores, Bassett galleries or design centers, mass merchants, and specialty stores, as well as sells its products online. Bassett Furniture Industries, Incorporated was incorporated in 1902 and is based in Bassett, Virginia.

How the Company Makes MoneyBassett Furniture generates revenue primarily through the sale of its furniture products and accessories. The company operates a network of company-owned retail stores, as well as a number of independently owned licensee stores, which contribute to its retail sales. In addition to retail operations, Bassett also makes money through its wholesale segment, supplying furniture to third-party retailers and designers. The company emphasizes customization and offers various bespoke options, which enhances its value proposition and potential sales. Key factors contributing to its earnings include strategic partnerships with designers and a focus on expanding its online presence to reach a broader customer base.

Bassett Furniture Financial Statement Overview

Summary

Bassett Furniture is facing significant financial challenges, marked by declining revenue, negative profitability, and a deteriorating balance sheet. Despite reducing debt, the company's financial health is concerning, with critical issues in maintaining stability and growth.

Income Statement

Neutral

Bassett Furniture's income statement reveals significant challenges. The company experienced declining revenue over the past three years, with a notable drop from $485.6 million in 2022 to $390.1 million in 2023, and $179.4 million in 2024. The gross profit margin for 2024 is 100%, but this is offset by negative EBIT and EBITDA margins, indicating operational struggles. The net profit margin is also negative, reflecting consistent net losses. Despite the high gross profit margin, the lack of revenue growth and negative profitability metrics suggest financial difficulties.

Balance Sheet

Negative

The balance sheet shows a concerning picture with significant declines in total assets and stockholders' equity by 2024. Notably, the total debt was reduced to zero by 2024, which is positive, but the stockholders' equity has also become zero, indicating potential financial distress or restructuring. The company had a positive equity ratio in 2023, but the rapid deterioration suggests significant challenges in maintaining financial stability.

Cash Flow

Neutral

Cash flow analysis indicates some positives with consistent operating cash flow, although declining from $18.7 million in 2023 to $18.7 million in 2024. The free cash flow, however, turned negative in 2024, reflecting potential cash management issues. Despite positive operating cash flow, the inability to translate this into free cash flow consistently raises concerns about the company's ability to fund operations without external financing.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
290.20M	179.41M	390.14M	485.60M	486.53M	385.86M
	Gross Profit
178.38M	28.91M	206.49M	248.34M	222.83M	222.30M
	EBIT
-5.94M	-16.27M	-536.00K	25.68M	26.00M	14.19M
	EBITDA
-2.49M	-4.42M	7.67M	36.98M	40.60M	-3.26M
	Net Income Common Stockholders
-6.65M	-9.70M	-3.17M	25.36M	18.04M	-10.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
56.42M	59.91M	70.18M	79.34M	52.09M	63.51M
	Total Assets
335.79M	341.17M	370.42M	406.27M	421.66M	402.55M
	Total Debt
101.51M	106.44M	116.18M	116.30M	133.53M	139.05M
	Net Debt
65.45M	66.89M	63.78M	54.67M	99.16M	93.25M
	Total Liabilities
168.99M	173.84M	186.98M	210.66M	258.93M	244.52M
	Stockholders Equity
166.80M	167.33M	183.44M	195.61M	162.73M	158.03M
Cash Flow		Free Cash Flow
7.73M	-1.16M	1.24M	-24.27M	3.81M	30.65M
	Operating Cash Flow
11.74M	4.05M	18.72M	-2.97M	14.56M	36.67M
	Investing Cash Flow
-7.30M	-8.77M	-17.76M	65.84M	-11.57M	-3.75M
	Financing Cash Flow
-8.95M	-8.12M	-10.23M	-35.56M	-14.42M	-6.82M

Bassett Furniture Technical Analysis

Technical Analysis Sentiment

Positive

Last Price17.37

Price Trends

50DMA

15.71

Positive

100DMA

14.87

Positive

200DMA

14.17

Positive

Market Momentum

MACD

0.64

Negative

RSI

61.07

Neutral

STOCH

68.28

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSET, the sentiment is Positive. The current price of 17.37 is above the 20-day moving average (MA) of 16.16, above the 50-day MA of 15.71, and above the 200-day MA of 14.17, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 61.07 is Neutral, neither overbought nor oversold. The STOCH value of 68.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BSET.

Bassett Furniture Risk Analysis

Bassett Furniture disclosed 9 risk factors in its most recent earnings report. Bassett Furniture reported the most risks in the “Ability to Sell” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Bassett Furniture Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LZB	74 Outperform	$1.59B	13.19	12.40%	2.22%	1.81%	8.09%
FLXS	71 Outperform	$168.28M	8.92	9.48%	2.07%	7.75%	27.88%
ETD	69 Neutral	$693.22M	11.42	12.86%	5.92%	-11.10%	-23.77%
VIRC	60 Neutral	$163.38M	7.59	21.60%	1.00%	-1.07%	-1.09%
Sector *	60 Neutral	$6.56B	11.42	3.23%	4.27%	2.37%	-21.19%
BSET	56 Neutral	$153.89M	―	-3.83%	4.49%	-11.78%	-13.89%
HOFT	48 Neutral	$90.93M	―	-5.89%	10.22%	-8.26%	-233.72%

* Consumer Cyclical Sector Average

Performance Comparison

BSET

Bassett Furniture

17.87

5.12

40.16%

ETD

Ethan Allen

27.74

-3.51

-11.23%

FLXS

Flexsteel

35.85

-2.39

-6.25%

HOFT

Hooker Furniture

9.20

-7.70

-45.56%

LZB

La-Z-Boy Incorporated

38.20

4.84

14.51%

VIRC

Virco Manufacturing

9.43

-1.17

-11.04%

Bassett Furniture Earnings Call Summary

Earnings Call Date: Apr 2, 2025 | % Change Since: 11.20% | Next Earnings Date: Jun 26, 2025

Earnings Call Sentiment Neutral

The call highlighted significant improvements in operating profit, e-commerce growth, and gross margins, alongside successful cost reduction strategies. However, concerns over sales decline due to reduced weeks, falling consumer confidence, and the impact of tariffs present challenges. The sentiment is balanced with strong positive actions mitigated by notable concerns.

Highlights

Improved Operating Profit

Operating profit improved by $4.8 million due to streamlined cost structures and higher operating efficiency.

Increase in Normalized Sales Revenue

On a normalized basis, sales revenue for the first quarter increased by 2.2%.

E-commerce Sales Growth

E-commerce sales increased by 36% due to investments in BassettFurniture.com and a higher conversion rate.

Increased Wholesale and Retail Shipments

Normalized wholesale shipments increased by 4.2%, and retail delivered sales increased by 6.8%.

Consolidated Operating Income

Reported consolidated operating income of $2.5 million compared to a loss of $2.4 million in the previous year.

Improved Gross Margins

Consolidated gross margins increased by 170 basis points due to better margins in the wholesale segment.

Commitment to Shareholder Returns

Continued to pay quarterly dividends and repurchase shares, spending $1.7 million on dividends and $721,000 on share buybacks in Q1.

Lowlights

Decline in Consolidated Sales

Consolidated sales were down by 5.1% for the first quarter due to the comparison of thirteen weeks this year to last year's fourteen weeks.

Challenges in Consumer Confidence

Consumer confidence was reported to be plummeting, creating concerns over future sales.

Impact of Tariffs

Tariffs on materials and imports could affect pricing structures and have caused uncertainty in the market.

Decrease in Wholesale Orders

Wholesale orders were down by 8.4% for the quarter, or 1.4% normalized for the extra week.

Retail Gross Margin Decrease

Retail gross margins fell modestly due to a more aggressive promotional environment and lower margins for in-line and clearance goods.

Company Guidance

During the first quarter of fiscal 2025, Bassett Furniture Industries reported improved operating results, despite a 5.1% decline in consolidated sales due to a shorter fiscal period compared to the previous year. On a normalized basis, sales revenue increased by 2.2%. The company saw a $4.8 million improvement in operating profit, driven by cost structure streamlining and operating efficiencies, with consolidated gross margins increasing by 170 basis points. Retail delivered sales through company-owned stores rose by 6.8%, and e-commerce sales increased by 36% due to higher conversion rates. Wholesale orders were down 1.4% on a normalized basis, while written sales in corporate stores increased by 5.4%. Bassett's liquidity remained strong with $56.4 million in cash and short-term investments and no outstanding debt. The company plans capital investments in the range of $8 million to $12 million, targeting store remodels, technology upgrades, and potential new store openings. Despite challenges like tariff impacts, Bassett maintained a focus on domestic production, with 79% of wholesale shipments manufactured or assembled in the US. The company continues to prioritize shareholder returns through dividends and share buybacks.

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.