Bassett Furniture (BSET) AI Stock Analysis

• Market Cap: $137.23M
• Dividend Yield: 4.59%
• Average Volume (3M): 25.04K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.36
• Revenue Growth: -2.74%
• EPS Growth: N/A
• Country: US
• Employees: 1,228
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): N/A
• Shares Outstanding: 8,685,710
• 10 Day Avg. Volume: 32,440
• 30 Day Avg. Volume: 25,043
• PEG Ratio: -0.07
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.40
• P/FCF Ratio: -114.95
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 1.03
• Enterprise Value/Ebitda: 17.23
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $17.00 ▲(3.66% Upside)

Bassett Furniture's overall stock score reflects a moderate recovery in financial performance, with notable improvements in revenue growth and operational profits. The valuation is attractive with a high dividend yield, but technical indicators suggest a lack of strong momentum. The earnings call provided a positive outlook with strategic initiatives to address industry challenges, contributing to a cautiously optimistic view.

Positive Factors

Revenue Growth

The increase in sales and gross margin reflects Bassett's ability to adapt and grow in a challenging market, indicating a strong market position and effective cost management.

E-commerce Expansion

Improved e-commerce conversion rates highlight Bassett's successful digital strategy, enhancing customer engagement and potentially increasing online sales.

Custom Studio Growth

The growth in the Custom Studio program underscores Bassett's innovation and ability to meet consumer demand for personalized furniture, strengthening its competitive edge.

Negative Factors

Impact of Tariffs

Tariffs create cost pressures and pricing challenges, potentially affecting profit margins and consumer demand, posing a risk to long-term profitability.

Retail Margin Decline

Declining retail margins suggest challenges in maintaining pricing power, which could impact overall profitability if not addressed.

Reduced Liquidity

Reduced liquidity limits financial flexibility and could constrain Bassett's ability to invest in growth opportunities or weather economic downturns.

Bassett Furniture Business Overview & Revenue Model

Company Description

Bassett 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 Money

Bassett Furniture generates revenue primarily through the sale of its furniture products, which include both standard and custom-made items. The company operates a dual revenue model – direct sales through its own retail stores and wholesale distribution to independent retailers. Key revenue streams include in-store sales, online sales, and custom orders, which allow customers to personalize their furniture selections. Additionally, Bassett has established partnerships with various suppliers and manufacturers to enhance its product offerings and streamline production processes. The company also benefits from seasonal promotions and financing options that encourage customer purchases, further contributing to its earnings.

Bassett Furniture Financial Statement Overview

Summary

Bassett Furniture is showing signs of recovery with improved revenue growth and operating cash flow. While profitability margins and return on equity are still low, they have improved from previous periods. The company's balance sheet remains stable with moderate leverage, but challenges in free cash flow generation persist. Continued focus on operational efficiency and cash flow management will be crucial for sustained improvement.

Income Statement

Bassett Furniture shows a modest revenue growth of 1.37% TTM, indicating a slight recovery from previous declines. The gross profit margin is healthy at 56.33%, reflecting efficient cost management. However, the net profit margin is low at 2.35%, and EBIT margin is weak at 0.68%, suggesting challenges in operational efficiency. The improvement from negative margins in the previous annual report is a positive sign.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.56 TTM, indicating a balanced approach to leveraging. Return on equity is low at 4.67%, but it has improved from negative figures in the previous year, showing progress in generating returns for shareholders. The equity ratio is stable, suggesting a solid capital structure.

Cash Flow

Operating cash flow has improved significantly, covering 16.51% of net income, up from previous periods. However, free cash flow growth is negative, and the free cash flow to net income ratio is 0.65, indicating some challenges in converting profits into free cash flow. The improvement in operating cash flow is a positive development.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	330.95M	329.92M	390.14M	485.60M	430.89M	337.67M
Gross Profit	186.43M	179.41M	206.49M	248.34M	221.09M	174.10M
EBITDA	11.16M	-4.42M	7.67M	44.14M	37.39M	-3.26M
Net Income	7.78M	-9.70M	-3.17M	65.34M	18.04M	-10.42M
Balance Sheet
Total Assets	324.24M	341.17M	370.42M	406.27M	421.66M	402.55M
Cash, Cash Equivalents and Short-Term Investments	54.63M	59.91M	70.18M	79.34M	52.09M	63.51M
Total Debt	92.75M	106.44M	116.18M	116.30M	133.53M	139.05M
Total Liabilities	158.52M	173.84M	186.98M	210.66M	258.93M	244.52M
Stockholders Equity	165.72M	167.33M	183.44M	195.61M	162.73M	158.03M
Cash Flow
Free Cash Flow	7.87M	-1.16M	1.24M	-24.27M	3.81M	30.65M
Operating Cash Flow	12.10M	4.05M	18.72M	-2.97M	14.56M	36.67M
Investing Cash Flow	-7.28M	-8.77M	-17.76M	65.84M	-11.57M	-3.75M
Financing Cash Flow	-8.70M	-8.12M	-10.23M	-35.56M	-14.42M	-6.82M

Bassett Furniture Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSET, the sentiment is Negative. The current price of 16.4 is above the 20-day moving average (MA) of 16.21, above the 50-day MA of 16.28, and above the 200-day MA of 16.05, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 39.19 is Neutral, neither overbought nor oversold. The STOCH value of 38.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BSET.

Bassett Furniture Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LZB	77 Outperform	$1.54B	17.18	8.82%	2.39%	1.78%	-25.36%
ETD	70 Outperform	$588.06M	13.44	9.21%	7.86%	-4.26%	―
BSET	66 Neutral	$137.23M	17.69	4.70%	4.59%	-2.74%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	61 Neutral	$1.40B	-54.03	-1.95%	4.16%	4.34%	-141.36%
HOFT	49 Neutral	$146.04M	-5.15	-11.27%	7.20%	-12.09%	-204.66%
SNBR	48 Neutral	$253.88M	-3.46	―	―	-16.95%	-88.00%