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Bassett Furniture (BSET)
NASDAQ:BSET
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Bassett Furniture
(NASDAQ:BSET)
Rating:52Neutral
Price Target:
$15.50
▼(-3.73%Downside)
Bassett Furniture (BSET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$140.14M
Dividend Yield4.97%
Average Volume (3M)55.62K
Price to Earnings (P/E)―
Beta (1Y)0.45
Revenue Growth-11.78%
EPS Growth-13.89%
CountryUS
Employees1,228
SectorConsumer Cyclical
Sector Strength61
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.21
Shares Outstanding8,704,115
10 Day Avg. Volume125,790
30 Day Avg. Volume55,617
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)0.89
Price to Sales (P/S)0.00
P/FCF Ratio-7.21
Enterprise Value/Market Cap1.64
Enterprise Value/Revenue0.17
Enterprise Value/Gross Profit1.29
Enterprise Value/Ebitda-18.76
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 through the sale of its furniture products via multiple channels. The company operates a network of company-owned retail stores and licenses its brand to independent stores, ensuring a broad market presence. Additionally, Bassett engages in wholesale distribution to independent furniture retailers and sells directly to consumers through its e-commerce platform. The company also offers custom design services, which provide added value and attract a customer base seeking personalized home furnishings. Key revenue streams include direct retail sales, wholesale distribution, and online sales, with strategic partnerships and licensing agreements enhancing its market reach and brand visibility.
Bassett Furniture Earnings Call Summary
Earnings Call Date:Apr 02, 2025
(Q1-2025)
| % Change Since: 4.27%|
Next Earnings Date:Jul 09, 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.Q1-2025 Updates
Positive Updates
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.
Negative Updates
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.Bassett Furniture Financial Statement Overview
Summary
Bassett Furniture faces significant challenges with declining revenues and profitability, highlighted by negative profit margins. The balance sheet displays moderate leverage, but negative return on equity signals profitability issues. While cash flow is positive, efficiency improvements are needed.Income Statement
Bassett Furniture shows a concerning trend with declining revenues and negative profit margins. The TTM revenue of $290.2M reflects a substantial drop from previous years, including $485.6M in FY 2022. The gross profit margin remains relatively high at 61.5% TTM. However, the net profit margin is negative at -2.3% for the TTM, indicating challenges in maintaining profitability. The negative EBIT and EBITDA margins further highlight operational inefficiencies.45
Neutral
Balance Sheet
Bassett Furniture's balance sheet reveals a moderately leveraged position with a debt-to-equity ratio of 0.61 TTM, which is reasonable within the industry. The equity ratio stands at 49.7% TTM, indicating a balanced approach between debt and equity financing. However, the return on equity is negative at -4.0% TTM, reflecting profitability challenges that could hinder shareholder returns.60
Neutral
Cash Flow
The company's cash flow position shows a mixed picture. While Bassett Furniture has managed to generate positive operating cash flow of $11.7M TTM, free cash flow remains positive at $7.7M TTM. The free cash flow to net income ratio is negative, given the negative net income, suggesting room for improvement in converting net earnings to cash.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 325.53M | 329.92M | 390.14M | 485.60M | 486.53M | 385.86M |
| Gross Profit | 178.38M | 179.41M | 206.49M | 248.34M | 222.83M | 222.30M |
| EBITDA | -143.00K | -4.42M | 7.67M | 36.98M | 40.60M | -3.26M |
| Net Income | -6.65M | -9.70M | -3.17M | 25.36M | 18.04M | -10.42M |
Balance Sheet | ||||||
| Total Assets | 335.79M | 341.17M | 370.42M | 406.27M | 421.66M | 402.55M |
| Cash, Cash Equivalents and Short-Term Investments | 56.42M | 59.91M | 70.18M | 79.34M | 52.09M | 63.51M |
| Total Debt | 101.51M | 106.44M | 116.18M | 116.30M | 133.53M | 139.05M |
| 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
Positive
16.10
Price Trends
16.45
Negative
15.99
Positive
14.95
Positive
Market Momentum
-0.28
Negative
55.20
Neutral
77.97
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 16.1 is above the 20-day moving average (MA) of 15.49, below the 50-day MA of 16.45, and above the 200-day MA of 14.95, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 55.20 is Neutral, neither overbought nor oversold. The STOCH value of 77.97 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $206.92M | 15.44 | 9.48% | 2.04% | 7.24% | -9.51% | |
71 Outperform | $766.20M | 13.36 | 12.09% | 5.18% | -6.32% | -18.35% | |
69 Neutral | $130.63M | 6.67 | 20.52% | 1.20% | -9.84% | -20.47% | |
68 Neutral | $1.62B | 16.83 | 9.84% | 2.22% | 3.04% | -16.49% | |
62 Neutral | $16.90B | 11.24 | -7.48% | 2.95% | 1.60% | -23.76% | |
52 Neutral | $140.14M | ― | -3.83% | 4.97% | -11.78% | -13.89% | |
50 Neutral | $123.23M | ― | -5.55% | 7.99% | -3.89% | -391.05% |
* Consumer Cyclical Sector Average
Performance Comparison
BSET
Bassett Furniture
16.10
3.54
28.18%
ETD
Ethan Allen
30.13
4.87
19.28%
FLXS
Flexsteel
39.24
6.84
21.11%
HOFT
Hooker Furniture
11.52
-1.22
-9.58%
LZB
La-Z-Boy Incorporated
39.58
2.82
7.67%
VIRC
Virco Manufacturing
8.30
-5.04
-37.78%
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.