Crown Crafts (CRWS)
NASDAQ:CRWS
Top Page
Crown Crafts
(NASDAQ:CRWS)
Select Model
Select Model
Rating:52Neutral
Price Target:
$2.50
▼(-11.97% Downside)
Action:ReiteratedDate:02/18/26
The score is held back primarily by weakened profitability, declining sales, and tariff/sourcing pressures highlighted on the earnings call, partially offset by strong cash generation and a very high dividend yield. Technical indicators are broadly neutral and do not materially improve the outlook.
Positive Factors
Cash generation
Consistent positive operating and free cash flow despite accounting losses is a durable strength: it funds the dividend, supports working capital and debt reduction, and provides flexibility for sourcing shifts or selective M&A. Sustained cash generation materially lowers near-term refinancing risk.
Negative Factors
Tariff & sourcing concentration
Heavy China concentration combined with elevated and category-specific U.S. tariffs creates a persistent cost and supply risk. Passing through tariffs is constrained by consumer price sensitivity, so sustained exposure will compress margins until re-sourcing or structural pricing changes are implemented, which is time-consuming and costly.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating and free cash flow despite accounting losses is a durable strength: it funds the dividend, supports working capital and debt reduction, and provides flexibility for sourcing shifts or selective M&A. Sustained cash generation materially lowers near-term refinancing risk.
Read all positive factors
Crown Crafts (CRWS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.92M
Dividend Yield12.12%
Average Volume (3M)35.20K
Price to Earnings (P/E)4.7
Beta (1Y)0.38
Revenue Growth-1.49%
EPS Growth-399.62%
CountryUS
Employees162
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.14
Shares Outstanding10,697,787
10 Day Avg. Volume21,543
30 Day Avg. Volume35,197
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.96
Price to Sales (P/S)0.43
P/FCF Ratio3.88
Enterprise Value/Market Cap2.08
Enterprise Value/Revenue0.70
Enterprise Value/Gross Profit3.03
Enterprise Value/Ebitda16.30
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Crown Crafts Business Overview & Revenue Model
Company Description
Crown Crafts, Inc., through its subsidiaries, operates in the consumer products industry in the United States and internationally. It provides infant, toddler, and juvenile products, including infant and toddler beddings; blankets and swaddle blan...
How the Company Makes Money
Crown Crafts primarily makes money by designing, sourcing/manufacturing (largely through third-party suppliers), and selling infant and toddler products to retailers and other wholesale customers at a markup over its product costs, generating net ...
Crown Crafts Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 11, 2026
Earnings Call Sentiment Negative
The quarter shows a mixed picture: profitability and EPS improved, driven in meaningful part by a one-time $2.5 million insurance recovery and continued cost actions, and the company highlights product pipeline progress (Groovy Girls) and a solid liquidity position. However, underlying operational performance is challenged — revenue declined ~11.5%, gross margins compressed by 2.6 percentage points due to tariffs and one-time costs, core demand (notably bedding) remains soft, and the business carries significant China sourcing and tariff risk. Given the reliance on one-time gains to support earnings and the persistent demand and margin pressures, the negatives outweigh the positives for the quarter.Positive Updates
Net Income and EPS Improvement
Net income increased to $1,500,000 from $900,000 a year ago (a +66.7% increase). Basic and diluted EPS rose to $0.14 from $0.09 (approx. +55.6%).
Negative Updates
Revenue Decline
Net sales for the third quarter were $20.7 million versus $23.4 million in the prior-year quarter — a decline of $2.7 million or approximately -11.5% year-over-year, driven largely by softness in the bedding category.
Read all updates
Q3-2026 Updates
Positive
Negative
Net Income and EPS Improvement
Net income increased to $1,500,000 from $900,000 a year ago (a +66.7% increase). Basic and diluted EPS rose to $0.14 from $0.09 (approx. +55.6%).
Read all positive updates
Company Guidance
Management's guidance focused on defending profitability and liquidity through pricing, cost and sourcing actions: they will continue to push pricing and cost initiatives to counter a soft sales environment (Q3 net sales $20.7M vs $23.4M a year ago) and tariff-driven margin pressure (Q3 gross profit $4.9M, gross margin 23.5% vs 26.1%), while prioritizing cash generation and debt reduction (nine‑month operating cash flow $7.1M vs $7.0M; total debt $16.4M; $10.6M revolver availability) and maintaining their regular quarterly dividend; near-term actions include conservative inventory policy (inventories $31.2M vs $27.8M FY25 year‑end), operational consolidation (incurred $600K severance this quarter with additional savings expected into the next fiscal year), evaluation of alternative sourcing (currently high‑90% China content; current tariff ~20% with some categories like diaper bags >60%), and selective M&A/insurance remedies (received $2.5M insurance proceeds, ~$2.1M net benefit to pre‑tax income); reported income before tax $2.1M (vs $1.3M), net income $1.5M (vs $0.9M) and EPS $0.14 (vs $0.09); management reiterated no near‑term additional price increases, the Groovy Girls relaunch in May 2026, and will provide a further update on progress on the mid‑June call.Crown Crafts Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
49
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 83.12M | 87.25M | 87.63M | 75.05M | 87.36M | 79.16M |
| Gross Profit | 19.20M | 20.49M | 23.00M | 19.83M | 23.31M | 24.10M |
| EBITDA | 3.57M | -4.76M | 8.68M | 8.63M | 11.81M | 13.30M |
| Net Income | -9.22M | -9.36M | 4.89M | 5.65M | 9.92M | 6.08M |
Balance Sheet | ||||||
| Total Assets | 76.10M | 81.15M | 82.71M | 90.97M | 60.16M | 58.08M |
| Cash, Cash Equivalents and Short-Term Investments | 2.40M | 521.00K | 829.00K | 1.74M | 1.60M | 613.00K |
| Total Debt | 32.62M | 31.60M | 23.84M | 29.99M | 2.64M | 6.41M |
| Total Liabilities | 36.91M | 41.53M | 31.11M | 41.76M | 14.35M | 16.22M |
| Stockholders Equity | 39.20M | 39.62M | 51.60M | 49.21M | 45.80M | 41.87M |
Cash Flow | ||||||
| Free Cash Flow | 9.10M | 9.75M | 6.30M | 6.92M | 7.73M | 8.01M |
| Operating Cash Flow | 9.93M | 9.82M | 7.08M | 7.74M | 8.26M | 8.74M |
| Investing Cash Flow | -770.00K | -17.17M | -193.00K | -16.91M | -490.00K | -733.00K |
| Financing Cash Flow | -7.81M | 7.04M | -7.80M | 9.32M | -6.79M | -7.67M |
Crown Crafts Technical Analysis
Neutral
2.84
Price Trends
2.80
Negative
2.72
Negative
2.71
Negative
Market Momentum
-0.04
Negative
48.59
Neutral
82.93
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRWS, the sentiment is Neutral. The current price of 2.84 is above the 20-day moving average (MA) of 2.67, above the 50-day MA of 2.80, and above the 200-day MA of 2.71, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 48.59 is Neutral, neither overbought nor oversold. The STOCH value of 82.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CRWS.
Crown Crafts Risk Analysis
Crown Crafts disclosed 21 risk factors in its most recent earnings report. Crown Crafts reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Crown Crafts Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $170.36M | -3.18 | -13.50% | 4.51% | -1.76% | -67.05% | |
54 Neutral | $165.11M | -1.14 | -15.57% | 7.20% | -12.09% | -204.66% | |
52 Neutral | $27.92M | 4.73 | -23.80% | 12.12% | -1.49% | -399.62% | |
50 Neutral | $31.72M | -1.43 | -35.17% | ― | -4.94% | 11.35% | |
47 Neutral | $66.47M | -5.81 | 289.96% | ― | -9.47% | 48.11% |
* Consumer Cyclical Sector Average
CRWS
Crown Crafts
2.61
-0.04
-1.58%
HOFT
Hooker Furniture
15.32
7.70
101.05%
LCUT
Lifetime Brands
7.52
3.70
97.01%
NTZ
Natuzzi SPA
2.88
-1.30
-31.10%
PRPL
Purple Innovation
0.61
-0.03
-4.53%
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.