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Culp
(NASDAQ:CULP)
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Rating:48Neutral
Price Target:
$3.00
▼(-13.79% Downside)
Action:Reiterated
Date:07/02/26
CULP scores in the high-40s primarily due to weak financial performance—continued losses and recent operating/free-cash-flow burn outweigh the low leverage and 2026 revenue rebound. Technical indicators are also slightly bearish with the stock below key moving averages and a negative MACD. The latest earnings call adds some support via cost actions and near-term EBITDA guidance, but reliance on tariff refunds and persistent end-market headwinds limit the overall score.
Positive Factors
Low Leverage / Balance Sheet Flexibility
Culp's low leverage and rebuilt equity provide durable financial flexibility to absorb cyclical volume shocks, fund modest capex, and support restructuring execution without immediate refinancing. This reduces insolvency risk and gives management time to realize operational improvements.
Negative Factors
Consistent Cash Flow Burn
Repeated negative operating and free cash flow erodes liquidity and forces reliance on external funding or one-time receipts. This constrains investment in growth, increases refinancing risk if market conditions tighten, and makes sustained recovery contingent on reversing cash burn.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Balance Sheet Flexibility
Culp's low leverage and rebuilt equity provide durable financial flexibility to absorb cyclical volume shocks, fund modest capex, and support restructuring execution without immediate refinancing. This reduces insolvency risk and gives management time to realize operational improvements.
Read all positive factors
Culp Key Performance Indicators (KPIs)
Any
Gross Profit By Segment
Assesses the profitability of each segment after direct costs, indicating how well each segment is performing in terms of production efficiency and pricing strategy.
Assesses the profitability of each segment after direct costs, indicating how well each segment is performing in terms of production efficiency and pricing strategy.
Data provided by:
The Fly
The FlyCulp (CULP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.43M
Dividend YieldN/A
Average Volume (3M)26.37K
Price to Earnings (P/E)―
Beta (1Y)0.84
Revenue Growth-4.57%
EPS Growth47.12%
CountryUS
Employees1,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-0.81
Shares Outstanding12,662,784
10 Day Avg. Volume13,619
30 Day Avg. Volume26,374
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)0.38
Price to Sales (P/S)0.21
P/FCF Ratio-4.32
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue0.25
Enterprise Value/Gross Profit2.02
Enterprise Value/Ebitda-12.97
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.15
Revenue Forecast (FY)$206.61M
Culp Business Overview & Revenue Model
Company Description
Culp, Inc. is a global textile enterprise involved in the manufacturing, procurement, marketing, and sale of materials for bedding and upholstered furniture. Its products, which include mattress fabrics, sewn covers, and pre-cut fabric kits, are d...
How the Company Makes Money
Culp makes money primarily by selling upholstery and mattress fabrics to business customers (B2B). Revenue is generated when customers—such as upholstered furniture manufacturers and mattress/box-spring producers—purchase fabric yardage and relate...
Culp Earnings Call Summary
Earnings Call Date:Jul 01, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call presents a mixed but improving picture: solid sequential momentum in Q4 (sales, gross profit, operating loss and adjusted EBITDA) and meaningful structural actions (restructuring, integration, inventory reduction, and >$20M annualized savings) support an optimistic view for FY2027. However, the company remains unprofitable on a trailing basis, faces YoY revenue pressure for the full year, ongoing upholstery market weakness, foreign exchange and tariff volatility, and some reliance on tariff refunds to materially improve the balance sheet. Overall, operational execution and cost actions are producing tangible progress, but material risks and legacy losses remain.Positive Updates
Sequential and Year-over-Year Sales Improvement in Q4
Q4 net sales of $51.6M, up 7.6% sequentially from Q3 and roughly 6% year-over-year, demonstrating momentum heading into FY2027.
Negative Updates
Continued Net Loss and Negative Adjusted EBITDA
Company remained unprofitable: Q4 net loss $2.2M and adjusted EBITDA negative $560K (although improved sequentially). Full-year net loss $10.2M (improved vs prior year) and full-year adjusted EBITDA negative $4.7M.
Read all updates
Q4-2026 Updates
Positive
Negative
Sequential and Year-over-Year Sales Improvement in Q4
Q4 net sales of $51.6M, up 7.6% sequentially from Q3 and roughly 6% year-over-year, demonstrating momentum heading into FY2027.
Read all positive updates
Company Guidance
Culp gave limited forward guidance, saying it expects consolidated sales in Q1 FY27 to moderately improve both sequentially and year‑over‑year and that the cost, efficiency and pricing actions (management cited more than $20 million of annualized savings/benefits, roughly ~$22M referenced) should drive higher gross profit and lower SG&A such that adjusted EBITDA for Q1 FY27 is expected to be break‑even to positive even without the roughly $7.0M in IEPA tariff refunds received in Q1; those refunds, plus planned use of cash, should reduce net debt from $10.8M at FY26 year‑end to as low as about $5M at Q1 end and materially improve liquidity (FY26 liquidity was ~$24.2M: $8.3M cash and $15.9M available credit); FY27 capital expenditures are guided to $2.0–$2.5M with depreciation ~ $3.5M.Culp Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
62
Positive
Cash Flow
18
Very Negative
| Breakdown | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | Apr 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 203.48M | 213.24M | 225.33M | 234.93M | 294.84M |
| Gross Profit | 25.16M | 26.67M | 27.94M | 10.90M | 36.09M |
| EBITDA | -7.18M | -12.63M | -3.85M | -21.11M | 7.25M |
| Net Income | -10.21M | -19.10M | -13.82M | -31.52M | -3.21M |
Balance Sheet | |||||
| Total Assets | 111.99M | 123.37M | 132.05M | 152.18M | 177.56M |
| Cash, Cash Equivalents and Short-Term Investments | 8.27M | 6.95M | 10.91M | 22.37M | 14.55M |
| Total Debt | 8.98M | 17.64M | 4.48M | 6.25M | 10.28M |
| Total Liabilities | 63.84M | 65.73M | 55.92M | 63.10M | 58.06M |
| Stockholders Equity | 111.99M | 57.64M | 76.13M | 89.08M | 119.50M |
Cash Flow | |||||
| Free Cash Flow | -9.97M | -20.60M | -11.94M | 5.70M | -23.14M |
| Operating Cash Flow | -9.37M | -17.65M | -8.22M | 7.80M | -17.44M |
| Investing Cash Flow | 6.38M | 598.00K | -2.43M | -752.00K | 2.50M |
| Financing Cash Flow | 5.48M | 12.67M | -126.00K | -436.00K | -7.42M |
Culp Technical Analysis
Positive
3.48
Price Trends
3.19
Positive
3.13
Positive
3.52
Negative
Market Momentum
0.01
Negative
68.46
Neutral
41.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CULP, the sentiment is Positive. The current price of 3.48 is above the 20-day moving average (MA) of 3.13, above the 50-day MA of 3.19, and below the 200-day MA of 3.52, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 68.46 is Neutral, neither overbought nor oversold. The STOCH value of 41.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CULP.
Culp Risk Analysis
Culp disclosed 24 risk factors in its most recent earnings report. Culp 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
Culp Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $56.51M | 15.69 | 5.57% | 6.75% | 14.03% | ― | |
64 Neutral | $21.97M | 7.13 | 30.92% | ― | 30.49% | ― | |
63 Neutral | $86.59M | 9.63 | 18.07% | ― | 4.76% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $89.59M | -2.21 | -16.70% | ― | -10.95% | 80.36% | |
48 Neutral | $43.43M | -4.24 | -13.33% | ― | -4.57% | 47.12% | |
45 Neutral | $10.46M | -0.37 | -78.27% | ― | -35.86% | 41.96% |
* Consumer Cyclical Sector Average
CULP
Culp
3.43
-1.07
-23.78%
UFI
Unifi
4.82
-0.18
-3.60%
VNCE
Vince Holding
6.74
5.31
371.33%
XELB
XCel Brands
1.73
0.15
9.49%
JRSH
Jerash Holdings (US)
4.45
1.32
42.17%
JL
J-Long Group Limited
5.84
-0.40
-6.41%
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.