Culp (CULP) AI Stock Analysis

• Market Cap: $59.50M
• Dividend Yield: N/A
• Average Volume (3M): 20.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: -7.91%
• EPS Growth: 32.31%
• Country: US
• Employees: 1,000
• Sector: Consumer Cyclical
• Sector Strength: 82
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.02
• Shares Outstanding: 12,605,306
• 10 Day Avg. Volume: 21,684
• 30 Day Avg. Volume: 20,807
• PEG Ratio: -0.07
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -2.32
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 2.33
• Enterprise Value/Ebitda: -11.11
• 1Y Price Target: $4.50
• Price Target Upside: -4.66% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: $4.50 ▼(-4.66% Downside)

Culp's overall stock score reflects significant financial challenges, with declining revenues and profitability issues being the most impactful factors. While technical analysis shows some positive momentum, valuation concerns and mixed earnings call sentiment highlight ongoing risks. The company's restructuring efforts provide a glimmer of hope, but market and tariff challenges persist.

Positive Factors

Restructuring Success

The restructuring in the bedding segment has led to significant improvements in gross margins, indicating enhanced operational efficiency and potential for sustained profitability.

Cost and Efficiency Enhancements

The company's focus on cost and efficiency improvements through restructuring initiatives is expected to enhance profitability and operational performance over the long term.

Market Share Gains

Culp's ability to gain market share, especially in the bedding segment, highlights its competitive positioning and potential for revenue growth despite industry challenges.

Negative Factors

Declining Revenue

The consistent decline in revenue over recent years indicates challenges in market demand and competitive pressures, impacting long-term growth prospects.

Tariff-related Disruptions

High tariffs on imports create supply chain disruptions and increase costs, posing a significant risk to profitability and operational stability.

Negative Cash Flow

Persistent negative cash flow reflects challenges in covering operational and capital expenditures, potentially limiting future investment and growth opportunities.

Culp Business Overview & Revenue Model

Company Description

Culp, Inc. manufactures, sources, markets, and sells mattress fabrics, sewn covers, and cut and sewn kits for use in mattresses, foundations, and other bedding products in the United States, North America, the Far East, Asia, and internationally. It operates in two segments, Mattress Fabrics and Upholstery Fabrics. The Mattress Fabrics segment offers woven jacquard, knitted, and converted fabrics for use in the production of bedding products, including mattresses, box springs, foundations, and top of bed components. The Upholstery Fabrics segment provides jacquard woven fabrics, velvets, micro denier suedes, woven dobbies, knitted fabrics, piece-dyed woven products, and polyurethane fabrics for use in the production of residential and commercial upholstered furniture, such as sofas, recliners, chairs, loveseats, sectionals, and sofa-beds, as well as office seating and window treatment products; and installation services for customers in the hospitality and commercial industries. Culp, Inc. was founded in 1972 and is headquartered in High Point, North Carolina.

How the Company Makes Money

Culp generates revenue primarily through the sale of its upholstered and mattress fabrics to manufacturers and retailers in the home furnishings industry. The company operates on a business-to-business (B2B) model, where it sells its products directly to furniture manufacturers and distributors. Key revenue streams include bulk fabric sales, custom fabric development, and ongoing contracts with major customers. Culp also benefits from strategic partnerships with various retailers and manufacturers, allowing them to secure long-term contracts and stable revenue. Additionally, the company invests in product innovation and sustainability initiatives, which can enhance its market position and lead to increased sales.

Culp Financial Statement Overview

Summary

Culp faces financial challenges with declining revenues, negative profitability, and cash flow difficulties. The income statement shows negative growth trends and operational inefficiencies. The balance sheet is moderately stable, but cash flow issues persist.

Income Statement

Culp's income statement reveals challenges with profitability and revenue growth. The gross profit margin has decreased over recent years, and the net profit margin is negative, indicating losses. Revenue has declined from $299.72 million in 2021 to $213.24 million in 2025, reflecting a negative growth trend. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate financial position. The debt-to-equity ratio is relatively low, suggesting manageable leverage. However, the return on equity is negative due to consistent net losses, impacting shareholder value. The equity ratio remains stable, indicating a reasonable proportion of equity financing.

Cash Flow

Culp's cash flow statement indicates significant challenges in generating positive cash flows. The operating cash flow has been negative in recent years, and free cash flow has also been consistently negative, reflecting difficulties in covering capital expenditures and operational needs. The free cash flow to net income ratio is unfavorable, indicating cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	207.39M	213.24M	225.33M	234.93M	294.84M	299.72M
Gross Profit	27.22M	26.67M	27.94M	10.90M	36.09M	49.83M
EBITDA	-5.71M	-12.63M	-3.85M	-21.11M	7.25M	19.42M
Net Income	-9.34M	-19.10M	-13.82M	-31.52M	-3.21M	3.22M
Balance Sheet
Total Assets	126.41M	123.37M	132.05M	152.18M	177.56M	214.08M
Cash, Cash Equivalents and Short-Term Investments	11.09M	6.95M	10.91M	22.37M	14.55M	45.71M
Total Debt	11.23M	17.64M	4.48M	6.25M	10.28M	9.56M
Total Liabilities	68.77M	65.73M	55.92M	63.10M	58.06M	85.07M
Stockholders Equity	126.41M	57.64M	76.13M	89.08M	119.50M	129.01M
Cash Flow
Free Cash Flow	-20.76M	-20.60M	-11.94M	5.70M	-23.14M	14.81M
Operating Cash Flow	-18.14M	-17.65M	-8.22M	7.80M	-17.44M	21.48M
Investing Cash Flow	1.92M	598.00K	-2.43M	-752.00K	2.50M	-10.68M
Financing Cash Flow	13.82M	12.67M	-126.00K	-436.00K	-7.42M	-43.71M

Culp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4.72 is above the 20-day moving average (MA) of 4.26, above the 50-day MA of 4.34, and above the 200-day MA of 4.66, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 65.92 is Neutral, neither overbought nor oversold. The STOCH value of 81.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CULP.

Culp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.16B	12.70	-2.51%	3.03%	1.44%	-15.67%
VNCE	55 Neutral	$34.04M	6.22	-32.91%	―	-0.49%	-1427.68%
CULP	52 Neutral	$59.50M	―	-19.05%	―	-7.91%	32.31%
JRSH	52 Neutral	$44.07M	53.47	1.30%	5.76%	17.12%	―
LAKE	47 Neutral	$140.02M	―	-15.81%	0.82%	39.13%	-1186.47%
UFI	42 Neutral	$82.81M	―	-7.94%	―	-1.87%	57.41%
XELB	39 Underperform	$7.00M	―	-65.44%	―	-42.62%	-7.75%

Culp Corporate Events

Culp Reports Q4 Results and Restructuring Impact

On June 25, 2025, Culp, Inc. announced its financial and operating results for the fourth quarter and fiscal year ending April 27, 2025. The company completed a restructuring plan that included the sale of a manufacturing facility in Canada and a transition to an asset-light model, resulting in improved operating performance despite a challenging revenue environment. The restructuring is expected to generate significant annual savings and has already contributed to better financial results. Culp also integrated its operating divisions into a unified business to enhance market responsiveness and optimize resources. The company reported consolidated net sales of $48.8 million for the fourth quarter, with a GAAP consolidated loss from operations of $2.2 million, showing improvement from the prior year. Culp extended its credit facility with Wells Fargo, providing additional liquidity to support future growth.

Culp Extends Credit Facility with Wells Fargo

On June 12, 2025, Culp, Inc. and its subsidiaries entered into a Third Amendment to their Credit Agreement with Wells Fargo Bank, extending the term of their asset-based revolving credit facility to June 12, 2028. This amendment allows for revolving credit loans and letters of credit up to $30 million, with potential increases, and includes specific borrowing base calculations and interest rates tied to the secured overnight financing rate. The changes aim to support Culp’s working capital and corporate purposes, potentially impacting its financial flexibility and operational strategy.