Culp (CULP) AI Stock Analysis

• Market Cap: $41.03M
• Dividend Yield: N/A
• Average Volume (3M): 26.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -7.76%
• EPS Growth: 49.20%
• Country: US
• Employees: 1,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.34
• Shares Outstanding: 12,662,784
• 10 Day Avg. Volume: 13,619
• 30 Day Avg. Volume: 26,374
• 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: 1.30
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 1.96
• Enterprise Value/Ebitda: -15.30
• 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: 41 Neutral
• Price Target: $3.00 ▼(-13.79% Downside)
• Action: Reiterated Date: 12/12/25
• Date: Action: Reiterated 12/12/25

Culp's overall stock score is primarily impacted by its weak financial performance and poor valuation metrics. The company's ongoing profitability issues and negative cash flow are significant concerns. Technical analysis also indicates bearish momentum, further weighing down the score. Despite some positive guidance from the earnings call, the macroeconomic environment and tariff impacts continue to pose significant challenges.

Positive Factors

Conservative leverage

A very low debt-to-equity ratio provides durable financial flexibility, lowering fixed interest burdens and preserving borrowing capacity. This conservatism supports continued investment in restructuring, working capital and capex through cyclical softness without immediate solvency risk.

Bedding segment strength

Sequential and year-over-year growth in the bedding segment shows the company can win share in a core end market. Durable segment-level growth diversifies revenue away from weaker upholstery demand and provides a clearer path for sustained margin and cash improvement.

Material cost-savings program

A targeted $20M annualized savings program and integration initiatives improve operating leverage and structurally lower breakeven. If realized, these permanent reductions can convert modest revenue into profits and support sustainable free cash flow generation over months.

Negative Factors

Revenue decline and negative margins

A nearly 20% TTM revenue decline and negative net margin indicate loss of scale and pricing pressure. Persistent top-line contraction undermines fixed-cost absorption and limits the impact of efficiency initiatives, prolonging the path back to sustainable profitability.

Weak cash generation

Chronic negative operating and free cash flow reduce internal funding for capex, inventory and working capital, increasing dependence on external liquidity. Even with recent improvement, weak cash generation constrains strategic flexibility and increases financing risk.

Tariff exposure and upholstery softness

New tariffs and a 12% YoY decline in upholstery sales create a structural headwind to margins and revenue. Tariff-driven cost increases and elongated pass-through timelines erode competitiveness and can depress demand in the cyclical home-furnishings market.

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 upholstery and mattress fabrics to manufacturers and retailers in the furniture and bedding industries. The company employs a business model that includes both direct sales and partnerships with distributors. Key revenue streams include the sale of woven and knitted fabrics, as well as specialty fabrics that meet specific customer needs. Culp's strategic partnerships with key players in the furniture industry enhance its market presence and facilitate access to new customers. Additionally, the company's focus on innovation and sustainability in fabric production allows it to command premium pricing and cater to growing consumer preferences for eco-friendly products.

Culp Financial Statement Overview

Summary

Culp faces significant financial challenges, with declining revenues, negative profit margins, and cash flow difficulties. While leverage is low, the company struggles with profitability and cash generation, which could hinder its ability to invest in growth and manage operations effectively.

Income Statement

Culp's income statement shows significant challenges with declining revenues and negative profit margins. The TTM data indicates a revenue decline of 19.2% and a net profit margin of -4.5%, reflecting ongoing profitability issues. The gross profit margin is relatively low at 13.1%, and both EBIT and EBITDA margins are negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet reveals a relatively low debt-to-equity ratio of 0.089, suggesting conservative leverage. However, the return on equity is negative at -10.0%, indicating that the company is not generating sufficient returns on its equity base. The equity ratio is stable, but overall financial health is impacted by poor profitability.

Cash Flow

Cash flow analysis shows negative operating cash flow and free cash flow, with a free cash flow to net income ratio of 1.14, indicating cash flow challenges. The free cash flow growth rate is negative, reflecting declining cash generation capabilities, which could impact future operations.

Breakdown	TTM	Apr 2024	Apr 2023	Apr 2022	Apr 2021	Apr 2020
Income Statement
Total Revenue	204.92M	213.24M	225.33M	234.93M	294.84M	299.72M
Gross Profit	27.12M	26.67M	27.94M	10.90M	36.09M	49.83M
EBITDA	-3.47M	-12.63M	-3.85M	-21.11M	7.25M	19.42M
Net Income	-8.00M	-19.10M	-13.82M	-31.52M	-3.21M	3.22M
Balance Sheet
Total Assets	125.25M	123.37M	132.05M	152.18M	177.56M	214.08M
Cash, Cash Equivalents and Short-Term Investments	12.14M	6.95M	10.91M	22.37M	14.55M	45.71M
Total Debt	22.84M	17.64M	4.48M	6.25M	10.28M	9.56M
Total Liabilities	71.66M	65.73M	55.92M	63.10M	58.06M	85.07M
Stockholders Equity	53.59M	57.64M	76.13M	89.08M	119.50M	129.01M
Cash Flow
Free Cash Flow	-17.77M	-20.60M	-11.94M	5.70M	-23.14M	14.81M
Operating Cash Flow	-16.18M	-17.65M	-8.22M	7.80M	-17.44M	21.48M
Investing Cash Flow	2.55M	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: Negative
• Last Price: 3.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CULP, the sentiment is Negative. The current price of 3.48 is below the 20-day moving average (MA) of 3.50, below the 50-day MA of 3.56, and below the 200-day MA of 4.02, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 32.67 is Neutral, neither overbought nor oversold. The STOCH value of 13.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CULP.

Culp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JL	55 Neutral	$17.08M	51.18	17.80%	―	30.48%	30.06%
UFI	51 Neutral	$73.21M	-3.17	-9.61%	―	-5.26%	42.84%
JRSH	50 Neutral	$41.66M	23.90	0.99%	6.75%	12.25%	―
VNCE	46 Neutral	$38.68M	-1.96	-33.24%	―	2.58%	-502.04%
XELB	45 Neutral	$10.79M	-0.23	-78.27%	―	-46.66%	24.23%
CULP	41 Neutral	$41.03M	-3.80	-18.32%	―	-7.76%	49.20%

Culp Corporate Events

Culp Announces Transfer of Stock Listing to Nasdaq

On February 23, 2026, Culp, Inc. announced it would voluntarily transfer the listing of its common stock from the New York Stock Exchange to the Nasdaq Capital Market, ending NYSE trading at the close on March 5 and beginning Nasdaq trading on March 6 under the unchanged ticker “CULP.” Management framed the move as the next step following recent restructuring and integration efforts, saying Nasdaq offers a platform and peer group better aligned with the company’s strategic direction, while signaling expectations of a seamless transition for shareholders after three decades on the NYSE, though acknowledging potential risks around timing and market disruption during the switch.

The most recent analyst rating on (CULP) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Culp stock, see the CULP Stock Forecast page.

Culp Appoints Mark Wilson to Board of Directors

On January 23, 2026, Culp, Inc. appointed Mark Wilson to its Board of Directors, effective immediately, filling the vacancy created by the December 11, 2025 resignation of director Alexander B. Jones. Wilson, who has served as General Counsel for 22NW Fund, LP since 2024, was added to the board and will be nominated for re-election at the company’s 2026 annual meeting pursuant to a previously disclosed cooperation agreement between Culp and 22NW-related parties, and he has been deemed independent under the company’s governance guidelines and New York Stock Exchange rules.
Culp’s board also named Wilson to its Strategy Committee and set his compensation in line with other non-employee directors, including a prorated annual cash retainer of $55,000 for fiscal 2026 and eligibility for an annual equity grant of restricted stock units after the 2026 annual meeting, with plans for the company to enter into a standard indemnification agreement with him, underscoring a continuation of its board refreshment and shareholder-aligned governance framework following Jones’s departure.

The most recent analyst rating on (CULP) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Culp stock, see the CULP Stock Forecast page.

Culp Announces CFO Retirement and Controller Resignation Plans

On January 16, 2026, Culp, Inc. announced that Executive Vice President, Chief Financial Officer and Treasurer, Kenneth R. Bowling, who has served the company for nearly 30 years, plans to retire at the end of calendar year 2026 and will remain in his role until the earlier of December 31, 2026, or the appointment of his successor, while assisting with a planned, orderly transition supported by an external search for his replacement. Separately, on January 12, 2026, Vice President and Corporate Controller Ronald S. Chandler informed the company of his decision to resign effective February 13, 2026, after which Bowling will assume the responsibilities of principal accounting officer on an interim basis; both executives’ departures were stated to be unrelated to any disagreements over the company’s operations, policies, or practices, aiming to reassure stakeholders about continuity in financial leadership.

The most recent analyst rating on (CULP) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Culp stock, see the CULP Stock Forecast page.