Culp (CULP) AI Stock Analysis

• Market Cap: $50.61M
• Dividend Yield: N/A
• Average Volume (3M): 16.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -5.37%
• EPS Growth: -37.39%
• Country: US
• Employees: 1,000
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.17
• Shares Outstanding: 12,559,129
• 10 Day Avg. Volume: 17,488
• 30 Day Avg. Volume: 16,689
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 2.35
• Enterprise Value/Ebitda: -4.23
• 1Y Price Target: $4.00
• Price Target Upside: -3.61% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: $4.00 ▼(-3.61% Downside)

Culp's overall stock score reflects significant financial and technical challenges, with declining revenues and negative profitability weighing heavily. While strategic initiatives and corporate events provide some optimism, they are not enough to offset the current operational and market difficulties.

Culp Business Overview & Revenue Model

Company Description

Culp, Inc. is a leading provider of textile fabrics, primarily serving the mattress and upholstery markets. The company operates through two main segments: Culp Upholstery Fabrics and Culp Mattress Fabrics. Culp specializes in the design, development, and manufacturing of a wide range of fabrics, including woven and knit materials, which are known for their quality and innovation. The company is recognized for its ability to offer customized products that meet the specific needs of its customers, making it a key player in the textile industry.

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. While the balance sheet shows some stability in terms of leverage, the company's operational and cash flow performance needs improvement to enhance financial health and shareholder value.

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	213.24M	213.24M	225.33M	234.93M	294.84M	299.72M
Gross Profit	25.07M	25.07M	27.94M	10.90M	36.09M	49.83M
EBITDA	-13.92M	-18.38M	-3.85M	-21.11M	7.25M	19.42M
Net Income	-19.10M	-19.10M	-13.82M	-31.52M	-3.21M	3.22M
Balance Sheet
Total Assets	123.37M	123.37M	132.05M	152.18M	177.56M	214.08M
Cash, Cash Equivalents and Short-Term Investments	5.63M	6.95M	10.91M	22.37M	14.55M	45.71M
Total Debt	9.53M	17.64M	4.48M	6.25M	10.28M	9.56M
Total Liabilities	65.73M	65.73M	55.92M	63.10M	58.06M	85.07M
Stockholders Equity	123.37M	57.64M	76.13M	89.08M	119.50M	129.01M
Cash Flow
Free Cash Flow	-20.60M	-20.60M	-11.94M	5.70M	-23.14M	14.81M
Operating Cash Flow	-17.65M	-17.65M	-8.22M	7.80M	-17.44M	21.48M
Investing Cash Flow	598.00K	598.00K	-2.43M	-752.00K	2.50M	-10.68M
Financing Cash Flow	12.67M	12.67M	-126.00K	-436.00K	-7.42M	-43.71M

Culp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4.15 is below the 20-day moving average (MA) of 4.19, below the 50-day MA of 4.23, and below the 200-day MA of 4.72, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 39.70 is Neutral, neither overbought nor oversold. The STOCH value of 35.00 is Neutral, 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	$17.16B	12.39	-5.32%	3.05%	1.51%	-15.30%
LAKE	55 Neutral	$142.15M	―	-17.61%	0.79%	34.28%	-495.11%
JRSH	52 Neutral	$42.67M	51.77	1.30%	5.94%	17.12%	―
VNCE	47 Neutral	$18.88M	6.22	-63.56%	―	1.46%	-191.66%
CULP	45 Neutral	$50.61M	―	-28.56%	―	-5.37%	-37.39%
UFI	42 Neutral	$80.79M	―	-7.94%	―	-1.87%	57.41%
XELB	39 Underperform	$5.71M	―	-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.

Culp Enters Multi-Year Agreement with Largest Shareholder

On June 6, 2025, Culp, Inc. entered into a multi-year cooperation agreement with its largest shareholder, 22NW, LP. This agreement includes provisions for board nominations and voting support at the company’s 2025 and 2026 Annual Meetings of Shareholders. The agreement aims to support Culp’s management and stakeholders, positioning the company for future growth opportunities. The board will nominate new independent directors, Doug Collier and Lynn Heatherton, alongside Alexander B. Jones, who joined the board in 2024. The board size will remain unchanged, and the agreement includes standstill provisions limiting the investor group’s actions regarding the company.