Culp (CULP) AI Stock Analysis

• Market Cap: $53.45M
• Dividend Yield: N/A
• Average Volume (3M): 26.37K
• 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: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.02
• Shares Outstanding: 12,605,306
• 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: 1.19
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 3.24
• Enterprise Value/Ebitda: -13.34
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: $4.00 ▼(-5.66% Downside)

Culp's overall stock score reflects significant financial challenges, particularly in profitability and cash flow. While technical analysis shows a neutral trend, valuation concerns due to negative earnings weigh heavily. Improvements noted in the earnings call provide some optimism, but ongoing market and tariff challenges pose risks.

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's financial performance is challenged by declining revenues, negative profitability, and cash flow difficulties. Despite a stable balance sheet with manageable leverage, the company's operational and cash flow performance requires improvement.

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 2018	Dec 2017
Income Statement
Total Revenue	158.62M	213.24M	225.33M	234.93M	296.67M	323.73M
Gross Profit	19.57M	26.67M	27.94M	10.90M	50.20M	64.63M
EBITDA	-4.75M	-12.63M	-3.85M	-21.11M	24.44M	35.00M
Net Income	-7.26M	-19.10M	-13.82M	-31.52M	5.68M	20.88M
Balance Sheet
Total Assets	126.41M	123.37M	132.05M	152.18M	219.73M	217.98M
Cash, Cash Equivalents and Short-Term Investments	11.09M	6.95M	10.91M	22.37M	45.01M	49.44M
Total Debt	11.23M	17.64M	4.48M	6.25M	675.00K	0.00
Total Liabilities	68.77M	65.73M	55.92M	63.10M	55.48M	54.61M
Stockholders Equity	126.41M	57.64M	76.13M	89.08M	159.93M	163.38M
Cash Flow
Free Cash Flow	-12.03M	-20.60M	-11.94M	5.70M	10.61M	19.47M
Operating Cash Flow	-9.91M	-17.65M	-8.22M	7.80M	13.87M	27.47M
Investing Cash Flow	698.00K	598.00K	-2.43M	-752.00K	15.16M	-15.11M
Financing Cash Flow	6.47M	12.67M	-126.00K	-436.00K	-10.16M	-12.01M

Culp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CULP, the sentiment is Neutral. The current price of 4.24 is above the 20-day moving average (MA) of 4.23, below the 50-day MA of 4.29, and below the 200-day MA of 4.47, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.42 is Neutral, neither overbought nor oversold. The STOCH value of 35.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CULP.

Culp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JL	―	$24.64M	63.03	20.89%	―	38.26%	201.16%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VNCE	―	$35.79M	―	-32.91%	―	-0.49%	-1427.68%
CULP	―	$53.45M	-4.40	-19.05%	―	-7.91%	32.31%
JRSH	―	$43.18M	53.31	1.30%	5.87%	17.12%	―
UFI	―	$80.24M	―	-7.94%	―	-1.87%	57.41%
XELB	―	$6.06M	-0.13	-65.44%	―	-42.62%	-7.75%

Culp Corporate Events

Culp Holds Annual Shareholder Meeting, Elects Directors

On September 24, 2025, Culp, Inc. held its annual meeting of shareholders where several key decisions were made. Shareholders elected eight directors to serve until the 2026 annual meeting, ratified Grant Thornton LLP as independent auditors for fiscal 2026, and approved the executive compensation in an advisory vote.

The most recent analyst rating on (CULP) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Culp stock, see the CULP Stock Forecast page.

Culp, Inc. Reports Improved Profitability Amid Market Challenges

Culp, Inc. is a prominent provider of fabrics for bedding and upholstery, serving the residential, commercial, and hospitality sectors with a global manufacturing and sourcing footprint.

Culp, Inc. Earnings Call: Mixed Results Amid Challenges

The recent earnings call for Culp, Inc. painted a mixed picture of the company’s current financial standing and future prospects. While there were notable improvements in gross profit and successful restructuring efforts in the bedding segment, challenges such as a decline in net sales, issues within the upholstery segment, and tariff-related disruptions were highlighted. The company’s initiatives to manage costs and improve efficiency are promising, yet ongoing market and tariff challenges pose significant risks.