Culp (CULP)
NASDAQ:CULP
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Culp
(NASDAQ:CULP)
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Rating:47Neutral
Price Target:
$3.00
▼(-13.79% Downside)
Action:ReiteratedDate:03/12/26
The score is held back mainly by weak financial performance (ongoing losses, sharp revenue declines, and negative TTM operating/free cash flow) and bearish technicals (below key moving averages with negative MACD). Partially offsetting this are improving gross margins and a more constructive earnings-call outlook driven by cost savings, bedding strength, and guidance toward near breakeven EBITDA, though tariff and demand risks remain.
Positive Factors
Improving Gross Margins
A sustained rise in gross margin from trough levels to ~13% TTM indicates better pricing mix and cost control. If maintained, higher gross margins provide structural operating leverage, improving the odds of turning adjusted EBITDA positive and supporting reinvestment without relying solely on revenue growth.
Negative Factors
Weak Cash Generation
Negative trailing-twelve-month operating and free cash flow show the business has not converted improvements into durable cash generation. Persistent cash outflows limit internal funding for capex, working capital, or debt reduction and increase dependence on external financing during a multi-quarter turnaround.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Gross Margins
A sustained rise in gross margin from trough levels to ~13% TTM indicates better pricing mix and cost control. If maintained, higher gross margins provide structural operating leverage, improving the odds of turning adjusted EBITDA positive and supporting reinvestment without relying solely on revenue growth.
Read all positive factors
Culp (CULP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.08M
Dividend YieldN/A
Average Volume (3M)26.37K
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue Growth-7.76%
EPS Growth49.20%
CountryUS
Employees1,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-0.27
Shares Outstanding12,662,784
10 Day Avg. Volume13,619
30 Day Avg. Volume26,374
Financial Highlights & Ratios
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 Cap1.49
Enterprise Value/Revenue0.26
Enterprise Value/Gross Profit2.00
Enterprise Value/Ebitda-16.10
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.72
Revenue Forecast (FY)$204.99M
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. ...
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 ...
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 Earnings Call Summary
Earnings Call Date:Dec 11, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 01, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted sequential sales improvements and significant cost-saving initiatives, particularly in the bedding segment. However, the company is still facing challenges from industry-wide softness, particularly in the upholstery segment, and ongoing tariff-related uncertainties. Despite improvements in operational efficiencies and cash flow, the macroeconomic environment and tariff impacts continue to pose significant challenges.Positive Updates
Sequential Sales Improvement
Consolidated net sales for the second quarter were $53.2 million, a sequential improvement from the first quarter sales of $50.7 million, despite having one less week than the first quarter.
Negative Updates
Continued Industry-Wide Softness
The home furnishings market remains challenging with low industry demand and macroeconomic uncertainties impacting sales.
Read all updates
Q2-2026 Updates
Positive
Negative
Sequential Sales Improvement
Consolidated net sales for the second quarter were $53.2 million, a sequential improvement from the first quarter sales of $50.7 million, despite having one less week than the first quarter.
Read all positive updates
Company Guidance
During the Culp, Inc. Second Quarter Fiscal 2026 Earnings Conference Call, the company provided guidance indicating a focus on maintaining steady consolidated sales throughout the remainder of the fiscal year despite challenging demand environments. They expect higher sales in the bedding segment and anticipate cost and efficiency improvements to drive better gross profit and reduced SG&A expenses. This strategic transformation is projected to result in continued significant improvement in operating loss, with a near breakeven to positive adjusted EBITDA for the third quarter. The company aims to generate approximately $20 million in annualized cost savings, with many initiatives already impacting the financial results, while also aggressively managing liquidity and capital expenditures to prioritize free cash flow.Culp Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Apr 2024 | Apr 2023 | Apr 2022 | Apr 2021 | Apr 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 200.63M | 213.24M | 225.33M | 234.93M | 294.84M | 299.72M |
| Gross Profit | 26.10M | 26.67M | 27.94M | 10.90M | 36.09M | 49.83M |
| EBITDA | -3.24M | -12.63M | -3.85M | -21.11M | 7.25M | 19.42M |
| Net Income | -7.30M | -19.10M | -13.82M | -31.52M | -3.21M | 3.22M |
Balance Sheet | ||||||
| Total Assets | 120.75M | 123.37M | 132.05M | 152.18M | 177.56M | 214.08M |
| Cash, Cash Equivalents and Short-Term Investments | 11.60M | 6.95M | 10.91M | 22.37M | 14.55M | 45.71M |
| Total Debt | 20.81M | 17.64M | 4.48M | 6.25M | 10.28M | 9.56M |
| Total Liabilities | 70.53M | 65.73M | 55.92M | 63.10M | 58.06M | 85.07M |
| Stockholders Equity | 50.22M | 57.64M | 76.13M | 89.08M | 119.50M | 129.01M |
Cash Flow | ||||||
| Free Cash Flow | -11.44M | -20.60M | -11.94M | 5.70M | -23.14M | 14.81M |
| Operating Cash Flow | -10.49M | -17.65M | -8.22M | 7.80M | -17.44M | 21.48M |
| Investing Cash Flow | 2.39M | 598.00K | -2.43M | -752.00K | 2.50M | -10.68M |
| Financing Cash Flow | 12.43M | 12.67M | -126.00K | -436.00K | -7.42M | -43.71M |
Culp Technical Analysis
Negative
3.48
Price Trends
3.16
Negative
3.43
Negative
3.85
Negative
Market Momentum
-0.11
Negative
36.51
Neutral
44.56
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 3.48 is above the 20-day moving average (MA) of 2.83, above the 50-day MA of 3.16, and below the 200-day MA of 3.85, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 36.51 is Neutral, neither overbought nor oversold. The STOCH value of 44.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $26.37M | 20.58 | 30.92% | ― | 30.48% | 30.06% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | $69.12M | -1.65 | -22.66% | ― | -5.26% | 42.84% | |
50 Neutral | $38.73M | 8.27 | 0.99% | 6.75% | 12.25% | ― | |
47 Neutral | $35.08M | -3.19 | -13.33% | ― | -7.76% | 49.20% | |
46 Neutral | $32.68M | 3.44 | -40.44% | ― | 2.58% | -502.04% | |
45 Neutral | $8.10M | -0.49 | -78.27% | ― | -46.66% | 24.23% |
* Consumer Cyclical Sector Average
CULP
Culp
2.77
-1.31
-32.11%
UFI
Unifi
3.72
-0.97
-20.68%
VNCE
Vince Holding
2.45
0.95
63.33%
XELB
XCel Brands
1.38
-0.92
-40.22%
JRSH
Jerash Holdings (US)
3.05
0.32
11.89%
JL
J-Long Group Limited
7.01
3.94
128.34%
Culp Corporate Events
Business Operations and StrategyDelistings and Listing Changes
Culp Announces Transfer of Stock Listing to Nasdaq
Neutral
Feb 23, 2026
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 Mar...
Executive/Board Changes
Culp Appoints Mark Wilson to Board of Directors
Neutral
Jan 27, 2026
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 ...
Executive/Board Changes
Culp Announces CFO Retirement and Controller Resignation Plans
Neutral
Jan 16, 2026
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...
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.