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Culp
(NASDAQ:CULP)
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Rating:46Neutral
Price Target:
$3.00
▼(-13.79% Downside)
Action:Reiterated
Date:04/11/26
The score is held down primarily by weak financial performance (declining revenue, continued losses, and negative operating/free cash flow), reinforced by bearish technical signals (below key moving averages with negative MACD). Improved gross margin and a manageable balance sheet provide some stabilization, but valuation is not a clear positive given ongoing losses and no dividend data.
Positive Factors
Manageable balance sheet leverage
Relatively modest debt versus equity limits financial distress risk and preserves flexibility across a multi‑quarter turnaround. Manageable leverage increases the company’s ability to fund working capital and restructuring without immediate refinancing pressure, supporting survival while margins recover.
Negative Factors
Declining revenue trend
Sharply lower revenue erodes scale and utilization in textile manufacturing, raising per‑unit fixed costs and lengthening the time to achieve operating leverage. Persistent top‑line decline makes margin recovery and cash generation harder, requiring sustained demand improvement to restore fundamentals.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable balance sheet leverage
Relatively modest debt versus equity limits financial distress risk and preserves flexibility across a multi‑quarter turnaround. Manageable leverage increases the company’s ability to fund working capital and restructuring without immediate refinancing pressure, supporting survival while margins recover.
Read all positive factors
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 (CULP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.25M
Dividend YieldN/A
Average Volume (3M)26.37K
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue Growth-6.24%
EPS Growth54.60%
CountryUS
Employees1,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-0.80
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 Cap1.29
Enterprise Value/Revenue0.25
Enterprise Value/Gross Profit1.94
Enterprise Value/Ebitda-15.67
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.15
Revenue Forecast (FY)$206.61M
Culp Business Overview & Revenue Model
Company Description
Culp, Inc. is a global textile enterprise involved in the manufacturing, procurement, marketing, and sale of materials for bedding and upholstered furniture. Its products, which include mattress fabrics, sewn covers, and pre-cut fabric kits, are d...
How the Company Makes Money
Culp makes money by selling textile fabrics and related products to manufacturers, with revenue primarily generated from two operating segments: (1) Upholstery Fabrics—sales of upholstery fabrics used in furniture (and other upholstery application...
Culp Earnings Call Summary
Earnings Call Date:Mar 11, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Neutral
The call disclosed meaningful operational progress — completion of restructuring, >$20M annualized cost savings, improved free cash flow, and potential tariff refunds — which are material positives. However, near-term top-line pressures persist with an ~8% decline in sales, segment declines (Upholstery -12%, Bedding -5%), negative adjusted EBITDA, inventory markdown impacts, and tariff timing uncertainty that constrain visibility. Management expects sequential improvement in Q4 (particularly Bedding) and believes the platform is positioned to scale profitably when demand recovers. Overall the message is cautiously balanced between substantive operational gains and continuing short-term demand and profitability challenges.Positive Updates
Completed Restructuring and Cost Savings
Project Blaze integration completed; consolidated U.S. distribution to Stokesdale, streamlined China operations, and other actions generating over $20 million in annualized cost savings; expects Q4 and FY27 benefits to lower costs and improve margins.
Negative Updates
Revenue Decline
Consolidated net sales of $48.0 million in Q3 versus $52.3 million prior year, a decline of approximately 8.2% year-over-year.
Read all updates
Q3-2026 Updates
Positive
Negative
Completed Restructuring and Cost Savings
Project Blaze integration completed; consolidated U.S. distribution to Stokesdale, streamlined China operations, and other actions generating over $20 million in annualized cost savings; expects Q4 and FY27 benefits to lower costs and improve margins.
Read all positive updates
Company Guidance
Management provided limited Q4 guidance, saying they expect sequential consolidated sales growth (with "solid expectations" for Bedding), that current pricing should offset tariff pressure in Q4, and that completed restructuring/integration (over $20M of annualized cost savings) will drive improving gross profit and lower SG&A; they reiterated that incremental revenue should flow to the bottom line at roughly a 25% rate but withheld detailed targets because potential IEEPA tariff refunds (company paid >$15M in baseline duties over the last 14 months, including an estimated $6–7M of IEEPA duties eligible for refund, plus anticipated Haiti duty refunds) could materially affect prior-period results. Key Q3 metrics cited in support of the outlook: net sales $48.0M (vs. $52.3M LY), consolidated gross profit $5.3M (11.1%), Bedding sales $27.3M (≈‑5%) with GP $2.0M (7.2%), Upholstery sales $20.7M (≈‑12%) with GP $3.4M (16.3%), Q3 net loss $3.4M ($0.27/share) and adjusted EBITDA of -$2.2M; liquidity at quarter end was $27.7M (cash $9.7M, $18.0M borrowing availability), outstanding debt $18.5M (net debt $8.8M), FY26 capex guidance $600k–$700k, and a $4.8M receivable from the Canada sale scheduled to be paid in Q4.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
3.18
Negative
3.14
Negative
3.53
Negative
Market Momentum
-0.01
Positive
45.62
Neutral
14.78
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 above the 20-day moving average (MA) of 3.12, above the 50-day MA of 3.18, and below the 200-day MA of 3.53, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 45.62 is Neutral, neither overbought nor oversold. The STOCH value of 14.78 is Positive, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $61.09M | 16.98 | 5.57% | 6.75% | 14.03% | ― | |
64 Neutral | $22.08M | 6.85 | 30.92% | ― | 30.49% | ― | |
63 Neutral | $91.86M | 10.31 | 18.07% | ― | 4.76% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $88.29M | -2.11 | -16.70% | ― | -10.95% | 80.36% | |
46 Neutral | $39.25M | -3.92 | -13.33% | ― | -6.24% | 54.60% | |
45 Neutral | $10.89M | -0.38 | -78.27% | ― | -35.86% | 41.96% |
* Consumer Cyclical Sector Average
CULP
Culp
3.10
-0.84
-21.32%
UFI
Unifi
4.75
-0.27
-5.38%
VNCE
Vince Holding
7.15
5.71
396.53%
XELB
XCel Brands
1.80
-0.08
-4.26%
JRSH
Jerash Holdings (US)
4.81
1.73
56.02%
JL
J-Long Group Limited
5.87
-0.15
-2.49%
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...
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.