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The Dixie Group (DXYN)
OTHER OTC:DXYN
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The Dixie Group
(OTC:DXYN)
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Select Model
Rating:42Neutral
Price Target:
$0.53
▲(16.89% Upside)
The overall stock score of 42 reflects significant financial challenges, weak technical indicators, and concerning valuation metrics. While there are some positive developments in operational efficiency and market focus, the persistent financial instability and bearish technical signals weigh heavily on the stock's attractiveness.
Positive Factors
Operational Efficiency
The company's focus on operational efficiency through cost reductions and profit improvement plans enhances its long-term profitability potential.
High-End Market Growth
Growth in high-end market segments indicates a strong competitive position and potential for sustained revenue growth in premium product lines.
Debt Reduction
Reducing debt levels improves financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.
Negative Factors
Declining Revenue
Declining revenue indicates challenges in maintaining market share and demand, which could impact long-term growth and profitability.
High Leverage
High leverage poses financial risks, limiting the company's ability to invest in growth and increasing vulnerability to economic fluctuations.
Residential Market Challenges
Challenges in the residential market due to economic factors could hinder demand for the company's products, affecting revenue and growth prospects.
The Dixie Group (DXYN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.30M
Dividend YieldN/A
Average Volume (3M)14.38K
Price to Earnings (P/E)―
Beta (1Y)0.12
Revenue Growth-3.36%
EPS Growth-323.95%
CountryUS
Employees951
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-0.28
Shares Outstanding13,976,735
10 Day Avg. Volume5,498
30 Day Avg. Volume14,381
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.58
Price to Sales (P/S)0.04
P/FCF Ratio8.28
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
The Dixie Group Business Overview & Revenue Model
Company DescriptionThe Dixie Group, Inc. manufactures, markets, and sells floorcovering products to residential customers in North America and internationally. It offers residential carpets, custom rugs, and engineered wood products under the Fabrica brand for interior decorators and designers, selected retailers and furniture stores, luxury home builders, and manufacturers of luxury motor coaches and yachts; and specialty carpets and rugs for the high-end residential marketplace, as well as luxury vinyl flooring products and broadloom carpet products under the Masland Residential brand name through the interior design community and specialty floorcovering retailers. The company also provides residential tufted broadloom carpets and rugs to selected retailers and home centers under the Dixie Home and private label brands, as well as luxury vinyl flooring products to the marketplace it serves. The company was founded in 1920 and is based in Dalton, Georgia.
How the Company Makes MoneyThe Dixie Group generates revenue primarily through the sale of its flooring products, which include carpets, rugs, and luxury vinyl tiles. The company operates a multi-channel distribution strategy that includes direct sales to retailers, contractors, and builders, as well as through independent distributors. Key revenue streams include sales from both the Residential and Commercial segments, with a focus on high-margin products and custom solutions for clients. Significant partnerships with major retailers help expand its market reach, while ongoing investments in new product development and sustainability initiatives contribute to maintaining a competitive edge in the flooring industry.
The Dixie Group Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant improvements in some areas such as sales rebound, gross margin improvement, and debt reduction. However, the decline in net sales, operating and net losses, and challenges in the housing market present ongoing challenges. The sentiment is mixed with notable achievements in cost reductions and product growth but also significant financial losses.Q3-2025 Updates
Positive Updates
Strong Rebound in September Sales
Despite a slow start due to high interest rates and housing prices, sales rebounded strongly in September, with the average weekly order entry rate for the first month of the fourth quarter 12% above the average weekly order entry rate in the third quarter.
Gross Margin Improvement
Gross margins were slightly favorable compared to the prior year at 24.8% of net sales compared to 24.6% in the third quarter of 2024. Year-to-date margins were also favorable at 27% compared to 25.7% the previous year.
Cost Reductions and Debt Reduction
Significant cost reductions of nearly $60 million over three years, with an additional $10 million profit improvement plan in place. Net debt has been reduced by over $12 million in the last year.
High-End Market and Product Growth
The DuraSilk, SD collection showed strong growth, gaining share in the polyester market. High-end carpet segment had positive growth, and the hard surface segment's fabric of wood sales increased by over 17% year-over-year.
Settlement Progress on Legal Issues
Entered into a memorandum of understanding to settle two PFAS-related lawsuits and obtained an agreement to be dismissed from a third, with estimated liability recorded.
Negative Updates
Decline in Net Sales
Net sales for the third quarter of 2025 were $62,379,000, down from $64,877,000 in the same quarter of 2024.
Operating and Net Loss
The company had an operating loss of $2,025,000 and a net loss from continuing operations of $3,998,000 in the third quarter of 2025, compared to losses of $2,107,000 and $3,729,000 respectively, in 2024.
Interest Expense Increase
Interest expense on the year was $5.4 million, up from $4.8 million in 2024 due to higher internal interest rates and amortization of financing fees.
Challenges in Residential Housing Market
The flooring industry is impacted by low home sales and consumers postponing large discretionary purchases due to high interest rates and housing prices.
Company Guidance
In the third quarter earnings call for 2025, The Dixie Group, Inc. reported net sales of $62,379,000, a decrease from $64,877,000 in the same quarter of 2024, and an operating loss of $2,025,000 compared to $2,107,000 the previous year. The net loss from continuing operations was $3,998,000 or $0.28 per diluted share, up from $3,729,000 or $0.26 per diluted share in 2024. Despite a slow start due to housing market challenges, sales rebounded in September, with average weekly order entry rates in the first month of the fourth quarter 12% above the third quarter's average. Gross margins improved slightly to 24.8% from 24.6% in 2024, while selling and administrative expenses decreased by 6.8% year-over-year. The company implemented price increases and a profit improvement plan, aiming for a $10 million cost reduction, 90% of which will be in place by year-end. Year-to-date net inventory decreased to $68.5 million from $76.8 million in the previous year, and debt was reduced by $916,000 since year-end. The company is optimistic about future profitability, driven by operational efficiency, price adjustments, and a focus on high-end market segments.The Dixie Group Financial Statement Overview
Summary
The Dixie Group is facing significant financial challenges. The income statement shows declining revenue and persistent losses, while the balance sheet reveals high leverage and financial instability. Cash flow is under pressure, though some efficiency in cash conversion is noted. The company must focus on revenue growth, cost management, and reducing debt to improve its financial health.Income Statement
The Dixie Group's income statement reveals significant challenges. The TTM data shows a negative net profit margin of -4.47%, indicating ongoing losses. Revenue has been declining, with a TTM revenue growth rate of -95.8%, suggesting severe sales contraction. Margins are weak, with a gross profit margin of 25.61% and an EBIT margin of -1.60%. The company needs to address its declining revenue and improve operational efficiency to return to profitability.45
Neutral
Balance Sheet
The balance sheet highlights financial instability. The debt-to-equity ratio is alarmingly high at 6.99, indicating heavy reliance on debt financing. Return on equity is negative, reflecting losses and poor shareholder returns. The equity ratio is low, suggesting limited asset financing through equity. The company faces significant financial risk due to high leverage and needs to strengthen its equity base.30
Negative
Cash Flow
Cash flow analysis shows mixed results. The TTM free cash flow growth rate is negative, indicating declining cash generation. However, the operating cash flow to net income ratio is positive at 0.14, suggesting some cash flow stability despite losses. The free cash flow to net income ratio is relatively high at 0.94, indicating efficient cash conversion. The company must improve cash flow generation to support operations and reduce debt.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 258.33M | 265.03M | 276.34M | 303.57M | 341.25M | 315.94M |
| Gross Profit | 66.36M | 65.51M | 73.88M | 53.62M | 77.25M | 76.46M |
| EBITDA | 1.60M | 507.00K | 12.81M | -20.54M | 18.27M | 4.38M |
| Net Income | -11.81M | -13.00M | -2.72M | -33.41M | 5.15M | -9.09M |
Balance Sheet | ||||||
| Total Assets | 183.92M | 175.87M | 191.17M | 202.95M | 235.50M | 232.87M |
| Cash, Cash Equivalents and Short-Term Investments | 3.44M | 19.00K | 79.00K | 363.00K | 1.47M | 1.92M |
| Total Debt | 81.76M | 108.45M | 112.08M | 120.87M | 100.28M | 100.88M |
| Total Liabilities | 172.16M | 159.65M | 161.88M | 171.43M | 169.12M | 169.08M |
| Stockholders Equity | 11.76M | 16.22M | 29.29M | 31.51M | 66.38M | 63.79M |
Cash Flow | ||||||
| Free Cash Flow | 13.11M | 1.14M | 1.64M | -22.92M | -19.79M | 11.79M |
| Operating Cash Flow | 13.75M | 3.23M | 2.62M | -18.34M | -15.41M | 13.55M |
| Investing Cash Flow | -503.00K | -1.99M | 15.08M | -4.30M | 15.24M | -1.72M |
| Financing Cash Flow | -6.74M | -1.30M | -17.99M | 19.87M | -280.00K | -10.68M |
The Dixie Group Technical Analysis
Negative
0.45
Price Trends
0.59
Negative
0.61
Negative
0.57
Negative
Market Momentum
-0.03
Negative
39.93
Neutral
19.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXYN, the sentiment is Negative. The current price of 0.45 is below the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.59, and below the 200-day MA of 0.57, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 39.93 is Neutral, neither overbought nor oversold. The STOCH value of 19.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DXYN.
The Dixie Group Risk Analysis
The Dixie Group disclosed 17 risk factors in its most recent earnings report. The Dixie Group 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
The Dixie Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $22.72M | 68.08 | 17.80% | ― | 30.48% | 30.06% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $56.69M | -2.87 | -33.24% | ― | 2.58% | -502.04% | |
56 Neutral | $38.86M | 64.56 | 0.99% | 6.75% | 12.25% | ― | |
44 Neutral | $60.96M | -2.48 | -9.61% | ― | -5.26% | 42.84% | |
42 Neutral | $6.30M | -0.57 | -50.35% | ― | -3.36% | -323.95% | |
41 Neutral | $42.80M | -3.96 | -18.32% | ― | -7.76% | 49.20% |
* Consumer Cyclical Sector Average
DXYN
The Dixie Group
0.45
-0.20
-30.77%
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The Dixie Group Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
The Dixie Group Highlights Strategic Focus in November 2025
Neutral
Nov 12, 2025
In November 2025, The Dixie Group presented updated investor materials highlighting their strategic focus on the upper-end residential market and their commitment to quality and design. Despite challenges such as the loss of business with Lowes and increased freight costs, the company continues to pursue growth initiatives with new product lines and rebranding efforts. The company’s operations are influenced by factors such as consumer confidence, stock market health, and interest rates, which impact the residential flooring market.
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.