The Dixie Group (DXYN)
OTHER OTC:DXYN
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The Dixie Group
(OTC:DXYN)
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Rating:46Neutral
Price Target:
$0.37
▼(-7.00% Downside)
Action:ReiteratedDate:04/02/26
The score is held back primarily by weak financial results (sharp 2025 revenue decline and continued net losses) and bearish technicals (below key moving averages with negative MACD). Partially offsetting these are improving balance-sheet leverage and positive free cash flow, plus earnings-call commentary pointing to cost reductions and early signs of order recovery.
Positive Factors
Free Cash Flow Generation
Consistent positive operating and free cash flow in 2025 signals the business can internally fund working capital and parts of restructuring without full reliance on external financing. Durable cash generation reduces refinancing risk and supports reinvestment and margin recovery over coming quarters.
Negative Factors
Revenue Decline and Net Losses
A large, persistent revenue decline and continued net losses show the business has not fully normalized demand or pricing power. Sustained top‑line weakness limits scale economics, constrains margin recovery, and makes multi‑period profitability dependent on durable volume restoration.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Consistent positive operating and free cash flow in 2025 signals the business can internally fund working capital and parts of restructuring without full reliance on external financing. Durable cash generation reduces refinancing risk and supports reinvestment and margin recovery over coming quarters.
Read all positive factors
The Dixie Group (DXYN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.50M
Dividend YieldN/A
Average Volume (3M)14.38K
Price to Earnings (P/E)―
Beta (1Y)0.31
Revenue Growth-3.36%
EPS Growth-323.95%
CountryUS
Employees951
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-0.21
Shares Outstanding14,096,282
10 Day Avg. Volume5,498
30 Day Avg. Volume14,381
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.80
Price to Sales (P/S)0.03
P/FCF Ratio0.82
Enterprise Value/Market Cap19.82
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit1.57
Enterprise Value/Ebitda15.58
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
The Dixie Group Business Overview & Revenue Model
Company Description
The 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 inter...
How the Company Makes Money
The Dixie Group makes money primarily by manufacturing and selling flooring products—principally carpet (broadloom and related carpet products) and luxury vinyl flooring—to customers in the residential and commercial flooring markets. Revenue is g...
The Dixie Group Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 07, 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.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.
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.
Read all updates
Q3-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
34
Negative
Balance Sheet
46
Neutral
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 257.43M | 265.03M | 276.34M | 303.57M | 341.25M |
| Gross Profit | 69.55M | 65.51M | 73.88M | 53.62M | 77.25M |
| EBITDA | 6.99M | 507.00K | 12.81M | -20.54M | 18.27M |
| Net Income | -7.62M | -13.00M | -2.72M | -33.41M | 5.15M |
Balance Sheet | |||||
| Total Assets | 175.16M | 175.87M | 191.17M | 202.95M | 235.50M |
| Cash, Cash Equivalents and Short-Term Investments | 3.20M | 19.00K | 79.00K | 363.00K | 1.47M |
| Total Debt | 106.51M | 108.45M | 112.08M | 120.87M | 100.28M |
| Total Liabilities | 166.36M | 159.65M | 161.88M | 171.43M | 169.12M |
| Stockholders Equity | 8.80M | 16.22M | 29.29M | 31.51M | 66.38M |
Cash Flow | |||||
| Free Cash Flow | 8.54M | 1.14M | 1.64M | -22.92M | -19.79M |
| Operating Cash Flow | 9.14M | 3.23M | 2.62M | -18.34M | -15.41M |
| Investing Cash Flow | -473.00K | -1.99M | 15.08M | -4.30M | 15.24M |
| Financing Cash Flow | -1.62M | -1.30M | -17.99M | 19.87M | -280.00K |
The Dixie Group Technical Analysis
Negative
0.40
Price Trends
0.44
Negative
0.46
Negative
0.53
Negative
Market Momentum
-0.01
Positive
43.37
Neutral
46.67
Neutral
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 0.4 is below the 20-day moving average (MA) of 0.42, below the 50-day MA of 0.44, and below the 200-day MA of 0.53, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.37 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, 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 | $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 | $5.50M | -0.92 | -80.91% | ― | -3.36% | -323.95% | |
46 Neutral | $32.68M | 3.44 | -40.44% | ― | 2.58% | -502.04% |
* Consumer Cyclical Sector Average
DXYN
The Dixie Group
0.39
-0.01
-2.50%
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The Dixie Group Corporate Events
Business Operations and StrategyFinancial Disclosures
The Dixie Group Updates Investor Presentation, Highlights 2026 Strategy
Positive
Mar 26, 2026
In March 2026, The Dixie Group published updated investor presentation materials outlining its history, current positioning and recent performance in the residential flooring market, which is driven by remodeling, existing home sales and new const...
Business Operations and StrategyExecutive/Board Changes
The Dixie Group Adopts 2026 Executive Incentive Plan
Positive
Mar 12, 2026
Effective March 12, 2026, The Dixie Group implemented a new 2026 incentive compensation plan covering its chief executive officer, principal financial officer and other named executive officers. The plan allows for cash bonuses and restricted stoc...
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.