FGI Industries Ltd (FGI) AI Stock Analysis

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FGI Industries Ltd

(NASDAQ:FGI)

42Neutral

FGI Industries Ltd faces substantial financial challenges with inconsistent revenue and cash flow, high leverage, and a negative profitability outlook. Despite strong revenue growth and geographic expansion, the stock's bearish technical indicators and poor valuation weigh heavily. The mixed guidance from the earnings call highlights both opportunities and significant risks related to tariffs and operating expenses.

FGI Industries Ltd (FGI) vs. S&P 500 (SPY)

Market Cap

$4.89M

Dividend YieldN/A

Average Volume (3M)45.91K

Price to Earnings (P/E)―

Beta (1Y)0.69

Revenue Growth12.43%

EPS Growth-263.46%

CountryUS

Employees287

SectorConsumer Cyclical

Sector Strength55

IndustryFurnishings, Fixtures & Appliances

Share Statistics

EPS (TTM)-0.13

Shares Outstanding9,589,503

10 Day Avg. Volume124,829

30 Day Avg. Volume45,911

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.07

Price to Cash Flow (P/CF)-2.40

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$2.25

Price Target Upside268.85% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

FGI Industries Ltd Business Overview & Revenue Model

Company DescriptionFGI Industries Ltd (FGI) is a company that operates within the home improvement and building products sector, focusing primarily on the design, manufacture, and distribution of kitchen and bath products. The company offers a diverse range of products including bathroom vanities, fixtures, and components for both residential and commercial customers. FGI Industries leverages its expertise to provide high-quality and design-forward solutions that cater to the needs of homeowners, designers, and builders.

How the Company Makes MoneyFGI Industries makes money through the sale of its kitchen and bath products. The company's revenue model is centered around manufacturing and distributing a variety of home improvement goods, which are sold through a combination of direct sales to retailers and partnerships with distributors. Key revenue streams include sales of bathroom vanities, sinks, toilets, and other related components. Significant partnerships with major retail chains, home improvement stores, and online marketplaces also contribute to the company's earnings by expanding their market reach and customer base. Additionally, FGI Industries may engage in custom design services or OEM manufacturing for specific clients, further diversifying its income sources.

FGI Industries Ltd Financial Statement Overview

Summary

FGI Industries Ltd shows stable revenue growth of 8.48% but struggles with profitability and cash flow. The balance sheet reveals high leverage with a debt-to-equity ratio of 1.12 and a negative ROE of -1.1%. The cash flow statement reflects significant challenges with a negative free cash flow growth rate of -1613.06%, indicating potential liquidity issues.

Income Statement

Positive

FGI Industries Ltd shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of approximately 27.96%, which is relatively stable but slightly lower than previous years. However, the company has faced a net loss, resulting in a negative net profit margin of -0.2%. Revenue growth from the previous year is commendable at 8.48%, indicating potential recovery. Yet, the EBIT and EBITDA margins are low, at 0.32% and 3.51% respectively, which reflects challenges in operational efficiency and profitability.

Balance Sheet

Neutral

The balance sheet reveals a moderate financial position for FGI Industries Ltd. The debt-to-equity ratio stands at 1.12, indicating a relatively high leverage which could pose risks in volatile markets. The return on equity (ROE) is negative at -1.1%, largely due to the net loss. On a positive note, the equity ratio is 31.5%, showing a reasonable proportion of assets financed by equity. Overall, the balance sheet is stable but highlights the need for improved profitability to enhance shareholder value.

Cash Flow

Neutral

The cash flow statement reflects significant challenges for FGI Industries Ltd. The company reported negative free cash flow, with a substantial decline from the previous year, leading to a free cash flow growth rate of -1613.06%. The operating cash flow to net income ratio is negative due to both negative operating cash flow and net income. Additionally, the free cash flow to net income ratio is also negative, underscoring cash generation issues. These factors indicate potential liquidity constraints that require strategic management.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
127.18M	117.24M	161.72M	181.94M	134.83M	126.28M
	Gross Profit
35.57M	32.08M	31.51M	32.20M	28.40M	25.44M
	EBIT
408.29K	2.30M	5.09M	7.72M	6.28M	2.46M
	EBITDA
4.46M	4.16M	5.31M	8.01M	6.48M	2.99M
	Net Income Common Stockholders
-259.80K	733.60K	3.68M	7.91M	4.73M	1.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.42M	7.78M	10.07M	3.88M	4.02M	2.42M
	Total Assets
0.00	65.74M	60.37M	69.15M	45.15M	39.52M
	Total Debt
0.00	22.23M	19.19M	22.86M	20.52M	17.06M
	Net Debt
2.42M	14.45M	9.12M	18.97M	16.50M	14.64M
	Total Liabilities
0.00	41.72M	37.62M	61.60M	43.62M	35.90M
	Stockholders Equity
3.62M	24.18M	22.74M	7.55M	1.53M	3.62M
Cash Flow		Free Cash Flow
-6.77M	447.08K	-83.96K	-3.28M	5.72M	1.06M
	Operating Cash Flow
-4.06M	1.39M	980.26K	-3.22M	5.80M	1.29M
	Investing Cash Flow
-2.71M	-942.61K	-1.06M	-51.89K	-76.53K	-233.86K
	Financing Cash Flow
4.52M	-2.84M	7.01M	3.32M	-4.25M	-1.98M

FGI Industries Ltd Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.61

Price Trends

50DMA

0.81

Negative

100DMA

0.82

Negative

200DMA

0.86

Negative

Market Momentum

MACD

<0.01

Negative

RSI

47.06

Neutral

STOCH

62.22

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FGI, the sentiment is Negative. The current price of 0.61 is below the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.81, and below the 200-day MA of 0.86, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 47.06 is Neutral, neither overbought nor oversold. The STOCH value of 62.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FGI.

FGI Industries Ltd Risk Analysis

FGI Industries Ltd disclosed 52 risk factors in its most recent earnings report. FGI Industries Ltd 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

FGI Industries Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	59 Neutral	$11.74B	10.16	-1.06%	4.15%	1.27%	-16.61%
YJ	46 Neutral	$8.38M	―	-8.54%	―	-41.06%	25.17%
XELB	44 Neutral	$5.88M	―	-47.20%	―	-52.20%	-0.80%
CLEU	44 Neutral	$5.45M	―	-7.45%	―	―	―
FGI	42 Neutral	$4.89M	―	-5.17%	―	12.43%	-263.46%
BTBD	30 Underperform	$6.36M	―	-28.61%	―	5.31%	-136.39%

* Consumer Cyclical Sector Average

Performance Comparison

FGI

FGI Industries Ltd

0.51

-0.94

-64.83%

XELB

XCel Brands

2.48

-5.32

-68.21%

Yunji

1.66

-1.90

-53.37%

CLEU

China Liberal Education Holdings

1.65

-1,162.35

-99.86%

BTBD

BT Brands

1.17

-0.69

-37.10%

FGI Industries Ltd Earnings Call Summary

Earnings Call Date: Mar 26, 2025 | % Change Since: -27.38% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook, with strong revenue growth and positive performance in new and existing markets countered by declines in gross profit and margin, increased operating expenses, and concerns about the impact of tariffs.

Highlights

Revenue Growth

FGI reported total revenue of $35.6 million in the quarter, representing a year-over-year increase of 15%. This growth was driven by significant increases across all businesses and geographies, including a 40.2% year-over-year increase in Bath Furniture revenue and a 68.3% increase in Covered Bridge revenue.

Geographic Expansion and Market Growth

FGI experienced revenue growth in the US, Canada, and Europe markets with increases of 14.7%, 9.9%, and 23.3% respectively. The company also noted promise in geographic expansion in Europe and India as strategic growth initiatives progress.

New Business Wins and Product Demand

FGI's Shower Systems business reported a 17% increase in revenue due to positive demand trends and new customer programs. New business wins contributed significantly to the growth of Bath Furniture.

Lowlights

Decline in Gross Profit and Margin

Gross profit was $8.7 million, a decrease of 3.2% compared to the prior year. Gross margin declined to 24.6% from 29.2%, a decline of 460 basis points, due to customer marketing support and costs related to new business and promotional expenses.

Increased Operating Expenses and Negative Income

Operating expenses increased by 28.4% to $10 million, leading to a negative GAAP operating income of $1.3 million, down from a positive $1.2 million in the prior year.

Tariff Concerns

The increasing tariff environment in 2025 poses challenges, though FGI is working with suppliers and customers to navigate these issues.

Company Guidance

During the FGI Industries Ltd. Fourth Quarter 2024 Results Conference Call, guidance for the full year 2025 was provided with several key metrics. The company projected revenue to be between $135 million and $145 million. Adjusted operating income was guided to range from negative $2 million to positive $1.5 million, while adjusted net income was expected to be between negative $1.9 million and positive $1 million. These projections account for the potential impacts of tariffs, which remain a fluid situation, as well as the strategic investments in FGI's BPC growth strategy. Despite a relatively flat industry outlook, FGI anticipates organic growth driven by new business wins and geographic expansion. The company's efforts to diversify sourcing and manage tariff pressures were emphasized as part of its strategic initiatives to achieve these financial targets.

FGI Industries Ltd Corporate Events

Executive/Board Changes

FGI Industries Appoints Jae Chung as New CFO

Neutral

Jan 28, 2025

On January 22, 2025, FGI Industries Ltd. announced the resignation of its Chief Financial Officer, Perry Lin, effective June 30, 2025, due to personal reasons. On January 25, 2025, the Board of Directors appointed Jae Chung as the new CFO, effective July 1, 2025. Mr. Chung has been with the company since April 2024, serving as Vice President, Investor Relations and Corporate Development, and previously worked as Vice President at Oakmont Corporation. His appointment as CFO does not involve any family relationships or related-party transactions, and he will receive a salary of $180,000 along with participation in the company’s incentive plans.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.