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FGI Industries Ltd (FGI)
NASDAQ:FGI
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FGI Industries Ltd
(NASDAQ:FGI)
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Rating:41Neutral
Price Target:
$6.00
▲(9.69% Upside)
The score is driven primarily by weak financial performance (declining revenue, negative margins, high leverage, and negative operating cash flow). Technicals add pressure with the stock trading below key moving averages and slightly negative momentum indicators. Valuation offers limited support because the negative P/E reflects unprofitability and no dividend yield is available.
Positive Factors
Free cash flow improvement
Improving free cash flow is a durable strength because it provides real liquidity independent of accounting profits. Sustained FCF growth can fund working capital, capex or debt service, giving management flexibility to stabilize operations and pursue restructuring.
High free cash flow to net income ratio
A high FCF-to-net-income ratio suggests cash generation quality despite reported losses. Over the medium term this can support creditor confidence, smooth liquidity strains, and enable gradual deleveraging or targeted investment without immediate reliance on external financing.
Stable gross profit margin
Relatively stable gross margins indicate the company maintains core product pricing or cost pass-through ability. That structural margin resilience can underpin future margin recovery once overheads and volumes improve, supporting sustainable profitability when sales recover.
Negative Factors
Declining revenue
A near-term 18% revenue decline erodes scale and weakens operating leverage. Over months this reduces fixed-cost coverage, harms supplier/customer relationships and makes profitable recovery harder, forcing deeper cost cuts or strategic shifts to restore top-line momentum.
Negative operating and net margins
Persistently negative EBIT and net margins limit internal reinvestment and signal the core business currently loses money. Unless structural cost or revenue changes occur, losses will continue to strain liquidity, restrict growth spending and impair long-term competitiveness.
Elevated leverage and negative ROE
Material leverage with negative ROE raises refinancing and solvency risk if cash flows don't recover. Interest and principal burdens will constrain strategic choices, increase default probability during stress, and make funding growth or turnaround initiatives more costly.
FGI Industries Ltd (FGI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.35M
Dividend YieldN/A
Average Volume (3M)1.60M
Price to Earnings (P/E)―
Beta (1Y)0.63
Revenue Growth6.66%
EPS Growth-1404.42%
CountryUS
Employees420
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.13
Shares Outstanding1,920,140
10 Day Avg. Volume489,456
30 Day Avg. Volume1,595,020
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)1.67
Price to Sales (P/S)0.28
P/FCF Ratio-3.85
Enterprise Value/Market Cap2.96
Enterprise Value/Revenue0.27
Enterprise Value/Gross Profit1.03
Enterprise Value/Ebitda116.61
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
FGI Industries Ltd Business Overview & Revenue Model
Company DescriptionFGI Industries ltd. supplies kitchen and bath products in the United States, Canada, and Europe. The company sells sanitaryware products, such as toilets, sinks, pedestals, and toilet seats; wood and wood-substitute furniture for bathrooms, including vanities, mirrors, laundry, medicine cabinets, and other storage systems; shower systems; and customer kitchen cabinetry and other accessory items under the Foremost, avenue, contrac, Jetcoat, rosenberg, and Covered Bridge Cabinetry brand names. It sells its products through mass retail centers, wholesale and commercial distributors, online retailers, independent dealers, and distributors. The company was incorporated in 2021 and is headquartered in East Hanover, New Jersey. FGI Industries Ltd. is a subsidiary of Foremost Groups Ltd.
How the Company Makes MoneyFGI Industries Ltd generates revenue primarily through the sale of its plumbing and HVAC products to contractors, wholesalers, and retailers. The company employs a multi-channel distribution strategy that includes direct sales, online platforms, and partnerships with major distributors to reach a broad customer base. Key revenue streams include product sales, service contracts, and maintenance agreements. Additionally, FGI's focus on innovation allows it to introduce new products and solutions, further enhancing its market position and driving sales growth. Strategic partnerships with other manufacturers and suppliers also play a significant role in expanding its product offerings and enhancing operational efficiencies, contributing to overall profitability.
FGI Industries Ltd Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 30, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed bag of results. While there was notable revenue growth in certain segments and geographies, the company faced challenges with declining gross profits, operating losses, and impacts from tariffs. Strategic initiatives and international expansion are promising, but current financial pressures and external factors like tariffs pose significant challenges.Q2-2025 Updates
Positive Updates
Revenue Growth
FGI reported total revenue of $31 million in the quarter, representing a year-over-year increase of 5.5%.
Geographic Revenue Expansion
Revenue grew by 2% in Canada and 36.7% in Europe, showcasing strong international growth.
Sanitaryware and Bath Furniture Growth
Sanitaryware revenue increased by 4.3% and Bath furniture revenue increased by 2.7% year-over-year.
Covered Bridge Revenue Surge
Other revenue, primarily Covered Bridge, increased 67.7% in the quarter.
Strategic Initiatives and Geographic Expansion
FGI's strategic growth initiatives, including geographic expansion in Europe and India, are expected to drive above-market organic growth.
Negative Updates
Gross Profit and Margin Decline
Gross profit was $8.7 million, a decrease of 2.9% year-over-year. Gross margin declined to 28.1% from 30.5% due to the ongoing tariff environment.
Operating Loss Increase
GAAP operating loss was $0.8 million, down from a negative $0.5 million in the prior year, driven by lower gross margin and higher operating expenses.
Shower Systems Revenue Decline
Shower Systems business reported a decrease in revenue of 11.2% despite positive demand trends.
Impact of Tariffs
The increasing tariff environment in 2025 remains fluid, impacting the order pipeline and causing industry-wide pauses.
U.S. Revenue Decline
Revenue in the U.S. declined by 0.4%.
Company Guidance
During FGI Industries' second quarter 2025 conference call, the company reported a total revenue of $31 million, marking a 5.5% year-over-year increase. However, gross profit decreased by 2.9% to $8.7 million, with gross margin declining from 30.5% in 2024 to 28.1%, primarily due to the ongoing tariff environment. The company experienced revenue growth in its Sanitaryware (4.3%) and Bath Furniture (2.7%) segments, while Shower Systems revenue declined by 11.2%. Geographically, revenue fell by 0.4% in the U.S. but grew by 2% in Canada and 36.7% in Europe. FGI is maintaining its 2025 revenue guidance of $135 million to $145 million, with adjusted operating income expected to be between negative $2 million and positive $1.5 million. Despite the challenges posed by tariffs, FGI is optimistic about its strategic investments and efforts to diversify its geographic sourcing, which are anticipated to fuel organic growth.FGI Industries Ltd Financial Statement Overview
Summary
Weak fundamentals: revenue declined (-18.4% TTM) with negative profitability (net profit and EBIT margins). Leverage is elevated (debt-to-equity 1.18) and ROE is negative. Cash flow shows some free-cash-flow improvement, but operating cash flow remains negative, keeping overall financial health pressured.Income Statement
FGI Industries Ltd has experienced a decline in revenue with a negative growth rate of -18.4% in the TTM period. The company is facing profitability challenges, as indicated by negative net profit and EBIT margins. Gross profit margin remains relatively stable, but the overall income statement reflects a downward trend in financial performance.35
Negative
Balance Sheet
The balance sheet shows a high debt-to-equity ratio of 1.18, indicating significant leverage. Return on equity is negative, reflecting losses and reduced shareholder value. The equity ratio is not explicitly calculated, but the high leverage suggests potential financial instability.40
Negative
Cash Flow
Cash flow analysis reveals a significant improvement in free cash flow growth, but operating cash flow remains negative. The free cash flow to net income ratio is high, suggesting that despite losses, cash flow management is relatively better. However, the negative operating cash flow coverage ratio indicates ongoing operational cash challenges.45
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 135.65M | 131.82M | 117.24M | 161.72M | 181.94M | 134.83M |
| Gross Profit | 35.67M | 35.43M | 32.08M | 31.51M | 32.20M | 28.40M |
| EBITDA | 313.70K | 2.14M | 4.16M | 5.36M | 9.57M | 6.48M |
| Net Income | -3.91M | -1.20M | 733.60K | 3.68M | 7.91M | 4.73M |
Balance Sheet | ||||||
| Total Assets | 73.04M | 75.46M | 65.74M | 60.37M | 69.15M | 45.15M |
| Cash, Cash Equivalents and Short-Term Investments | 1.88M | 4.56M | 7.78M | 10.07M | 3.88M | 4.02M |
| Total Debt | 26.12M | 27.72M | 22.23M | 19.19M | 22.86M | 20.52M |
| Total Liabilities | 54.60M | 53.90M | 41.72M | 37.62M | 61.60M | 43.62M |
| Stockholders Equity | 19.74M | 22.25M | 24.18M | 22.74M | 7.55M | 1.53M |
Cash Flow | ||||||
| Free Cash Flow | -2.70M | -9.63M | 447.08K | -83.96K | -3.28M | 5.72M |
| Operating Cash Flow | -1.05M | -7.43M | 1.39M | 980.26K | -3.22M | 5.80M |
| Investing Cash Flow | -1.73M | -2.88M | -942.61K | -1.06M | -51.89K | -76.53K |
| Financing Cash Flow | 1.59M | 7.54M | -2.84M | 7.01M | 3.32M | -4.25M |
FGI Industries Ltd Technical Analysis
Positive
5.47
Price Trends
6.41
Positive
6.07
Positive
4.74
Positive
Market Momentum
0.10
Negative
50.76
Neutral
29.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FGI, the sentiment is Positive. The current price of 5.47 is below the 20-day moving average (MA) of 6.25, below the 50-day MA of 6.41, and above the 200-day MA of 4.74, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 50.76 is Neutral, neither overbought nor oversold. The STOCH value of 29.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $137.23M | 17.07 | 4.70% | 4.59% | -2.74% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | $35.11M | -1.68 | -39.99% | ― | -4.94% | 11.35% | |
49 Neutral | $143.02M | -4.70 | -11.27% | 7.20% | -12.09% | -204.66% | |
45 Neutral | $31.57M | -3.12 | -22.07% | 12.12% | -1.49% | -399.62% | |
41 Neutral | $12.35M | -3.15 | -18.10% | ― | 6.66% | -1404.42% |
* Consumer Cyclical Sector Average
FGI
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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.