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Flexsteel (FLXS)
NASDAQ:FLXS
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Flexsteel
(NASDAQ:FLXS)
68Neutral
Flexsteel (FLXS) vs. S&P 500 (SPY)
Market Cap
$189.28M
Dividend Yield1.84%
Average Volume (3M)19.30K
Price to Earnings (P/E)10.0
Beta (1Y)0.84
Revenue Growth7.75%
EPS Growth27.88%
CountryUS
Employees1,500
SectorConsumer Cyclical
Sector Strength55
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)3.58
Shares Outstanding5,269,367
10 Day Avg. Volume18,706
30 Day Avg. Volume19,303
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)N/A
Price to Sales (P/S)0.47
Price to Cash Flow (P/CF)7.50
P/FCF Ratio8.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Flexsteel Business Overview & Revenue Model
Company DescriptionFlexsteel Industries, Inc., together with its subsidiaries, operates as a manufacturer, importer, and online marketer of upholstered and wooden furniture for residential and contract markets in the United States. It offers upholstered furniture, such as sofas, loveseats, chairs, reclining and rocker-reclining chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, and bedroom furniture. The company distributes its products through e-commerce channels and dealer network. Flexsteel Industries, Inc. was founded in 1893 and is based in Dubuque, Iowa.
How the Company Makes MoneyFlexsteel generates revenue through the sale of its diverse array of furniture products to both retailers and direct consumers. The company's primary revenue streams include the wholesale distribution of furniture to furniture retailers, online sales through its e-commerce platform, and direct sales to commercial clients such as hospitality businesses and government entities. Flexsteel's earnings are significantly influenced by its extensive distribution network, strategic partnerships with retailers, and its ability to adapt to consumer preferences and market trends. Additionally, Flexsteel invests in innovation and quality craftsmanship, which helps maintain its competitive edge in the furniture industry.
Flexsteel Financial Statement Overview
Summary
Flexsteel's financial health is robust, driven by consistent revenue growth, a strong balance sheet with no debt, and healthy cash flow generation. However, profit margins and cash flow growth show room for improvement.Income Statement
Flexsteel has shown consistent revenue growth over recent years, with a notable recovery from 2020. The Gross Profit Margin stands at a healthy level, reflecting efficient cost management. However, the Net Profit Margin has experienced fluctuations, and while improving, it remains moderate. EBIT and EBITDA margins indicate stable core operational profitability but highlight areas for potential improvement in operating efficiency.70
Positive
Balance Sheet
The company's balance sheet reflects strong equity with no current debt, a significant improvement from previous years. The Debt-to-Equity Ratio is effectively zero, indicating minimal financial leverage, which reduces financial risk. The Return on Equity has improved, reflecting better profitability relative to equity. The Equity Ratio is robust, showcasing a solid asset base funded by equity.80
Positive
Cash Flow
Flexsteel demonstrates healthy cash flow generation with positive Operating and Free Cash Flows. The Free Cash Flow to Net Income Ratio is strong, indicating effective cash generation relative to net income. However, the growth rate of Free Cash Flow has been inconsistent, pointing to potential volatility in cash flow management.75
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 430.53M | 412.75M | 393.69M | 544.28M | 478.93M | 366.93M | Gross Profit |
| 92.06M | 87.24M | 70.95M | 72.68M | 96.73M | 53.05M | EBIT |
| 28.00M | 17.08M | 10.54M | 6.62M | 31.20M | -19.39M | EBITDA |
| 31.98M | 21.10M | 12.33M | 11.12M | 34.01M | -25.30M | Net Income Common Stockholders |
| 19.92M | 10.53M | 14.78M | 1.85M | 23.05M | -26.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 8.81M | 4.76M | 3.37M | 2.18M | 1.34M | 48.20M | Total Assets |
| 152.03M | 274.46M | 290.55M | 268.74M | 296.78M | 237.26M | Total Debt |
| 0.00 | 70.42M | 28.27M | 44.10M | 33.65M | 12.02M | Net Debt |
| -8.81M | 65.65M | 24.91M | 41.92M | 32.31M | -36.18M | Total Liabilities |
| 37.97M | 124.09M | 148.93M | 137.18M | 128.81M | 61.75M | Stockholders Equity |
| 114.07M | 150.37M | 141.62M | 131.56M | 167.97M | 175.50M |
| Cash Flow | Free Cash Flow | ||||
| 20.76M | 27.11M | 18.20M | 4.14M | -35.27M | 14.60M | Operating Cash Flow |
| 23.81M | 31.88M | 22.99M | 7.99M | -32.69M | 18.29M | Investing Cash Flow |
| 8.99M | -593.00K | -4.45M | -1.92M | 16.06M | 16.79M | Financing Cash Flow |
| -24.32M | -29.89M | -17.36M | -5.24M | -30.23M | -9.12M |
Flexsteel Technical Analysis
Negative
35.92
Price Trends
43.39
Negative
49.55
Negative
45.52
Negative
Market Momentum
-2.40
Negative
30.07
Neutral
20.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLXS, the sentiment is Negative. The current price of 35.92 is below the 20-day moving average (MA) of 37.08, below the 50-day MA of 43.39, and below the 200-day MA of 45.52, indicating a bearish trend. The MACD of -2.40 indicates Negative momentum. The RSI at 30.07 is Neutral, neither overbought nor oversold. The STOCH value of 20.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLXS.
Flexsteel Risk Analysis
Flexsteel disclosed 15 risk factors in its most recent earnings report. Flexsteel reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Flexsteel Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.61B | 13.35 | 12.40% | 2.16% | 1.81% | 8.09% | |
68 Neutral | $189.28M | 10.03 | 13.04% | 1.84% | 7.75% | 27.88% | |
59 Neutral | $11.76B | 10.11 | -0.70% | 3.92% | 1.27% | -16.30% | |
58 Neutral | $1.20B | 41.75 | 2.28% | 4.63% | -2.68% | -56.16% | |
56 Neutral | $137.61M | ― | -3.83% | 4.93% | -11.78% | -13.89% | |
52 Neutral | $2.03B | 15.03 | 17.42% | 3.28% | 3.80% | 182.70% | |
47 Neutral | $92.11M | ― | -4.47% | 11.03% | -16.67% | -24.91% |
* Consumer Cyclical Sector Average
Performance Comparison
FLXS
Flexsteel
33.76
-3.86
-10.26%
BSET
Bassett Furniture
15.75
2.51
18.96%
MLKN
MillerKnoll, Inc.
16.55
-8.81
-34.74%
HNI
HNI
41.83
0.73
1.78%
HOFT
Hooker Furniture
8.25
-11.45
-58.12%
LZB
La-Z-Boy Incorporated
38.41
4.33
12.71%
Flexsteel Earnings Call Summary
Earnings Call Date: Feb 3, 2025 | % Change Since: -25.15% | Next Earnings Date: Apr 21, 2025
Earnings Call Sentiment Positive
Flexsteel Industries demonstrated strong financial performance with significant sales growth and operating margin improvement. However, the potential impact of new tariffs and challenges in the Homestyles brand present notable risks. Overall, the positive aspects of the company's performance outweigh the concerns, indicating a cautiously optimistic outlook.Highlights
Sales Growth and Revenue Achievement
Flexsteel Industries reported an 8.4% increase in sales compared to the prior year quarter, marking the fifth consecutive quarter of year-over-year growth. Net sales were $108.5 million, exceeding the high end of the guidance range.
Operating Margin Improvement
The company achieved a 6.1% operating margin in the quarter, a 150 basis point increase from the prior year quarter, driven by sales growth leverage and cost savings initiatives.
Debt-Free Status
Flexsteel ended the quarter debt-free, generating $6.7 million of operating cash flow and accumulating a cash balance of $11.8 million.
Broad-Based Growth
The company's growth was broad-based, with significant contributions from new and expanded market initiatives, including Zecliner, Flex, Charisma, and Big Box sales distribution.
Lowlights
Potential Impact of Tariffs
The introduction of a 25% tariff on Mexico and Canada poses a significant risk, potentially increasing costs by $1.5 million to $2 million per month if implemented.
Decline in Homestyles Brand
The Homestyles ready-to-assemble brand, largely sold online, experienced a decline of nearly 30% due to competitive pressures from low-cost Chinese imports.
Company Guidance
During the Flexsteel Industries Second Quarter Fiscal Year 2025 Earnings Call, the company reported a notable sales growth of 8.4% compared to the prior year quarter, exceeding their guidance range of $103 million to $107 million, with net sales reaching $108.5 million. Their adjusted operating margin improved to 6.1%, up from 4.6% in the previous year, marking the sixth consecutive quarter of year-over-year adjusted operating margin growth. The company achieved a GAAP operating income of $11.7 million, or 10.7% of sales, and generated $6.7 million in operating cash flow, ending the quarter debt-free with a cash balance of $11.8 million. For the upcoming third quarter, Flexsteel anticipates net sales between $110 million and $115 million, projecting an operating margin of 6.0% to 7.0% and free cash flow in the range of $4 million to $7 million, excluding potential tariff impacts. The company remains cautiously optimistic about its growth prospects despite potential economic disruptions from tariffs and policy changes.Flexsteel Corporate Events
Business Operations and StrategyFinancial Disclosures
Flexsteel Reports Strong Q2 2025 Financial Results
Positive
Feb 3, 2025
Flexsteel Industries reported strong financial results for the second quarter of fiscal 2025, with net sales increasing by 8.4% to $108.5 million compared to the previous year. The company achieved its fifth consecutive quarter of year-over-year sales growth and improved its operating income to $11.7 million. Despite facing uncertainties due to potential tariffs on Mexico and Canada, which could impact their operations, Flexsteel is focused on maintaining growth momentum and improving competitiveness.
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.