Flexsteel (FLXS) AI Stock Analysis

• Market Cap: $185.67M
• Dividend Yield: 2.02%
• Average Volume (3M): 16.80K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.95
• Revenue Growth: 7.24%
• EPS Growth: -9.51%
• Country: US
• Employees: 1,500
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): N/A
• Shares Outstanding: 5,273,253
• 10 Day Avg. Volume: 13,579
• 30 Day Avg. Volume: 16,803
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 2.46
• Enterprise Value/Ebitda: 10.84
• 1Y Price Target: $47.50
• Price Target Upside: 34.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: $41.00 ▲(16.44% Upside)

Flexsteel's robust financial health and consistent sales growth are the primary strengths supporting its stock score. While technical indicators and valuation metrics are neutral to slightly positive, the company's proactive management and strategic appointments contribute positively. However, potential tariff challenges and economic uncertainties are notable risks.

Flexsteel Business Overview & Revenue Model

Company Description

Flexsteel 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 Money

Flexsteel makes money primarily through the design, manufacture, and sale of its furniture products. The company's revenue model is based on selling its products through a diverse distribution network that includes furniture retailers, department stores, e-commerce platforms, and direct-to-consumer channels. Key revenue streams stem from both residential furniture sales, which include living room and bedroom collections, and commercial furniture sales, targeting office, hospitality, and healthcare sectors. Flexsteel's partnerships with retailers and its focus on innovation and quality contribute significantly to its earnings by expanding its market reach and strengthening its brand reputation.

Flexsteel Financial Statement Overview

Summary

Flexsteel demonstrates a strong financial position with consistent revenue growth, a sound balance sheet free of debt, and effective cash management. While profitability margins suggest room for improvement, the company's solid equity base and cash generation capability provide a stable foundation for future growth.

Income Statement

Flexsteel's TTM (Trailing-Twelve-Months) income statement exhibits solid profitability with a gross profit margin of 21.5% and a net profit margin of 3.3%. The company has shown a commendable revenue growth rate of 5.9% from the previous year, indicating a positive sales trajectory. However, the EBITDA margin of 4.6% suggests room for improvement in operational efficiency.

Balance Sheet

The balance sheet is robust, with a debt-free position enhancing financial stability. The equity ratio stands at 100%, reflecting a strong capital structure. The return on equity at 5.4% is respectable but indicates potential for greater profitability.

Cash Flow

Cash flow analysis shows Flexsteel's healthy cash generation capability. The operating cash flow to net income ratio is 2.0, indicating efficient earnings conversion. Free cash flow to net income ratio is a strong 1.8, showcasing effective cash retention. However, there's a slight decline in free cash flow growth of -4.9% year-over-year.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	437.28M	412.75M	393.69M	544.28M	478.93M	366.93M
Gross Profit	94.08M	87.24M	70.95M	72.68M	96.73M	53.05M
EBITDA	21.30M	21.10M	12.33M	11.12M	34.01M	-25.30M
Net Income	14.37M	10.53M	14.78M	1.85M	23.05M	-26.84M
Balance Sheet
Total Assets	266.13M	274.46M	290.55M	268.74M	296.78M	237.26M
Cash, Cash Equivalents and Short-Term Investments	22.63M	4.76M	3.37M	2.18M	1.34M	48.20M
Total Debt	61.15M	70.42M	28.27M	44.10M	33.65M	12.02M
Total Liabilities	108.01M	124.09M	148.93M	137.18M	128.81M	61.75M
Stockholders Equity	158.12M	150.37M	141.62M	131.56M	167.97M	175.50M
Cash Flow
Free Cash Flow	25.77M	27.11M	18.20M	4.14M	-35.27M	14.60M
Operating Cash Flow	28.88M	31.88M	22.99M	7.99M	-32.69M	18.29M
Investing Cash Flow	9.77M	-593.00K	-4.45M	-1.92M	16.06M	16.79M
Financing Cash Flow	-20.58M	-29.89M	-17.36M	-5.24M	-30.23M	-9.12M

Flexsteel Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.21
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 35.21 is below the 20-day moving average (MA) of 35.38, below the 50-day MA of 35.59, and below the 200-day MA of 43.23, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 48.72 is Neutral, neither overbought nor oversold. The STOCH value of 80.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLXS.

Flexsteel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLXS	77 Outperform	$185.67M	13.86	9.48%	2.02%	7.24%	-9.51%
ETD	74 Outperform	$759.85M	14.84	10.69%	6.42%	-4.89%	―
LZB	71 Outperform	$1.59B	16.44	9.84%	2.22%	3.04%	-16.49%
Sector *	61 Neutral	$17.43B	12.46	-6.01%	3.11%	1.62%	-15.64%
BSET	56 Neutral	$142.94M	57.84	1.46%	4.86%	-7.22%	―
MLKN	56 Neutral	$1.44B	45.68	-2.77%	3.53%	1.14%	-149.26%
HOFT	48 Neutral	$106.76M	―	-5.55%	9.22%	-3.89%	-391.05%

Flexsteel Corporate Events

Flexsteel Amends Credit Agreement with Wells Fargo

On June 3, 2025, Flexsteel Industries, Inc. amended its Credit Agreement with Wells Fargo Bank, reducing the maximum revolving line of credit to $55 million. This strategic move was made to better align with the company’s current and projected borrowing needs, with no outstanding amounts under the credit line as of the amendment date.

Flexsteel Appoints Terence Calloway as Independent Director

On May 21, 2025, Flexsteel Industries, Inc. announced the appointment of Terence P. Calloway as an independent director on its Board. Calloway, who has extensive experience in product innovation and supply chain management from his roles at Energizer, Colgate-Palmolive, and Procter & Gamble, is expected to contribute significantly to Flexsteel’s growth strategy and shareholder returns. His appointment increases the Board’s size from seven to eight members, and he will serve on the Audit and Ethics Committee.