Flexsteel (FLXS) AI Stock Analysis

• Market Cap: $159.99M
• Dividend Yield: 2.17%
• Average Volume (3M): 16.63K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.84
• Revenue Growth: 7.24%
• EPS Growth: -9.51%
• Country: US
• Employees: 1,500
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 1.13
• Shares Outstanding: 5,273,253
• 10 Day Avg. Volume: 15,277
• 30 Day Avg. Volume: 16,632
• PEG Ratio: -0.41
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.40
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 2.16
• Enterprise Value/Ebitda: 2.06
• 1Y Price Target: $54.00
• Price Target Upside: 77.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: $35.00 ▲( 15.36% Upside)

Flexsteel's overall stock score is primarily driven by its strong financial position, characterized by a debt-free balance sheet and robust cash flow. The company's valuation is reasonable, and recent corporate changes support strategic goals. However, technical analysis indicates bearish trends, and external risks such as tariffs and economic volatility present potential challenges.

Flexsteel Business Overview & Revenue Model

Company Description

Flexsteel Industries, Inc. (FLXS) is a leading manufacturer and marketer of residential and commercial upholstered and wooden furniture products. The company, headquartered in Dubuque, Iowa, operates within the furniture industry, focusing on delivering high-quality, stylish, and durable furniture solutions. Flexsteel’s product offerings include sofas, chairs, recliners, tables, and more, catering to both home and business environments.

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
	EBIT
17.33M	17.08M	10.54M	6.62M	31.20M	-19.39M
	EBITDA
21.30M	21.10M	12.33M	11.12M	34.01M	-25.30M
	Net Income Common Stockholders
14.37M	10.53M	14.78M	1.85M	23.05M	-26.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.57M	4.76M	3.37M	2.18M	1.34M	48.20M
	Total Assets
273.77M	274.46M	290.55M	268.74M	296.78M	237.26M
	Total Debt
81.69M	70.42M	28.27M	44.10M	33.65M	12.02M
	Net Debt
77.12M	65.65M	24.91M	41.92M	32.31M	-36.18M
	Total Liabilities
128.50M	124.09M	148.93M	137.18M	128.81M	61.75M
	Stockholders Equity
145.26M	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: 30.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 30.34 is below the 20-day moving average (MA) of 32.36, below the 50-day MA of 34.45, and below the 200-day MA of 45.32, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 38.80 is Neutral, neither overbought nor oversold. The STOCH value of 12.01 is Positive, 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	76 Outperform	$159.99M	11.94	9.48%	2.17%	7.24%	-9.51%
LZB	72 Outperform	$1.73B	14.39	12.40%	2.00%	1.81%	8.09%
ETD	70 Outperform	$662.96M	11.56	12.09%	5.98%	-6.32%	-18.35%
Sector *	62 Neutral	$6.84B	11.23	3.09%	3.95%	2.66%	-25.23%
BSET	56 Neutral	$143.53M	―	-3.83%	4.73%	-11.78%	-13.89%
HOFT	52 Neutral	$97.61M	―	-5.89%	10.09%	-8.26%	-233.72%
MLKN	52 Neutral	$1.10B	38.36	2.28%	4.60%	-2.68%	-56.16%

Flexsteel Corporate Events

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.

Flexsteel Reports Strong Q3 2025 Results Amid Challenges

Flexsteel Industries, Inc. reported strong fiscal third quarter 2025 results with net sales of $114.0 million, marking a 6.3% increase from the prior year, despite a GAAP operating loss due to a $14.1 million impairment charge related to its Mexicali, Mexico facility. The company achieved an adjusted operating income of $8.3 million and generated $12.3 million in cash from operations, bolstering its cash position to $22.6 million. Despite economic uncertainties and potential impacts from U.S. trade policy changes, Flexsteel remains focused on executing growth strategies and maintaining supply chain agility to navigate the challenging environment.