Flexsteel (FLXS) AI Stock Analysis

• Market Cap: $223.60M
• Dividend Yield: 1.77%
• Average Volume (3M): 31.91K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.07
• Revenue Growth: 6.00%
• EPS Growth: 64.58%
• Country: US
• Employees: 1,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 1.31
• Shares Outstanding: 5,340,446
• 10 Day Avg. Volume: 23,543
• 30 Day Avg. Volume: 31,909
• PEG Ratio: 0.11
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 5.61
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 2.77
• Enterprise Value/Ebitda: 8.42
• 1Y Price Target: $47.00
• Price Target Upside: 10.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $45.00 ▲(6.08% Upside)

Flexsteel's strong financial performance and attractive valuation are the most significant factors driving the score. The company's ability to maintain growth amidst macroeconomic challenges and new tariffs is crucial. Technical indicators suggest a neutral trend, while the earnings call reflects both opportunities and risks.

Positive Factors

Consistent Sales Growth

Consistent sales growth over multiple quarters indicates strong market demand and effective sales strategies, supporting long-term revenue stability.

Strong Product Innovation

Continuous product innovation enhances competitive advantage and market share, driving future growth and consumer engagement.

Healthy Financial Position

A strong cash position and lack of bank debt provide financial flexibility and resilience against economic uncertainties.

Negative Factors

New Section 232 Tariffs Impact

Rising tariffs could increase costs and pressure margins, posing a risk to profitability and competitive pricing.

Uncertain Demand Due to Tariffs

Higher prices from tariffs may reduce consumer demand, affecting sales volumes and revenue growth.

Volatile Consumer Sentiment

Volatile consumer sentiment can lead to unpredictable sales patterns, impacting revenue consistency and planning.

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 generates revenue primarily through the sale of its furniture products, which include upholstered seating, wood furniture, and commercial-grade furnishings. The company has a multi-channel distribution strategy, selling directly to consumers through retail partnerships and e-commerce platforms, as well as supplying wholesale to furniture retailers and commercial clients. Key revenue streams include direct-to-consumer sales, dealer sales, and contract sales for commercial projects. Additionally, Flexsteel benefits from established partnerships with retailers and e-commerce platforms, enhancing its market reach and contributing to consistent sales growth. Factors such as brand reputation, product quality, and customer service play crucial roles in driving its earnings.

Flexsteel Financial Statement Overview

Summary

Flexsteel's financial performance is solid, with strong revenue and profit growth, a stable balance sheet, and robust cash flow generation. However, operational efficiency and cash flow optimization need improvement.

Income Statement

Flexsteel's income statement shows a positive trajectory with consistent revenue growth over the past few years, highlighted by a significant 86.6% increase in the most recent year. Gross profit margins have improved to 22.2%, and net profit margins have increased to 4.6%, indicating enhanced profitability. However, the negative EBITDA margin suggests potential issues with operational efficiency that need addressing.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.35, indicating moderate leverage. Return on equity has improved to 12%, showcasing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals a healthy free cash flow growth of 30.8%, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio of 0.60 suggests adequate cash flow relative to net income, though there is room for improvement. The free cash flow to net income ratio of 0.91 indicates efficient conversion of income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	446.67M	441.07M	412.75M	393.69M	544.28M	478.93M
Gross Profit	100.69M	97.94M	87.24M	70.95M	72.68M	96.73M
EBITDA	33.09M	30.69M	21.10M	15.13M	11.91M	36.69M
Net Income	22.50M	20.15M	10.53M	14.78M	1.85M	23.05M
Balance Sheet
Total Assets	281.47M	282.49M	274.46M	290.55M	268.74M	296.78M
Cash, Cash Equivalents and Short-Term Investments	38.59M	40.01M	4.76M	3.37M	2.18M	1.34M
Total Debt	57.81M	59.37M	70.42M	100.43M	78.09M	33.65M
Total Liabilities	109.29M	114.62M	124.09M	148.93M	137.18M	128.81M
Stockholders Equity	172.18M	167.86M	150.37M	141.62M	131.56M	167.97M
Cash Flow
Free Cash Flow	34.51M	33.72M	27.11M	18.20M	4.14M	-35.27M
Operating Cash Flow	38.70M	36.98M	31.88M	22.99M	7.99M	-32.69M
Investing Cash Flow	7.35M	9.43M	-593.00K	-4.45M	-1.92M	16.06M
Financing Cash Flow	-13.20M	-11.17M	-29.89M	-17.36M	-5.24M	-30.23M

Flexsteel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 42.42 is above the 20-day moving average (MA) of 39.02, above the 50-day MA of 38.35, and above the 200-day MA of 37.72, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 68.41 is Neutral, neither overbought nor oversold. The STOCH value of 90.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLXS.

Flexsteel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LZB	77 Outperform	$1.60B	17.88	8.82%	2.27%	1.78%	-25.36%
FLXS	75 Outperform	$223.60M	10.20	14.28%	1.77%	6.00%	64.58%
BSET	66 Neutral	$148.05M	19.09	4.70%	4.69%	-2.74%	―
ETD	66 Neutral	$614.02M	13.07	9.96%	7.18%	-4.61%	-25.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	60 Neutral	$1.13B	―	-1.18%	4.50%	5.37%	-127.27%
HOFT	49 Neutral	$117.18M	―	-11.25%	8.73%	-12.09%	-204.31%

Flexsteel Corporate Events

Flexsteel Reports Strong Q1 2026 Financial Results

Flexsteel Industries reported strong fiscal first quarter 2026 results with net sales of $110.4 million, a 6.2% increase from the previous year, and a GAAP operating income of $9.0 million. Despite challenges such as uneven consumer demand and new tariffs on imported furniture, the company achieved its eighth consecutive quarter of year-over-year sales growth, driven by new products and market expansion efforts. However, the new tariffs are expected to disrupt consumer demand and margins in the short term, although Flexsteel remains financially strong and prepared to navigate these challenges.

Flexsteel Announces Board Changes with Levine’s Resignation

Flexsteel Industries, Inc. announced that Thomas M. Levine will resign from the Board of Directors effective after the December 10, 2025, meeting to focus on personal interests. Levine’s departure is not due to any disagreements with the company, and he has been a significant contributor since joining the board in 2010. Concurrently, the board will reduce its size from eight to seven members, with Jeanne McGovern taking over as Chair of the Board. McGovern, who joined the board in 2022, brings extensive experience in audit and advisory services.