Flexsteel (FLXS)
NASDAQ:FLXS
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Flexsteel
(NASDAQ:FLXS)
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Rating:71Outperform
Price Target:
$56.00
▲(11.40% Upside)
Action:ReiteratedDate:02/07/26
The score is driven primarily by improved financial performance (better margins/returns and a stronger balance sheet with no debt). Offsetting this are technically overbought conditions and earnings-call risks tied to tariff-driven margin pressure and paused guidance, while valuation remains generally reasonable with a modest dividend.
Positive Factors
New product-driven growth
A sustained contribution of 30–40% of sales from new products indicates a durable innovation pipeline and stronger retailer adoption. This broadens revenue sources, supports mix-driven margin improvement, and reduces reliance on legacy categories, helping medium-term growth and competitive positioning.
Negative Factors
Tariff-driven inventory and margin risk
Elevated inventory burdened by tariffs creates a persistent margin overhang as higher-cost product sells through. This raises working capital needs, compresses cash conversion, and introduces policy-driven margin volatility that can persist across quarters until sourcing or tariff relief is achieved.
Read all positive and negative factors
Positive Factors
Negative Factors
New product-driven growth
A sustained contribution of 30–40% of sales from new products indicates a durable innovation pipeline and stronger retailer adoption. This broadens revenue sources, supports mix-driven margin improvement, and reduces reliance on legacy categories, helping medium-term growth and competitive positioning.
Read all positive factors
Flexsteel (FLXS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$259.20M
Dividend Yield1.77%
Average Volume (3M)36.84K
Price to Earnings (P/E)7.9
Beta (1Y)0.92
Revenue Growth6.00%
EPS Growth64.58%
CountryUS
Employees1,500
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)1.18
Shares Outstanding5,345,510
10 Day Avg. Volume43,125
30 Day Avg. Volume36,838
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)1.13
Price to Sales (P/S)0.43
P/FCF Ratio5.61
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue0.59
Enterprise Value/Gross Profit2.54
Enterprise Value/Ebitda8.49
Forecast
1Y Price Target
$54.00Price Target Upside7.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)3.98
Revenue Forecast (FY)$455.73M
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, s...
How the Company Makes Money
Flexsteel makes money primarily by selling furniture products to wholesale and contract customers. Its core revenue stream is product sales, where it designs and either manufactures or sources upholstered and non-upholstered seating and related fu...
Flexsteel Earnings Call Summary
Earnings Call Date:Feb 02, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 20, 2026
Earnings Call Sentiment Positive
The call communicated strong operational and financial momentum: solid 9% sales growth, meaningful operating income and margin improvement (+150 bps), healthy liquidity (no debt and $36.8M cash), and a substantial contribution from new products (30%–40% of sales). These positives are tempered by significant category weakness (homestyles down ~50%), softness in made-to-order seating, elevated inventory and working capital from tariffs and safety stock, and an expected margin dilution in the second half as higher-cost, tariff-burdened inventory is sold. Management emphasized discipline, cost actions and supply-chain initiatives to mitigate tariff impacts but paused forward guidance given uncertainty.Positive Updates
Year-over-Year Sales Growth
Net sales of $118.2 million, up 9% year-over-year (prior year quarter $108.5 million); marks ninth consecutive quarter of year-over-year sales growth.
Negative Updates
Significant Decline in Homestyles Ready-to-Assemble
Homestyles branded ready-to-assemble sales were struggling, with sales down almost 50% in that category, dragging on consolidated unit growth in parts of the portfolio.
Read all updates
Q2-2026 Updates
Positive
Negative
Year-over-Year Sales Growth
Net sales of $118.2 million, up 9% year-over-year (prior year quarter $108.5 million); marks ninth consecutive quarter of year-over-year sales growth.
Read all positive updates
Company Guidance
Management paused formal forward-looking guidance due to uncertainty but gave directional expectations: Q2 net sales were $118.2M (up 9% YoY) with GAAP operating income of $9.0M and an operating margin of 7.6%, backlog of $82.4M (including estimated tariff surcharges), cash of $36.8M, working capital of $126M and no bank debt; they reported roughly $9.5M of tariff-related revenue this quarter and said current inventory is burdened with roughly 20–25% tariffs, so they expect some margin dilution in the second half as higher‑cost, tariff‑burdened inventory is sold, though mitigated to date by pricing and cost‑savings initiatives, ongoing evaluation of broader cost reductions and supply‑chain alternatives, and the fact that 30–40% of sales over the past 6–8 quarters have come from new products.Flexsteel Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 457.27M | 441.07M | 412.75M | 393.69M | 544.28M | 478.93M |
| Gross Profit | 105.54M | 97.94M | 87.24M | 70.95M | 72.68M | 96.73M |
| EBITDA | 31.53M | 30.69M | 21.10M | 15.13M | 11.91M | 36.69M |
| Net Income | 20.93M | 20.15M | 10.53M | 14.78M | 1.85M | 23.05M |
Balance Sheet | ||||||
| Total Assets | 290.19M | 282.49M | 274.46M | 290.55M | 268.74M | 296.78M |
| Cash, Cash Equivalents and Short-Term Investments | 36.77M | 40.01M | 4.76M | 3.37M | 2.18M | 1.34M |
| Total Debt | 55.87M | 59.37M | 70.42M | 100.43M | 78.09M | 33.65M |
| Total Liabilities | 111.33M | 114.62M | 124.09M | 148.93M | 137.18M | 128.81M |
| Stockholders Equity | 178.87M | 167.86M | 150.37M | 141.62M | 131.56M | 167.97M |
Cash Flow | ||||||
| Free Cash Flow | 27.99M | 33.72M | 27.11M | 18.20M | 4.14M | -35.27M |
| Operating Cash Flow | 33.01M | 36.98M | 31.88M | 22.99M | 7.99M | -32.69M |
| Investing Cash Flow | -188.00K | 9.43M | -593.00K | -4.45M | -1.92M | 16.06M |
| Financing Cash Flow | -7.84M | -11.17M | -29.89M | -17.36M | -5.24M | -30.23M |
Flexsteel Technical Analysis
Positive
50.27
Price Trends
48.57
Positive
44.19
Positive
41.97
Positive
Market Momentum
0.34
Negative
64.13
Neutral
87.48
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 50.27 is above the 20-day moving average (MA) of 46.02, above the 50-day MA of 48.57, and above the 200-day MA of 41.97, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 64.13 is Neutral, neither overbought nor oversold. The STOCH value of 87.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLXS.
Flexsteel Risk Analysis
Flexsteel disclosed 16 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $259.20M | 7.91 | 12.37% | 1.77% | 6.00% | 64.58% | |
70 Outperform | $569.74M | 12.45 | 9.20% | 7.86% | -4.26% | ― | |
65 Neutral | $1.38B | 18.08 | 8.12% | 2.39% | 1.78% | -25.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $165.11M | -1.14 | -15.57% | 7.20% | -12.09% | -204.66% | |
50 Neutral | $1.05B | 14.70 | 0.83% | 4.16% | 4.34% | -141.36% | |
48 Neutral | $121.15M | 29.10 | 3.24% | 4.59% | -2.74% | ― |
* Consumer Cyclical Sector Average
FLXS
Flexsteel
46.49
14.48
45.22%
BSET
Bassett Furniture
14.70
-1.47
-9.07%
ETD
Ethan Allen
22.46
-1.94
-7.95%
MLKN
MillerKnoll
16.21
0.69
4.42%
HOFT
Hooker Furniture
14.53
7.15
96.99%
LZB
La-Z-Boy Incorporated
34.11
-3.01
-8.11%
Flexsteel Corporate Events
Business Operations and StrategyFinancial Disclosures
Flexsteel Posts Strong Fiscal Q2 2026 Results, Enhancing Margins
Positive
Feb 2, 2026
On February 2, 2026, Flexsteel reported strong fiscal second-quarter 2026 results for the period ended December 31, 2025, highlighted by 9.0% year-over-year net sales growth to $118.2 million, driven by higher unit volume in sourced soft seating a...
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.