Flexsteel (FLXS) AI Stock Analysis

• Market Cap: $172.07M
• Dividend Yield: 1.98%
• Average Volume (3M): 18.75K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.78
• Revenue Growth: 7.24%
• EPS Growth: -9.51%
• Country: US
• Employees: 1,500
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 2.54
• Shares Outstanding: 5,273,253
• 10 Day Avg. Volume: 21,755
• 30 Day Avg. Volume: 18,750
• PEG Ratio: 0.32
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.65
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $54.00
• Price Target Upside: 61.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Flexsteel's strong financial performance, marked by solid revenue growth and a robust balance sheet, forms the bedrock of its overall appeal. However, technical indicators suggest caution due to bearish momentum. The stock's valuation offers potential appeal, but external risks from tariffs and demand volatility highlighted in the earnings call pose notable challenges. Overall, Flexsteel's strategic initiatives and financial stability support a moderately positive outlook.

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 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 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
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
412.75M	393.69M	544.28M	478.93M	366.93M
	Gross Profit
87.24M	70.95M	72.68M	96.73M	53.05M
	EBIT
17.08M	10.54M	6.62M	31.20M	-19.39M
	EBITDA
21.10M	12.33M	11.12M	34.01M	-25.30M
	Net Income Common Stockholders
10.53M	14.78M	1.85M	23.05M	-26.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.76M	3.37M	2.18M	1.34M	48.20M
	Total Assets
274.46M	290.55M	268.74M	296.78M	237.26M
	Total Debt
70.42M	28.27M	44.10M	33.65M	12.02M
	Net Debt
65.65M	24.91M	41.92M	32.31M	-36.18M
	Total Liabilities
124.09M	148.93M	137.18M	128.81M	61.75M
	Stockholders Equity
150.37M	141.62M	131.56M	167.97M	175.50M
Cash Flow		Free Cash Flow
27.11M	18.20M	4.14M	-35.27M	14.60M
	Operating Cash Flow
31.88M	22.99M	7.99M	-32.69M	18.29M
	Investing Cash Flow
-593.00K	-4.45M	-1.92M	16.06M	16.79M
	Financing Cash Flow
-29.89M	-17.36M	-5.24M	-30.23M	-9.12M

Flexsteel Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 33.39 is below the 20-day moving average (MA) of 33.84, below the 50-day MA of 38.25, and below the 200-day MA of 45.66, indicating a bearish trend. The MACD of -1.54 indicates Negative momentum. The RSI at 43.04 is Neutral, neither overbought nor oversold. The STOCH value of 33.95 is Neutral, 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
ETD	73 Outperform	$738.49M	12.17	12.86%	5.49%	-11.10%	-23.77%
LZB	72 Outperform	$1.65B	13.69	12.40%	2.13%	1.81%	8.09%
FLXS	71 Outperform	$172.07M	12.84	9.48%	1.98%	7.24%	-9.51%
Sector *	61 Neutral	$6.55B	11.72	3.07%	4.01%	2.66%	-21.27%
BSET	56 Neutral	$153.28M	―	-3.83%	4.42%	-11.78%	-13.89%
MLKN	52 Neutral	$1.10B	38.19	2.28%	4.57%	-2.68%	-56.16%
HOFT	48 Neutral	$90.93M	―	-5.89%	9.73%	-8.26%	-233.72%

Flexsteel Corporate Events

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.

Spark’s Take on FLXS Stock

According to Spark, TipRanks’ AI Analyst, FLXS is a Neutral.

Flexsteel shows robust financial performance with strong revenue growth and a debt-free position, supporting a stable outlook. However, technical indicators suggest bearish momentum, warranting caution. The stock’s valuation is appealing, and recent earnings call insights provide a positive sentiment despite potential tariff risks.

To see Spark’s full report on FLXS stock, click here.

Flexsteel Reports Strong Q2 2025 Financial Results

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.