Flexsteel (FLXS) AI Stock Analysis

• Market Cap: $246.86M
• Dividend Yield: 1.47%
• Average Volume (3M): 28.95K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.95
• Revenue Growth: 6.86%
• EPS Growth: 88.42%
• Country: US
• Employees: 1,500
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 1.40
• Shares Outstanding: 5,275,963
• 10 Day Avg. Volume: 34,799
• 30 Day Avg. Volume: 28,947
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 2.29
• Enterprise Value/Ebitda: 7.30
• 1Y Price Target: $51.50
• Price Target Upside: 6.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: $49.00 ▲(1.16% Upside)

Flexsteel's overall stock score of 72 reflects its strong financial performance and strategic growth initiatives, despite operational efficiency challenges and tariff-related risks. The stock's reasonable valuation and positive earnings call further support its potential for future growth.

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 to retailers and directly to consumers. The company’s revenue model is predominantly based on the wholesale distribution of its products, where it sells to furniture retailers and dealers across the United States and internationally. Key revenue streams include sales from upholstered and wood furniture collections as well as accessories. Additionally, Flexsteel benefits from long-term partnerships with various retailers, which help expand its market reach. The company also engages in special projects and contracts with commercial clients, contributing to its revenue. Factors such as brand reputation, product quality, and customer service are critical in driving sales and maintaining profitability.

Flexsteel Financial Statement Overview

Summary

Flexsteel exhibits strong financial performance with significant revenue and profit growth, supported by a stable balance sheet and robust cash flow generation. However, the negative EBITDA margin and room for improvement in cash flow ratios suggest potential areas for operational efficiency enhancements.

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	441.07M	441.07M	412.75M	393.69M	544.28M	478.93M
Gross Profit	97.94M	97.94M	87.24M	70.95M	72.68M	96.73M
EBITDA	30.69M	-96.02M	21.10M	12.33M	11.12M	34.01M
Net Income	20.15M	20.15M	10.53M	14.78M	1.85M	23.05M
Balance Sheet
Total Assets	282.49M	282.49M	274.46M	290.55M	268.74M	296.78M
Cash, Cash Equivalents and Short-Term Investments	40.01M	40.01M	4.76M	3.37M	2.18M	1.34M
Total Debt	59.37M	59.37M	70.42M	100.43M	78.09M	33.65M
Total Liabilities	114.62M	114.62M	124.09M	148.93M	137.18M	128.81M
Stockholders Equity	167.86M	167.86M	150.37M	141.62M	131.56M	167.97M
Cash Flow
Free Cash Flow	33.72M	33.72M	27.11M	18.20M	4.14M	-35.27M
Operating Cash Flow	36.98M	36.98M	31.88M	22.99M	7.99M	-32.69M
Investing Cash Flow	9.43M	9.43M	-593.00K	-4.45M	-1.92M	16.06M
Financing Cash Flow	-11.17M	-11.17M	-29.89M	-17.36M	-5.24M	-30.23M

Flexsteel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 48.44 is above the 20-day moving average (MA) of 41.72, above the 50-day MA of 38.77, and above the 200-day MA of 42.32, indicating a bullish trend. The MACD of 3.05 indicates Negative momentum. The RSI at 75.63 is Negative, neither overbought nor oversold. The STOCH value of 90.08 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
ETD	74 Outperform	$769.36M	15.02	10.69%	6.32%	-4.89%	-19.26%
FLXS	72 Outperform	$246.86M	13.18	12.67%	1.47%	6.86%	88.42%
LZB	64 Neutral	$1.49B	16.57	9.09%	2.43%	2.18%	-22.35%
Sector *	61 Neutral	$17.97B	12.87	-5.29%	2.97%	1.26%	-14.45%
BSET	58 Neutral	$146.33M	59.21	1.46%	4.76%	-7.22%	―
MLKN	58 Neutral	$1.44B	45.68	-2.77%	3.50%	1.14%	-149.26%
HOFT	51 Neutral	$114.24M	―	-5.55%	8.42%	-3.89%	-391.05%

Flexsteel Corporate Events

Flexsteel Reports Strong Q4 and FY 2025 Results

Flexsteel Industries, Inc. reported its fourth quarter and fiscal year 2025 results, showcasing continued net sales growth and record diluted earnings per share. The company achieved a 3.4% increase in net sales for the quarter and a 6.9% increase for the year, marking the seventh consecutive quarter of year-over-year sales growth. Despite challenging market conditions and macroeconomic uncertainties, Flexsteel’s strategies have driven strong results, with diversified growth across core and new markets. The company also improved its adjusted operating margin and generated significant cash flow, positioning itself well for future growth despite potential risks from tariffs and market conditions.

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.