Flexsteel (FLXS) AI Stock Analysis

• Market Cap: $213.78M
• Dividend Yield: 1.77%
• Average Volume (3M): 31.62K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.99
• 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): 1.18
• Shares Outstanding: 5,340,446
• 10 Day Avg. Volume: 33,324
• 30 Day Avg. Volume: 31,619
• 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: 1.09
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 2.19
• Enterprise Value/Ebitda: 7.48
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $47.00 ▲(19.17% Upside)

The score is driven primarily by improved profitability and a healthier balance sheet, supported by an attractive low P/E and moderate dividend yield. Technicals are mildly positive but not strong, and the earnings call adds optimism on execution while highlighting tariffs and uneven demand as key risks.

Positive Factors

Margin Sustainability

Gross-margin expansion into the low‑20s, alongside a multi‑quarter run of operating‑margin improvement, signals improved pricing power and favorable product mix. These structural margin gains increase resilience to cost shocks and support durable operating profitability even if volumes soften.

Balance Sheet Strength

A cash‑rich, debt‑free position materially improves financial flexibility versus prior years of leverage. Durable liquidity reduces refinancing and solvency risk, funds product and marketing investment, and provides a buffer to absorb tariff or cyclical shocks without dilutive capital raises.

Product Innovation & Assortment

A broad wave of new SKUs and sub‑brands deepens the product portfolio and retail appeal, supporting longer‑term share gains across dealer and e‑commerce channels. Strong product innovation strengthens differentiation and helps diversify revenue beyond core cyclical segments.

Negative Factors

Tariff / Regulatory Pressure

Escalating Section 232 tariffs are a structural, industry‑wide cost increase. Even with surcharges, higher import duties compress long‑run margins, force price increases that can depress demand, and increase exposure to regulatory volatility versus competitors with different sourcing footprints.

Modest Top‑Line Growth & Cyclicality

Low single‑digit revenue growth and past declines indicate constrained scale and exposure to housing and consumer cycles. Limited top‑line momentum restricts operating‑leverage upside and makes sustained margin expansion dependent on continued share gains or higher average selling prices.

Cash‑Flow Volatility

Material swings in operating and free cash flow reduce predictability for reinvestment, dividends, and debt reduction. Even with current positive FCF, historical volatility raises the risk that a downturn or unexpected costs could quickly erode liquidity and hinder strategic initiatives.

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

Financials show a clear recovery: profitability and gross margin have improved meaningfully versus 2022–2024, and the balance sheet is stronger with debt declining to zero in the TTM view and improving ROE. Offsetting this, revenue growth is modest and cash-flow history has been volatile, which raises durability risk through housing-related demand cycles.

Income Statement

Profitability has improved meaningfully versus the weaker 2022–2024 period, with TTM (Trailing-Twelve-Months) showing solid mid-single-digit operating profitability and a net margin around 5%. Gross margin has also trended upward from the low-teens (2022) to the low-20s (TTM), signaling better pricing and/or cost control. The main drawback is growth: revenue is only modestly higher recently (TTM low-single-digit growth) and the business has shown prior volatility, including a notable revenue decline in 2023.

Balance Sheet

Leverage risk appears moderate and improving: total debt declines sharply from recent annual levels and is shown as zero in TTM (Trailing-Twelve-Months), while equity has grown versus 2023–2024. Returns on equity have strengthened into the low-to-mid teens in the latest period, consistent with improved profitability. A key watch item is that historical debt levels were meaningful (mid-to-high tens of millions), so the pace and sustainability of the deleveraging (or reporting classification) should be monitored.

Cash Flow

Cash generation is generally supportive: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are positive and free cash flow is close to reported earnings, suggesting profits are translating into cash. However, cash-flow consistency is a concern—free cash flow declined in the latest TTM period versus the prior year, and 2021 showed materially negative operating and free cash flow despite strong earnings. Overall, cash flow is positive today but has exhibited meaningful swings across the cycle.

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

Flexsteel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 39.44 is below the 20-day moving average (MA) of 40.65, below the 50-day MA of 40.23, and above the 200-day MA of 38.06, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.27 is Neutral, neither overbought nor oversold. The STOCH value of 49.44 is Neutral, 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	$1.50B	16.80	8.82%	2.39%	1.78%	-25.36%
FLXS	74 Outperform	$213.78M	9.75	14.28%	1.77%	6.00%	64.58%
ETD	70 Outperform	$583.48M	13.34	9.21%	7.86%	-4.26%	―
BSET	66 Neutral	$137.23M	17.69	4.70%	4.59%	-2.74%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	61 Neutral	$1.37B	-53.25	-1.95%	4.16%	4.34%	-141.36%
HOFT	49 Neutral	$143.02M	-4.80	-11.27%	7.20%	-12.09%	-204.66%

Flexsteel Corporate Events

Flexsteel Posts Strong Fiscal Q2 2026 Results, Enhancing Margins

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 and tariff-related pricing, with gross margin expanding 170 basis points to 22.7% on a favorable mix of higher-margin products despite the dilutive impact of tariffs. While GAAP operating income declined to $9.0 million from $11.7 million and GAAP EPS fell to $1.18 from $1.62 due to factors including a higher effective tax rate, adjusted operating income climbed 35% and adjusted EPS rose from $0.95 to $1.18, underscoring improved profitability, operating discipline and product mix. Management flagged uneven industry demand and tariff uncertainty but emphasized structural margin improvements, ongoing investments in growth initiatives and innovation, and a solid financial position, including $36.8 million in cash, $126.0 million in working capital and $54.1 million of available credit, positioning the company to navigate volatility, gain market share and support long-term growth for stakeholders.

The most recent analyst rating on (FLXS) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Flexsteel stock, see the FLXS Stock Forecast page.

Flexsteel Shareholders Approve Equity Plan Amendment

At the Annual Meeting of Shareholders on December 10, 2025, Flexsteel Industries, Inc. shareholders approved an amendment to the 2022 Equity Incentive Plan, increasing authorized shares by 150,000 and making other amendments. The plan aims to provide long-term incentives to employees, contractors, and directors through various stock-based awards. Additionally, shareholders elected two directors to the board and approved executive compensation measures, deciding on an annual advisory vote for executive compensation.

The most recent analyst rating on (FLXS) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Flexsteel stock, see the FLXS Stock Forecast page.