Flexsteel (FLXS)
NASDAQ:FLXS
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Flexsteel
(NASDAQ:FLXS)
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Rating:83Outperform
Price Target:
$65.00
▲(39.37% Upside)
Action:ReiteratedDate:04/29/26
The score is driven primarily by strong financial performance (notably a debt-free balance sheet, improving margins, and solid free cash flow) and supportive technical momentum. Attractive valuation helps. Offsetting factors include cautious near-term guidance with notable input-cost and supply risks, plus some risk from the sizable, partially debt-funded repurchase.
Positive Factors
Debt-free balance sheet
Reported zero total debt and a strengthened equity base materially improve financial flexibility. Over the next several months this reduces refinancing and interest-rate risk, preserves capacity to fund working capital or investments, and gives management optionality to support operations or strategic initiatives.
Negative Factors
Polyol supply vulnerability
Polyol is a core input for upholstered furniture; sustained shortages or allocations can raise input costs, delay production, and force higher end prices or lost sales. Over 2–6 months this structural supplier constraint could compress margins and disrupt order fulfillment for core product lines.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
Reported zero total debt and a strengthened equity base materially improve financial flexibility. Over the next several months this reduces refinancing and interest-rate risk, preserves capacity to fund working capital or investments, and gives management optionality to support operations or strategic initiatives.
Read all positive factors
Flexsteel (FLXS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$291.56M
Dividend Yield1.77%
Average Volume (3M)39.10K
Price to Earnings (P/E)9.3
Beta (1Y)0.87
Revenue Growth4.83%
EPS Growth111.79%
CountryUS
Employees1,500
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)5.86
Shares Outstanding5,355,531
10 Day Avg. Volume61,807
30 Day Avg. Volume39,101
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 Cap1.02
Enterprise Value/Revenue0.65
Enterprise Value/Gross Profit2.80
Enterprise Value/Ebitda6.80
Forecast
1Y Price Target
$54.00Price Target Upside15.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4.57
Revenue Forecast (FY)$452.40M
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:Apr 20, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 24, 2026
Earnings Call Sentiment Neutral
The call presents a balanced view: the company delivered a modest sales increase, returned to GAAP operating profitability with solid operating cash flow and a strong balance sheet, and is benefiting from favorable product mix and new-product momentum. However, meaningful near-term headwinds were emphasized, including a 2.4% decline in orders, rising energy and freight costs, a potentially disruptive polyol supply shortage, and tariff/trade uncertainty. Management expects near-term sales to be flat and margins to remain under pressure while they prioritize disciplined cost control and continued investment in growth initiatives.Positive Updates
Revenue Growth
Net sales of $115.1 million, up 1% year-over-year (prior year quarter $114.0 million); increase primarily driven by pricing from tariff surcharges offsetting lower unit volume.
Negative Updates
Order Decline and Demand Volatility
Orders were down approximately 2.4% in the quarter; January–February saw choppy demand due to severe weather and March experienced a noticeable slowdown amid macroeconomic uncertainty, with retail partners managing inventory more cautiously.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth
Net sales of $115.1 million, up 1% year-over-year (prior year quarter $114.0 million); increase primarily driven by pricing from tariff surcharges offsetting lower unit volume.
Read all positive updates
Company Guidance
The company guided that fourth‑quarter sales are expected to be relatively flat with the prior year and operating margins should be similar to third‑quarter performance (Q3 operating income $8.2M, ~7.1% of sales). For context, Q3 net sales were $115.1M (up 1% YoY), orders were down ~2.4%, backlog stood at $79.5M (≈+1.5% YoY, ≈-3.5% sequential), cash was $57.3M with working capital of $142.2M and no bank debt, operating cash flow was $22.1M, inventory declined ~$14.5M (≈15% sequential), tariff‑related pricing represented ~11% of sales, and new product sales comprised ~40–45% of the portfolio; management cautioned that rising fuel/energy and ocean freight costs and a polyol supply squeeze (possible shortages/allocations as soon as May) could pressure costs into Q4 and into FY2027 Q1.Flexsteel Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 458.42M | 441.07M | 412.75M | 393.69M | 544.28M | 478.93M |
| Gross Profit | 106.25M | 97.94M | 87.24M | 70.95M | 72.68M | 96.73M |
| EBITDA | 43.79M | 30.69M | 21.10M | 15.13M | 11.91M | 36.69M |
| Net Income | 31.12M | 20.15M | 10.53M | 14.78M | 1.85M | 23.05M |
Balance Sheet | ||||||
| Total Assets | 290.17M | 282.49M | 274.46M | 290.55M | 268.74M | 296.78M |
| Cash, Cash Equivalents and Short-Term Investments | 57.28M | 40.01M | 4.76M | 3.37M | 2.18M | 1.34M |
| Total Debt | 53.90M | 59.37M | 70.42M | 100.43M | 78.09M | 33.65M |
| Total Liabilities | 104.87M | 114.62M | 124.09M | 148.93M | 137.18M | 128.81M |
| Stockholders Equity | 185.30M | 167.86M | 150.37M | 141.62M | 131.56M | 167.97M |
Cash Flow | ||||||
| Free Cash Flow | 38.71M | 33.72M | 27.11M | 18.20M | 4.14M | -35.27M |
| Operating Cash Flow | 42.82M | 36.98M | 31.88M | 22.99M | 7.99M | -32.69M |
| Investing Cash Flow | -95.00K | 9.43M | -593.00K | -4.45M | -1.92M | 16.06M |
| Financing Cash Flow | -8.08M | -11.17M | -29.89M | -17.36M | -5.24M | -30.23M |
Flexsteel Technical Analysis
Positive
46.64
Price Trends
48.87
Negative
44.62
Positive
42.17
Positive
Market Momentum
-0.10
Negative
49.78
Neutral
27.08
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 46.64 is above the 20-day moving average (MA) of 46.16, below the 50-day MA of 48.87, and above the 200-day MA of 42.17, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 27.08 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $291.56M | 9.30 | 17.68% | 1.77% | 4.83% | 111.79% | |
69 Neutral | $509.94M | 23.98 | 9.20% | 7.86% | -4.79% | -30.21% | |
65 Neutral | $1.37B | 18.08 | 8.12% | 2.39% | 1.69% | -31.16% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $130.97M | 67.14 | -14.75% | 7.20% | -23.22% | -111.83% | |
50 Neutral | $1.06B | 14.70 | 0.83% | 4.16% | 5.62% | -65.76% | |
48 Neutral | $122.96M | 29.10 | 3.24% | 4.59% | 2.44% | ― |
* Consumer Cyclical Sector Average
FLXS
Flexsteel
54.44
23.98
78.71%
BSET
Bassett Furniture
14.22
-2.23
-13.57%
ETD
Ethan Allen
20.04
-3.92
-16.36%
MLKN
MillerKnoll
15.49
0.03
0.21%
HOFT
Hooker Furniture
12.15
4.04
49.85%
LZB
La-Z-Boy Incorporated
33.55
-6.35
-15.92%
Flexsteel Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackPrivate Placements and Financing
Flexsteel Announces Major Share Repurchase and Director Resignation
Positive
Apr 28, 2026
On April 26, 2026, Flexsteel Industries agreed to repurchase about 1.28 million shares, or roughly 24% of its common stock, from director F. Brooks Bertsch and related family entities in a privately negotiated transaction at $47 per share, a 2.5% ...
Business Operations and StrategyFinancial Disclosures
Flexsteel Posts Q3 Profit Amid Ongoing Macroeconomic Pressures
Positive
Apr 20, 2026
Flexsteel Industries, Inc. reported fiscal third quarter 2026 results on April 20, 2026, posting net sales of $115.1 million, up 1% year over year, with gross margin improving to 22.6% and GAAP operating income swinging to $8.2 million from a $5.1...
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.