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Haverty Furn Cl A Sc (HVT.A)
:HVT.A
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Haverty Furn Cl A SC
(NYSE:HVT.A)
63Neutral
Haverty Furn Cl A SC (HVT.A) vs. S&P 500 (SPY)
Market Cap
$319.35M
Dividend Yield5.98%
Average Volume (3M)638.00
Price to Earnings (P/E)16.5
Beta (1Y)1.25
Revenue Growth-16.15%
EPS Growth-66.79%
CountryUS
Employees2,334
SectorConsumer Cyclical
Sector Strength52
IndustryHome Improvement
Share Statistics
EPS (TTM)1.19
Shares Outstanding1,270,976
10 Day Avg. Volume1,313
30 Day Avg. Volume638
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.52
Price to Cash Flow (P/CF)5.50
P/FCF Ratio5.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Haverty Furn Cl A SC Business Overview & Revenue Model
Company DescriptionHaverty Furniture Companies, Inc. (Haverty Furn Cl A SC - HVT.A) is a retail company operating in the home furnishings sector. The company specializes in selling a range of furniture and home decor products, including living room, bedroom, dining room, and office furniture. Haverty's offers a variety of styles and designs to suit various customer preferences and is known for its quality and customer service.
How the Company Makes MoneyHaverty Furniture generates revenue primarily through the retail sale of furniture and home decor items. The company operates a network of showrooms where customers can view and purchase products in-person, as well as an online platform that extends its reach to a broader audience. Revenue streams include direct sales to consumers in physical stores and through e-commerce sales. The company also enhances its earnings through financing options for customers, potentially increasing the average transaction value. Key factors contributing to Haverty's earnings include its strategic store locations, effective marketing campaigns, and a strong brand reputation in the furniture retail sector.
Haverty Furn Cl A SC Financial Statement Overview
Summary
Haverty Furniture is experiencing operational challenges with declining revenues, reduced profitability margins, and pressures on cash flow. Despite a stable balance sheet, the decreased returns could pose risks if trends persist, necessitating strategic improvements.Income Statement
Haverty Furniture experienced a significant decline in revenue over the last year, with a revenue drop from $862 million to $722 million. Gross profit margin decreased slightly, indicating some cost pressures. The net profit margin also fell, reflecting lower profitability. EBIT and EBITDA margins have contracted, highlighting reduced operational efficiency over the period.58
Neutral
Balance Sheet
The company maintains a stable balance sheet with a Debt-to-Equity Ratio of approximately 0.71, which is manageable. However, the Return on Equity (ROE) has decreased due to the decline in net income, affecting shareholder returns. The equity ratio remains healthy, indicating solid financial stability.65
Positive
Cash Flow
Operating cash flow has decreased significantly, impacting the cash position, though it remains positive. Free cash flow growth is negative, reflecting reduced cash available after capital expenditures. The operating cash flow to net income ratio has weakened, suggesting challenges in converting profits into cash flow.62
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 722.90M | 862.13M | 1.05B | 1.01B | 748.25M | Gross Profit |
| 439.08M | 523.09M | 604.23M | 574.63M | 418.99M | EBIT |
| 19.86M | 67.28M | 117.93M | 118.36M | 41.71M | EBITDA |
| 19.86M | 85.88M | 134.85M | 134.66M | 59.91M | Net Income Common Stockholders |
| 19.96M | 56.32M | 89.36M | 90.80M | 59.15M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 120.03M | 120.64M | 123.13M | 166.15M | 200.06M | Total Assets |
| 648.75M | 654.13M | 649.05M | 686.29M | 680.37M | Total Debt |
| 218.38M | 217.75M | 221.29M | 230.35M | 233.67M | Net Debt |
| 98.34M | 97.12M | 98.16M | 64.21M | 33.61M | Total Liabilities |
| 341.19M | 345.77M | 359.65M | 430.32M | 427.40M | Stockholders Equity |
| 307.56M | 308.37M | 289.40M | 255.97M | 252.97M |
| Cash Flow | Free Cash Flow | |||
| 26.82M | 44.09M | 22.60M | 63.15M | 119.26M | Operating Cash Flow |
| 58.91M | 97.20M | 51.02M | 97.24M | 130.19M | Investing Cash Flow |
| -31.63M | -53.06M | -28.32M | -34.00M | 65.36M | Financing Cash Flow |
| -28.74M | -46.29M | -65.62M | -97.15M | -71.18M |
Haverty Furn Cl A SC Technical Analysis
Negative
20.61
Price Trends
21.66
Negative
21.92
Negative
23.64
Negative
Market Momentum
-0.29
Positive
39.21
Neutral
25.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HVT.A, the sentiment is Negative. The current price of 20.61 is below the 20-day moving average (MA) of 21.33, below the 50-day MA of 21.66, and below the 200-day MA of 23.64, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 39.21 is Neutral, neither overbought nor oversold. The STOCH value of 25.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HVT.A.
Haverty Furn Cl A SC Risk Analysis
Haverty Furn Cl A SC disclosed 19 risk factors in its most recent earnings report. Haverty Furn Cl A SC 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
Haverty Furn Cl A SC Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.61B | 13.40 | 12.40% | 2.12% | 1.81% | 8.09% | |
66 Neutral | $19.53B | 17.99 | 53.91% | 1.44% | -0.50% | 24.11% | |
63 Neutral | $319.35M | 16.52 | 6.48% | 5.98% | -16.15% | -66.79% | |
59 Neutral | $12.17B | 11.04 | -1.10% | 3.77% | 1.26% | -19.70% | |
56 Neutral | $134.02M | ― | -5.53% | 5.11% | -15.43% | -202.84% | |
47 Neutral | $108.82M | ― | -4.47% | 9.05% | -16.67% | -24.91% | |
47 Neutral | $4.36B | 68.61 | -38.18% | ― | 1.41% | -62.21% |
* Consumer Cyclical Sector Average
Performance Comparison
HVT.A
Haverty Furn Cl A SC
19.80
-10.11
-33.80%
BSET
Bassett Furniture
15.62
2.05
15.11%
HOFT
Hooker Furniture
10.39
-11.49
-52.51%
LZB
La-Z-Boy Incorporated
40.19
4.91
13.92%
WSM
Williams-Sonoma
165.01
12.78
8.40%
RH
RH
249.35
-49.01
-16.43%
Haverty Furn Cl A SC Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -0.63% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture with strong gross margins, debt-free status, and positive traffic trends countered by significant declines in sales and net income. The company is also facing challenges from tariffs and increased SG&A costs, but new store openings and improved design business provide a positive outlook.Highlights
Strong Gross Margins
Gross margins remained strong for Haverty Furniture, coming in at 61.9% for the fourth quarter and 60.7% for the year.
Debt-Free Status
Haverty Furniture ended the year with zero funded debt and over $120 million in cash.
Traffic and Conversion Improvements
Traffic showed the first positive gain year-over-year in the low single digits for the quarter. Conversion rates stabilized with written sales improving throughout the quarter.
Design Business Growth
The design business improved to approximately 32% of total business, with the designer average ticket growing to over $7,200, up over 8%.
New Store Openings
Opened new stores in Saint Petersburg, Florida, Greenwood, Indiana, and The Woodland in Houston, totaling six new stores and one closure in 2024.
Inventory Management
Inventories were reduced over 11% for the year, and plans are to increase inventories on best sellers by approximately 5% to 10% over the next few quarters.
No Port Disruptions
Successfully avoided disruptions from potential port strikes in January, maintaining product flow.
Increase in Organic Traffic
After implementing new technology on the homepage, a double-digit lift in organic traffic was observed.
Lowlights
Significant Sales Decline
Fourth quarter sales were $184.4 million, down 12.5% with comps down 13.7%. Total sales for the year were down 16.1% to $722.9 million.
Decrease in Net Income
Net income for the fourth quarter was $8.2 million or $0.49 per diluted share, compared to $15 million or $0.90 per share in the comparable quarter last year.
Impact of Tariffs
Facing tariff issues with China, Canada, and Mexico, which may require adjustments in retail pricing or lineups, although not expected to impact current margin guidance.
Increased SG&A Costs
Selling, general, and administrative expenses decreased by $8.9 million, but as a percentage of sales, these costs approximated 57.4% of sales, up from 54.4% in the prior year quarter.
Higher Effective Tax Rate
The effective annual tax rate increased to 23.6% compared to 22.5% in the prior year.
Company Guidance
In the Haverty Furniture Companies, Inc. fourth quarter 2024 earnings call, the company provided guidance focused on maintaining strong financial metrics despite challenging market conditions. The company reported a 12.5% decrease in fourth-quarter sales to $184.4 million, with comparable store sales down 13.7%. For the year, total sales declined 16.1% to $722.9 million, with comps down 16.7%. Despite these declines, gross margins remained robust at 61.9% for the quarter and 60.7% for the year. The company ended the year with zero funded debt and over $120 million in cash. Looking ahead, Haverty's anticipates maintaining gross profit margins between 60% and 60.5% for 2025, with an effective tax rate expected to be 26.5%. The company also plans to increase inventory by 5% to 10% to support new store growth and expects fixed SG&A expenses to rise to $291 to $293 million due to store growth and inflation. With new store openings planned and strategic advertising initiatives, Haverty's aims to leverage its strong brand and financial position to navigate the ongoing economic challenges.Haverty Furn Cl A SC Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Havertys Announces Leadership Transition and CEO Appointment
Neutral
Nov 12, 2024
Havertys Furniture Companies is set for a leadership transition as CEO Clarence H. Smith retires, transitioning to Executive Chairman, while President Steven G. Burdette steps up as CEO and board member. Effective January 1, 2025, Burdette, who has been with Havertys since 1983, will bring his extensive experience in store management, operations, and marketing to lead the company. The board has approved compensation changes to reflect these shifts, as Havertys continues to innovate and strengthen its position in the furniture retail market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.