Haverty Furn Cl A SC (HVT.A) AI Stock Analysis

• Market Cap: $393.49M
• Dividend Yield: 5.27%
• Average Volume (3M): 17.00
• Price to Earnings (P/E): 21.2
• Beta (1Y): 1.01
• Revenue Growth: -1.05%
• EPS Growth: -24.24%
• Country: US
• Employees: 2,334
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 0.32
• Shares Outstanding: 1,219,976
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 17
• PEG Ratio: -0.27
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 13.56
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 0.97
• Enterprise Value/Ebitda: 9.73
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.13
• Revenue Forecast (FY): $741.55M

• Rating: 62 Neutral
• Price Target: $23.00 ▼(-6.81% Downside)

Haverty Furn Cl A SC's overall stock score is driven by a stable but challenged financial performance, with declining revenue and profitability. The technical analysis shows a neutral trend, while the valuation is supported by a reasonable P/E ratio and attractive dividend yield. The earnings call provided a positive outlook with strong sales growth, but increased expenses and tariff challenges remain concerns.

Positive Factors

Sales Growth

The significant increase in sales and comparable store sales indicates strong demand and effective sales strategies, supporting long-term revenue growth.

Debt-Free Balance Sheet

A debt-free balance sheet provides financial flexibility and reduces risk, allowing the company to invest in growth opportunities without the burden of interest payments.

Store Expansion Plans

The planned store expansions indicate strategic growth initiatives that can enhance market presence and drive future revenue.

Negative Factors

Decreased Operating Margin

A decrease in operating margin suggests rising costs or pricing pressures, which could impact profitability if not addressed.

Impact of Tariffs

Tariffs can increase costs and necessitate price adjustments, potentially affecting competitiveness and margins in the long term.

Increased SG&A Expenses

Rising SG&A expenses can pressure net margins and indicate inefficiencies, which may require cost management to sustain profitability.

Haverty Furn Cl A SC Business Overview & Revenue Model

Company Description

Haverty Furniture Companies, Inc. operates as a specialty retailer of residential furniture and accessories in the United States. The company offers furniture merchandise under the Havertys brand name. It also provides custom upholstery products and eclectic looks; and mattress product lines under the Sealy, Stearns and Foster, Tempur-Pedic, and Serta names, as well as private label Skye name. The company sells home furnishings through its retail stores, as well as through its Website. As of December 31, 2021, it operated 121 showrooms in 16 states in the Southern and Midwestern regions. Haverty Furniture Companies, Inc. was founded in 1885 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Haverty Furniture generates revenue primarily through the sale of furniture and home decor products in its retail showrooms and online platforms. The company employs a multi-channel retail strategy, allowing customers to shop in-store or through its e-commerce website. Key revenue streams include the sale of premium furniture brands, accessories, and custom order services. Additionally, Haverty benefits from financing options that attract customers looking for flexible payment solutions. Partnerships with suppliers and manufacturers enable the company to offer a diverse range of products while maintaining competitive pricing. Seasonal promotions and sales events also contribute to revenue generation, with the company focusing on customer engagement and loyalty programs to enhance repeat business.

Haverty Furn Cl A SC Financial Statement Overview

Summary

Haverty Furn Cl A SC faces challenges with declining revenue and profitability, as reflected in the income statement. The balance sheet remains stable with manageable leverage, but reduced return on equity indicates declining shareholder returns. Cash flow shows improvement in free cash flow growth, but efficiency in cash conversion needs attention. Overall, the company should focus on reversing revenue decline and improving operational efficiency to enhance financial performance.

Income Statement

The income statement shows a significant decline in revenue growth, with a TTM revenue decrease of 74.42%. Gross profit margin remains stable around 61%, but net profit margin has decreased to 2.71% in the TTM period. EBIT and EBITDA margins are relatively low, indicating pressure on profitability. The company needs to address revenue decline and improve operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.71, indicating manageable leverage. Return on equity has decreased to 6.39% in the TTM period, suggesting reduced profitability for shareholders. The equity ratio remains stable, showing a solid capital structure. Overall, the balance sheet is stable but shows signs of declining profitability.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth of 45.42% in the TTM period, indicating improved cash generation. However, the operating cash flow to net income ratio is relatively low at 0.42, suggesting potential challenges in converting income to cash. The company should focus on enhancing cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	741.43M	722.90M	862.13M	1.05B	1.01B	748.25M
Gross Profit	452.61M	439.08M	523.09M	604.23M	574.63M	418.99M
EBITDA	45.15M	41.47M	85.88M	134.85M	134.66M	59.91M
Net Income	8.21M	19.96M	56.32M	89.36M	90.80M	59.15M
Balance Sheet
Total Assets	651.71M	648.75M	654.13M	649.05M	686.29M	680.37M
Cash, Cash Equivalents and Short-Term Investments	130.50M	120.03M	120.64M	123.13M	166.15M	200.06M
Total Debt	211.84M	218.38M	217.75M	221.29M	230.35M	233.67M
Total Liabilities	345.68M	341.19M	345.77M	359.65M	430.32M	427.40M
Stockholders Equity	306.03M	307.56M	308.37M	289.40M	255.97M	252.97M
Cash Flow
Free Cash Flow	39.12M	26.82M	44.09M	22.60M	63.15M	119.26M
Operating Cash Flow	62.20M	58.91M	97.20M	51.02M	97.24M	130.19M
Investing Cash Flow	-23.01M	-31.63M	-53.06M	-28.32M	-34.00M	65.36M
Financing Cash Flow	-29.58M	-28.74M	-46.29M	-65.62M	-97.15M	-71.18M

Haverty Furn Cl A SC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HVT.A, the sentiment is Positive. The current price of 24.68 is above the 20-day moving average (MA) of 22.78, above the 50-day MA of 21.77, and above the 200-day MA of 20.67, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 65.41 is Neutral, neither overbought nor oversold. The STOCH value of 61.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HVT.A.

Haverty Furn Cl A SC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARHS	71 Outperform	$1.48B	20.13	20.38%	―	7.36%	-6.85%
BSET	66 Neutral	$137.15M	17.68	4.70%	5.07%	-2.74%	―
HD	66 Neutral	$353.87B	24.24	162.91%	2.67%	7.50%	-0.38%
LOW	63 Neutral	$135.50B	20.03	―	2.09%	0.64%	0.58%
HVT.A	62 Neutral	$393.49M	21.16	6.32%	5.27%	-1.05%	-24.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BNED	50 Neutral	$313.98M	―	―	―	1.38%	63.65%