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

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Haverty Furn Cl A SC

(NYSE:HVT.A)

62Neutral

Haverty Furniture is currently navigating through operational challenges with declining revenues and profitability margins. The stability of its balance sheet and attractive dividend yield provide some support, but bearish technical indicators and mixed earnings outlooks suggest caution. Overall, strategic improvements in efficiency and revenue growth will be crucial for future performance.

Haverty Furn Cl A SC (HVT.A) vs. S&P 500 (SPY)

Market Cap

$320.68M

Dividend Yield6.09%

Average Volume (3M)493.00

Price to Earnings (P/E)16.5

Beta (1Y)1.14

Revenue Growth-12.29%

EPS Growth-57.17%

CountryUS

Employees2,334

SectorConsumer Cyclical

Sector Strength62

IndustryHome Improvement

Share Statistics

EPS (TTM)1.19

Shares Outstanding1,244,976

10 Day Avg. Volume53

30 Day Avg. Volume493

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.45

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit1.06

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 facing operational challenges with declines in revenue and profitability margins. While the balance sheet remains stable, cash flow pressures and reduced returns indicate potential risks if current trends persist. Improvements in operational efficiency and revenue growth are essential for future stability.

Income Statement

Neutral

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Neutral

Last Price19.72

Price Trends

50DMA

20.06

Negative

100DMA

20.98

Negative

200DMA

23.00

Negative

Market Momentum

MACD

-0.25

Negative

RSI

58.82

Neutral

STOCH

87.12

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HVT.A, the sentiment is Neutral. The current price of 19.72 is above the 20-day moving average (MA) of 18.18, below the 50-day MA of 20.06, and below the 200-day MA of 23.00, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 58.82 is Neutral, neither overbought nor oversold. The STOCH value of 87.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLXS	71 Outperform	$172.07M	12.84	9.48%	1.98%	7.24%	-9.51%
AGS	65 Neutral	$500.46M	10.22	53.82%	―	10.75%	10405.31%
HVT.A	62 Neutral	$320.68M	16.50	6.97%	6.09%	-12.29%	-57.17%
Sector *	61 Neutral	$6.66B	11.71	2.96%	4.01%	2.64%	-20.91%
BSET	56 Neutral	$162.42M	―	-3.83%	4.43%	-11.78%	-13.89%
HOFT	48 Neutral	$90.93M	―	-5.89%	9.92%	-8.26%	-233.72%
QVCGA	41 Neutral	$111.34M	―		―	-8.04%	-791.84%

* Consumer Cyclical Sector Average

Performance Comparison

HVT.A

Haverty Furn Cl A SC

20.00

-7.35

-26.87%

BSET

Bassett Furniture

18.66

5.32

39.88%

FLXS

Flexsteel

33.67

-3.26

-8.83%

HOFT

Hooker Furniture

9.56

-6.97

-42.17%

QVCGA

QVC Group

0.16

-0.77

-82.80%

AGS

Playags

12.13

3.77

45.10%

Haverty Furn Cl A SC Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: 7.47%|

Next Earnings Date:Aug 05, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed performance with improvements in gross margins, pre-tax profits, and successful marketing initiatives. However, there are concerns with declining sales, tariff impacts, supply chain challenges, and specific category weaknesses. The sentiment is balanced with both achievements and challenges highlighted.

Q1-2025 Updates

Positive Updates

Gross Margin Improvement

Gross margins improved from 60.3% to 61.2% due to product selection and merchandise mix.

Increase in Pre-tax Profits

Pre-tax profits for the quarter increased to $5.3 million, or 2.9% operating margin, compared with $3.2 million or 1.7% in Q1 2024.

Successful Email Marketing Campaign

The 140th anniversary email campaign generated over $8 million in revenue in Q1.

Strong Cash Position

Ended the quarter with $111.9 million of cash and cash equivalents, with no funded debt.

Design Business Growth

Design business improved to approximately 33% of business with an average ticket growth of over 9%.

Negative Updates

Decline in Sales

Q1 sales were $181.6 million, down 1.3%, with comparable store sales down 4.8%.

Impact of Tariffs and Supply Chain Disruptions

Tariffs are causing potential price increases and temporary supply disruptions, particularly for products from China.

Weak Performance in Dining and Occasional Categories

Notable weakness in the dining and occasional categories was observed.

Store Closures

Two stores are planned for closure in 2025 due to lease expirations and long-term profitability concerns.

Disappointing President's Day Sales

Sales for President's Day event were down roughly 10% over the two-week period.

Company Guidance

During Havertys' First Quarter 2025 Earnings Call, the company provided guidance for the fiscal year, including several key financial metrics. Havertys anticipates gross margins for 2025 to be between 60% and 60.5%, influenced by product and freight costs. SG&A expenses are expected to increase, ranging from $291 million to $293 million, driven by store growth and inflation. Variable costs within SG&A are projected to fall between 18.6% and 19%. Capital expenditures for 2025 have been reduced to $24 million, with $19.6 million allocated for new stores, remodels, and expansions. Havertys expects an effective tax rate of 26.5% for the year, excluding impacts from stock award vesting and potential tax legislation changes. The guidance incorporates current tariffs as of April 30th, assuming no additional proposed tariffs are implemented.

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.