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Haverty Furn Cl A SC (HVT.A)
NYSE:HVT.A

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

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Haverty Furn Cl A SC

(NYSE:HVT.A)

Rating:70Neutral
Price Target:
$24.50
▲(9.57%Upside)
Haverty Furniture's stock score reflects solid financials with strong cash flow and reasonable valuation, but is tempered by challenges in revenue growth and mixed earnings sentiment. Technical indicators show positive momentum, though caution is warranted due to potential overbought conditions.

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

Haverty Furn Cl A SC Business Overview & Revenue Model

Company DescriptionHaverty 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 MoneyHaverty Furn Cl A SC generates revenue primarily through the sale of its furniture and home accessory products in its retail stores and online platform. The company's key revenue streams include retail sales from its network of physical store locations across multiple states, as well as growing e-commerce sales. Additionally, Haverty's offers financing options to customers, which can contribute to its earnings. The company also leverages strategic partnerships and vendor relationships to optimize its product offerings and maintain competitive pricing. Seasonal promotions and marketing campaigns play a significant role in driving foot traffic and sales, especially during peak shopping periods.

Haverty Furn Cl A SC Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: 23.60%|
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 Financial Statement Overview

Summary
Haverty Furn Cl A SC demonstrates strong gross margins and cash flow efficiency, but faces challenges with declining revenues and net income margins. The balance sheet is stable with moderate leverage, and cash flow metrics suggest solid operational cash generation, providing a buffer against revenue pressures.
Income Statement
65
Positive
The company has shown a declining revenue trend from 2022 to the latest TTM period. Gross Profit Margin is solid at 70.7% for TTM, indicating good control over cost of goods sold. However, the Net Profit Margin has decreased over time, now at 3.0% for TTM, reflecting pressure on profitability. EBIT Margin stands at 12.2% for TTM, suggesting reasonable operational efficiency despite lower revenues.
Balance Sheet
70
Positive
The Debt-to-Equity Ratio is stable at approximately 0.71, indicating a balanced approach to leveraging. The Return on Equity (ROE) has diminished over time, currently at 7.0% for TTM, which may concern investors regarding efficiency in generating returns. The Equity Ratio is robust at 47.5%, demonstrating a solid equity base relative to assets.
Cash Flow
75
Positive
Operating Cash Flow to Net Income Ratio is strong at 2.90, suggesting efficient cash conversion. Free Cash Flow has shown growth from the previous year, with a Free Cash Flow to Net Income Ratio of 1.41, indicating healthy cash generation capabilities despite revenue challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue720.47M722.90M862.13M1.05B1.01B748.25M
Gross Profit439.14M439.08M523.09M604.23M574.63M418.99M
EBITDA44.63M41.47M85.88M134.85M134.66M59.91M
Net Income21.34M19.96M56.32M89.36M90.80M59.15M
Balance Sheet
Total Assets642.69M648.75M654.13M649.05M686.29M680.37M
Cash, Cash Equivalents and Short-Term Investments111.94M120.03M120.64M123.13M166.15M200.06M
Total Debt217.74M218.38M217.75M221.29M230.35M233.67M
Total Liabilities337.33M341.19M345.77M359.65M430.32M427.40M
Stockholders Equity305.36M307.56M308.37M289.40M255.97M252.97M
Cash Flow
Free Cash Flow30.11M26.82M44.09M22.60M63.15M119.26M
Operating Cash Flow61.93M58.91M97.20M51.02M97.24M130.19M
Investing Cash Flow-31.40M-31.63M-53.06M-28.32M-34.00M65.36M
Financing Cash Flow-30.10M-28.74M-46.29M-65.62M-97.15M-71.18M

Haverty Furn Cl A SC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.36
Price Trends
50DMA
19.95
Positive
100DMA
20.09
Positive
200DMA
21.46
Positive
Market Momentum
MACD
0.45
Negative
RSI
70.43
Negative
STOCH
84.14
Negative
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 22.36 is above the 20-day moving average (MA) of 20.43, above the 50-day MA of 19.95, and above the 200-day MA of 21.46, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 70.43 is Negative, neither overbought nor oversold. The STOCH value of 84.14 is Negative, 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 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 (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$206.92M15.449.48%2.04%7.24%-9.51%
70
Neutral
$361.78M17.486.97%5.37%-12.29%-55.73%
AGAGS
68
Neutral
$518.40M10.8649.64%6.60%778.46%
56
Neutral
$3.37B4.05-1.30%6.64%0.16%-63.79%
51
Neutral
$140.14M-3.83%4.97%-11.78%-13.89%
50
Neutral
$123.23M-5.55%7.99%-3.89%-391.05%
43
Neutral
$29.97M
-7.66%-735.19%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HVT.A
Haverty Furn Cl A SC
22.36
-0.10
-0.45%
BSET
Bassett Furniture
16.10
3.54
28.18%
FLXS
Flexsteel
39.24
6.84
21.11%
HOFT
Hooker Furniture
11.52
-1.22
-9.58%
QVCGA
QVC Group
3.06
-30.76
-90.95%
AGS
Playags
12.49
1.11
9.75%

Haverty Furn Cl A SC Corporate Events

Shareholder Meetings
Haverty Furniture Holds Successful Annual Stockholders Meeting
Positive
May 14, 2025

On May 12, 2025, Haverty Furniture Companies, Inc. conducted its Annual Meeting of Stockholders, where shareholders elected directors for both Class A common stock and common stock, approved executive compensation, and ratified Grant Thornton LLP as the independent auditor for the fiscal year ending December 31, 2025. The meeting saw a high participation rate, with over 90% of eligible shares represented, indicating strong shareholder engagement and support for the company’s governance and strategic decisions.

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.Date of analysis: Jul 05, 2025