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Haverty Furniture (HVT)
:HVT
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Haverty
(NYSE:HVT)
58Neutral
Haverty (HVT) vs. S&P 500 (SPY)
Market Cap
$327.93M
Dividend Yield6.23%
Average Volume (3M)195.71K
Price to Earnings (P/E)16.9
Beta (1Y)1.20
Revenue Growth-16.15%
EPS Growth-66.79%
CountryUS
Employees2,334
SectorConsumer Cyclical
Sector Strength50
IndustryHome Improvement
Share Statistics
EPS (TTM)1.19
Shares Outstanding14,922,558
10 Day Avg. Volume177,593
30 Day Avg. Volume195,707
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.47
Price to Cash Flow (P/CF)5.00
P/FCF Ratio4.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$45.00Price Target Upside122.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Haverty 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 Furniture Companies, Inc. generates revenue primarily through the sale of furniture and home accessories. The company's key revenue streams include in-store sales from its extensive network of retail locations, e-commerce sales via its online platform, and financing options provided to customers. Haverty also benefits from strategic partnerships with manufacturers and suppliers, allowing it to offer exclusive products and maintain competitive pricing. The company's revenue is further supported by its focus on customer service, design assistance, and promotional activities aimed at attracting and retaining a loyal customer base.
Haverty Financial Statement Overview
Summary
Haverty faces challenges with declining revenue and profitability, affecting cash flow and financial stability. While leverage is controlled, the lack of growth in equity and assets suggests limited expansion potential. The company needs to address revenue declines and improve profitability to enhance financial health.Income Statement
Revenue has declined annually, with a significant drop from $1.05 billion in 2022 to $722.9 million in 2024. Gross profit margin remains stable, but net profit margin decreased from 8.5% in 2022 to 2.8% in 2024. EBIT and EBITDA margins have also decreased, impacting profitability.58
Neutral
Balance Sheet
The debt-to-equity ratio is reasonable, reflecting controlled leverage. However, stockholders' equity and total assets have remained relatively flat, indicating limited growth in asset base. The equity ratio is stable, suggesting moderate financial stability.65
Positive
Cash Flow
Free cash flow decreased from $119.3 million in 2020 to $26.8 million in 2024, indicating reduced liquidity. Operating cash flow to net income ratio remains healthy, but free cash flow growth has been negative due to declining revenue and net income.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 Technical Analysis
Negative
20.22
Price Trends
21.72
Negative
21.98
Negative
23.71
Negative
Market Momentum
-0.34
Positive
40.23
Neutral
24.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HVT, the sentiment is Negative. The current price of 20.22 is below the 20-day moving average (MA) of 21.32, below the 50-day MA of 21.72, and below the 200-day MA of 23.71, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 40.23 is Neutral, neither overbought nor oversold. The STOCH value of 24.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HVT.
Haverty Risk Analysis
Haverty disclosed 19 risk factors in its most recent earnings report. Haverty 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 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 | $1.60B | 13.26 | 12.40% | 2.12% | 1.81% | 8.09% | |
66 Neutral | $19.64B | 18.09 | 53.91% | 1.43% | -0.50% | 24.11% | |
59 Neutral | $12.26B | 11.12 | -0.55% | 3.78% | 1.42% | -20.63% | |
58 Neutral | $327.93M | 16.93 | 6.48% | 6.23% | -16.15% | -66.79% | |
56 Neutral | $138.07M | ― | -5.53% | 4.96% | -15.43% | -202.84% | |
52 Neutral | $2.09B | 15.53 | 17.42% | 2.96% | 3.80% | 182.70% | |
47 Neutral | $4.40B | 67.81 | -38.18% | ― | 1.41% | -62.21% |
* Consumer Cyclical Sector Average
Performance Comparison
HVT
Haverty
20.22
-11.32
-35.89%
BSET
Bassett Furniture
15.71
1.75
12.54%
HNI
HNI
44.67
1.73
4.03%
LZB
La-Z-Boy Incorporated
38.68
2.55
7.06%
WSM
Williams-Sonoma
158.98
3.82
2.46%
RH
RH
236.28
-98.47
-29.42%
Haverty Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -2.69% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with strong gross margins, a debt-free balance sheet, and strategic store expansions as highlights. However, significant declines in sales and net income, coupled with challenges in the housing market and potential tariff impacts, present substantial hurdles.Highlights
Strong Gross Margins
Gross margins remained robust at 61.9% for the quarter and 60.7% for the year, showing stability despite sales declines.
Debt-Free Balance Sheet
Haverty ended the year with zero funded debt and over $120 million in cash, indicating strong financial health.
Store Expansion
Opened six new stores in 2024, including a return to Houston after 40 years, with plans for further expansion in Houston and other markets.
Improvement in Traffic
Traffic saw its first year-over-year positive gain in the low single digits for the quarter.
Increase in Average Ticket Size
The average ticket rose by approximately 4% to just under $3,400, and the designer average ticket grew to over $7,200, up over 8%.
Lowlights
Decline in Sales and Comps
Sales for the fourth quarter were $184.4 million, down 12.5%, with comps down 13.7%. Annual sales were down 16.1% to $722.9 million, with comps down 16.7%.
Decreased 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 same quarter last year.
Interest Rate and Housing Market Challenges
Rising mortgage rates continue to impact housing market affordability, posing challenges for sales growth.
Tariff Concerns
Dealing with tariff issues with China, Canada, and Mexico, which could impact costs despite efforts to mitigate these effects.
Company Guidance
During Haverty Furniture Companies, Inc.'s fourth quarter 2024 earnings call, the company provided several key metrics and forward-looking guidance for 2025. The company reported a 12.5% decrease in fourth-quarter sales to $184.4 million, with comparable store sales down 13.7%. For the full year, sales dropped 16.1% to $722.9 million. Despite the decline in sales, the gross margin was robust at 61.9% for the quarter and 60.7% for the full year. Pre-tax profit stood at $9.6 million for the quarter, reflecting a 5.2% operating margin. Haverty ended the year with no funded debt and over $120 million in cash. Looking forward, they expect gross profit margins for 2025 to be between 60% and 60.5%, with SG&A expenses projected to increase due to store growth and inflation, ranging from $291 to $293 million. The company plans to open five new stores in 2025 and anticipates capital expenditures of $27.1 million. They are also navigating tariff issues with China, Canada, and Mexico but expect these to have no impact on their current margin guidance. Overall, the company is focused on growing its store count and improving its design business appeal as part of its strategy for 2025.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.