Haverty (HVT) AI Stock Analysis

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Haverty

(NYSE:HVT)

59Neutral

Haverty's stock score is influenced by declining financial performance, as seen in reduced revenue and profitability. While the company benefits from strong gross margins and a debt-free balance sheet, these are offset by sales declines and market challenges. The technical analysis indicates a bearish trend, while the valuation is supported by a high dividend yield. Overall, the stock's performance is under pressure, with a need for strategic improvements to enhance future prospects.

Haverty (HVT) vs. S&P 500 (SPY)

Market Cap

$290.03M

Dividend Yield7.37%

Average Volume (3M)164.77K

Price to Earnings (P/E)14.9

Beta (1Y)1.00

Revenue Growth-16.15%

EPS Growth-66.79%

CountryUS

Employees2,334

SectorConsumer Cyclical

Sector Strength57

IndustryHome Improvement

Share Statistics

EPS (TTM)1.19

Shares Outstanding15,001,596

10 Day Avg. Volume123,601

30 Day Avg. Volume164,771

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

$45.00

Price Target Upside152.10% 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

Neutral

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

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 Technical Analysis

Technical Analysis Sentiment

Negative

Last Price17.85

Price Trends

50DMA

20.47

Negative

100DMA

21.37

Negative

200DMA

23.22

Negative

Market Momentum

MACD

-0.93

Positive

RSI

41.14

Neutral

STOCH

27.22

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 17.85 is below the 20-day moving average (MA) of 18.73, below the 50-day MA of 20.47, and below the 200-day MA of 23.22, indicating a bearish trend. The MACD of -0.93 indicates Positive momentum. The RSI at 41.14 is Neutral, neither overbought nor oversold. The STOCH value of 27.22 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLXS	71 Outperform	$168.28M	8.92	13.04%	2.07%	7.75%	27.88%
FND	68 Neutral	$7.35B	35.93	10.04%	―	0.95%	-16.97%
ARHS	61 Neutral	$1.06B	15.46	20.04%	―	-1.29%	-45.51%
Sector *	60 Neutral	$6.56B	11.42	3.23%	4.27%	2.37%	-21.19%
HVT	59 Neutral	$290.03M	14.94	6.48%	7.37%	-16.15%	-66.79%
BSET	56 Neutral	$151.19M	―	-3.83%	4.49%	-11.78%	-13.89%
LESL	49 Neutral	$106.26M	―	12.90%	―	-6.90%	-256.95%

* Consumer Cyclical Sector Average

Performance Comparison

HVT

Haverty

17.85

-13.33

-42.75%

BSET

Bassett Furniture

17.68

5.00

39.43%

FLXS

Flexsteel

35.85

-2.25

-5.91%

FND

Floor & Decor Holdings

68.30

-41.67

-37.89%

LESL

Leslie's

0.62

-3.95

-86.43%

ARHS

Arhaus

7.99

-6.72

-45.68%

Haverty Earnings Call Summary

Earnings Call Date: Feb 24, 2025 | % Change Since: -14.10% | Next Earnings Date: Apr 30, 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.