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Haverty Furniture (HVT)
:HVT
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Haverty
(NYSE:HVT)
Rating:72Outperform
Price Target:
$22.50
▲(10.73%Upside)
Haverty (HVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$319.65M
Dividend Yield6.47%
Average Volume (3M)123.34K
Price to Earnings (P/E)15.5
Beta (1Y)1.05
Revenue Growth-12.29%
EPS Growth-55.73%
CountryUS
Employees2,334
SectorConsumer Cyclical
Sector Strength64
IndustryHome Improvement
Share Statistics
EPS (TTM)0.23
Shares Outstanding14,907,855
10 Day Avg. Volume104,151
30 Day Avg. Volume123,336
Financial Highlights & Ratios
PEG Ratio2.10
Price to Book (P/B)1.08
Price to Sales (P/S)0.00
P/FCF Ratio11.25
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue0.15
Enterprise Value/Gross Profit1.00
Enterprise Value/Ebitda2.20
Forecast
1Y Price Target
$35.00Price Target Upside72.24% Upside
Rating ConsensusHold
Number of Analyst Covering1
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 Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 13.65%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
Despite challenges such as a decrease in net sales and ongoing tariff uncertainties, the company showcased strong gross profit margins, improved pre-tax profits, and successful promotional initiatives. The cash position remains strong with a debt-free balance sheet. However, the balance of positive and negative aspects results in a neutral overall sentiment.Q1-2025 Updates
Positive Updates
Gross Profit Margin Increase
The gross profit margin increased by 90 basis points to 61.2% from 60.3%, attributed to product selection and merchandise mix.
Increase in Pre-Tax Profits
Pre-tax profits for the quarter increased to $5.3 million from $3.2 million in Q1 2024, improving the operating margin from 1.7% to 2.9%.
Successful Promotional Initiative
A special savings offer sent to email subscribers generated over $8 million in revenue during Q1 as part of the company's 140th-anniversary celebration.
Cash Position and Debt-Free Balance Sheet
Ended the quarter with $111.9 million of cash and cash equivalents, maintaining a debt-free balance sheet.
Store Openings and Relocations
Opened a new location in Daytona and planned the opening of a third store in Houston in late Q3, with two more stores planned in Houston by 2026.
Negative Updates
Decrease in Net Sales and Comparable Store Sales
Net sales decreased by 1.3% to $181.6 million, with comparable store sales down 4.8% over the prior year period.
Impact of Winter Storms and Presidential Inauguration
Winter storms caused disruptions and a disappointing 10% decrease in President's Day sales. The presidential inauguration also shifted consumer sentiment to cautious concern.
Tariff Uncertainty
Ongoing tariff issues, especially with increased tariffs on products from Vietnam, Cambodia, India, Indonesia, and Europe, caused supply chain challenges.
Weakness in Dining and Occasional Categories
Experienced some weakness in the dining and occasional categories compared to other product lines.
Company Guidance
During the call, Havertys provided guidance for the fiscal year 2025, with expectations for gross margins to be between 60% and 60.5%, considering current tariffs. Total SG&A expenses are projected to be between $291 million and $293 million, reflecting store growth and inflation, with variable costs ranging from 18.6% to 19%. Capital expenditures have been adjusted downward to $24 million due to tariff uncertainties, with allocations for store expansions, distribution network investments, and IT improvements. The anticipated effective tax rate is set at 26.5%, excluding potential new tax legislation. Havertys plans to continue monitoring tariff impacts and adjust pricing strategies as necessary, while maintaining a focus on expanding their store count and leveraging their distribution network to enhance operational efficiency.Haverty Financial Statement Overview
Summary
Haverty's displays strong cost management and reasonable leverage, with solid profitability margins. However, a declining revenue trend poses a risk to long-term growth.Income Statement
Haverty's income statement reflects a declining revenue trend from 2022 to 2025, with significant revenue drops from 2022 to 2023 and 2023 to 2024. The gross profit margin for TTM is 70.7%, indicating strong profitability in terms of cost management. However, the net profit margin has decreased, showing potential challenges in converting revenue into profit. The EBIT margin for TTM stands at 12.2%, which is a positive indicator despite reduced revenue. The company faces challenges in maintaining EBITDA margins, as seen in the low TTM EBITDA margin of 4.3%.65
Positive
Balance Sheet
Haverty exhibits a healthy balance sheet with a debt-to-equity ratio of 0.71 in TTM, indicating moderate leverage. The equity ratio is 47.5%, suggesting a solid capital structure with a substantial portion of assets financed by equity. Return on equity for TTM is 7.0%, which is satisfactory but shows room for improvement. The company has managed to maintain stable equity levels despite fluctuations in total liabilities.75
Positive
Cash Flow
The cash flow statement shows consistent free cash flow generation, with a notable increase in free cash flow from 2024 to TTM. The operating cash flow to net income ratio for TTM is 2.90, indicating strong cash generation relative to net income. Free cash flow to net income ratio is 1.41, reflecting efficient conversion of net income into free cash flow. The overall cash flow management appears robust, although capital expenditures have been fluctuating.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 720.47M | 722.90M | 862.13M | 1.05B | 1.01B | 748.25M | Gross Profit |
| 439.14M | 439.08M | 523.09M | 604.23M | 574.63M | 418.99M | EBIT |
| 22.07M | 19.86M | 67.28M | 117.93M | 118.36M | 41.71M | EBITDA |
| 44.63M | 41.47M | 85.88M | 134.85M | 134.66M | 59.91M | Net Income Common Stockholders |
| 21.34M | 19.96M | 56.32M | 89.36M | 90.80M | 59.15M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 120.03M | 120.03M | 120.64M | 123.13M | 166.15M | 200.06M | Total Assets |
| 648.75M | 648.75M | 654.13M | 649.05M | 686.29M | 680.37M | Total Debt |
| 218.38M | 218.38M | 217.75M | 221.29M | 230.35M | 233.67M | Net Debt |
| 98.34M | 98.34M | 97.12M | 98.16M | 64.21M | 33.61M | Total Liabilities |
| 341.19M | 341.19M | 345.77M | 359.65M | 430.32M | 427.40M | Stockholders Equity |
| 307.56M | 307.56M | 308.37M | 289.40M | 255.97M | 252.97M |
| Cash Flow | Free Cash Flow | ||||
| 30.11M | 26.82M | 44.09M | 22.60M | 63.15M | 119.26M | Operating Cash Flow |
| 61.93M | 58.91M | 97.20M | 51.02M | 97.24M | 130.19M | Investing Cash Flow |
| -31.40M | -31.63M | -53.06M | -28.32M | -34.00M | 65.36M | Financing Cash Flow |
| -30.10M | -28.74M | -46.29M | -65.62M | -97.15M | -71.18M |
Haverty Technical Analysis
Negative
20.32
Price Trends
19.12
Positive
20.28
Negative
21.89
Negative
Market Momentum
0.14
Positive
49.59
Neutral
9.84
Positive
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 20.32 is above the 20-day moving average (MA) of 20.24, above the 50-day MA of 19.12, and below the 200-day MA of 21.89, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 9.84 is Positive, 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $159.99M | 11.94 | 9.48% | 2.17% | 7.24% | -9.51% | |
72 Outperform | $319.65M | 15.47 | 6.97% | 6.47% | -12.29% | -55.73% | |
69 Neutral | $1.23B | 21.31 | 18.39% | ― | 0.71% | -45.31% | |
62 Neutral | $6.84B | 11.41 | 2.80% | 3.87% | 2.70% | -24.58% | |
62 Neutral | $7.69B | 39.49 | 9.74% | ― | 2.96% | -9.49% | |
54 Neutral | $141.18M | ― | -3.83% | 4.93% | -11.78% | -13.89% | |
54 Neutral | $131.35M | ― | 12.90% | ― | -6.12% | -396.11% |
* Consumer Cyclical Sector Average
Performance Comparison
HVT
Haverty
20.32
-5.05
-19.91%
BSET
Bassett Furniture
15.90
2.65
20.00%
FLXS
Flexsteel
31.36
-0.80
-2.49%
FND
Floor & Decor Holdings
74.61
-41.25
-35.60%
LESL
Leslie's
0.71
-4.42
-86.16%
ARHS
Arhaus
8.83
-10.27
-53.77%
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.