FLEXSTEEL INDS (FLXS) Stock Fundamental Analysis
NASDAQ:FLXS - Nasdaq - US3393821034 - Common Stock
Taking everything into account, FLXS scores 5 out of 10 in our fundamental rating. FLXS was compared to 67 industry peers in the Household Durables industry. While FLXS has a great health rating, its profitability is only average at the moment. FLXS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FLXS was profitable.
In the past year FLXS had a positive cash flow from operations.
FLXS had positive earnings in 4 of the past 5 years.
FLXS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
FLXS has a Return On Assets of 5.18%. This is comparable to the rest of the industry: FLXS outperforms 50.77% of its industry peers.
The Return On Equity of FLXS (9.00%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 6.58%, FLXS perfoms like the industry average, outperforming 50.77% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FLXS is significantly below the industry average of 11.99%.
The 3 year average ROIC (3.43%) for FLXS is below the current ROIC(6.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.18% | ||
| ROE | 9% | ||
| ROIC | 6.58% |
ROA(3y)3.21%
ROA(5y)1.22%
ROE(3y)6.3%
ROE(5y)3.46%
ROIC(3y)3.43%
ROIC(5y)N/A
1.3 Margins
FLXS has a Profit Margin (3.30%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FLXS has declined.
FLXS has a Operating Margin of 4.96%. This is comparable to the rest of the industry: FLXS outperforms 41.54% of its industry peers.
FLXS's Operating Margin has declined in the last couple of years.
FLXS has a worse Gross Margin (21.60%) than 72.31% of its industry peers.
In the last couple of years the Gross Margin of FLXS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.96% | ||
| PM (TTM) | 3.3% | ||
| GM | 21.6% |
OM growth 3Y-12.2%
OM growth 5YN/A
PM growth 3Y-19.02%
PM growth 5YN/A
GM growth 3Y1.5%
GM growth 5Y6.05%
2. Health
2.1 Basic Checks
FLXS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FLXS has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, FLXS has less shares outstanding
The debt/assets ratio for FLXS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.61 indicates that FLXS is not in any danger for bankruptcy at the moment.
FLXS's Altman-Z score of 4.61 is fine compared to the rest of the industry. FLXS outperforms 72.31% of its industry peers.
The Debt to FCF ratio of FLXS is 0.11, which is an excellent value as it means it would take FLXS, only 0.11 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.11, FLXS belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
FLXS has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
FLXS has a Debt to Equity ratio of 0.02. This is in the better half of the industry: FLXS outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.11 | ||
| Altman-Z | 4.61 |
ROIC/WACC0.72
WACC9.12%
2.3 Liquidity
A Current Ratio of 2.84 indicates that FLXS has no problem at all paying its short term obligations.
FLXS has a Current ratio (2.84) which is comparable to the rest of the industry.
FLXS has a Quick Ratio of 1.04. This is a normal value and indicates that FLXS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.04, FLXS is in line with its industry, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
FLXS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 196.51%, which is quite impressive.
Measured over the past years, FLXS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.59% on average per year.
FLXS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.53%.
Measured over the past years, FLXS shows a decrease in Revenue. The Revenue has been decreasing by -1.43% on average per year.
EPS 1Y (TTM)196.51%
EPS 3Y-12.59%
EPS 5YN/A
EPS Q2Q%428.57%
Revenue 1Y (TTM)7.53%
Revenue growth 3Y-4.83%
Revenue growth 5Y-1.43%
Sales Q2Q%9.94%
3.2 Future
FLXS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 41.73% yearly.
Based on estimates for the next years, FLXS will show a small growth in Revenue. The Revenue will grow by 5.06% on average per year.
EPS Next Y70%
EPS Next 2Y41.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.13%
Revenue Next 2Y5.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.42, the valuation of FLXS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FLXS is on the same level as its industry peers.
FLXS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.29, which indicates a correct valuation of FLXS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FLXS is on the same level as its industry peers.
FLXS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 13.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FLXS is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FLXS indicates a rather cheap valuation: FLXS is cheaper than 92.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.42 | ||
| EV/EBITDA | 10.76 |
4.3 Compensation for Growth
FLXS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as FLXS's earnings are expected to grow with 41.73% in the coming years.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y41.73%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FLXS has a Yearly Dividend Yield of 1.34%.
FLXS's Dividend Yield is a higher than the industry average which is at 2.90.
With a Dividend Yield of 1.34, FLXS pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
The dividend of FLXS decreases each year by -6.71%.
FLXS has been paying a dividend for at least 10 years, so it has a reliable track record.
FLXS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-6.71%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
FLXS pays out 23.09% of its income as dividend. This is a sustainable payout ratio.
DP23.09%
EPS Next 2Y41.73%
EPS Next 3YN/A
FLEXSTEEL INDS
NASDAQ:FLXS (1/22/2025, 2:44:05 PM)
52.07
+0.19 (+0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners43.63%
Inst Owner Change0.25%
Ins Owners14.69%
Ins Owner Change3.27%
Market Cap271.28M
Analysts0
Price Target59.16 (13.62%)
Short Float %2.02%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend0.62
Dividend Growth(5Y)-6.71%
DP23.09%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.58%
Min EPS beat(2)-20.17%
Max EPS beat(2)17.01%
EPS beat(4)3
Avg EPS beat(4)30.28%
Min EPS beat(4)-20.17%
Max EPS beat(4)106.97%
EPS beat(8)6
Avg EPS beat(8)33.17%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-1.26%
Max Revenue beat(2)0.35%
Revenue beat(4)3
Avg Revenue beat(4)0.86%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)2.94%
Revenue beat(8)5
Avg Revenue beat(8)0.16%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)20.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.64%
EPS NY rev (1m)0%
EPS NY rev (3m)8.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.42 | ||
| Fwd PE | 13.29 | ||
| P/S | 0.64 | ||
| P/FCF | 8.42 | ||
| P/OCF | 7.52 | ||
| P/B | 1.75 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 10.76 |
EPS(TTM)2.55
EY4.9%
EPS(NY)3.92
Fwd EY7.52%
FCF(TTM)6.18
FCFY11.88%
OCF(TTM)6.92
OCFY13.29%
SpS81.03
BVpS29.69
TBVpS29.69
PEG (NY)0.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.18% | ||
| ROE | 9% | ||
| ROCE | 9.72% | ||
| ROIC | 6.58% | ||
| ROICexc | 6.76% | ||
| ROICexgc | 6.76% | ||
| OM | 4.96% | ||
| PM (TTM) | 3.3% | ||
| GM | 21.6% | ||
| FCFM | 7.63% |
ROA(3y)3.21%
ROA(5y)1.22%
ROE(3y)6.3%
ROE(5y)3.46%
ROIC(3y)3.43%
ROIC(5y)N/A
ROICexc(3y)3.49%
ROICexc(5y)N/A
ROICexgc(3y)3.49%
ROICexgc(5y)N/A
ROCE(3y)5.07%
ROCE(5y)N/A
ROICexcg growth 3Y-18.29%
ROICexcg growth 5YN/A
ROICexc growth 3Y-18.29%
ROICexc growth 5YN/A
OM growth 3Y-12.2%
OM growth 5YN/A
PM growth 3Y-19.02%
PM growth 5YN/A
GM growth 3Y1.5%
GM growth 5Y6.05%
F-Score7
Asset Turnover1.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.11 | ||
| Debt/EBITDA | 0.14 | ||
| Cap/Depr | 96.31% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 17.38 | ||
| Cash Conversion | 144.74% | ||
| Profit Quality | 231.55% | ||
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 4.61 |
F-Score7
WACC9.12%
ROIC/WACC0.72
Cap/Depr(3y)99.56%
Cap/Depr(5y)78.46%
Cap/Sales(3y)1.03%
Cap/Sales(5y)0.92%
Profit Quality(3y)199.46%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)196.51%
EPS 3Y-12.59%
EPS 5YN/A
EPS Q2Q%428.57%
EPS Next Y70%
EPS Next 2Y41.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.53%
Revenue growth 3Y-4.83%
Revenue growth 5Y-1.43%
Sales Q2Q%9.94%
Revenue Next Year5.13%
Revenue Next 2Y5.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y74.41%
EBIT growth 3Y-16.44%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-46.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-44.78%
OCF growth 3YN/A
OCF growth 5Y36.57%