FLEXSTEEL INDS (FLXS) Stock Fundamental Analysis
NASDAQ:FLXS - Nasdaq - US3393821034 - Common Stock - Currency: USD
Taking everything into account, FLXS scores 6 out of 10 in our fundamental rating. FLXS was compared to 67 industry peers in the Household Durables industry. FLXS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. A decent growth rate in combination with a cheap valuation! Better keep an eye on FLXS.
1. Profitability
1.1 Basic Checks
In the past year FLXS was profitable.
FLXS had a positive operating cash flow in the past year.
Of the past 5 years FLXS 4 years were profitable.
Of the past 5 years FLXS 4 years had a positive operating cash flow.
1.2 Ratios
FLXS has a Return On Assets (7.34%) which is comparable to the rest of the industry.
FLXS has a Return On Equity (12.30%) which is comparable to the rest of the industry.
FLXS's Return On Invested Capital of 7.06% is in line compared to the rest of the industry. FLXS outperforms 52.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FLXS is significantly below the industry average of 12.03%.
The 3 year average ROIC (3.43%) for FLXS is below the current ROIC(7.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 12.3% | ||
| ROIC | 7.06% |
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's Profit Margin of 4.63% is in line compared to the rest of the industry. FLXS outperforms 47.69% of its industry peers.
In the last couple of years the Profit Margin of FLXS has declined.
FLXS has a Operating Margin (5.34%) which is in line with its industry peers.
FLXS's Operating Margin has declined in the last couple of years.
The Gross Margin of FLXS (21.38%) is worse than 76.92% of its industry peers.
FLXS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.34% | ||
| PM (TTM) | 4.63% | ||
| GM | 21.38% |
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.
The number of shares outstanding for FLXS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, FLXS has less shares outstanding
Compared to 1 year ago, FLXS has an improved debt to assets ratio.
2.2 Solvency
FLXS has an Altman-Z score of 4.59. This indicates that FLXS is financially healthy and has little risk of bankruptcy at the moment.
FLXS's Altman-Z score of 4.59 is fine compared to the rest of the industry. FLXS outperforms 72.31% of its industry peers.
FLXS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.59 |
ROIC/WACC0.76
WACC9.24%
2.3 Liquidity
A Current Ratio of 2.93 indicates that FLXS has no problem at all paying its short term obligations.
FLXS has a Current ratio (2.93) which is comparable to the rest of the industry.
FLXS has a Quick Ratio of 1.14. This is a normal value and indicates that FLXS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of FLXS (1.14) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
FLXS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 117.04%, which is quite impressive.
FLXS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.59% yearly.
Looking at the last year, FLXS shows a small growth in Revenue. The Revenue has grown by 7.74% in the last year.
The Revenue has been decreasing by -1.43% on average over the past years.
EPS 1Y (TTM)117.04%
EPS 3Y-12.59%
EPS 5YN/A
EPS Q2Q%66.67%
Revenue 1Y (TTM)7.74%
Revenue growth 3Y-4.83%
Revenue growth 5Y-1.43%
Sales Q2Q%8.37%
3.2 Future
FLXS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.37% yearly.
The Revenue is expected to grow by 5.96% on average over the next years.
EPS Next Y84.65%
EPS Next 2Y45.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.8%
Revenue Next 2Y5.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 15.80, the valuation of FLXS can be described as correct.
FLXS's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of FLXS to the average of the S&P500 Index (29.63), we can say FLXS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 11.23, the valuation of FLXS can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as FLXS.
When comparing the Price/Forward Earnings ratio of FLXS to the average of the S&P500 Index (22.68), we can say FLXS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.8 | ||
| Fwd PE | 11.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLXS is valued a bit cheaper than the industry average as 64.62% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FLXS is valued cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.75 | ||
| EV/EBITDA | 8.61 |
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 45.37% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y45.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FLXS has a Yearly Dividend Yield of 1.41%.
The stock price of FLXS dropped by -22.48% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.06, FLXS pays a bit more dividend than its industry peers.
FLXS's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
The dividend of FLXS decreases each year by -6.71%.
FLXS has paid a dividend for at least 10 years, which is 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
16.61% of the earnings are spent on dividend by FLXS. This is a low number and sustainable payout ratio.
DP16.61%
EPS Next 2Y45.37%
EPS Next 3YN/A
46.29
-1.98 (-4.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners50.27%
Inst Owner Change8.41%
Ins Owners14.15%
Ins Owner Change3.27%
Market Cap243.95M
Analysts0
Price Target62.22 (34.41%)
Short Float %1.84%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend0.62
Dividend Growth(5Y)-6.71%
DP16.61%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.44%
Min EPS beat(2)17.01%
Max EPS beat(2)25.86%
EPS beat(4)3
Avg EPS beat(4)10%
Min EPS beat(4)-20.17%
Max EPS beat(4)25.86%
EPS beat(8)6
Avg EPS beat(8)16.22%
EPS beat(12)9
Avg EPS beat(12)39.9%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1.01%
Min Revenue beat(2)0.35%
Max Revenue beat(2)1.66%
Revenue beat(4)3
Avg Revenue beat(4)0.92%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)2.94%
Revenue beat(8)5
Avg Revenue beat(8)0.21%
Revenue beat(12)8
Avg Revenue beat(12)1.54%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.17%
PT rev (3m)5.17%
EPS NQ rev (1m)8.64%
EPS NQ rev (3m)10%
EPS NY rev (1m)8.62%
EPS NY rev (3m)8.62%
Revenue NQ rev (1m)2.42%
Revenue NQ rev (3m)4.68%
Revenue NY rev (1m)1.59%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.8 | ||
| Fwd PE | 11.23 | ||
| P/S | 0.57 | ||
| P/FCF | 11.75 | ||
| P/OCF | 10.25 | ||
| P/B | 1.51 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 8.61 |
EPS(TTM)2.93
EY6.33%
EPS(NY)4.12
Fwd EY8.9%
FCF(TTM)3.94
FCFY8.51%
OCF(TTM)4.52
OCFY9.76%
SpS81.69
BVpS30.72
TBVpS30.72
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 12.3% | ||
| ROCE | 10.43% | ||
| ROIC | 7.06% | ||
| ROICexc | 7.46% | ||
| ROICexgc | 7.46% | ||
| OM | 5.34% | ||
| PM (TTM) | 4.63% | ||
| GM | 21.38% | ||
| FCFM | 4.82% |
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-Score8
Asset Turnover1.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 77.15% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 33.06 | ||
| Cash Conversion | 88.31% | ||
| Profit Quality | 104.22% | ||
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 4.59 |
F-Score8
WACC9.24%
ROIC/WACC0.76
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)117.04%
EPS 3Y-12.59%
EPS 5YN/A
EPS Q2Q%66.67%
EPS Next Y84.65%
EPS Next 2Y45.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.74%
Revenue growth 3Y-4.83%
Revenue growth 5Y-1.43%
Sales Q2Q%8.37%
Revenue Next Year6.8%
Revenue Next 2Y5.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y79.97%
EBIT growth 3Y-16.44%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-69.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-67.67%
OCF growth 3YN/A
OCF growth 5Y36.57%