FLEXSTEEL INDS (FLXS)
US3393821034 - Common Stock
Overall FLXS gets a fundamental rating of 4 out of 10. We evaluated FLXS against 67 industry peers in the Household Durables industry. The financial health of FLXS is average, but there are quite some concerns on its profitability. FLXS is not valued too expensively and it also shows a decent 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.
In multiple years FLXS reported negative net income over the last 5 years.
FLXS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.71%, FLXS is in line with its industry, outperforming 51.52% of the companies in the same industry.
FLXS has a Return On Equity of 10.83%. This is comparable to the rest of the industry: FLXS outperforms 50.00% of its industry peers.
The Return On Invested Capital of FLXS (4.51%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FLXS is below the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 10.83% | ||
| ROIC | 4.51% |
ROA(3y)4.52%
ROA(5y)-2.11%
ROE(3y)8.53%
ROE(5y)-1.11%
ROIC(3y)5.79%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 3.89%, FLXS is in line with its industry, outperforming 46.97% of the companies in the same industry.
FLXS's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 3.20%, FLXS is doing worse than 68.18% of the companies in the same industry.
FLXS's Operating Margin has declined in the last couple of years.
FLXS has a worse Gross Margin (20.03%) than 81.82% of its industry peers.
In the last couple of years the Gross Margin of FLXS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.2% | ||
| PM (TTM) | 3.89% | ||
| GM | 20.03% |
OM growth 3YN/A
OM growth 5Y-10.48%
PM growth 3YN/A
PM growth 5Y0.77%
GM growth 3Y5.48%
GM growth 5Y-2.15%
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 less 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 3.79 indicates that FLXS is not in any danger for bankruptcy at the moment.
The Altman-Z score of FLXS (3.79) is better than 62.12% of its industry peers.
The Debt to FCF ratio of FLXS is 1.82, which is an excellent value as it means it would take FLXS, only 1.82 years of fcf income to pay off all of its debts.
FLXS has a Debt to FCF ratio of 1.82. This is in the better half of the industry: FLXS outperforms 68.18% of its industry peers.
FLXS has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.12, FLXS is doing good in the industry, outperforming 74.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 3.79 |
ROIC/WACC0.43
WACC10.39%
2.3 Liquidity
A Current Ratio of 3.07 indicates that FLXS has no problem at all paying its short term obligations.
The Current ratio of FLXS (3.07) is comparable to the rest of the industry.
FLXS has a Quick Ratio of 3.07. This is a bad value and indicates that FLXS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.90, FLXS is not doing good in the industry: 62.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.07 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
FLXS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.88%.
The Earnings Per Share has been growing slightly by 4.11% on average over the past years.
FLXS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.92%.
FLXS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.25% yearly.
EPS 1Y (TTM)-2.88%
EPS 3YN/A
EPS 5Y4.11%
EPS growth Q2Q612.5%
Revenue 1Y (TTM)-11.92%
Revenue growth 3Y2.38%
Revenue growth 5Y-4.25%
Revenue growth Q2Q7.53%
3.2 Future
Based on estimates for the next years, FLXS will show a very strong growth in Earnings Per Share. The EPS will grow by 95.98% on average per year.
Based on estimates for the next years, FLXS will show a small growth in Revenue. The Revenue will grow by 4.52% on average per year.
EPS Next Y145.56%
EPS Next 2Y95.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.09%
Revenue Next 2Y4.52%
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
A Price/Earnings ratio of 27.64 indicates a quite expensive valuation of FLXS.
Compared to the rest of the industry, the Price/Earnings ratio of FLXS indicates a slightly more expensive valuation: FLXS is more expensive than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.06. FLXS is around the same levels.
The Price/Forward Earnings ratio is 12.00, which indicates a very decent valuation of FLXS.
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 (20.72), we can say FLXS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.64 | ||
| Fwd PE | 12 |
4.2 Price Multiples
FLXS's Enterprise Value to EBITDA is on the same level as the industry average.
FLXS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.52 | ||
| EV/EBITDA | 11.74 |
4.3 Compensation for Growth
The 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 95.98% in the coming years.
PEG (NY)0.19
PEG (5Y)6.72
EPS Next 2Y95.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.67%, FLXS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.47, FLXS pays a better dividend. On top of this FLXS pays more dividend than 83.33% of the companies listed in the same industry.
FLXS's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
The dividend of FLXS decreases each year by -6.42%.
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)-6.42%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
FLXS pays out 20.78% of its income as dividend. This is a sustainable payout ratio.
DP20.78%
EPS Next 2Y95.98%
EPS Next 3YN/A
FLEXSTEEL INDS
NASDAQ:FLXS (5/2/2024, 7:00:00 PM)
37.32
+1.47 (+4.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap192.20M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.64 | ||
| Fwd PE | 12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.19
PEG (5Y)6.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 10.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.2% | ||
| PM (TTM) | 3.89% | ||
| GM | 20.03% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.07 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-2.88%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y145.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.92%
Revenue growth 3Y2.38%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y