FLEXSTEEL INDS (FLXS) Stock Fundamental Analysis
NASDAQ:FLXS - Nasdaq - US3393821034 - Common Stock - Currency: USD
Overall FLXS gets a fundamental rating of 6 out of 10. We evaluated FLXS against 63 industry peers in the Household Durables industry. FLXS has an excellent financial health rating, but there are some minor concerns on its profitability. FLXS scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
FLXS had positive earnings in the past year.
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's Return On Assets of 5.40% is in line compared to the rest of the industry. FLXS outperforms 57.14% of its industry peers.
FLXS has a Return On Equity (9.09%) which is in line with its industry peers.
FLXS has a Return On Invested Capital (8.17%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for FLXS is significantly below the industry average of 10.08%.
The last Return On Invested Capital (8.17%) for FLXS is above the 3 year average (3.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 9.09% | ||
| ROIC | 8.17% |
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 (3.29%) which is comparable to the rest of the industry.
FLXS's Profit Margin has declined in the last couple of years.
FLXS's Operating Margin of 5.87% is in line compared to the rest of the industry. FLXS outperforms 42.86% of its industry peers.
FLXS's Operating Margin has declined in the last couple of years.
The Gross Margin of FLXS (21.51%) is worse than 71.43% of its industry peers.
In the last couple of years the Gross Margin of FLXS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.87% | ||
| PM (TTM) | 3.29% | ||
| GM | 21.51% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FLXS is destroying value.
The number of shares outstanding for FLXS remains at a similar level compared to 1 year ago.
The number of shares outstanding for FLXS has been reduced compared to 5 years ago.
FLXS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.37 indicates that FLXS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.37, FLXS is doing good in the industry, outperforming 74.60% of the companies in the same industry.
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 | 4.37 |
ROIC/WACC0.92
WACC8.87%
2.3 Liquidity
FLXS has a Current Ratio of 2.93. This indicates that FLXS is financially healthy and has no problem in meeting its short term obligations.
FLXS has a better Current ratio (2.93) than 60.32% of its industry peers.
A Quick Ratio of 1.30 indicates that FLXS should not have too much problems paying its short term obligations.
FLXS has a better Quick ratio (1.30) than 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
FLXS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 94.83%, 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 7.25%.
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)94.83%
EPS 3Y-12.59%
EPS 5YN/A
EPS Q2Q%68.66%
Revenue 1Y (TTM)7.25%
Revenue growth 3Y-4.83%
Revenue growth 5Y-1.43%
Sales Q2Q%6.3%
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 27.90% on average per year.
Based on estimates for the next years, FLXS will show a small growth in Revenue. The Revenue will grow by 4.97% on average per year.
EPS Next Y90.92%
EPS Next 2Y40.05%
EPS Next 3Y27.9%
EPS Next 5YN/A
Revenue Next Year6.41%
Revenue Next 2Y5.21%
Revenue Next 3Y4.97%
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
FLXS is valuated reasonably with a Price/Earnings ratio of 9.86.
FLXS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.82. FLXS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.74, the valuation of FLXS can be described as reasonable.
FLXS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FLXS is cheaper than 69.84% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, FLXS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 8.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLXS is valued cheaper than 88.89% of the companies in the same industry.
FLXS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FLXS is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.84 | ||
| EV/EBITDA | 5.31 |
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.
FLXS's earnings are expected to grow with 27.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y40.05%
EPS Next 3Y27.9%
5. Dividend
5.1 Amount
FLXS has a Yearly Dividend Yield of 2.21%.
FLXS's Dividend Yield is rather good when compared to the industry average which is at 3.25. FLXS pays more dividend than 80.95% of the companies in the same industry.
FLXS's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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 Years1
Div Non Decr Years4
5.3 Sustainability
FLXS pays out 23.85% of its income as dividend. This is a sustainable payout ratio.
DP23.85%
EPS Next 2Y40.05%
EPS Next 3Y27.9%
NASDAQ:FLXS (8/1/2025, 8:00:00 PM)
33.44
-0.57 (-1.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners52.68%
Inst Owner Change0.2%
Ins Owners14.21%
Ins Owner Change1.09%
Market Cap176.23M
Analysts0
Price Target55.08 (64.71%)
Short Float %1.36%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend0.62
Dividend Growth(5Y)-6.71%
DP23.85%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.88%
Min EPS beat(2)25.86%
Max EPS beat(2)25.89%
EPS beat(4)3
Avg EPS beat(4)12.15%
Min EPS beat(4)-20.17%
Max EPS beat(4)25.89%
EPS beat(8)6
Avg EPS beat(8)16.36%
EPS beat(12)9
Avg EPS beat(12)37.16%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.61%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)1.66%
Revenue beat(4)2
Avg Revenue beat(4)0.08%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)1.66%
Revenue beat(8)5
Avg Revenue beat(8)0.23%
Revenue beat(12)8
Avg Revenue beat(12)1.56%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.5%
EPS NY rev (1m)0%
EPS NY rev (3m)3.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 8.74 | ||
| P/S | 0.4 | ||
| P/FCF | 6.84 | ||
| P/OCF | 6.1 | ||
| P/B | 1.11 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 5.31 |
EPS(TTM)3.39
EY10.14%
EPS(NY)3.83
Fwd EY11.44%
FCF(TTM)4.89
FCFY14.63%
OCF(TTM)5.48
OCFY16.38%
SpS82.98
BVpS30
TBVpS30
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 9.09% | ||
| ROCE | 12.07% | ||
| ROIC | 8.17% | ||
| ROICexc | 9.15% | ||
| ROICexgc | 9.15% | ||
| OM | 5.87% | ||
| PM (TTM) | 3.29% | ||
| GM | 21.51% | ||
| FCFM | 5.89% |
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 Turnover1.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 80.88% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 77.54 | ||
| Cash Conversion | 97.88% | ||
| Profit Quality | 179.31% | ||
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 4.37 |
F-Score7
WACC8.87%
ROIC/WACC0.92
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)94.83%
EPS 3Y-12.59%
EPS 5YN/A
EPS Q2Q%68.66%
EPS Next Y90.92%
EPS Next 2Y40.05%
EPS Next 3Y27.9%
EPS Next 5YN/A
Revenue 1Y (TTM)7.25%
Revenue growth 3Y-4.83%
Revenue growth 5Y-1.43%
Sales Q2Q%6.3%
Revenue Next Year6.41%
Revenue Next 2Y5.21%
Revenue Next 3Y4.97%
Revenue Next 5YN/A
EBIT growth 1Y57.52%
EBIT growth 3Y-16.44%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-31.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-31.83%
OCF growth 3YN/A
OCF growth 5Y36.57%