FLEXSTEEL INDS (FLXS) Stock Fundamental Analysis
USA - NASDAQ:FLXS - US3393821034 - Common Stock
42.3 USD
-0.68 (-1.58%)
42.3 USD
0 (0%)
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 is valued quite cheap, while showing a decent growth score. This is a good combination! This makes FLXS very considerable for value investing!
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.
Each year in the past 5 years FLXS has been profitable.
Of the past 5 years FLXS 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.13%, FLXS is in the better half of the industry, outperforming 65.08% of the companies in the same industry.
FLXS's Return On Equity of 12.01% is in line compared to the rest of the industry. FLXS outperforms 58.73% of its industry peers.
With a decent Return On Invested Capital value of 10.09%, FLXS is doing good in the industry, outperforming 65.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FLXS is below the industry average of 10.32%.
The last Return On Invested Capital (10.09%) for FLXS is above the 3 year average (6.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.13% | ||
| ROE | 12.01% | ||
| ROIC | 10.09% |
ROA(3y)5.35%
ROA(5y)4.9%
ROE(3y)9.82%
ROE(5y)8.92%
ROIC(3y)6.29%
ROIC(5y)6.27%
1.3 Margins
The Profit Margin of FLXS (4.57%) is comparable to the rest of the industry.
FLXS's Profit Margin has improved in the last couple of years.
FLXS has a Operating Margin (7.08%) which is in line with its industry peers.
FLXS's Operating Margin has improved in the last couple of years.
The Gross Margin of FLXS (22.21%) is worse than 73.02% of its industry peers.
FLXS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.08% | ||
| PM (TTM) | 4.57% | ||
| GM | 22.21% |
OM growth 3Y86.97%
OM growth 5YN/A
PM growth 3Y135.67%
PM growth 5YN/A
GM growth 3Y18.47%
GM growth 5Y7.67%
2. Health
2.1 Basic Checks
FLXS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for FLXS has been increased compared to 1 year ago.
FLXS has less shares outstanding than it did 5 years ago.
FLXS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
FLXS has an Altman-Z score of 4.53. This indicates that FLXS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.53, FLXS is doing good in the industry, outperforming 73.02% 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 | 4.53 |
ROIC/WACC1.1
WACC9.19%
2.3 Liquidity
A Current Ratio of 2.78 indicates that FLXS has no problem at all paying its short term obligations.
FLXS has a Current ratio of 2.78. This is comparable to the rest of the industry: FLXS outperforms 50.79% of its industry peers.
A Quick Ratio of 1.34 indicates that FLXS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.34, FLXS is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 116.41% over the past year.
Measured over the past years, FLXS shows a very strong growth in Earnings Per Share. The EPS has been growing by 86.55% on average per year.
The Revenue has been growing slightly by 6.86% in the past year.
Measured over the past years, FLXS shows a small growth in Revenue. The Revenue has been growing by 3.75% on average per year.
EPS 1Y (TTM)116.41%
EPS 3Y86.55%
EPS 5YN/A
EPS Q2Q%145.61%
Revenue 1Y (TTM)6.86%
Revenue growth 3Y-6.77%
Revenue growth 5Y3.75%
Sales Q2Q%3.42%
3.2 Future
FLXS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.83% yearly.
FLXS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.17% yearly.
EPS Next Y-6.94%
EPS Next 2Y1.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.83%
Revenue Next 2Y4.17%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.02, the valuation of FLXS can be described as reasonable.
Based on the Price/Earnings ratio, FLXS is valued a bit cheaper than 68.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of FLXS to the average of the S&P500 Index (27.76), we can say FLXS is valued rather cheaply.
FLXS is valuated reasonably with a Price/Forward Earnings ratio of 10.77.
66.67% of the companies in the same industry are more expensive than FLXS, based on the Price/Forward Earnings ratio.
FLXS is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 10.77 |
4.2 Price Multiples
FLXS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FLXS is cheaper than 92.06% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FLXS is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.62 | ||
| EV/EBITDA | 5.36 |
4.3 Compensation for Growth
FLXS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.83%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FLXS has a Yearly Dividend Yield of 1.79%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.76, FLXS pays a bit more dividend than its industry peers.
FLXS's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
The dividend of FLXS decreases each year by -5.30%.
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)-5.3%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
17.64% of the earnings are spent on dividend by FLXS. This is a low number and sustainable payout ratio.
DP17.64%
EPS Next 2Y1.83%
EPS Next 3YN/A
42.3
-0.68 (-1.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners51.98%
Inst Owner Change0%
Ins Owners14.95%
Ins Owner Change2.37%
Market Cap223.34M
Analysts0
Price Target58.14 (37.45%)
Short Float %1.74%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend0.68
Dividend Growth(5Y)-5.3%
DP17.64%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)44.65%
Min EPS beat(2)25.89%
Max EPS beat(2)63.4%
EPS beat(4)4
Avg EPS beat(4)33.04%
Min EPS beat(4)17.01%
Max EPS beat(4)63.4%
EPS beat(8)6
Avg EPS beat(8)24.18%
EPS beat(12)10
Avg EPS beat(12)42.98%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)0.48%
Revenue beat(4)3
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-0.44%
Max Revenue beat(4)1.66%
Revenue beat(8)5
Avg Revenue beat(8)0.2%
Revenue beat(12)8
Avg Revenue beat(12)1.41%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)5.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4%
EPS NY rev (1m)0%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 10.77 | ||
| P/S | 0.51 | ||
| P/FCF | 6.62 | ||
| P/OCF | 6.04 | ||
| P/B | 1.33 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 5.36 |
EPS(TTM)4.22
EY9.98%
EPS(NY)3.93
Fwd EY9.28%
FCF(TTM)6.39
FCFY15.1%
OCF(TTM)7
OCFY16.56%
SpS83.54
BVpS31.79
TBVpS31.79
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.13% | ||
| ROE | 12.01% | ||
| ROCE | 14.17% | ||
| ROIC | 10.09% | ||
| ROICexc | 12.33% | ||
| ROICexgc | 12.33% | ||
| OM | 7.08% | ||
| PM (TTM) | 4.57% | ||
| GM | 22.21% | ||
| FCFM | 7.65% |
ROA(3y)5.35%
ROA(5y)4.9%
ROE(3y)9.82%
ROE(5y)8.92%
ROIC(3y)6.29%
ROIC(5y)6.27%
ROICexc(3y)7.09%
ROICexc(5y)6.77%
ROICexgc(3y)7.09%
ROICexgc(5y)6.77%
ROCE(3y)8.83%
ROCE(5y)8.8%
ROICexcg growth 3Y80.95%
ROICexcg growth 5YN/A
ROICexc growth 3Y80.95%
ROICexc growth 5YN/A
OM growth 3Y86.97%
OM growth 5YN/A
PM growth 3Y135.67%
PM growth 5YN/A
GM growth 3Y18.47%
GM growth 5Y7.67%
F-Score8
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 89.16% | ||
| Cap/Sales | 0.74% | ||
| Interest Coverage | 292.04 | ||
| Cash Conversion | 105.95% | ||
| Profit Quality | 167.32% | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 4.53 |
F-Score8
WACC9.19%
ROIC/WACC1.1
Cap/Depr(3y)104.46%
Cap/Depr(5y)87.47%
Cap/Sales(3y)1.04%
Cap/Sales(5y)0.87%
Profit Quality(3y)182.6%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)116.41%
EPS 3Y86.55%
EPS 5YN/A
EPS Q2Q%145.61%
EPS Next Y-6.94%
EPS Next 2Y1.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.86%
Revenue growth 3Y-6.77%
Revenue growth 5Y3.75%
Sales Q2Q%3.42%
Revenue Next Year3.83%
Revenue Next 2Y4.17%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y86.2%
EBIT growth 3Y74.31%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y24.38%
FCF growth 3Y101.2%
FCF growth 5Y18.23%
OCF growth 1Y15.98%
OCF growth 3Y66.65%
OCF growth 5Y15.12%