FLEXSTEEL INDS (FLXS)
US3393821034 - Common Stock
FLXS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. While FLXS has a great health rating, there are worries on its profitability. FLXS has a correct valuation and a medium growth rate.
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.
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 5.79%, FLXS is in line with its industry, outperforming 53.03% of the companies in the same industry.
FLXS has a Return On Equity of 10.91%. This is comparable to the rest of the industry: FLXS outperforms 48.48% of its industry peers.
FLXS's Return On Invested Capital of 5.85% is in line compared to the rest of the industry. FLXS outperforms 46.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FLXS is below the industry average of 10.21%.
The 3 year average ROIC (5.79%) for FLXS is below the current ROIC(5.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 10.91% | ||
| ROIC | 5.85% |
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
FLXS has a Profit Margin (3.89%) which is comparable to the rest of the industry.
FLXS's Profit Margin has been stable in the last couple of years.
FLXS's Operating Margin of 4.00% is on the low side compared to the rest of the industry. FLXS is outperformed by 60.61% of its industry peers.
FLXS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 20.79%, FLXS is doing worse than 80.30% of the companies in the same industry.
FLXS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4% | ||
| PM (TTM) | 3.89% | ||
| GM | 20.79% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FLXS is destroying value.
The number of shares outstanding for FLXS has been reduced compared to 1 year ago.
FLXS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FLXS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.78 indicates that FLXS is not in any danger for bankruptcy at the moment.
FLXS has a better Altman-Z score (3.78) than 60.61% of its industry peers.
The Debt to FCF ratio of FLXS is 1.25, which is an excellent value as it means it would take FLXS, only 1.25 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FLXS (1.25) is better than 74.24% of its industry peers.
FLXS has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
FLXS's Debt to Equity ratio of 0.10 is fine compared to the rest of the industry. FLXS outperforms 74.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 3.78 |
ROIC/WACC0.58
WACC10.1%
2.3 Liquidity
A Current Ratio of 2.79 indicates that FLXS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.79, FLXS is in line with its industry, outperforming 53.03% of the companies in the same industry.
A Quick Ratio of 0.99 indicates that FLXS may have some problems paying its short term obligations.
The Quick ratio of FLXS (0.99) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
FLXS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 62.79%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.11% on average over the past years.
The Revenue has decreased by -1.13% in the past year.
The Revenue has been decreasing by -4.25% on average over the past years.
EPS 1Y (TTM)62.79%
EPS 3YN/A
EPS 5Y4.11%
EPS growth Q2Q17.86%
Revenue 1Y (TTM)-1.13%
Revenue growth 3Y2.38%
Revenue growth 5Y-4.25%
Revenue growth Q2Q8.25%
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 62.70% on average per year.
Based on estimates for the next years, FLXS will show a small growth in Revenue. The Revenue will grow by 4.16% on average per year.
EPS Next Y145.56%
EPS Next 2Y95.98%
EPS Next 3Y62.7%
EPS Next 5YN/A
Revenue Next Year4.09%
Revenue Next 2Y4.52%
Revenue Next 3Y4.16%
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
The Price/Earnings ratio is 25.50, which means the current valuation is very expensive for FLXS.
66.67% of the companies in the same industry are cheaper than FLXS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of FLXS to the average of the S&P500 Index (28.67), we can say FLXS is valued inline with the index average.
With a Price/Forward Earnings ratio of 11.48, the valuation of FLXS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, FLXS is valued a bit cheaper than the industry average as 60.61% of the companies are valued more expensively.
FLXS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.5 | ||
| Fwd PE | 11.48 |
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.
FLXS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.21 | ||
| EV/EBITDA | 8.98 |
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 62.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)6.2
EPS Next 2Y95.98%
EPS Next 3Y62.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.68%, FLXS has a reasonable but not impressive dividend return.
FLXS's Dividend Yield is rather good when compared to the industry average which is at 2.40. FLXS pays more dividend than 86.36% of the companies in the same industry.
FLXS's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of FLXS decreases each year by -6.42%.
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)-6.42%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
FLXS pays out 15.43% of its income as dividend. This is a sustainable payout ratio.
DP15.43%
EPS Next 2Y95.98%
EPS Next 3Y62.7%
FLEXSTEEL INDS
NASDAQ:FLXS (5/21/2024, 3:30:00 PM)
After market: 35.1 -0.6 (-1.68%)35.7
+2.14 (+6.38%)
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 Cap183.85M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.5 | ||
| Fwd PE | 11.48 | ||
| 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)0.18
PEG (5Y)6.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 10.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4% | ||
| PM (TTM) | 3.89% | ||
| GM | 20.79% | ||
| 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 Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.79 | ||
| Quick Ratio | 0.99 | ||
| 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)62.79%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y145.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.13%
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