Flexsteel Industries Inc.
Find Ratings ReportsFLEXSTEEL INDUSTRIES INC's gross profit margin for the second quarter of its fiscal year 2024 has significantly increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. FLEXSTEEL INDUSTRIES INC has weak liquidity. Currently, the Quick Ratio is 0.71 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 8.66% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q2 FY24 | Q2 FY23 |
---|---|---|
Net Sales ($mil) | 100.11 | 93.14 |
EBITDA ($mil) | 5.54 | 2.12 |
EBIT ($mil) | 4.58 | 0.97 |
Net Income ($mil) | 3.05 | 2.85 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 3.31 | 1.77 |
Total Assets ($mil) | 272.48 | 262.0 |
Total Debt ($mil) | 87.28 | 91.68 |
Equity ($mil) | 143.53 | 132.09 |
Profitability | Q2 FY24 | Q2 FY23 |
---|---|---|
Gross Profit Margin | 22.88 | 18.24 |
EBITDA Margin | 5.53 | 2.27 |
Operating Margin | 4.58 | 1.05 |
Sales Turnover | 1.47 | 1.73 |
Return on Assets | 5.66 | 3.12 |
Return on Equity | 10.76 | 6.2 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 3.07 | 3.34 |
Debt/Capital | 0.38 | 0.41 |
Interest Expense | 0.49 | 0.32 |
Interest Coverage | 9.37 | 3.08 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 5.16 | 5.2 |
Div / share | 0.15 | 0.15 |
EPS | 0.57 | 0.53 |
Book value / share | 27.8 | 25.4 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 29176.0 | 10013.0 |
BUY. FLEXSTEEL INDUSTRIES INC's P/E ratio indicates a significant discount compared to an average of 24.98 for the Furniture and Related Product Manufacturing subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.24 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 12.21. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, FLEXSTEEL INDUSTRIES INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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FLXS 11.85 | Peers 24.98 | FLXS 11.34 | Peers 10.17 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. FLXS is trading at a significant discount to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. FLXS is trading at a premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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FLXS 11.27 | Peers 14.29 | FLXS NM | Peers 0.92 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. FLXS is trading at a premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. FLXS's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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FLXS 1.24 | Peers 12.21 | FLXS 114.81 | Peers 81.60 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. FLXS is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. FLXS is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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FLXS 0.44 | Peers 1.14 | FLXS -11.94 | Peers 18.35 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. FLXS is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. FLXS significantly trails its peers on the basis of sales growth. |
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