Flexsteel Industries, Inc. manufactures, imports, and markets residential and commercial upholstered and wood furniture products in the United States. The company was founded in 1929 and is based in Dubuque, Iowa.
FLXS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for FLXS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Flexsteel Industries Inc ranked in the 61th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for FLXS, they are:
Flexsteel Industries Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -469.32. This coverage rate is greater than that of merely 0.77% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Consumer Cyclical), Flexsteel Industries Inc has a reliance on debt greater than only 9.59% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FLXS, try NLS, AMCR, GES, MDP, and LCII.
It’s not you, it’s me. When I started writing this series on Flexsteel, a promising future was just within reach for the company. Obvious challenges, including a questionable ERP project and looming tariffs (refer to my first article Flexsteel or Flexsteal?...I warned you), were likely going to hold the company...
For FQ4, Flexsteel ([[FLXS]] -3.5%) reported net sales of $64.8M (-35.3% Y/Y); residential and contract net sales dropped 28.7% and 72.5% respectively.FQ4 Net loss of $25.7M or $3.23/share vs. net loss of $19.9M or $2.52/share in the prior year quarter; included a $20.8M pre-tax restructuring expense, a $3M inventory impairment charge...