Flexsteel Industries, Inc.
Flexsteel Industries, Inc. Fundamental Analysis
Flexsteel Industries, Inc. (FLXS) shows moderate financial fundamentals with a PE ratio of 13.25, profit margin of 4.58%, and ROE of 12.37%. The company generates $0.5B in annual revenue with moderate year-over-year growth of 6.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FLXS's fundamental strength across five key dimensions:
Efficiency Score
WeakFLXS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFLXS trades at attractive valuation levels.
Growth Score
ExcellentFLXS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentFLXS maintains a strong and stable balance sheet.
Profitability Score
WeakFLXS struggles to sustain strong margins.
Key Financial Metrics
Is FLXS Expensive or Cheap?
P/E Ratio
FLXS trades at 13.25 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FLXS's PEG of -1.20 indicates potential undervaluation.
Price to Book
The market values Flexsteel Industries, Inc. at 1.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.22 times EBITDA. This is generally considered low.
How Well Does FLXS Make Money?
Net Profit Margin
For every $100 in sales, Flexsteel Industries, Inc. keeps $4.58 as profit after all expenses.
Operating Margin
Core operations generate 5.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.37 in profit for every $100 of shareholder equity.
ROA
Flexsteel Industries, Inc. generates $7.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Flexsteel Industries, Inc. generates limited operating cash flow of $33.14M, signaling weaker underlying cash strength.
Free Cash Flow
Flexsteel Industries, Inc. produces free cash flow of $28.09M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.26 in free cash annually.
FCF Yield
FLXS converts 10.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.01
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How FLXS Stacks Against Its Sector Peers
| Metric | FLXS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.25 | 24.84 | Better (Cheaper) |
| ROE | 12.37% | 1142.00% | Weak |
| Net Margin | 4.58% | 647.00% | Weak |
| Debt/Equity | 0.31 | 0.70 | Strong (Low Leverage) |
| Current Ratio | 3.01 | 3.93 | Strong Liquidity |
| ROA | 7.21% | -8853.00% (disorted) | Weak |
FLXS outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Flexsteel Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
82.20%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
213.80%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
206.50%
Industry Style: Cyclical, Growth, Discretionary
High Growth