Recent News
On October 9, 2025 Flexsteel announced that long-time board chair Thomas M. Levine will retire following the company’s December 2025 board meeting, with Jeanne McGovern to assume the chair role. On October 18, 2025 one analyst shop published a downgrade to “Strong Sell,” signaling divergent analyst views. On December 9, 2025 the board declared a quarterly cash dividend of $0.20 per share, payable January 8, 2026 to shareholders of record December 29, 2025.
Technical Analysis
Directional Indicators (ADX/DI+ / DI-): ADX registers 34.03, indicating a strong trend environment; DI+ at 25.57 shows an earlier advance but DI+ has peaked and reversed, while DI- registered a dip-and-reversal and has moved higher — both DI developments point to bearish directional pressure against the recent up move, increasing the likelihood of a near-term retracement that would test support levels noted below.
MACD and Signal: MACD reads 0.80 with the MACD trend described as a peak-and-reversal and the MACD line sitting just below the signal line (signal 0.81). That configuration signals waning bullish momentum and a bearish momentum profile for the coming days unless the MACD re-crosses above its signal line.
MRO (Momentum/Regression Oscillator): MRO at 34.94 remains positive and rising, indicating the price sits above the model target with growing strength to that divergence; that suggests mean reversion pressure—price likely to move closer to model targets on any pullback.
RSI and Price Action vs. Moving Averages: RSI at 52.22 has peak-and-reversed, implying a move away from short-term overbought conditions. Price closed at $40.53, below the 20-day average ($41.19) and 12-day EMA has peak-and-reversed, both consistent with a short-term pullback. The 200-day average at $37.71 sits below the current price and the SuperTrend lower band at $39.71 offers immediate support near current levels. Bollinger bands place the 1x lower band at $40.11, so recent price sits just above that zone, leaving limited downside before volatility-band support absorbs selling.
Volatility & Beta: 42-day beta at 0.87 and 52-week beta at 1.13 suggest below-market short-term systematic sensitivity but normal longer-term sensitivity; recent volume sits near its 10-day average, indicating no acute liquidity stress on price moves.
Fundamental Analysis
Revenue for the period registers at $110,439,000 with net income of $7,327,000 and EPS actual $1.31 versus an EPS estimate of $0.78, producing an EPS surprise of 67.95%. Operating income equals $8,987,000 and EBIT equals $9,378,000, supporting the margin expansion observed this quarter. (Earnings release and related commentary published October 20, 2025 provide the company’s stated results).
Margins and Profitability: Gross margin reads 23.49% and operating margin registers 8.14%, with EBIT margin at 8.49%. EBIT margin improved year-over-year by 46.06% while QoQ EBIT margin fell by 31.76%, showing strong annual margin gains but some sequential compression. The EBIT margin sits above the industry peer mean (2.675%) and above the industry peer median (4.928%), indicating operating profitability outpaces typical peer outcomes.
Growth Trends: YoY and QoQ growth metrics present a mixed picture: reported total revenue of $110,439,000 shows year-over-year increases in the company’s public release, while the internal revenue growth indicator here reads negative on certain derived measures; operating margin YoY displays material improvement (+39.97%), while revenue growth quarter-over-quarter shows compression. Use the margin expansion as the dominant improvement driver for current earnings strength.
Liquidity, Cash Flow, and Capital Structure: Cash and short-term investments total $38,585,000 and the current ratio stands at 2.997, with a quick ratio of 1.511—both above the industry peer mean and median, indicating ample near-term liquidity. Free cash flow equals $2,757,000 with a free cash flow yield of 1.21% and free cash flow growth negative QoQ but positive YoY. Debt-to-EBITDA equals 5.66 and interest coverage sits extremely high at 493.58x, reflecting minimal interest burden versus earnings.
Valuation Metrics: Trailing PE reads 32.50 while forward PE equals 44.48; price-to-book measures 1.32 and enterprise value to revenue and enterprise multiple show EVR 2.23 and enterprise multiple 24.14. P/B stands above the industry peer mean and median; PE sits above the industry peer mean but below the industry peer median. The current valuation as determined by WMDST reads under-valued despite mixed forward multiples, reflecting WMDST’s assessment of earnings quality, cash position, and dividend consistency.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-20 |
| NEXT REPORT DATE: | 2026-01-19 |
| CASH FLOW | Begin Period Cash Flow | $ 40.0 M |
| Operating Cash Flow | $ 4.1 M | |
| Capital Expenditures | $ -1.36 M | |
| Change In Working Capital | $ -8.56 M | |
| Dividends Paid | $ -1.15 M | |
| Cash Flow Delta | $ -1.42 M | |
| End Period Cash Flow | $ 38.6 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 110.4 M | |
| Forward Revenue | $ 18.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 84.5 M | |
| Depreciation | $ 836.0 K | |
| Depreciation and Amortization | $ 836.0 K | |
| Research and Development | — | |
| Total Operating Expenses | $ 101.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 25.9 M | |
| EBITDA | $ 10.2 M | |
| EBIT | $ 9.4 M | |
| Operating Income | $ 9.0 M | |
| Interest Income | $ 391.0 K | |
| Interest Expense | — | |
| Net Interest Income | $ 391.0 K | |
| Income Before Tax | $ 9.4 M | |
| Tax Provision | $ 2.1 M | |
| Tax Rate | 21.9 % | |
| Net Income | $ 7.3 M | |
| Net Income From Continuing Operations | $ 7.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.78 | |
| EPS Actual | $ 1.31 | |
| EPS Difference | $ 0.53 | |
| EPS Surprise | 67.949 % | |
| Forward EPS | $ 0.94 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 281.5 M | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 172.2 M | |
| Total Current Assets | $ 175.4 M | |
| Cash and Short-Term Investments | $ 38.6 M | |
| Cash | $ 38.6 M | |
| Net Receivables | $ 35.2 M | |
| Inventory | $ 87.0 M | |
| Long-Term Investments | $ 20.2 M | |
| LIABILITIES | ||
| Accounts Payable | $ 28.7 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 58.5 M | |
| Net Debt | — | |
| Total Debt | $ 57.8 M | |
| Total Liabilities | $ 109.3 M | |
| EQUITY | ||
| Total Equity | $ 172.2 M | |
| Retained Earnings | $ 196.7 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 32.24 | |
| Shares Outstanding | 5.340 M | |
| Revenue Per-Share | $ 20.68 | |
| VALUATION | Market Capitalization | $ 227.4 M |
| Enterprise Value | $ 246.6 M | |
| Enterprise Multiple | 24.143 | |
| Enterprise Multiple QoQ | 65.938 % | |
| Enterprise Multiple YoY | -22.944 % | |
| Enterprise Multiple IPRWA | high: 65.22 median: 36.755 FLXS: 24.143 mean: 20.932 low: -87.482 |
|
| EV/R | 2.233 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.635 | |
| Asset To Liability | 2.575 | |
| Debt To Capital | 0.251 | |
| Debt To Assets | 0.205 | |
| Debt To Assets QoQ | -2.274 % | |
| Debt To Assets YoY | 271.41 % | |
| Debt To Assets IPRWA | high: 0.662 median: 0.464 mean: 0.45 low: 0.286 FLXS: 0.205 |
|
| Debt To Equity | 0.336 | |
| Debt To Equity QoQ | -5.067 % | |
| Debt To Equity YoY | 249.532 % | |
| Debt To Equity IPRWA | high: 1.407 median: 1.407 mean: 0.82 FLXS: 0.336 low: -7.428 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.321 | |
| Price To Book QoQ | 10.334 % | |
| Price To Book YoY | -2.466 % | |
| Price To Book IPRWA | high: 1.403 FLXS: 1.321 median: 1.055 mean: 0.845 low: -3.657 |
|
| Price To Earnings (P/E) | 32.503 | |
| Price To Earnings QoQ | 27.761 % | |
| Price To Earnings YoY | -40.206 % | |
| Price To Earnings IPRWA | high: 180.143 median: 44.47 FLXS: 32.503 mean: 26.518 low: -126.855 |
|
| PE/G Ratio | -5.056 | |
| Price To Sales (P/S) | 2.059 | |
| Price To Sales QoQ | 17.451 % | |
| Price To Sales YoY | 2.233 % | |
| Price To Sales IPRWA | FLXS: 2.059 high: 1.756 mean: 1.47 median: 1.434 low: 0.829 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 44.485 | |
| Forward PE/G | -6.919 | |
| Forward P/S | 11.77 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 9.408 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.392 | |
| Asset Turnover Ratio QoQ | -6.261 % | |
| Asset Turnover Ratio YoY | 2.274 % | |
| Asset Turnover Ratio IPRWA | high: 0.392 FLXS: 0.392 mean: 0.263 low: 0.242 median: 0.242 |
|
| Receivables Turnover | 3.134 | |
| Receivables Turnover Ratio QoQ | 0.752 % | |
| Receivables Turnover Ratio YoY | 26.144 % | |
| Receivables Turnover Ratio IPRWA | high: 11.85 mean: 4.501 FLXS: 3.134 low: 2.801 median: 2.801 |
|
| Inventory Turnover | 0.96 | |
| Inventory Turnover Ratio QoQ | -2.986 % | |
| Inventory Turnover Ratio YoY | 13.114 % | |
| Inventory Turnover Ratio IPRWA | high: 1.287 median: 1.287 mean: 1.117 FLXS: 0.96 low: 0.562 |
|
| Days Sales Outstanding (DSO) | 29.114 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 92.871 | |
| Cash Conversion Cycle Days QoQ | -2.754 % | |
| Cash Conversion Cycle Days YoY | -16.232 % | |
| Cash Conversion Cycle Days IPRWA | high: 141.642 FLXS: 92.871 mean: 79.14 median: 62.87 low: 61.806 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.945 | |
| CapEx To Revenue | -0.012 | |
| CapEx To Depreciation | -1.623 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 172.2 M | |
| Net Invested Capital | $ 172.2 M | |
| Invested Capital | $ 172.2 M | |
| Net Tangible Assets | $ 172.2 M | |
| Net Working Capital | $ 116.9 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.66 | |
| Current Ratio | 2.997 | |
| Current Ratio QoQ | 7.838 % | |
| Current Ratio YoY | 5.443 % | |
| Current Ratio IPRWA | FLXS: 2.997 high: 1.925 median: 1.671 mean: 1.654 low: 1.405 |
|
| Quick Ratio | 1.511 | |
| Quick Ratio QoQ | 12.564 % | |
| Quick Ratio YoY | 44.631 % | |
| Quick Ratio IPRWA | FLXS: 1.511 high: 1.086 median: 0.957 mean: 0.891 low: 0.526 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 5.66 | |
| Cost Of Debt | 0.025 % | |
| Interest Coverage Ratio | 493.579 | |
| Interest Coverage Ratio QoQ | -34.245 % | |
| Interest Coverage Ratio YoY | 316.281 % | |
| Interest Coverage Ratio IPRWA | FLXS: 493.579 high: 28.238 median: 2.56 mean: 2.294 low: -11.225 |
|
| Operating Cash Flow Ratio | 0.228 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 28.412 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 6.388 | |
| Dividend Payout Ratio | 0.157 | |
| Dividend Rate | $ 0.21 | |
| Dividend Yield | 0.005 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -0.358 % | |
| Revenue Growth | -3.64 % | |
| Revenue Growth QoQ | -748.841 % | |
| Revenue Growth YoY | -40.813 % | |
| Revenue Growth IPRWA | high: 16.013 % mean: 2.194 % median: -0.634 % FLXS: -3.64 % low: -5.033 % |
|
| Earnings Growth | -6.429 % | |
| Earnings Growth QoQ | -126.906 % | |
| Earnings Growth YoY | -121.556 % | |
| Earnings Growth IPRWA | FLXS: -6.429 % high: -25.0 % median: -25.0 % mean: -34.937 % low: -74.576 % |
|
| MARGINS | ||
| Gross Margin | 23.494 % | |
| Gross Margin QoQ | -1.855 % | |
| Gross Margin YoY | 9.249 % | |
| Gross Margin IPRWA | high: 56.443 % mean: 42.688 % low: 38.516 % median: 38.516 % FLXS: 23.494 % |
|
| EBIT Margin | 8.492 % | |
| EBIT Margin QoQ | -31.758 % | |
| EBIT Margin YoY | 46.061 % | |
| EBIT Margin IPRWA | FLXS: 8.492 % high: 4.928 % median: 4.928 % mean: 2.675 % low: -5.496 % |
|
| Return On Sales (ROS) | 8.138 % | |
| Return On Sales QoQ | -9.194 % | |
| Return On Sales YoY | 39.972 % | |
| Return On Sales IPRWA | FLXS: 8.138 % high: 5.65 % median: 5.65 % mean: 3.052 % low: -5.756 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 2.8 M | |
| Free Cash Flow Yield | 1.213 % | |
| Free Cash Flow Yield QoQ | -83.816 % | |
| Free Cash Flow Yield YoY | 28.905 % | |
| Free Cash Flow Yield IPRWA | high: 2.769 % FLXS: 1.213 % mean: -0.968 % median: -1.554 % low: -2.021 % |
|
| Free Cash Growth | -81.691 % | |
| Free Cash Growth QoQ | -314.575 % | |
| Free Cash Growth YoY | 13.017 % | |
| Free Cash Growth IPRWA | high: -71.946 % FLXS: -81.691 % mean: -153.606 % low: -167.834 % median: -167.834 % |
|
| Free Cash To Net Income | 0.376 | |
| Cash Flow Margin | 12.101 % | |
| Cash Flow To Earnings | 1.824 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 2.598 % | |
| Return On Assets QoQ | -33.402 % | |
| Return On Assets YoY | 70.472 % | |
| Return On Assets IPRWA | FLXS: 2.598 % high: 0.512 % median: 0.512 % mean: -0.012 % low: -3.869 % |
|
| Return On Capital Employed (ROCE) | 4.206 % | |
| Return On Equity (ROE) | 0.043 | |
| Return On Equity QoQ | -33.255 % | |
| Return On Equity YoY | 59.006 % | |
| Return On Equity IPRWA | high: 0.435 FLXS: 0.043 mean: 0.029 median: 0.016 low: -0.034 |
|
| DuPont ROE | 4.309 % | |
| Return On Invested Capital (ROIC) | 4.254 % | |
| Return On Invested Capital QoQ | -33.271 % | |
| Return On Invested Capital YoY | -90.702 % | |
| Return On Invested Capital IPRWA | FLXS: 4.254 % high: 1.31 % median: 1.31 % mean: 0.282 % low: -3.632 % |
|