Recent News
Jan. 19, 2026: Company announced timing for second-quarter fiscal 2026 results and a Feb. 3 conference call. Feb. 2, 2026: Flexsteel reported second-quarter fiscal 2026 results, citing net sales of $118.25M and GAAP EPS of $1.18. Dec. 15, 2025: Zacks Research revised its rating to Hold. Dec. 29, 2025: Weiss Ratings reaffirmed a Hold (C+) stance. Feb. 7–8, 2026: Wall Street Zen and Zacks issued upgrades, moving the company toward stronger buy-side coverage in select reports.
Technical Analysis
ADX at 32.76 indicates a strong underlying trend; that trend-strength supports the near-term directional bias toward higher prices relative to the recent range.
DI+ at 36.66 and increasing while DI- at 11.76 and decreasing signals a bullish directional index setup that favors upside continuation over the coming weeks.
MACD sits at 2.88, is increasing, and trades above its signal line (1.22), which signals bullish momentum and reinforces a positive price bias into the near term.
MRO at 31.1 and increasing shows price sits above the model target, implying increased potential for mean reversion or consolidation despite the bullish momentum readings.
RSI at 58.74 and increasing remains below overbought thresholds, leaving room for additional upside while signaling growing buying pressure.
Price sits above major averages—200‑day $38.75, 50‑day $41.91, 20‑day $44.73—and the 12‑day EMA (price at $56.30 vs. 12‑day EMA $47.89 is increasing), confirming momentum-led strength; the close above the 1× Bollinger upper band ($52.49) denotes a price extension that heightens consolidation risk.
Fundamental Analysis
Q2 income metrics show operating income of $9.0M and EBIT of $9.35M, with an EBIT margin of 7.91% that declined 6.89% QoQ and fell 26.59% YoY. That margin sits below the industry peer mean (11.84%) and median (10.59%), indicating margin recovery still trails the typical peer midpoint.
Revenue totaled $118,249,000. YoY revenue growth equals 64.31% while QoQ revenue growth shows -294.29% per the supplied figures; the topline expansion year-over-year supports the earnings beat but the quarterly growth metric implies volatile sequential comparisons.
EPS came in at $1.18 versus a $0.79 estimate, producing a positive surprise of 49.37%, which materially lifted headline earnings and underpins recent analyst upgrades.
Gross margin at 22.68% improved 7.91% YoY; operating margin at 7.61% fell 29.36% YoY, reflecting operating leverage shifts. Return on assets registers 2.32% and edges above the industry peer mean (2.17%), while return on equity stands at 3.72% and declined 33.57% YoY.
Liquidity remains solid: cash and short‑term investments $36.77M, current ratio 3.01x, quick ratio 1.49x. Total debt $55.87M yields debt-to-EBITDA ~5.47x and a debt-to-assets ratio of 19.25%, consistent with conservative leverage but higher than the peer mean on certain leverage measures.
Free cash flow showed a small negative of $735,000 and a free cash flow yield of -0.34%, signaling near-term cash conversion pressure despite positive operating cash flow of $1.007M; dividend metrics show a payout ratio of 16.11% and dividend coverage about 6.21x.
Asset turnover at 0.414x sits above the industry peer high (0.3978), indicating relatively efficient revenue generation from the asset base versus peers. Price multiples include P/E ~34.0x, P/B ~1.20x (below the industry peer mean of 1.94x and median 1.84x), and a forward P/E ~38.06x.
WMDST values the stock as fair‑valued; the combination of a sizeable EPS beat, strong YoY revenue expansion, healthy cash balances, and pockets of operating margin weakness justifies a fair valuation stance while leaving upside tied to margin normalization and cash conversion improvement.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-02 |
| NEXT REPORT DATE: | 2026-05-04 |
| CASH FLOW | Begin Period Cash Flow | $ 38.6 M |
| Operating Cash Flow | $ 1.0 M | |
| Capital Expenditures | $ -1.74 M | |
| Change In Working Capital | $ -7.83 M | |
| Dividends Paid | $ -1.07 M | |
| Cash Flow Delta | $ -1.81 M | |
| End Period Cash Flow | $ 36.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 118.2 M | |
| Forward Revenue | $ 24.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 91.4 M | |
| Depreciation | $ 864.0 K | |
| Depreciation and Amortization | $ 864.0 K | |
| Research and Development | — | |
| Total Operating Expenses | $ 109.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 26.8 M | |
| EBITDA | $ 10.2 M | |
| EBIT | $ 9.3 M | |
| Operating Income | $ 9.0 M | |
| Interest Income | $ 353.0 K | |
| Interest Expense | — | |
| Net Interest Income | $ 353.0 K | |
| Income Before Tax | $ 9.3 M | |
| Tax Provision | $ 2.7 M | |
| Tax Rate | 28.941 % | |
| Net Income | $ 6.6 M | |
| Net Income From Continuing Operations | $ 6.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.79 | |
| EPS Actual | $ 1.18 | |
| EPS Difference | $ 0.39 | |
| EPS Surprise | 49.367 % | |
| Forward EPS | $ 1.04 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 290.2 M | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 178.9 M | |
| Total Current Assets | $ 188.6 M | |
| Cash and Short-Term Investments | $ 36.8 M | |
| Cash | $ 36.8 M | |
| Net Receivables | $ 41.8 M | |
| Inventory | $ 95.1 M | |
| Long-Term Investments | $ 16.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 28.9 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 62.6 M | |
| Net Debt | — | |
| Total Debt | $ 55.9 M | |
| Total Liabilities | $ 111.3 M | |
| EQUITY | ||
| Total Equity | $ 178.9 M | |
| Retained Earnings | $ 202.2 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 33.46 | |
| Shares Outstanding | 5.346 M | |
| Revenue Per-Share | $ 22.12 | |
| VALUATION | Market Capitalization | $ 214.5 M |
| Enterprise Value | $ 233.6 M | |
| Enterprise Multiple | 22.87 | |
| Enterprise Multiple QoQ | -5.276 % | |
| Enterprise Multiple YoY | -13.222 % | |
| Enterprise Multiple IPRWA | high: 70.969 median: 62.473 mean: 49.914 FLXS: 22.87 low: -32.475 |
|
| EV/R | 1.975 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.622 | |
| Asset To Liability | 2.607 | |
| Debt To Capital | 0.238 | |
| Debt To Assets | 0.193 | |
| Debt To Assets QoQ | -6.256 % | |
| Debt To Assets YoY | -20.553 % | |
| Debt To Assets IPRWA | high: 0.771 FLXS: 0.193 mean: 0.162 median: 0.162 low: 0.023 |
|
| Debt To Equity | 0.312 | |
| Debt To Equity QoQ | -6.963 % | |
| Debt To Equity YoY | -23.141 % | |
| Debt To Equity IPRWA | high: 1.111 FLXS: 0.312 median: 0.234 mean: 0.233 low: 0.031 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.199 | |
| Price To Book QoQ | -9.19 % | |
| Price To Book YoY | -30.226 % | |
| Price To Book IPRWA | high: 4.346 mean: 1.942 median: 1.842 FLXS: 1.199 low: 0.565 |
|
| Price To Earnings (P/E) | 34.001 | |
| Price To Earnings QoQ | 4.608 % | |
| Price To Earnings YoY | -38.829 % | |
| Price To Earnings IPRWA | high: 108.946 median: 68.811 mean: 63.293 FLXS: 34.001 low: -20.476 |
|
| PE/G Ratio | -3.426 | |
| Price To Sales (P/S) | 1.814 | |
| Price To Sales QoQ | -11.897 % | |
| Price To Sales YoY | -29.289 % | |
| Price To Sales IPRWA | high: 8.147 median: 6.418 mean: 5.622 FLXS: 1.814 low: 0.939 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 38.065 | |
| Forward PE/G | -3.836 | |
| Forward P/S | 8.629 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -0.042 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.414 | |
| Asset Turnover Ratio QoQ | 5.627 % | |
| Asset Turnover Ratio YoY | 3.016 % | |
| Asset Turnover Ratio IPRWA | FLXS: 0.414 high: 0.398 median: 0.237 mean: 0.235 low: 0.173 |
|
| Receivables Turnover | 3.068 | |
| Receivables Turnover Ratio QoQ | -2.101 % | |
| Receivables Turnover Ratio YoY | 7.186 % | |
| Receivables Turnover Ratio IPRWA | high: 19.321 mean: 7.496 median: 5.243 FLXS: 3.068 low: 1.305 |
|
| Inventory Turnover | 1.004 | |
| Inventory Turnover Ratio QoQ | 4.665 % | |
| Inventory Turnover Ratio YoY | 9.565 % | |
| Inventory Turnover Ratio IPRWA | high: 1.826 FLXS: 1.004 mean: 0.381 median: 0.232 low: 0.208 |
|
| Days Sales Outstanding (DSO) | 29.738 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 96.984 | |
| Cash Conversion Cycle Days QoQ | 4.428 % | |
| Cash Conversion Cycle Days YoY | -12.536 % | |
| Cash Conversion Cycle Days IPRWA | high: 158.246 FLXS: 96.984 mean: 75.705 median: 68.191 low: 59.3 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.939 | |
| CapEx To Revenue | -0.015 | |
| CapEx To Depreciation | -2.016 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 178.9 M | |
| Net Invested Capital | $ 178.9 M | |
| Invested Capital | $ 178.9 M | |
| Net Tangible Assets | $ 178.9 M | |
| Net Working Capital | $ 126.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.587 | |
| Current Ratio | 3.011 | |
| Current Ratio QoQ | 0.456 % | |
| Current Ratio YoY | 2.763 % | |
| Current Ratio IPRWA | high: 12.643 median: 12.637 mean: 10.138 FLXS: 3.011 low: 1.358 |
|
| Quick Ratio | 1.493 | |
| Quick Ratio QoQ | -1.189 % | |
| Quick Ratio YoY | 30.913 % | |
| Quick Ratio IPRWA | high: 3.249 median: 2.922 mean: 2.49 FLXS: 1.493 low: 0.411 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 5.47 | |
| Cost Of Debt | 0.025 % | |
| Interest Coverage Ratio | 492.105 | |
| Interest Coverage Ratio QoQ | -0.299 % | |
| Interest Coverage Ratio YoY | -19.983 % | |
| Interest Coverage Ratio IPRWA | FLXS: 492.105 high: 440.679 mean: 45.272 median: 18.756 low: -20.107 |
|
| Operating Cash Flow Ratio | -0.112 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 31.066 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 6.209 | |
| Dividend Payout Ratio | 0.161 | |
| Dividend Rate | $ 0.20 | |
| Dividend Yield | 0.005 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 3.098 % | |
| Revenue Growth | 7.072 % | |
| Revenue Growth QoQ | -294.286 % | |
| Revenue Growth YoY | 64.312 % | |
| Revenue Growth IPRWA | high: 25.839 % FLXS: 7.072 % median: -4.064 % mean: -9.547 % low: -28.838 % |
|
| Earnings Growth | -9.924 % | |
| Earnings Growth QoQ | 54.363 % | |
| Earnings Growth YoY | -134.971 % | |
| Earnings Growth IPRWA | high: 380.0 % FLXS: -9.924 % median: -14.809 % mean: -15.927 % low: -70.476 % |
|
| MARGINS | ||
| Gross Margin | 22.684 % | |
| Gross Margin QoQ | -3.448 % | |
| Gross Margin YoY | 7.906 % | |
| Gross Margin IPRWA | high: 56.333 % mean: 24.088 % median: 23.395 % FLXS: 22.684 % low: 14.104 % |
|
| EBIT Margin | 7.907 % | |
| EBIT Margin QoQ | -6.889 % | |
| EBIT Margin YoY | -26.59 % | |
| EBIT Margin IPRWA | high: 16.477 % mean: 11.836 % median: 10.594 % FLXS: 7.907 % low: -10.524 % |
|
| Return On Sales (ROS) | 7.609 % | |
| Return On Sales QoQ | -6.5 % | |
| Return On Sales YoY | -29.357 % | |
| Return On Sales IPRWA | high: 16.477 % mean: 12.283 % median: 10.594 % FLXS: 7.609 % low: -10.524 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -735.00 K | |
| Free Cash Flow Yield | -0.343 % | |
| Free Cash Flow Yield QoQ | -128.277 % | |
| Free Cash Flow Yield YoY | -116.498 % | |
| Free Cash Flow Yield IPRWA | high: 11.09 % mean: 2.959 % median: 1.87 % FLXS: -0.343 % low: -4.84 % |
|
| Free Cash Growth | -126.659 % | |
| Free Cash Growth QoQ | 55.046 % | |
| Free Cash Growth YoY | -165.438 % | |
| Free Cash Growth IPRWA | high: 165.953 % mean: -9.772 % median: -16.154 % FLXS: -126.659 % low: -364.191 % |
|
| Free Cash To Net Income | -0.111 | |
| Cash Flow Margin | -5.926 % | |
| Cash Flow To Earnings | -1.055 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 2.324 % | |
| Return On Assets QoQ | -10.547 % | |
| Return On Assets YoY | -30.668 % | |
| Return On Assets IPRWA | high: 3.09 % FLXS: 2.324 % mean: 2.174 % median: 1.697 % low: -3.54 % |
|
| Return On Capital Employed (ROCE) | 4.109 % | |
| Return On Equity (ROE) | 0.037 | |
| Return On Equity QoQ | -12.691 % | |
| Return On Equity YoY | -33.566 % | |
| Return On Equity IPRWA | high: 0.054 FLXS: 0.037 mean: 0.031 median: 0.025 low: -0.099 |
|
| DuPont ROE | 3.785 % | |
| Return On Invested Capital (ROIC) | 3.715 % | |
| Return On Invested Capital QoQ | -12.67 % | |
| Return On Invested Capital YoY | -77.871 % | |
| Return On Invested Capital IPRWA | high: 4.055 % FLXS: 3.715 % mean: 2.612 % median: 1.862 % low: -0.369 % |
|