One-glance verdict
Undervalued
$253.75 our estimate vs market $88.41
Wall Street consensus: $79.50 (-68.7% lower than our fair-value estimate)
65% below our estimate, below the bear case
Fundamentals snapshot
Flexsteel Industries, Inc.
FLXS · NMS · Consumer Cyclical · Furnishings, Fixtures & Appliances
Current price
$88.41
52-week range
$34.00 - $90.65
Market cap
$361.75M
Balance sheet
Healthy
1,934.09x Strong cushion
Net debt $35.22M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 4.1% last year.
- Reward Returns 22.0% on equity, ahead of 83% of its peers.
- Risk Stock trades 27.6% above its 5-year average P/E.
- Risk Forward P/E (14.6x) is higher than trailing (14.6x) - earnings are expected to drop.
What this company does
Flexsteel Industries, Inc.
Flexsteel Industries is an American company that makes and sells home furniture like sofas, chairs, and dining sets. The company earns money primarily by selling these items through its website and directly to furniture stores. Because furniture is a large purchase for most households, Flexsteel's sales often depend on the strength of the economy and how confident people feel about spending money.
How the company got here
Flexsteel's story begins in 1893 as a small furniture maker in Minneapolis. A key turning point was its adoption of a unique, patented steel spring, inspired by the springs in clocks and tree branches, which became the foundation of its reputation for durable and comfortable furniture. This innovation, called the Blue Steel Spring™, was so central to its identity that the company eventually renamed itself Flexsteel Industries. For many years, the company also made seating for recreational vehicles (RVs) and commercial clients, but it has since shifted its focus entirely to furniture for the home.
What it actually does
Flexsteel makes and sells furniture for almost every room in a house. This includes upholstered items like sofas, loveseats, and recliners, as well as wooden furniture such as dining tables, chairs, and bedroom sets. The company is best known for the unique spring system inside its seating, which it guarantees for the life of the product and gives the furniture a reputation for lasting comfort. You can find their products in over a thousand retail stores across the country and through online sellers.
Furniture Products
The company operates as one main business focused on residential furniture. This single segment, which accounts for all of its sales, involves designing, manufacturing, and importing a wide range of furniture that is then sold to consumers through retail stores and e-commerce (selling directly to customers online). While in the past it had different divisions, Flexsteel has simplified its operations to concentrate on being a major player in the home furnishings market. The company sells its products under brand names like Flexsteel and, until recently, Homestyles for ready-to-assemble furniture.
What management is betting on now
Management's current strategy is centered on growing sales by creating new and innovative products, particularly in categories like "health and wellness" which includes specialized recliners and sleep solutions. They are also focused on making their supply chain (the network of companies that get products from the factory to the customer) more resilient by expanding manufacturing in North America. The company is investing in its digital capabilities to improve the online shopping experience for customers. A major long-term goal is to significantly increase sales while improving the company's operating margin (the percentage of profit made from each dollar of sales before interest and taxes).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$1.97M
FY2025 Q2
$5.79M
FY2025 Q3
$10.91M
FY2025 Q4
$15.06M
FY2026 Q1
$2.76M
FY2026 Q2
$-735.00K
FY2026 Q3
$21.63M
FY2026 Q4
$23.92M
Revenue
$115.36M
Net income
$12.71M
Diluted EPS
2.44
Operating cash flow
$24.32M
Free cash flow
$23.92M
Fetching…
Sources
Revenue
$115.12M
Net income
$6.45M
Diluted EPS
1.14
Operating cash flow
$22.07M
Free cash flow
$21.63M
Fetching…
Sources
Revenue
$118.25M
Net income
$6.64M
Diluted EPS
1.18
Operating cash flow
$1.01M
Free cash flow
$-735.00K
Fetching…
Sources
Revenue
$110.44M
Net income
$7.33M
Diluted EPS
1.31
Operating cash flow
$4.11M
Free cash flow
$2.76M
Fetching…
Sources
Revenue
$114.61M
Net income
$10.70M
Diluted EPS
1.89
Operating cash flow
$15.63M
Free cash flow
$15.06M
Fetching…
Sources
Revenue
$113.97M
Net income
$-3.74M
Diluted EPS
-0.71
Operating cash flow
$12.26M
Free cash flow
$10.91M
Fetching…
Sources
Revenue
$108.48M
Net income
$9.05M
Diluted EPS
1.62
Operating cash flow
$6.69M
Free cash flow
$5.79M
Fetching…
Sources
Revenue
$104.01M
Net income
$4.14M
Diluted EPS
0.74
Operating cash flow
$2.40M
Free cash flow
$1.97M
Fetching…
Sources
Is it cheap or expensive?
Fair value $253.75 vs current price $88.41
Wall Street consensus is the average analyst price target: $79.50 (-68.7% lower than our fair-value estimate).
Our most-likely fair value is $253.75 a share — about 187.0% above today's price of $88.41, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $35.2M. Interest coverage 1934.1x.
Net debt
$35.22M
Interest coverage
1,934.09x
Flexsteel Industries, Inc.'s profit covers its interest bill about 1934.1 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
FLXS
BASELINE
Flexsteel Industries, Inc.
Total debt $51.90M Interest coverage 1,934.09x This is the baseline the peer rows are being compared against.
Total debt $82.71M Interest coverage 160.10x -92% vs FLXS Carries about 12.1x less debt cushion than FLXS.
Total debt $23.95M Interest coverage -1.16x -100% vs FLXS This peer has almost no interest-payment cushion compared with FLXS.
Total debt $230.71M Interest coverage 4.13x -100% vs FLXS Carries about 467.8x less debt cushion than FLXS.
Total debt $120.69M Interest coverage 203.19x -89% vs FLXS Carries about 9.5x less debt cushion than FLXS.
Total debt $541.51M Interest coverage 284.68x -85% vs FLXS Carries about 6.8x less debt cushion than FLXS.
What you should know
The case for and against FLXS
3 Rewards
3 Risks
Rewards
-
Revenue grew 4.1% last year.
-
Returns 22.0% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
-
Stock trades 27.6% above its 5-year average P/E.
-
Forward P/E (14.6x) is higher than trailing (14.6x) - earnings are expected to drop.
-
Insider ownership is only 9.9% (peer median: 13.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
14.57x
Forward P/E
14.61x
P/B
2.72x
P/S
0.79x
EV/EBITDA
8.39x
PEG ratio
1.36x
Profitability
How much profit each dollar creates
Gross margin
24.7%
Operating margin
14.2%
Net margin
7.2%
ROE
22.0%
ROA
9.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.39x
Current ratio
2.09x
Quick ratio
0.78x
Total debt
$51.90M
Total cash
$16.68M
Growth
How the business has been compounding
Revenue TTM
$459.18M
Revenue 5Y CAGR
49.0%
EPS TTM
6.07
EPS 5Y CAGR
30.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$51.52M
Free CF TTM
$47.58M
FCF margin
10.4%
Dividend
Shareholder payout
Yield
1.2%
Payout ratio
14.0%
Last ex-div date
2026-09-30