One-glance verdict
Undervalued
$59.72 our estimate vs market $13.29
Wall Street consensus: $16.50 (-72.4% lower than our fair-value estimate)
78% below our estimate, below the bear case
Fundamentals snapshot
Hooker Furnishings Corporation
HOFT · NMS · Consumer Cyclical · Furnishings, Fixtures & Appliances
Current price
$13.29
52-week range
$8.62 - $18.09
Market cap
$142.10M
Balance sheet
Distressed
-1.16x Concerning
Net debt $5.29M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Free cash flow was positive in 8/10 years.
- Reward Dividend yield is 3.5% with 25-year payout history.
- Risk Insider ownership is only 3.3% (peer median: 13.1%).
- Risk Return on equity was -5.1% last year — the company lost money on shareholders' equity.
What this company does
Hooker Furnishings Corporation
Hooker Furnishings sells a wide range of furniture for homes and hotels, from sofas to dining sets, under brands like Hooker Furniture and Bradington-Young. The company makes most of its money selling furniture for homes through various stores, which matters because its sales are heavily influenced by the health of the housing market and consumer spending on home goods.
How the company got here
Hooker Furnishings was started in 1924 by J. Clyde Hooker, Sr. in Martinsville, Virginia, to create jobs in a town facing hard times. The company has been led by the Hooker family for three generations, which is rare for a publicly traded company. For much of its history, it focused on manufacturing traditional wood furniture in the U.S. A major turning point came in the late 1980s when it began importing furniture from overseas to manage costs, shifting its business model from being just a manufacturer to also a global marketer and importer. This strategy helped the company survive and grow into one of the larger furniture suppliers in the U.S.
What it actually does
Hooker Furnishings sells a wide variety of furniture for almost every room in a house, including the living room, dining room, bedroom, and home office, as well as outdoor spaces. You would recognize their products as things like sofas, chairs, dining tables, beds, and entertainment centers. The company offers different styles, from traditional to modern, and sells them through various retailers like independent furniture stores and online shops. While it still manufactures some high-end and custom furniture in Virginia and North Carolina, a significant portion of its products are now made overseas, primarily in Asia.
Hooker Branded
This is the company's core and namesake business, representing a significant part of its sales. It includes wooden and metal furniture (often called 'casegoods' in the industry) for the bedroom, dining room, and home office under the main Hooker Furniture brand. This segment also sells imported upholstered furniture like sofas and chairs. Think of this as the classic, upper-middle-priced furniture you would find in a traditional furniture store, which is sold to retailers who then sell it to everyday consumers.
Domestic Upholstery
This part of the company focuses on making more specialized and custom-ordered upholstered furniture, like sofas and leather chairs, right here in the United States. It includes brands like Bradington-Young, known for upscale leather furniture, and HF Custom, which makes fashion-forward custom fabric chairs and sofas. This segment also includes Sunset West, which makes outdoor furniture. Because much of this furniture is made-to-order in American factories, it caters to customers looking for specific styles, fabrics, or higher-end quality.
All Other
This smaller segment primarily consists of the company's hospitality business, which furnishes commercial properties rather than individual homes. A key part of this is Samuel Lawrence Hospitality (SLH), which designs and provides furniture for four and five-star hotels. It also includes H Contract, which supplies furniture to senior living facilities. While a smaller piece of the overall company, this segment serves a completely different type of customer—businesses that need durable and stylish furniture for their properties.
What management is betting on now
The company's leadership is focused on simplifying the business to be more profitable. They recently sold off some of their lower-priced brands to concentrate on their stronger, higher-margin (meaning, they make more profit per sale) core brands. A major priority is a cost-cutting program to make the company leaner and more efficient. They are also investing in growth by introducing new, more modern product lines to attract different customers and expanding into new channels like selling directly to interior designers. A key new initiative is a licensed collection of furniture with the 'Margaritaville' brand, which they believe will drive future sales.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$-18.88M
FY2025 Q4
$-11.27M
FY2026 Q1
$13.81M
FY2026 Q2
$16.41M
FY2026 Q3
$2.87M
FY2026 Q4
$-25.73M
FY2027 Q1
$14.01M
FY2027 Q2
$22.94M
Revenue
$-522.00K
Net income
$1.67M
Diluted EPS
0.15
Operating cash flow
$24.04M
Free cash flow
$22.94M
Fetching…
Sources
Revenue
—
Net income
$1.06M
Diluted EPS
0.10
Operating cash flow
$14.41M
Free cash flow
$14.01M
Fetching…
Sources
Revenue
—
Net income
$536.00K
Diluted EPS
0.05
Operating cash flow
$-25.52M
Free cash flow
$-25.73M
Fetching…
Sources
Revenue
—
Net income
$-21.17M
Diluted EPS
-1.99
Operating cash flow
$3.69M
Free cash flow
$2.87M
Fetching…
Sources
Revenue
—
Net income
$-3.28M
Diluted EPS
-0.31
Operating cash flow
$18.11M
Free cash flow
$16.41M
Fetching…
Sources
Revenue
—
Net income
$-3.05M
Diluted EPS
-0.29
Operating cash flow
$14.66M
Free cash flow
$13.81M
Fetching…
Sources
Revenue
—
Net income
$-2.33M
Diluted EPS
-0.22
Operating cash flow
$-10.68M
Free cash flow
$-11.27M
Fetching…
Sources
Revenue
—
Net income
$-4.13M
Diluted EPS
-0.39
Operating cash flow
$-17.65M
Free cash flow
$-18.88M
Fetching…
Sources
Is it cheap or expensive?
Fair value $59.72 vs current price $13.29
Wall Street consensus is the average analyst price target: $16.50 (-72.4% lower than our fair-value estimate).
Our most-likely fair value is $59.72 a share — about 349.4% above today's price of $13.29, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $5.3M. Interest coverage -1.2x.
Net debt
$5.29M
Interest coverage
-1.16x
Hooker Furnishings Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
HOFT
BASELINE
Hooker Furnishings Corporation
Total debt $23.95M Interest coverage -1.16x This is the baseline the peer rows are being compared against.
Total debt $82.71M Interest coverage 160.10x This peer still has a real interest-payment cushion, while HOFT does not.
Total debt $51.90M Interest coverage 1,934.09x This peer still has a real interest-payment cushion, while HOFT does not.
Total debt $120.69M Interest coverage 203.19x This peer still has a real interest-payment cushion, while HOFT does not.
Total debt $541.51M Interest coverage 284.68x This peer still has a real interest-payment cushion, while HOFT does not.
Total debt $230.71M Interest coverage 4.13x This peer still has a real interest-payment cushion, while HOFT does not.
What you should know
The case for and against HOFT
2 Rewards
3 Risks
Rewards
-
Free cash flow was positive in 8/10 years.
-
Dividend yield is 3.5% with 25-year payout history.
Risks
-
Insider ownership is only 3.3% (peer median: 13.1%).
-
Return on equity was -5.1% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -1.0% to -4.7% over 3 years.
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)
—
Forward P/E
10.98x
P/B
0.84x
P/S
0.53x
EV/EBITDA
37.28x
PEG ratio
1.04x
Profitability
How much profit each dollar creates
Gross margin
27.6%
Operating margin
-4.7%
Net margin
-6.6%
ROE
-5.1%
ROA
-0.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.14x
Current ratio
3.03x
Quick ratio
1.45x
Total debt
$23.95M
Total cash
$18.66M
Growth
How the business has been compounding
Revenue TTM
$444.59M
Revenue 5Y CAGR
76.8%
EPS TTM
-0.88
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$16.61M
Free CF TTM
$15.14M
FCF margin
3.4%
Dividend
Shareholder payout
Yield
3.5%
Payout ratio
650.0%
Last ex-div date
2026-09-15