Flexsteel Industries, Inc. (FLXS)
Valuation Overview•Is Flexsteel Industries, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 60/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
FLXS struggles with subpar profitability and pressured margins. This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company is facing top-line contraction (-6.8% 3Y CAGR) paired with highly explosive earnings growth (133.2% EPS 3Y CAGR). Operating efficiency remains adequate with margins around 6.1%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $119.1M | +6.9% | -6.8% | +3.7% | -0.6% | |
| EBITDA | $10.7M | — | +36.9% | — | — | |
| Net Income | $7.5M | +91.4% | +121.6% | — | -1.0% | |
| EPS (Diluted) | $1.18 | +85.9% | +133.2% | — | +2.1% | |
| Free Cash Flow | -$735K | +24.4% | +101.2% | +18.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 23.2% | 20.5% | 19.0% | 19.1% |
| Operating Margin | 6.1% | 4.3% | 4.1% | 2.2% |
| Net Margin | 4.8% | 3.6% | 3.2% | 1.5% |
| FCF Margin | 6.1% | 6.3% | 2.4% | 2.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.75 | $1.14 | +52.0% | ||
| Q1'26 | $0.79 | $1.18 | +49.4% | ||
| Q4'25 | $0.78 | $1.31 | +67.9% | ||
| Q3'25 | $0.84 | $1.40 | +66.7% | ||
| Q2'25 | $0.88 | $1.13 | +28.4% | ||
| Q1'25 | $0.74 | $0.95 | +28.4% | ||
| Q4'24 | $0.62 | $0.74 | +19.4% | ||
| Q3'24 | $0.67 | $0.75 | +11.9% |
Total return is +84.1% (1Y), outperforming the benchmark by +59.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +63.0% | +53.7% | — |
| 1Y | +84.1% | +59.1% | +2.2% |
| 3YCAGR | +52.5% | +31.8% | +10.9% |
| 5YCAGR | +9.2% | -3.7% | +7.4% |
| 10YCAGR | +5.7% | -8.1% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Flexsteel Industries, Inc. (FLXS) valuation, health, and returns.
Based on peer relative multiples, Flexsteel Industries, Inc. appears Slightly cheap versus peers compared to industry peers.
Flexsteel Industries, Inc. has multiple valuation anchors: Peer Relative Fair Value: $71.44 | Wall Street Analyst Target: $54.00 (implying -16.7% upside). A convergence of these signals offers higher conviction.
Flexsteel Industries, Inc. displays good financial health with a composite quality score of 60/100, supported by a Altman Z-Score of 4.9 (safe zone), Piotroski F-Score of 8/9, Return on Invested Capital (ROIC) of 9.9%.
Flexsteel Industries, Inc. pays a 1.0% dividend yield, covered by a 18% payout ratio with 2 years of growth, supplemented by a 0.8% buyback yield.
Flexsteel Industries, Inc.'s current growth trajectory is Accelerating. The company achieved +6.9% 1Y revenue growth and +85.9% 1Y EPS growth, compared to its 3Y revenue CAGR of -6.8%.
Wall Street consensus is Hold based on 0 analysts, beating EPS expectations in 92% of recent quarters with a 10-quarter streak. The consensus price target represents a -16.7% change from current levels.
Investment risks for Flexsteel Industries, Inc. include: -33.9% 1-year max drawdown. Volatility risk is characterized by a beta of 1.23x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.