Bassett Furniture (BSET) AI Stock Analysis

• Market Cap: $128.11M
• Dividend Yield: 5.42%
• Average Volume (3M): 30.34K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.47
• Revenue Growth: -2.74%
• EPS Growth: N/A
• Country: US
• Employees: 1,228
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.09
• Shares Outstanding: 8,685,710
• 10 Day Avg. Volume: 23,722
• 30 Day Avg. Volume: 30,343
• PEG Ratio: -0.07
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.40
• P/FCF Ratio: -114.95
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 0.99
• Enterprise Value/Ebitda: 16.49
• 1Y Price Target: $19.00
• Price Target Upside: 28.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: $17.00 ▲(15.25% Upside)

Bassett Furniture's overall stock score reflects a moderate recovery in financial performance, with notable improvements in revenue growth and operational profits. The valuation is attractive with a high dividend yield, but technical indicators suggest a lack of strong momentum. The earnings call provided a positive outlook with strategic initiatives to address industry challenges, contributing to a cautiously optimistic view.

Bassett Furniture Business Overview & Revenue Model

Company Description

Bassett Furniture Industries, Inc. is a leading manufacturer and retailer of high-quality home furnishings in the United States. Founded in 1902 and headquartered in Bassett, Virginia, the company specializes in crafting custom furniture, including sofas, chairs, dining sets, and bedroom furniture. Bassett operates through a combination of company-owned and franchised retail stores as well as an extensive online presence, catering to a diverse customer base seeking stylish and durable home décor solutions.

How the Company Makes Money

Bassett Furniture primarily generates revenue through the sale of its furniture products, which include both standard and custom-made items. The company's revenue model is based on direct sales from its retail outlets and e-commerce platform, where customers can explore and purchase a wide range of furniture styles. Key revenue streams include sales of upholstered furniture, case goods, and accessories. Additionally, Bassett benefits from a strong brand reputation and customer loyalty, which are enhanced by its focus on quality craftsmanship and design. The company also engages in strategic partnerships with designers and home décor professionals to expand its market reach and drive additional sales. Factors contributing to Bassett's earnings include the growth of the housing market, consumer trends favoring home improvement, and effective marketing strategies that emphasize the brand's unique value propositions.

Bassett Furniture Financial Statement Overview

Summary

Bassett Furniture is showing signs of recovery with improved revenue growth and operating cash flow. While profitability margins and return on equity are still low, they have improved from previous periods. The company's balance sheet remains stable with moderate leverage, but challenges in free cash flow generation persist. Continued focus on operational efficiency and cash flow management will be crucial for sustained improvement.

Income Statement

Bassett Furniture shows a modest revenue growth of 1.37% TTM, indicating a slight recovery from previous declines. The gross profit margin is healthy at 56.33%, reflecting efficient cost management. However, the net profit margin is low at 2.35%, and EBIT margin is weak at 0.68%, suggesting challenges in operational efficiency. The improvement from negative margins in the previous annual report is a positive sign.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.56 TTM, indicating a balanced approach to leveraging. Return on equity is low at 4.67%, but it has improved from negative figures in the previous year, showing progress in generating returns for shareholders. The equity ratio is stable, suggesting a solid capital structure.

Cash Flow

Operating cash flow has improved significantly, covering 16.51% of net income, up from previous periods. However, free cash flow growth is negative, and the free cash flow to net income ratio is 0.65, indicating some challenges in converting profits into free cash flow. The improvement in operating cash flow is a positive development.

Breakdown	TTM	Dec 2024	Dec 2019	Dec 2018	Dec 2017	Dec 2016
Income Statement
Total Revenue	330.95M	329.92M	452.09M	456.86M	452.50M	432.04M
Gross Profit	186.43M	179.41M	226.48M	277.27M	274.92M	264.52M
EBITDA	11.16M	-4.42M	12.99M	26.48M	42.15M	39.20M
Net Income	7.78M	-9.70M	-1.93M	8.22M	18.26M	15.83M
Balance Sheet
Total Assets	324.24M	341.17M	275.77M	291.64M	293.75M	278.27M
Cash, Cash Equivalents and Short-Term Investments	54.63M	59.91M	37.12M	56.11M	77.07M	58.27M
Total Debt	92.75M	106.44M	0.00	292.00K	3.73M	7.11M
Total Liabilities	158.52M	173.84M	97.10M	101.33M	102.29M	97.56M
Stockholders Equity	165.72M	167.33M	178.67M	190.31M	191.46M	180.71M
Cash Flow
Free Cash Flow	7.87M	-1.16M	-7.57M	10.40M	20.88M	17.56M
Operating Cash Flow	12.10M	4.05M	9.81M	28.70M	36.38M	39.06M
Investing Cash Flow	-7.28M	-8.77M	-11.17M	-30.69M	-6.13M	-20.83M
Financing Cash Flow	-8.70M	-8.12M	-12.42M	-18.49M	-11.44M	-19.35M

Bassett Furniture Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSET, the sentiment is Negative. The current price of 14.75 is below the 20-day moving average (MA) of 15.36, below the 50-day MA of 15.91, and below the 200-day MA of 15.85, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 37.92 is Neutral, neither overbought nor oversold. The STOCH value of 13.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BSET.

Bassett Furniture Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSET	―	$128.11M	16.52	4.70%	5.42%	-2.74%	―
ETD	―	$615.04M	13.09	9.96%	7.06%	-4.61%	-25.66%
LZB	―	$1.31B	14.52	9.09%	2.78%	2.18%	-22.35%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	―	$1.07B	―	-1.18%	4.39%	5.37%	-127.27%
HOFT	―	$97.61M	―	-6.33%	10.13%	-6.46%	-1110.82%
SNBR	―	$125.24M	―	―	―	-14.40%	-2.14%

Bassett Furniture Corporate Events

Bassett Furniture Reports Positive Turnaround in Latest Earnings

Bassett Furniture Industries, Incorporated is a leading manufacturer and retailer in the home furnishings sector, known for its design, manufacture, and distribution of furniture products through both company-owned and independent retail stores. The company operates primarily in the United States, with a focus on wood and upholstery furniture.

Bassett Furniture’s Earnings Call: Growth Amid Challenges

Bassett Furniture Industries, Incorporated recently held its earnings call, revealing a generally positive sentiment despite facing some challenges. The company reported improvements in revenue and operational profits, while also addressing issues such as tariffs and slightly declining retail margins. However, Bassett demonstrated resilience through increased e-commerce conversions and the expansion of its Bassett Custom Studio program.