Haverty (HVT) AI Stock Analysis

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Haverty

(NYSE:HVT)

68Neutral

Haverty's stock score reflects a stable financial position supported by strong cash flow generation and cost management. The valuation is appealing with a reasonable P/E ratio and a high dividend yield. However, technical analysis indicates a lack of strong momentum, and the earnings call highlights challenges with declining sales and tariff uncertainties. These factors contribute to a moderate overall stock score, suggesting cautious optimism.

Haverty (HVT) vs. S&P 500 (SPY)

Market Cap

$339.33M

Dividend Yield6.09%

Average Volume (3M)138.22K

Price to Earnings (P/E)16.4

Beta (1Y)1.01

Revenue Growth-12.29%

EPS Growth-55.73%

CountryUS

Employees2,334

SectorConsumer Cyclical

Sector Strength77

IndustryHome Improvement

Share Statistics

EPS (TTM)0.23

Shares Outstanding14,907,855

10 Day Avg. Volume139,250

30 Day Avg. Volume138,225

Financial Highlights & Ratios

PEG Ratio1.88

Price to Book (P/B)0.97

Price to Sales (P/S)0.00

P/FCF Ratio10.14

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$35.00

Price Target Upside65.25% Upside

Rating ConsensusHold

Number of Analyst Covering1

Haverty Business Overview & Revenue Model

Company DescriptionHaverty Furniture Companies, Inc. (HVT) is a well-established retailer specializing in the sale of residential furniture and accessories. Founded in 1885, the company operates primarily in the United States, offering a wide range of high-quality furniture products for living rooms, bedrooms, dining areas, and home offices. Haverty's stores provide customers with stylish and comfortable home furnishings, complemented by design and customization services to enhance the shopping experience.

How the Company Makes MoneyHaverty Furniture Companies, Inc. generates revenue primarily through the sale of furniture and home accessories. The company's key revenue streams include in-store sales from its extensive network of retail locations, e-commerce sales via its online platform, and financing options provided to customers. Haverty also benefits from strategic partnerships with manufacturers and suppliers, allowing it to offer exclusive products and maintain competitive pricing. The company's revenue is further supported by its focus on customer service, design assistance, and promotional activities aimed at attracting and retaining a loyal customer base.

Haverty Financial Statement Overview

Summary

Haverty's overall financial health is stable, with strong cost management and reasonable leverage levels. Despite declining revenues, the company has maintained profitability through efficient operations. Cash flow generation is robust, supporting ongoing operations and potential investments. However, the declining revenue trend poses a risk, and efforts to stabilize or grow revenues would be beneficial for long-term sustainability.

Income Statement

Positive

Haverty's income statement reflects a declining revenue trend from 2022 to 2025, with significant revenue drops from 2022 to 2023 and 2023 to 2024. The gross profit margin for TTM is 70.7%, indicating strong profitability in terms of cost management. However, the net profit margin has decreased, showing potential challenges in converting revenue into profit. The EBIT margin for TTM stands at 12.2%, which is a positive indicator despite reduced revenue. The company faces challenges in maintaining EBITDA margins, as seen in the low TTM EBITDA margin of 4.3%.

Balance Sheet

Positive

Haverty exhibits a healthy balance sheet with a debt-to-equity ratio of 0.71 in TTM, indicating moderate leverage. The equity ratio is 47.5%, suggesting a solid capital structure with a substantial portion of assets financed by equity. Return on equity for TTM is 7.0%, which is satisfactory but shows room for improvement. The company has managed to maintain stable equity levels despite fluctuations in total liabilities.

Cash Flow

Positive

The cash flow statement shows consistent free cash flow generation, with a notable increase in free cash flow from 2024 to TTM. The operating cash flow to net income ratio for TTM is 2.90, indicating strong cash generation relative to net income. Free cash flow to net income ratio is 1.41, reflecting efficient conversion of net income into free cash flow. The overall cash flow management appears robust, although capital expenditures have been fluctuating.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
720.47M	722.90M	862.13M	1.05B	1.01B	748.25M
	Gross Profit
439.14M	439.08M	523.09M	604.23M	574.63M	418.99M
	EBIT
17.10M	19.86M	67.28M	117.93M	118.36M	41.71M
	EBITDA
30.87M	19.86M	85.88M	134.85M	134.66M	59.91M
	Net Income Common Stockholders
21.34M	19.96M	56.32M	89.36M	90.80M	59.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
111.94M	120.03M	120.64M	123.13M	166.15M	200.06M
	Total Assets
642.69M	648.75M	654.13M	649.05M	686.29M	680.37M
	Total Debt
217.74M	218.38M	217.75M	221.29M	230.35M	233.67M
	Net Debt
105.80M	98.34M	97.12M	98.16M	64.21M	33.61M
	Total Liabilities
337.33M	341.19M	345.77M	359.65M	430.32M	427.40M
	Stockholders Equity
305.36M	307.56M	308.37M	289.40M	255.97M	252.97M
Cash Flow		Free Cash Flow
30.11M	26.82M	44.09M	22.60M	63.15M	119.26M
	Operating Cash Flow
61.93M	58.91M	97.20M	51.02M	97.24M	130.19M
	Investing Cash Flow
-31.40M	-31.63M	-53.06M	-28.32M	-34.00M	65.36M
	Financing Cash Flow
-30.10M	-28.74M	-46.29M	-65.62M	-97.15M	-71.18M

Haverty Technical Analysis

Technical Analysis Sentiment

Positive

Last Price21.18

Price Trends

50DMA

19.67

Positive

100DMA

20.75

Positive

200DMA

22.76

Negative

Market Momentum

MACD

0.44

Negative

RSI

63.22

Neutral

STOCH

87.07

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HVT, the sentiment is Positive. The current price of 21.18 is above the 20-day moving average (MA) of 19.10, above the 50-day MA of 19.67, and below the 200-day MA of 22.76, indicating a neutral trend. The MACD of 0.44 indicates Negative momentum. The RSI at 63.22 is Neutral, neither overbought nor oversold. The STOCH value of 87.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HVT.

Haverty Risk Analysis

Haverty disclosed 19 risk factors in its most recent earnings report. Haverty reported the most risks in the “Production” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Haverty Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLXS	70 Outperform	$172.96M	12.91	9.48%	2.01%	7.24%	-9.51%
HVT	68 Neutral	$339.33M	16.41	6.97%	6.09%	-12.29%	-55.73%
ARHS	68 Neutral	$1.19B	20.22	18.39%	―	0.71%	-45.31%
FND	63 Neutral	$8.60B	41.50	9.74%	―	2.96%	-9.49%
Sector *	61 Neutral	$6.98B	11.29	2.93%	3.90%	2.60%	-21.72%
BSET	56 Neutral	$153.80M	―	-3.83%	4.41%	-11.78%	-13.89%
LESL	46 Neutral	$163.52M	―	12.90%	―	-6.12%	-396.11%

* Consumer Cyclical Sector Average

Performance Comparison

HVT

Haverty

21.10

-6.86

-24.54%

BSET

Bassett Furniture

17.55

4.13

30.77%

FLXS

Flexsteel

33.27

-1.66

-4.75%

FND

Floor & Decor Holdings

79.54

-39.40

-33.13%

LESL

Leslie's

0.91

-4.15

-82.02%

ARHS

Arhaus

8.38

-7.97

-48.75%

Haverty Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: 16.63%|

Next Earnings Date:Aug 05, 2025

Earnings Call Sentiment Neutral

Despite challenges such as a decrease in net sales and ongoing tariff uncertainties, the company showcased strong gross profit margins, improved pre-tax profits, and successful promotional initiatives. The cash position remains strong with a debt-free balance sheet. However, the balance of positive and negative aspects results in a neutral overall sentiment.

Q1-2025 Updates

Positive Updates

Gross Profit Margin Increase

The gross profit margin increased by 90 basis points to 61.2% from 60.3%, attributed to product selection and merchandise mix.

Increase in Pre-Tax Profits

Pre-tax profits for the quarter increased to $5.3 million from $3.2 million in Q1 2024, improving the operating margin from 1.7% to 2.9%.

Successful Promotional Initiative

A special savings offer sent to email subscribers generated over $8 million in revenue during Q1 as part of the company's 140th-anniversary celebration.

Cash Position and Debt-Free Balance Sheet

Ended the quarter with $111.9 million of cash and cash equivalents, maintaining a debt-free balance sheet.

Store Openings and Relocations

Opened a new location in Daytona and planned the opening of a third store in Houston in late Q3, with two more stores planned in Houston by 2026.

Negative Updates

Decrease in Net Sales and Comparable Store Sales

Net sales decreased by 1.3% to $181.6 million, with comparable store sales down 4.8% over the prior year period.

Impact of Winter Storms and Presidential Inauguration

Winter storms caused disruptions and a disappointing 10% decrease in President's Day sales. The presidential inauguration also shifted consumer sentiment to cautious concern.

Tariff Uncertainty

Ongoing tariff issues, especially with increased tariffs on products from Vietnam, Cambodia, India, Indonesia, and Europe, caused supply chain challenges.

Weakness in Dining and Occasional Categories

Experienced some weakness in the dining and occasional categories compared to other product lines.

Company Guidance

During the call, Havertys provided guidance for the fiscal year 2025, with expectations for gross margins to be between 60% and 60.5%, considering current tariffs. Total SG&A expenses are projected to be between $291 million and $293 million, reflecting store growth and inflation, with variable costs ranging from 18.6% to 19%. Capital expenditures have been adjusted downward to $24 million due to tariff uncertainties, with allocations for store expansions, distribution network investments, and IT improvements. The anticipated effective tax rate is set at 26.5%, excluding potential new tax legislation. Havertys plans to continue monitoring tariff impacts and adjust pricing strategies as necessary, while maintaining a focus on expanding their store count and leveraging their distribution network to enhance operational efficiency.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.