Crown Crafts (CRWS)
NASDAQ:CRWS
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Crown Crafts
(NASDAQ:CRWS)
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Rating:68Neutral
Price Target:
$3.00
▲(5.63% Upside)
Action:Reiterated
Date:06/25/26
The score is driven primarily by solid cash generation and manageable balance sheet metrics, reinforced by a constructive (above-average) technical trend. Valuation is helped by a very high dividend yield and reasonable P/E, while the main constraint is unstable recent profitability and a soft revenue trend, despite improved margins and balance sheet progress discussed on the latest earnings call.
Positive Factors
Cash generation
Consistent positive operating and free cash flow despite accounting losses is a durable strength: it funds the dividend, supports working capital and debt reduction, and provides flexibility for sourcing shifts or selective M&A. Sustained cash generation materially lowers near-term refinancing risk.
Negative Factors
Tariff & sourcing concentration
Heavy China concentration combined with elevated and category-specific U.S. tariffs creates a persistent cost and supply risk. Passing through tariffs is constrained by consumer price sensitivity, so sustained exposure will compress margins until re-sourcing or structural pricing changes are implemented, which is time-consuming and costly.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating and free cash flow despite accounting losses is a durable strength: it funds the dividend, supports working capital and debt reduction, and provides flexibility for sourcing shifts or selective M&A. Sustained cash generation materially lowers near-term refinancing risk.
Read all positive factors
Crown Crafts (CRWS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.10M
Dividend Yield12.12%
Average Volume (3M)35.20K
Price to Earnings (P/E)16.1
Beta (1Y)0.45
Revenue Growth-5.71%
EPS GrowthN/A
CountryUS
Employees162
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.89
Shares Outstanding10,760,287
10 Day Avg. Volume21,543
30 Day Avg. Volume35,197
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.92
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit3.11
Enterprise Value/Ebitda16.75
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Crown Crafts Business Overview & Revenue Model
Company Description
Crown Crafts, Inc. (CRWS) operates globally through its subsidiaries, making it a key player in the consumer goods market. The company specializes in a diverse array of merchandise designed for infants, toddlers, and young children. This extensive...
How the Company Makes Money
Crown Crafts makes money primarily by selling infant, toddler, and juvenile products on a wholesale basis to retailers and other trade customers. Revenue is generated when the company designs and sources products (typically manufactured by third-p...
Crown Crafts Earnings Call Summary
Earnings Call Date:Jun 24, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call conveys a generally positive operational and financial tone: the company delivered margin expansion, returned to positive quarterly net income and generated strong operating cash flow while materially reducing debt and maintaining liquidity. These positives are balanced against a slight year-over-year sales decline, ongoing tariff-related costs and refund uncertainty, inventory pressure, and category-specific challenges (notably diaper bags) plus some execution risks related to real estate and international rollouts. Overall, the improvements in profitability, cash generation and balance sheet strength outweigh the headwinds described.Positive Updates
Gross Margin Expansion
Q4 gross margin improved to 22.9% (gross profit $5.1M), up 460 basis points from 18.3% in the year-ago quarter, driven by strategic pricing and a more favorable product mix.
Negative Updates
Persistent Consumer Softness and Macroeconomic Headwinds
Management cited continued softness in consumer spending and headwinds including global conflicts, fluctuating tariffs, higher fuel costs and elevated inflation that weigh on near-term demand.
Read all updates
Q4-2026 Updates
Positive
Negative
Gross Margin Expansion
Q4 gross margin improved to 22.9% (gross profit $5.1M), up 460 basis points from 18.3% in the year-ago quarter, driven by strategic pricing and a more favorable product mix.
Read all positive updates
Company Guidance
Management's guidance emphasized continued margin expansion and disciplined capital allocation supported by the company's strong liquidity and recent results: Q4 net sales were $22.4 million (flat vs $23.2M a year ago) with a 22.9% gross margin (up 460 bps), positive net income of $280k and EPS of $0.03, and fiscal 2026 operating cash flow of $8.3 million; balance sheet metrics include $70.7M total assets, $28.4M inventory, $14.1M total debt (down from $18.5M), and $12.5M undrawn revolver availability. Looking forward, management expects further gross‑margin improvement as sales grow, operating leverage improves and cost initiatives (including consolidation of internal operations) take effect, will continue a balanced capital allocation (quarterly dividend considered by the board while investing in product development and marketing), is pursuing tariff refunds (approximately $5.5M requested; ~$175k received to date), plans a staged rollout of Groovy Girls (specialty stores from May 1, Amazon in the fall, international at K&J in September), and intends to optimize warehouse footprints with moves over the next ~18–24 months.Crown Crafts Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
57
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 83.12M | 82.27M | 87.25M | 87.63M | 75.05M | 87.36M |
| Gross Profit | 19.20M | 20.08M | 20.49M | 23.00M | 19.83M | 23.31M |
| EBITDA | 3.57M | 6.56M | -4.76M | 8.68M | 8.63M | 11.81M |
| Net Income | -9.22M | 1.84M | -9.36M | 4.89M | 5.65M | 9.92M |
Balance Sheet | ||||||
| Total Assets | 76.10M | 70.65M | 81.15M | 82.71M | 90.97M | 60.16M |
| Cash, Cash Equivalents and Short-Term Investments | 2.40M | 200.00K | 521.00K | 829.00K | 1.74M | 1.60M |
| Total Debt | 32.62M | 23.85M | 31.60M | 23.84M | 29.99M | 2.64M |
| Total Liabilities | 36.91M | 31.84M | 41.53M | 31.11M | 41.76M | 14.35M |
| Stockholders Equity | 39.20M | 38.81M | 39.62M | 51.60M | 49.21M | 45.80M |
Cash Flow | ||||||
| Free Cash Flow | 9.10M | 8.26M | 9.75M | 6.30M | 6.92M | 7.73M |
| Operating Cash Flow | 9.93M | 8.27M | 9.82M | 7.08M | 7.74M | 8.26M |
| Investing Cash Flow | -770.00K | -864.00K | -17.17M | -193.00K | -16.91M | -490.00K |
| Financing Cash Flow | -7.81M | -7.73M | 7.04M | -7.80M | 9.32M | -6.79M |
Crown Crafts Technical Analysis
Positive
2.84
Price Trends
2.72
Positive
2.71
Positive
2.66
Positive
Market Momentum
0.03
Negative
65.34
Neutral
72.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRWS, the sentiment is Positive. The current price of 2.84 is above the 20-day moving average (MA) of 2.76, above the 50-day MA of 2.72, and above the 200-day MA of 2.66, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 65.34 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRWS.
Crown Crafts Risk Analysis
Crown Crafts disclosed 21 risk factors in its most recent earnings report. Crown Crafts reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Crown Crafts Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $31.10M | 16.06 | -23.80% | 12.12% | -5.71% | ― | |
64 Neutral | $184.22M | -7.98 | -13.04% | 7.20% | -25.67% | -96.05% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $191.07M | -6.61 | -14.29% | 4.51% | -4.32% | -107.16% | |
41 Neutral | $21.15M | -0.63 | -35.17% | ― | 0.94% | -107.21% | |
41 Neutral | $42.61M | -0.67 | 189.80% | ― | -2.49% | 6.65% |
* Consumer Cyclical Sector Average
CRWS
Crown Crafts
2.89
0.39
15.51%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.