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Culp (CULP) AI Stock Analysis
Culp
(NASDAQ:CULP)
The overall score of 56 reflects a company in the early stages of a potential turnaround. The most significant positive factor is the strong quarterly earnings call, which showed a dramatic improvement in profitability and cash flow, suggesting restructuring efforts are working. This is supported by a moderately bullish technical trend. However, these positives are heavily counterbalanced by a multi-year history of severe financial distress, persistent net losses, and negative cash flow on a trailing basis, which present substantial risk. The negative P/E ratio further underscores the lack of proven, sustainable profitability.
Culp Key Performance Indicators (KPIs)
Gross Profit By SegmentAssesses the profitability of each segment after direct costs, indicating how well each segment is performing in terms of production efficiency and pricing strategy.
Bedding has been the engine of the gross‑profit recovery—rebounding strongly since 2023 and driving most sequential profit gains—while Upholstery has slipped from its pre‑2022 highs and remains a lingering margin drag. 'Other' shows volatile one‑offs. Management’s >$20M of restructuring, pricing and efficiency actions align with the bedding improvement and underpin guidance toward break‑even adjusted EBITDA, but continued upholstery weakness and reliance on tariff refunds/one‑time cash inflows remain material downside risks.
The FlyCulp (CULP) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $44.19M
- Dividend Yield
- ―
- Average Volume (3M)
- 93.35K
- Price to Earnings (P/E)
- -10.8
- Beta (1Y)
- 0.68
- Revenue Growth
- -0.30%
- EPS Growth
- 67.07%
- Country
- US
- Employees
- 887
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Manufacturing - Textiles
Culp Business Overview & Revenue Model
Company Description
Culp, Inc. is a global textile enterprise involved in the manufacturing, procurement, marketing, and sale of materials for bedding and upholstered furniture. Its products, which include mattress fabrics, sewn covers, and pre-cut fabric kits, are dist...
How the Company Makes Money
Culp makes money primarily by selling upholstery and mattress fabrics to business customers (B2B). Revenue is generated when customers—such as upholstered furniture manufacturers and mattress/box-spring producers—purchase fabric yardage and related t...
Culp Earnings Call Summary
The call was strongly optimistic. Culp reported year-over-year growth in sales, gross profit, operating income, net income, adjusted EBITDA, cash flow, and bedding revenue despite one fewer selling week and difficult market conditions. The company also reduced net debt by roughly 70%, maintained liquidity, and provided a positive second-quarter outlook. These strengths outweighed the stated challenges of weak home-furnishings demand, residential upholstery softness, macroeconomic uncertainty, and a dynamic tariff environment.
Q1-2027 Updates
Positive Updates
Negative Updates
Company Guidance
For the second quarter, Culp expects consistent sequential sales volumes, with some growth over the prior year period, and expects to continue to outpace bedding industry revenue trends in what it anticipates to remain a pressured demand environment for home furnishings; it also expects its integration and platform optimization initiatives, pricing, and strategic actions to drive break-even operating income and accelerating adjusted EBITDA results. The company expects to continue improving its net debt position throughout the second quarter while maintaining some strategic borrowings under its China credit facilities, has a goal of returning to a net cash position this fiscal year, and expects capital spending for fiscal 2027 to be in the $2.5 million range.
Culp Financial Statement Overview
Summary
Financial performance is severely stressed. The company has a history of declining annual revenues and five consecutive years of net losses. While the balance sheet has very low debt, equity has eroded significantly. The most critical weakness is persistent negative free cash flow, indicating the business is not self-sustaining and is burning through its financial buffer.
Income Statement
18Very NegativeBalance Sheet
45NeutralCash Flow
10Very Negative| Breakdown | TTM | Apr 2026 | Apr 2024 | Apr 2023 | Apr 2021 | Apr 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 206.76M | 203.48M | 189.99M | 207.25M | 268.58M | 256.17M |
| Gross Profit | 33.31M | 25.16M | 3.42M | -16.79M | 9.84M | 40.50M |
| EBITDA | -1.24M | -5.08M | -3.17M | -19.80M | 8.23M | 901.00K |
| Net Income | -4.00M | -10.21M | -19.10M | -31.52M | -3.21M | -28.67M |
Balance Sheet | ||||||
| Total Assets | 108.49M | 110.95M | 123.65M | 152.40M | 177.56M | 215.08M |
| Cash, Cash Equivalents and Short-Term Investments | 11.76M | 9.75M | 6.95M | 22.37M | 14.55M | 74.98M |
| Total Debt | 15.01M | 20.16M | 17.64M | 6.25M | 10.28M | 42.19M |
| Total Liabilities | 54.28M | 62.89M | 65.73M | 63.10M | 58.06M | 85.39M |
| Stockholders Equity | 54.20M | 48.15M | 57.64M | 89.08M | 119.50M | 129.70M |
Cash Flow | ||||||
| Free Cash Flow | -1.30M | -9.97M | -20.60M | 5.70M | -23.14M | 385.00K |
| Operating Cash Flow | -574.00K | -9.37M | -17.65M | 7.80M | -17.44M | 4.97M |
| Investing Cash Flow | 5.28M | 6.38M | 598.00K | -752.00K | 2.50M | -5.71M |
| Financing Cash Flow | -5.74M | 5.48M | 12.67M | -436.00K | -7.42M | 30.64M |
Culp Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CULP, the sentiment is Negative. The current price of 3.61 is below the 20-day moving average (MA) of 3.68, above the 50-day MA of 3.61, and above the 200-day MA of 3.35, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 12.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CULP.
Culp Risk Analysis
Culp disclosed 27 risk factors in its most recent earnings report. Culp reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksCulp Peers Comparison
Overall Rating
VNCE73Outperform
JRSH68Neutral- CULP56Neutral
UFI53Neutral
JL48Neutral
XELB42Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| VNCE | 73Outperform | $138.12M | 18.08 | 14.48% | ― | 8.02% | ― |
| JRSH | 68Neutral | $75.37M | 15.36 | 7.62% | 3.37% | 22.39% | 487.96% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| CULP | 56Neutral | $44.19M | -10.84 | -7.76% | ― | -0.30% | 67.07% |
| UFI | 53Neutral | $109.67M | -7.20 | -6.58% | ― | -6.45% | 37.31% |
| JL | 48Neutral | $15.26M | 42.57 | 16.79% | ― | 7.90% | 397.38% |
| XELB | 42Neutral | $2.56M | -0.11 | -95.03% | ― | -21.18% | 65.21% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| CULP | Culp, Inc | 3.47 | -0.54 | -13.47% | |
| UFI | Unifi Inc | 5.90 | 1.51 | 34.40% | |
| VNCE | Vince Holding Corp | 10.67 | 7.88 | 282.44% | |
| XELB | XCel Brands Inc | 0.37 | -0.77 | -67.54% | |
| JRSH | Jerash Holdings | 5.93 | 2.84 | 92.07% | |
| JL | J-Long Group Limited | 4.28 | -0.07 | -1.61% |
Culp Corporate Events
Culp Shareholders Elect Directors and Approve Governance Matters
PositiveAt its annual meeting on September 23, 2026, Culp, Inc. shareholders elected seven directors, including J. Douglas Collier and Robert G. Culp, IV, to serve on the board until the 2027 annual meeting or until successors are chosen. The voting outcomes...
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.
Date of analysis: Sep 23, 2026