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Culp
(NASDAQ:CULP)
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Rating:62Neutral
Price Target:
$4.00
▲(16.62% Upside)
Action:Reiterated
Date:09/15/26
Overall score is supported most by a strong, low-debt balance sheet and improving operating trajectory, reinforced by positive technical momentum. Offsetting these strengths are still-weak TTM profitability and negative TTM cash generation, plus limited valuation support due to negative earnings (negative P/E) and no dividend yield provided.
Positive Factors
Bedding growth and share gains
Bedding growth above the broader industry indicates improving competitive position and customer adoption in an important segment. Continued share gains, especially when market demand is weak, can support durable revenue expansion and strengthen Culp’s relationships with mattress manufacturers over the next several quarters.
Negative Factors
Profitability remains unsustainable
Despite meaningful year-over-year improvement, Culp is still reporting operating losses and a net loss on a trailing basis. Until improved margins translate into sustained profitability, earnings remain vulnerable to demand, product-mix, and cost pressures, limiting internally generated funding for growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Bedding growth and share gains
Bedding growth above the broader industry indicates improving competitive position and customer adoption in an important segment. Continued share gains, especially when market demand is weak, can support durable revenue expansion and strengthen Culp’s relationships with mattress manufacturers over the next several quarters.
Read all positive factors
Culp Key Performance Indicators (KPIs)
Any
Gross Profit By Segment
Assesses the profitability of each segment after direct costs, indicating how well each segment is performing in terms of production efficiency and pricing strategy.
Assesses the profitability of each segment after direct costs, indicating how well each segment is performing in terms of production efficiency and pricing strategy.
Data provided by:
The Fly
The FlyCulp (CULP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.23M
Dividend Yield5.85%
Average Volume (3M)127.83K
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth-0.30%
EPS Growth67.07%
CountryUS
Employees887
SectorConsumer Cyclical
Sector Strength84
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)-0.32
Shares Outstanding12,735,324
10 Day Avg. Volume349,950
30 Day Avg. Volume127,830
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)0.83
Price to Sales (P/S)0.25
P/FCF Ratio-2.32
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.34
Revenue Forecast (FY)$214.10M
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 d...
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 relate...
Culp Earnings Call Summary
Earnings Call Date:Sep 09, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 09, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Year-Over-Year Sales and Profitability Improvement
First-quarter net sales increased to $54 million from $50.7 million in the prior-year period despite one fewer selling week. Gross profit rose to $15.4 million, or 28.5% of sales, from $7.2 million, or 14.3%. Excluding approximately $7 million of IEEPA tariff recoveries, gross profit was $8.4 million, or 15.6% of sales, an approximately 17% increase over the prior year.
Negative Updates
Persistently Weak Home-Furnishings Demand
Management said operating conditions remain challenging across the home-furnishings industry, with bedding markets pressured by low industry demand and challenges from consumer spending and housing-market trends.
Read all updates
Q1-2027 Updates
Positive
Negative
Year-Over-Year Sales and Profitability Improvement
First-quarter net sales increased to $54 million from $50.7 million in the prior-year period despite one fewer selling week. Gross profit rose to $15.4 million, or 28.5% of sales, from $7.2 million, or 14.3%. Excluding approximately $7 million of IEEPA tariff recoveries, gross profit was $8.4 million, or 15.6% of sales, an approximately 17% increase over the prior year.
Read all positive 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
Income Statement
34
Negative
Balance Sheet
74
Positive
Cash Flow
29
Negative
| Breakdown | TTM | Apr 2025 | 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 | 551.00K |
| 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
Positive
3.43
Price Trends
3.51
Positive
3.36
Positive
3.34
Positive
Market Momentum
0.07
Negative
56.13
Neutral
36.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CULP, the sentiment is Positive. The current price of 3.43 is below the 20-day moving average (MA) of 3.51, below the 50-day MA of 3.51, and above the 200-day MA of 3.34, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 56.13 is Neutral, neither overbought nor oversold. The STOCH value of 36.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Culp Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $138.51M | 18.14 | 14.48% | ― | 8.02% | ― | |
65 Neutral | $71.63M | 14.60 | 7.62% | 3.55% | 22.39% | 487.96% | |
64 Neutral | $123.99M | -5.02 | -10.51% | ― | -7.01% | -19.76% | |
62 Neutral | $46.23M | -11.34 | -7.76% | 5.85% | -0.30% | 67.07% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $16.40M | 48.47 | 16.79% | 10.05% | 7.90% | 397.38% | |
42 Neutral | $5.64M | -0.25 | -95.03% | ― | -21.18% | 65.21% |
* Consumer Cyclical Sector Average
CULP
Culp
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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.