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The Dixie Group (DXYN)
OTHER OTC:DXYN
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The Dixie Group
(OTC:DXYN)
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Rating:48Neutral
Price Target:
$0.50
▼(-24.24% Downside)
The overall stock score for The Dixie Group is primarily impacted by its weak financial performance, characterized by declining revenues, negative profitability, and high leverage. Technical analysis provides some support with short-term bullish momentum, but valuation metrics are poor due to ongoing losses. The absence of earnings call insights and corporate events means these factors do not influence the score.
The Dixie Group (DXYN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.25M
Dividend YieldN/A
Average Volume (3M)14.38K
Price to Earnings (P/E)―
Beta (1Y)0.41
Revenue Growth-3.76%
EPS Growth-901.02%
CountryUS
Employees951
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.08
Shares Outstanding13,976,735
10 Day Avg. Volume5,498
30 Day Avg. Volume14,381
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.58
Price to Sales (P/S)0.04
P/FCF Ratio8.27
Enterprise Value/Market Cap12.22
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit1.69
Enterprise Value/Ebitda61.67
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
The Dixie Group Business Overview & Revenue Model
Company DescriptionThe Dixie Group, Inc. manufactures, markets, and sells floorcovering products to residential customers in North America and internationally. It offers residential carpets, custom rugs, and engineered wood products under the Fabrica brand for interior decorators and designers, selected retailers and furniture stores, luxury home builders, and manufacturers of luxury motor coaches and yachts; and specialty carpets and rugs for the high-end residential marketplace, as well as luxury vinyl flooring products and broadloom carpet products under the Masland Residential brand name through the interior design community and specialty floorcovering retailers. The company also provides residential tufted broadloom carpets and rugs to selected retailers and home centers under the Dixie Home and private label brands, as well as luxury vinyl flooring products to the marketplace it serves. The company was founded in 1920 and is based in Dalton, Georgia.
How the Company Makes MoneyThe Dixie Group generates revenue through the sale of its flooring products to retailers, distributors, and directly to consumers. Key revenue streams include residential carpets, commercial carpets, and area rugs, with additional income derived from hard surface flooring products. The company benefits from partnerships with major retailers and design firms that help expand its market reach. Additionally, Dixie Group invests in product innovation and marketing strategies to capture higher-margin opportunities and adapt to changing consumer preferences, which contribute significantly to its earnings.
The Dixie Group Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Negative
The earnings call highlighted some positive aspects such as the successful operation of extrusion equipment and successful cost reductions, but these were overshadowed by declining sales, increased net losses, and challenges such as high interest rates and hurricanes, painting a challenging outlook.Q3-2024 Updates
Positive Updates
Successful Operation of Extrusion Equipment
The company successfully operated its extrusion equipment, providing a lower cost supply of raw materials. This internal supply became critical as an external supplier announced a shutdown.
Cost Reductions and Facility Consolidation
Positive results from cost reductions and consolidation of East Coast facilities are expected to restore higher margins.
Decrease in Interest Expense
Interest expenses decreased to $1.6 million from $1.8 million in Q3 2023, and $4.8 million year-to-date compared to $5.5 million in 2023.
Retail Store Program Success
The Premier Flooring Center program resulted in strong growth, increased business, and greater market share.
Negative Updates
Decline in Net Sales
Net sales for Q3 2024 were $64.9 million, down from $68.6 million in Q3 2023, a decrease of 5.4%.
Increased Net Loss
Net loss from continuing operations in Q3 2024 was $3.9 million, up from $2.4 million in Q3 2023.
Lower Gross Profit Margins
Gross profit margin dropped to 24.6% from 26.6% in the same quarter last year.
Impact of High Interest Rates
High interest rates and low consumer confidence delayed consumer spending, impacting sales volume.
Hurricane and Ocean Freight Challenges
Hurricane season and high ocean freight rates negatively impacted business and increased inventory costs.
Company Guidance
During the third quarter 2024 earnings call for The Dixie Group Inc., key financial metrics and operational insights were discussed. The company reported net sales of $64.9 million, a decrease from $68.6 million in the same quarter of 2023. The operating loss widened to $2.1 million from $913,000, and the net loss from continuing operations increased to $3.7 million or $0.26 per diluted share, compared to $2.2 million or $0.15 per share the previous year. Gross profit margins fell to 24.6% from 26.6% in the prior year. Additionally, interest expenses dropped to $1.6 million from $1.8 million in 2023, reflecting lower average debt. Despite these challenges, the company highlighted successful cost reduction initiatives and positive impacts from their extrusion operations, which are expected to improve future margins. The balance sheet showed an increase in receivables by $2.9 million and a decrease in net inventory by 4% compared to the previous year. Management also discussed strategic marketing efforts and anticipated improved demand in 2025 due to potential decreases in interest rates and an upswing in home sales.The Dixie Group Financial Statement Overview
Summary
The Dixie Group faces significant financial challenges, with declining revenues, negative profitability, and high leverage. While there are some positive signs in cash flow generation, the overall financial health is weak, with substantial risks due to high debt levels and operational inefficiencies.Income Statement
The Dixie Group's income statement reveals significant challenges. The company has experienced declining revenues, with a negative revenue growth rate of -73.6% TTM. Margins are under pressure, with a negative net profit margin of -4.47% and an EBIT margin of -1.60% TTM, indicating operational inefficiencies. The gross profit margin is relatively stable at 25.61% TTM, but overall profitability is weak.45
Neutral
Balance Sheet
The balance sheet shows high leverage, with a debt-to-equity ratio of 6.99 TTM, indicating significant reliance on debt financing. The return on equity is negative at -66.63% TTM, reflecting poor returns for shareholders. The equity ratio is low, suggesting limited equity buffer against liabilities.30
Negative
Cash Flow
Cash flow analysis shows some positive aspects, with free cash flow growth of 5.88% TTM. The operating cash flow to net income ratio is 0.14 TTM, indicating some cash generation capability. However, the free cash flow to net income ratio is 0.94 TTM, suggesting that cash flow is not fully covering net losses.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2019 | Dec 2018 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 260.83M | 265.03M | 276.34M | 303.57M | 374.58M | 405.03M |
| Gross Profit | 66.81M | 65.51M | 73.88M | 53.62M | 86.20M | 86.99M |
| EBITDA | 1.83M | -5.87M | 12.81M | -20.54M | 26.43M | -3.17M |
| Net Income | -11.65M | -13.00M | -2.72M | -33.41M | 15.27M | -21.38M |
Balance Sheet | ||||||
| Total Assets | 188.38M | 175.87M | 191.17M | 202.95M | 247.66M | 252.78M |
| Cash, Cash Equivalents and Short-Term Investments | 4.39M | 19.00K | 79.00K | 363.00K | 769.00K | 18.00K |
| Total Debt | 110.46M | 108.45M | 112.08M | 120.87M | 113.65M | 128.04M |
| Total Liabilities | 172.58M | 159.65M | 161.88M | 171.43M | 174.45M | 193.79M |
| Stockholders Equity | 15.81M | 16.22M | 29.29M | 31.51M | 73.21M | 58.98M |
Cash Flow | ||||||
| Free Cash Flow | 13.26M | 1.14M | 1.64M | -22.92M | 7.45M | 1.05M |
| Operating Cash Flow | 14.16M | 3.23M | 2.62M | -18.34M | 11.69M | 5.11M |
| Investing Cash Flow | -830.00K | -1.99M | 15.08M | -4.30M | 32.97M | -2.20M |
| Financing Cash Flow | -4.78M | -1.30M | -17.99M | 19.87M | -43.91M | -2.91M |
The Dixie Group Technical Analysis
Neutral
0.66
Price Trends
0.68
Negative
0.59
Positive
0.58
Positive
Market Momentum
>-0.01
Positive
44.72
Neutral
17.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXYN, the sentiment is Neutral. The current price of 0.66 is below the 20-day moving average (MA) of 0.70, below the 50-day MA of 0.68, and above the 200-day MA of 0.58, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.72 is Neutral, neither overbought nor oversold. The STOCH value of 17.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DXYN.
The Dixie Group Risk Analysis
The Dixie Group disclosed 17 risk factors in its most recent earnings report. The Dixie Group 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
The Dixie Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $24.64M | 63.03 | 20.89% | ― | 38.26% | 201.16% | |
| ― | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
| ― | $36.96M | ― | -32.91% | ― | -0.49% | -1427.68% | |
| ― | $9.25M | -0.84 | -50.35% | ― | -3.76% | -901.02% | |
| ― | $52.06M | -4.29 | -19.05% | ― | -7.91% | 32.31% | |
| ― | $43.05M | 52.23 | 1.30% | 5.89% | 17.12% | ― | |
| ― | $81.89M | ― | -7.94% | ― | -1.87% | 57.41% |
* Consumer Cyclical Sector Average
DXYN
The Dixie Group
0.66
-0.05
-7.04%
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The Dixie Group Corporate Events
The Dixie Group Reports Improved Q2 2025 Earnings
Aug 8, 2025
The Dixie Group, Inc., a company specializing in the manufacturing and marketing of carpet and rugs, operates within the flooring industry, offering a range of soft and hard surface products.
Business Operations and StrategyFinancial Disclosures
The Dixie Group Highlights Strategic Focus in August 2025
Negative
Aug 7, 2025
In August 2025, The Dixie Group released an updated investor presentation highlighting its strategic focus on the upper-end residential flooring market. Despite facing challenges such as the loss of a major customer and increased costs, the company is implementing growth initiatives and cost reduction plans to adapt to market conditions. The presentation also noted a significant decline in industry sales due to rising mortgage rates and economic conditions, impacting the company’s operations and market positioning.
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.