The Dixie Group (DXYN)
OTHER OTC:DXYN
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The Dixie Group
(OTC:DXYN)
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Rating:50Neutral
Price Target:
$0.40
▲(0.00% Upside)
Action:Reiterated
Date:06/01/26
The score is held back primarily by weak financial performance—high leverage, thin equity, and a TTM shift to negative cash flow alongside contracting revenue. Partially offsetting this, the latest earnings call indicates an operational turnaround with improved profitability and a targeted profit-improvement plan, while technicals are broadly neutral and valuation metrics provide limited support due to losses and no indicated dividend.
Positive Factors
Return to operating profit
A material swing to operating profit reflects structural improvement in cost control and production efficiency, showing management can extract operating leverage from current volumes. Sustained operating profitability increases resilience to cyclical demand and supports longer-term debt servicing capacity.
Negative Factors
Very high leverage
Extremely elevated leverage leaves little balance-sheet cushion against revenue volatility or margin compressions. High debt amplifies refinancing and interest-rate risk, constrains strategic flexibility, and increases probability that shortfalls in cash generation trigger covenant or liquidity stress over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Return to operating profit
A material swing to operating profit reflects structural improvement in cost control and production efficiency, showing management can extract operating leverage from current volumes. Sustained operating profitability increases resilience to cyclical demand and supports longer-term debt servicing capacity.
Read all positive factors
The Dixie Group (DXYN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.63M
Dividend YieldN/A
Average Volume (3M)14.38K
Price to Earnings (P/E)―
Beta (1Y)0.08
Revenue Growth-3.40%
EPS Growth59.14%
CountryUS
Employees951
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-0.34
Shares Outstanding14,067,583
10 Day Avg. Volume5,498
30 Day Avg. Volume14,381
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.80
Price to Sales (P/S)0.03
P/FCF Ratio0.82
Enterprise Value/Market Cap19.70
Enterprise Value/Revenue0.44
Enterprise Value/Gross Profit1.54
Enterprise Value/Ebitda10.75
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
The Dixie Group Business Overview & Revenue Model
Company Description
The 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 inter...
How the Company Makes Money
The Dixie Group makes money primarily by manufacturing and selling flooring products—principally carpet (broadloom and related carpet products) and luxury vinyl flooring—to customers in the residential and commercial flooring markets. Revenue is g...
The Dixie Group Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The call presents a cautiously positive picture: management delivered a meaningful profitability turnaround (operating income and net income) driven by a $3.3 million tariff receivable, cost reductions and an active profit-improvement program that management estimates could produce ~$17.8 million of benefit. Early Q2 order recovery and continued outperformance in the core soft-surface business add constructive signals. However, revenue declined 5.7% year-over-year and the company faces rising raw-material costs, tariff/regulatory uncertainty, higher interest expense, elevated working capital and constrained liquidity that could pressure margins and cash flow before price increases and cost actions fully take hold. On balance, positives (profitability recovery, large planned profit improvements, early demand rebound) outweigh the negatives, but risks remain tied to tariffs, commodity costs and macro housing demand.Positive Updates
Turnaround to Operating Profit
Operating income improved to $3.264 million in Q1 FY2026 from $11,000 in Q1 FY2025, representing a materially positive swing in operating results.
Negative Updates
Sales Decline
Net sales decreased to $59.38 million in Q1 FY2026 from $62.99 million a year earlier, a decline of 5.7% year-over-year.
Read all updates
Q1-2026 Updates
Positive
Negative
Turnaround to Operating Profit
Operating income improved to $3.264 million in Q1 FY2026 from $11,000 in Q1 FY2025, representing a materially positive swing in operating results.
Read all positive updates
Company Guidance
Management's forward-looking commentary highlighted several measurable items: Q1 sales were $59.38M (down 5.7% y/y) with operating income $3.264M and net income from continuing operations $1.354M ($0.09 diluted), and they recognized a $3.3M IEEPA tariff receivable (cash timing uncertain but potentially within ~60 days) that boosted reported margins (gross margin ex-tariff 28.6% vs 26.9% prior). Looking ahead, management expects its profit improvement plan and new initiatives to yield a ~$17.8M year‑over‑year profit improvement, has implemented a price increase effective April 27 to offset rising raw‑material/oil costs, and reported sequential order/sales improvement in the first five weeks of Q2 in the mid‑teens (order entry roughly in line with last year). They also cautioned on tariff risk (Section 122 at 10% expires July 24; possible new Section 301 tariffs at similar rates), expect the LIFO reserve to step up as costs rise, plan to downsize Porterville/California operations (net ~ $0.5M benefit this year), and note liquidity of about $10.2M available under the senior credit facility (subject to a $6M excess availability requirement).The Dixie Group Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
18
Very Negative
Cash Flow
26
Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 253.82M | 257.43M | 265.03M | 276.34M | 303.57M | 341.25M |
| Gross Profit | 71.94M | 69.55M | 65.51M | 73.88M | 53.62M | 77.25M |
| EBITDA | 10.31M | 6.99M | 507.00K | 12.81M | -20.54M | 17.04M |
| Net Income | -4.77M | -7.62M | -13.00M | -2.72M | -35.08M | 4.28M |
Balance Sheet | ||||||
| Total Assets | 179.24M | 175.16M | 175.87M | 191.17M | 202.95M | 235.50M |
| Cash, Cash Equivalents and Short-Term Investments | 2.35M | 3.20M | 19.00K | 79.00K | 363.00K | 1.47M |
| Total Debt | 107.58M | 106.51M | 108.45M | 112.08M | 120.87M | 100.28M |
| Total Liabilities | 169.26M | 166.36M | 159.65M | 161.88M | 171.43M | 169.12M |
| Stockholders Equity | 9.98M | 8.80M | 16.22M | 29.29M | 31.51M | 66.38M |
Cash Flow | ||||||
| Free Cash Flow | -1.39M | 8.54M | 1.14M | 1.64M | -22.92M | -19.79M |
| Operating Cash Flow | -805.00K | 9.14M | 3.23M | 2.62M | -18.34M | -15.41M |
| Investing Cash Flow | -488.00K | -473.00K | -1.99M | 15.08M | -4.30M | 15.24M |
| Financing Cash Flow | -1.46M | -1.62M | -1.30M | -17.99M | 19.87M | -280.00K |
The Dixie Group Technical Analysis
Negative
0.40
Price Trends
0.39
Positive
0.42
Negative
0.51
Negative
Market Momentum
<0.01
Positive
48.89
Neutral
5.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXYN, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.39, and below the 200-day MA of 0.51, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.89 is Neutral, neither overbought nor oversold. The STOCH value of 5.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DXYN.
The Dixie Group Risk Analysis
The Dixie Group disclosed 18 risk factors in its most recent earnings report. The Dixie Group reported the most risks in the "Macro & Political" 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $23.51M | 9.06 | 30.92% | ― | 30.49% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $43.43M | 24.15 | 2.86% | 6.75% | 10.48% | ― | |
54 Neutral | $76.39M | -1.92 | -16.70% | ― | -10.95% | 80.36% | |
52 Neutral | $56.40M | 8.97 | 13.43% | ― | 2.23% | ― | |
50 Neutral | $5.63M | -1.22 | -80.91% | ― | -3.40% | 59.14% | |
46 Neutral | $40.01M | -5.46 | -13.33% | ― | -6.24% | 54.60% |
* Consumer Cyclical Sector Average
DXYN
The Dixie Group
0.40
-0.10
-20.00%
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-17.30%
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JRSH
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JL
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The Dixie Group Corporate Events
Business Operations and StrategyFinancial Disclosures
Dixie Group Updates Investor Presentation, Highlights Cost Initiatives
Neutral
May 11, 2026
In May 2026, The Dixie Group issued an updated investor presentation replacing materials from March 5, 2026, outlining its positioning in the upper-end residential flooring segment and highlighting a diversified customer base where its top 10 cust...
Executive/Board ChangesShareholder Meetings
The Dixie Group Shareholders Back Board, Pay and Auditor
Positive
May 7, 2026
At its annual meeting of shareholders held on May 6, 2026, The Dixie Group, Inc., a flooring manufacturer serving residential and commercial markets, confirmed a six‑member board for one‑year terms. Shareholders elected William F. Blue...
Business Operations and StrategyFinancial Disclosures
The Dixie Group Updates Investor Presentation, Highlights 2026 Strategy
Positive
Mar 26, 2026
In March 2026, The Dixie Group published updated investor presentation materials outlining its history, current positioning and recent performance in the residential flooring market, which is driven by remodeling, existing home sales and new const...
Business Operations and StrategyExecutive/Board Changes
The Dixie Group Adopts 2026 Executive Incentive Plan
Positive
Mar 12, 2026
Effective March 12, 2026, The Dixie Group implemented a new 2026 incentive compensation plan covering its chief executive officer, principal financial officer and other named executive officers. The plan allows for cash bonuses and restricted stoc...
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.