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The Dixie Group
(OTC:DXYN)
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Rating:46Neutral
Price Target:
$0.44
▲(7.56% Upside)
Action:Reiterated
Date:09/06/26
The score is held down primarily by weak financial performance (continued net losses and renewed negative operating/free cash flow), despite improved leverage and early operating stabilization. Technicals are moderately supportive with price above key moving averages and a positive MACD, but valuation remains constrained by losses (negative P/E) and no dividend support.
Positive Factors
Premium brand positioning
Dixie’s focus on design-led, upper-end flooring and established brands supports differentiation beyond commodity products. Its relationships with the design community and premium product initiatives may help protect mix, customer relevance, and pricing power as housing demand normalizes.
Negative Factors
Persistent net losses
Continued net losses show that improved operating metrics have not yet translated into sustainable bottom-line profitability. Persistent losses weaken internal capital generation, limit financial flexibility, and leave results more exposed to demand, cost, and execution volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Premium brand positioning
Dixie’s focus on design-led, upper-end flooring and established brands supports differentiation beyond commodity products. Its relationships with the design community and premium product initiatives may help protect mix, customer relevance, and pricing power as housing demand normalizes.
Read all positive factors
The Dixie Group (DXYN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.34M
Dividend YieldN/A
Average Volume (3M)8.87K
Price to Earnings (P/E)―
Beta (1Y)-0.26
Revenue Growth-2.67%
EPS Growth56.47%
CountryUS
Employees928
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.34
Shares Outstanding14,099,584
10 Day Avg. Volume10,081
30 Day Avg. Volume8,874
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 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)N/A
Revenue Forecast (FY)N/A
The Dixie Group Business Overview & Revenue Model
Company Description
The Dixie Group, Inc. manufactures, markets, and distributes a wide array of floorcovering products to residential consumers throughout North America and on a global scale. Through its premium Fabrica brand, the company provides residential carpet...
How the Company Makes Money
The Dixie Group makes money primarily by selling floorcovering products—most notably carpet—to customers in the residential and commercial markets. Revenue is generated from product sales shipped through established distribution channels (e.g., in...
The Dixie Group Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 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
33
Negative
Balance Sheet
40
Negative
Cash Flow
27
Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 253.86M | 257.43M | 265.03M | 276.34M | 303.57M | 341.25M |
| Gross Profit | 72.15M | 69.55M | 65.51M | 73.88M | 53.62M | 77.25M |
| EBITDA | 10.58M | 6.99M | 507.00K | 12.81M | -20.54M | 17.04M |
| Net Income | -4.84M | -7.62M | -13.00M | -2.72M | -35.08M | 4.28M |
Balance Sheet | ||||||
| Total Assets | 181.37M | 175.16M | 175.87M | 191.17M | 202.95M | 235.50M |
| Cash, Cash Equivalents and Short-Term Investments | 2.10M | 3.20M | 19.00K | 79.00K | 363.00K | 1.47M |
| Total Debt | 107.64M | 106.51M | 108.45M | 112.08M | 120.87M | 100.28M |
| Total Liabilities | 170.28M | 166.36M | 159.65M | 161.88M | 171.43M | 169.12M |
| Stockholders Equity | 11.10M | 8.80M | 16.22M | 29.29M | 31.51M | 66.38M |
Cash Flow | ||||||
| Free Cash Flow | -1.14M | 8.54M | 1.14M | 1.64M | -22.92M | -19.79M |
| Operating Cash Flow | -523.00K | 9.14M | 3.23M | 2.62M | -18.34M | -15.41M |
| Investing Cash Flow | -538.00K | -473.00K | -1.99M | 15.08M | -4.30M | 15.24M |
| Financing Cash Flow | -1.19M | -1.62M | -1.30M | -17.99M | 19.87M | -280.00K |
The Dixie Group Technical Analysis
Positive
0.41
Price Trends
0.41
Positive
0.40
Positive
0.43
Positive
Market Momentum
0.01
Positive
52.89
Neutral
68.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXYN, the sentiment is Positive. The current price of 0.41 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.41, and below the 200-day MA of 0.43, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 68.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DXYN.
The Dixie Group Risk Analysis
The Dixie Group disclosed 36 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $70.23M | 14.32 | 7.62% | 3.62% | 22.39% | 487.96% | |
64 Neutral | $132.35M | -5.35 | -10.51% | ― | -7.01% | -19.76% | |
63 Neutral | $82.22M | 9.14 | 18.07% | ― | 4.76% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $17.29M | 51.11 | 16.79% | 10.05% | 7.90% | 397.38% | |
53 Neutral | $43.63M | -5.81 | -14.26% | 5.85% | -4.57% | 47.12% | |
46 Neutral | $6.34M | -1.32 | -46.49% | ― | -2.67% | 56.47% |
* Consumer Cyclical Sector Average
DXYN
The Dixie Group
0.45
-0.15
-25.00%
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The Dixie Group Corporate Events
Business Operations and StrategyFinancial Disclosures
The Dixie Group Updates Investor Presentation Amid Market Downturn
Negative
Aug 6, 2026
In August 2026, The Dixie Group released updated investor presentation materials outlining its history, current positioning and performance in the residential flooring market amid a prolonged industry downturn. The company highlighted its diversif...
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.