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Bassett Furniture Industries, Incorporated (BSET)
:BSET
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Bassett Furniture
(NASDAQ:BSET)56Neutral
Bassett Furniture (BSET) vs. S&P 500 (SPY)
Market Cap
$135.78M
Dividend Yield5.05%
Average Volume (3M)18.02K
Price to Earnings (P/E)―
Beta (1Y)0.55
Revenue Growth-15.43%
EPS Growth-202.84%
CountryUS
Employees1,228
SectorConsumer Cyclical
Sector Strength53
IndustryHome and Homeware
Share Statistics
EPS (TTM)-1.11
Shares Outstanding8,788,356
10 Day Avg. Volume12,389
30 Day Avg. Volume18,025
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.41
Price to Cash Flow (P/CF)5.30
P/FCF Ratio5.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Bassett Furniture Business Overview & Revenue Model
Company DescriptionBassett Furniture Industries, Incorporated is a leading manufacturer and marketer of high-quality home furnishings. The company operates in the home furnishings sector, offering a wide range of products including bedroom, dining, and living room furniture, as well as upholstery and home accents. With a commitment to craftsmanship and style, Bassett Furniture provides customers with personalized interior design services and custom furniture options through its retail stores and online platforms.
How the Company Makes MoneyBassett Furniture generates revenue primarily through the sale of its furniture products and accessories. The company operates a network of company-owned retail stores, as well as a number of independently owned licensee stores, which contribute to its retail sales. In addition to retail operations, Bassett also makes money through its wholesale segment, supplying furniture to third-party retailers and designers. The company emphasizes customization and offers various bespoke options, which enhances its value proposition and potential sales. Key factors contributing to its earnings include strategic partnerships with designers and a focus on expanding its online presence to reach a broader customer base.
Bassett Furniture Financial Statement Overview
Summary
Bassett Furniture is facing significant financial challenges, marked by declining revenue, negative profitability, and a deteriorating balance sheet. Despite reducing debt, the company's financial health is concerning, with critical issues in maintaining stability and growth.Income Statement
Bassett Furniture's income statement reveals significant challenges. The company experienced declining revenue over the past three years, with a notable drop from $485.6 million in 2022 to $390.1 million in 2023, and $179.4 million in 2024. The gross profit margin for 2024 is 100%, but this is offset by negative EBIT and EBITDA margins, indicating operational struggles. The net profit margin is also negative, reflecting consistent net losses. Despite the high gross profit margin, the lack of revenue growth and negative profitability metrics suggest financial difficulties.45
Neutral
Balance Sheet
The balance sheet shows a concerning picture with significant declines in total assets and stockholders' equity by 2024. Notably, the total debt was reduced to zero by 2024, which is positive, but the stockholders' equity has also become zero, indicating potential financial distress or restructuring. The company had a positive equity ratio in 2023, but the rapid deterioration suggests significant challenges in maintaining financial stability.40
Negative
Cash Flow
Cash flow analysis indicates some positives with consistent operating cash flow, although declining from $18.7 million in 2023 to $18.7 million in 2024. The free cash flow, however, turned negative in 2024, reflecting potential cash management issues. Despite positive operating cash flow, the inability to translate this into free cash flow consistently raises concerns about the company's ability to fund operations without external financing.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 179.41M | 390.14M | 485.60M | 486.53M | 385.86M | Gross Profit |
| 28.91M | 206.49M | 248.34M | 222.83M | 222.30M | EBIT |
| -16.27M | -536.00K | 25.68M | 26.00M | 14.19M | EBITDA |
| -4.42M | 7.67M | 36.98M | 40.60M | -3.26M | Net Income Common Stockholders |
| -9.70M | -3.17M | 25.36M | 18.04M | -10.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 59.91M | 70.18M | 79.34M | 52.09M | 63.51M | Total Assets |
| 341.17M | 370.42M | 406.27M | 421.66M | 402.55M | Total Debt |
| 106.44M | 116.18M | 116.30M | 133.53M | 139.05M | Net Debt |
| 66.89M | 63.78M | 54.67M | 99.16M | 93.25M | Total Liabilities |
| 173.84M | 186.98M | 210.66M | 258.93M | 244.52M | Stockholders Equity |
| 167.33M | 183.44M | 195.61M | 162.73M | 158.03M |
| Cash Flow | Free Cash Flow | |||
| -1.16M | 1.24M | -24.27M | 3.81M | 30.65M | Operating Cash Flow |
| 4.05M | 18.72M | -2.97M | 14.56M | 36.67M | Investing Cash Flow |
| -8.77M | -17.76M | 65.84M | -11.57M | -3.75M | Financing Cash Flow |
| -8.12M | -10.23M | -35.56M | -14.42M | -6.82M |
Bassett Furniture Technical Analysis
Positive
15.45
Price Trends
14.33
Positive
14.28
Positive
13.80
Positive
Market Momentum
0.41
Negative
57.21
Neutral
75.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSET, the sentiment is Positive. The current price of 15.45 is above the 20-day moving average (MA) of 15.12, above the 50-day MA of 14.33, and above the 200-day MA of 13.80, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 57.21 is Neutral, neither overbought nor oversold. The STOCH value of 75.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BSET.
Bassett Furniture Risk Analysis
Bassett Furniture disclosed 9 risk factors in its most recent earnings report. Bassett Furniture reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bassett Furniture Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.72B | 14.25 | 12.40% | 1.97% | 1.81% | 8.09% | |
68 Neutral | $215.68M | 11.43 | 13.04% | 1.56% | 7.75% | 27.88% | |
60 Neutral | $1.41B | 22.71 | 4.76% | 3.58% | -5.66% | 35.33% | |
60 Neutral | $1.16B | ― | -50.58% | 7.08% | -7.28% | -272.76% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
56 Neutral | $135.78M | ― | -5.53% | 5.05% | -15.43% | -202.84% | |
47 Neutral | $132.81M | ― | -4.47% | 7.42% | -16.67% | -24.91% |
* Consumer Cyclical Sector Average
Performance Comparison
BSET
Bassett Furniture
15.45
0.94
6.48%
FLXS
Flexsteel
40.99
6.84
20.03%
MLKN
MillerKnoll, Inc.
20.94
-7.80
-27.14%
HOFT
Hooker Furniture
12.40
-9.60
-43.64%
LZB
La-Z-Boy Incorporated
41.67
5.72
15.91%
LEG
Leggett & Platt
8.62
-11.31
-56.75%
Bassett Furniture Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: 10.36% | Next Earnings Date: Mar 27, 2025
Earnings Call Sentiment Neutral
Bassett Furniture showed resilience by returning to profitability and achieving significant operational improvements despite a challenging housing market and a decline in overall sales. The company's restructuring plan and focused growth initiatives, such as e-commerce expansion and new product lines, are positive indicators for future performance. However, the ongoing challenges in the housing market and natural disaster impacts present hurdles.Highlights
Return to Profitability
Bassett Furniture returned to profitability in Q4 2024, after implementing a restructuring plan. Consolidated operating income was $900,000 compared to a loss of $4.5 million in Q4 2023.
Black Friday Sales Success
Retail written sales during the Black Friday promotion were up 25.1% over last year, providing a strong backlog to begin 2025.
E-commerce Growth
E-commerce revenue increased for seven consecutive months through the end of 2024, with order values up 27% annually compared to last year.
Recognition for Custom Upholstery
Bassett was named Best Custom Upholstery Company in the industry in Furniture Today's Annual Reader Survey.
Improved Gross Margins
Consolidated gross margins increased by 230 basis points, primarily due to better margins in the wholesale segment and domestic upholstery manufacturing operation.
Significant Inventory Reduction
Inventory was reduced by more than $8 million on a consolidated basis, with wholesale inventory down $6.5 million.
Exciting Growth in Outdoor Orders
Total outdoor orders grew by 33% in Q4.
Lowlights
Decline in Consolidated Sales
Consolidated sales were down by 11% for the quarter, with wholesale sales decreasing by 14% and retail sales by 8.4%.
Challenges in the Housing Market
The furniture industry continues to face challenges due to sluggish home sales, depleted housing inventory, and higher mortgage interest rates.
Impact of Natural Disasters
Business operations were affected by the North Carolina hurricane in September, which caused disruptions in operations and impacted dealer sales.
Company Guidance
In the Bassett Furniture Q4 2024 earnings call, the company provided guidance on several key metrics and strategies for the upcoming year. Consolidated sales were down by 11%, but retail written sales decreased only slightly by 0.006%. The Black Friday promotion showed promising results with a 25.1% increase in retail written sales compared to the previous year. Wholesale orders saw a decline of 3.1%, though orders from corporate stores rose by 1.8%. The restructuring plan implemented in July 2024 led to a leaner inventory, down by over $8 million, which improved profitability. The gross margin increased by 230 basis points, contributing to a consolidated operating income of $900,000, a significant improvement from a loss of $4.5 million in Q4 2023. The company also highlighted its marketing strategies, including enhanced digital engagement leading to a 27% increase in e-commerce order values, and plans to increase direct mail campaigns. Bassett's focus for 2025 includes further warehouse consolidation, launching new product collections, and expanding the Bassett Custom Studio program, with a continued commitment to shareholder returns through dividends and share repurchases.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.