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FGI Industries Ltd (FGI)
NASDAQ:FGI
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FGI Industries Ltd
(NASDAQ:FGI)
52Neutral
FGI Industries Ltd (FGI) vs. S&P 500 (SPY)
Market Cap
$8.61M
Dividend YieldN/A
Average Volume (3M)7.07K
Price to Earnings (P/E)―
Beta (1Y)0.39
Revenue Growth7.71%
EPS Growth-128.56%
CountryUS
Employees287
SectorConsumer Cyclical
Sector Strength49
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.03
Shares Outstanding9,563,914
10 Day Avg. Volume5,537
30 Day Avg. Volume7,065
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.07
Price to Cash Flow (P/CF)-2.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.50Price Target Upside177.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
FGI Industries Ltd Business Overview & Revenue Model
Company DescriptionFGI Industries Ltd (FGI) is a company that operates in the home improvement and plumbing sector. It primarily focuses on the design, development, and distribution of kitchen and bath products, catering to a wide range of customers including retail stores, distributors, and online platforms. The company's core offerings include a variety of plumbing fixtures, bathroom vanities, shower systems, and related accessories, aimed at enhancing residential and commercial spaces.
How the Company Makes MoneyFGI Industries Ltd generates revenue through the sale of its kitchen and bath products to both retail and wholesale customers. The company’s revenue streams include direct sales to retail stores, partnerships with distributors who sell FGI products to various markets, and sales through online platforms where customers can purchase directly. Significant factors contributing to FGI’s earnings include strategic partnerships with key retailers and distributors, product innovations that meet evolving customer needs, and maintaining a strong supply chain to ensure timely delivery and availability of products. Additionally, FGI may engage in licensing agreements or collaborations that help expand its market reach and product offerings.
FGI Industries Ltd Financial Statement Overview
Summary
FGI Industries Ltd shows stable revenue growth of 8.48% but struggles with profitability and cash flow. The balance sheet reveals high leverage with a debt-to-equity ratio of 1.12 and a negative ROE of -1.1%. The cash flow statement reflects significant challenges with a negative free cash flow growth rate of -1613.06%, indicating potential liquidity issues.Income Statement
FGI Industries Ltd shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of approximately 27.96%, which is relatively stable but slightly lower than previous years. However, the company has faced a net loss, resulting in a negative net profit margin of -0.2%. Revenue growth from the previous year is commendable at 8.48%, indicating potential recovery. Yet, the EBIT and EBITDA margins are low, at 0.32% and 3.51% respectively, which reflects challenges in operational efficiency and profitability.62
Positive
Balance Sheet
The balance sheet reveals a moderate financial position for FGI Industries Ltd. The debt-to-equity ratio stands at 1.12, indicating a relatively high leverage which could pose risks in volatile markets. The return on equity (ROE) is negative at -1.1%, largely due to the net loss. On a positive note, the equity ratio is 31.5%, showing a reasonable proportion of assets financed by equity. Overall, the balance sheet is stable but highlights the need for improved profitability to enhance shareholder value.58
Neutral
Cash Flow
The cash flow statement reflects significant challenges for FGI Industries Ltd. The company reported negative free cash flow, with a substantial decline from the previous year, leading to a free cash flow growth rate of -1613.06%. The operating cash flow to net income ratio is negative due to both negative operating cash flow and net income. Additionally, the free cash flow to net income ratio is also negative, underscoring cash generation issues. These factors indicate potential liquidity constraints that require strategic management.45
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 127.18M | 117.24M | 161.72M | 181.94M | 134.83M | 126.28M | Gross Profit |
| 35.57M | 32.08M | 31.51M | 32.20M | 28.40M | 25.44M | EBIT |
| 408.29K | 2.30M | 5.09M | 7.72M | 6.28M | 2.46M | EBITDA |
| 4.46M | 4.16M | 5.31M | 8.01M | 6.48M | 2.99M | Net Income Common Stockholders |
| -259.80K | 733.60K | 3.68M | 7.91M | 4.73M | 1.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.42M | 7.78M | 10.07M | 3.88M | 4.02M | 2.42M | Total Assets |
| 0.00 | 65.74M | 60.37M | 69.15M | 45.15M | 39.52M | Total Debt |
| 0.00 | 22.23M | 19.19M | 22.86M | 20.52M | 17.06M | Net Debt |
| 2.42M | 14.45M | 9.12M | 18.97M | 16.50M | 14.64M | Total Liabilities |
| 0.00 | 41.72M | 37.62M | 61.60M | 43.62M | 35.90M | Stockholders Equity |
| 3.62M | 24.18M | 22.74M | 7.55M | 1.53M | 3.62M |
| Cash Flow | Free Cash Flow | ||||
| -6.77M | 447.08K | -83.96K | -3.28M | 5.72M | 1.06M | Operating Cash Flow |
| -4.06M | 1.39M | 980.26K | -3.22M | 5.80M | 1.29M | Investing Cash Flow |
| -2.71M | -942.61K | -1.06M | -51.89K | -76.53K | -233.86K | Financing Cash Flow |
| 4.52M | -2.84M | 7.01M | 3.32M | -4.25M | -1.98M |
FGI Industries Ltd Technical Analysis
Positive
0.90
Price Trends
0.84
Positive
0.85
Positive
0.87
Positive
Market Momentum
>-0.01
Negative
58.95
Neutral
48.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FGI, the sentiment is Positive. The current price of 0.9 is above the 20-day moving average (MA) of 0.82, above the 50-day MA of 0.84, and above the 200-day MA of 0.87, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 58.95 is Neutral, neither overbought nor oversold. The STOCH value of 48.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FGI.
FGI Industries Ltd Risk Analysis
FGI Industries Ltd disclosed 52 risk factors in its most recent earnings report. FGI Industries Ltd 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
FGI Industries Ltd Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.37B | 20.90 | 27.36% | 0.67% | 6.83% | -10.81% | |
62 Neutral | $667.00M | 13.06 | 8.29% | ― | -5.86% | 16.49% | |
60 Neutral | $14.75B | 18.54 | -118.61% | 1.70% | -1.74% | -6.91% | |
59 Neutral | $12.35B | 11.02 | 1.38% | 3.72% | 1.28% | -20.23% | |
52 Neutral | $8.61M | ― | -1.11% | ― | 7.71% | -128.56% | |
44 Neutral | $507.93M | ― | -25.51% | ― | -15.09% | -358.01% |
* Consumer Cyclical Sector Average
Performance Comparison
FGI
FGI Industries Ltd
0.90
-0.59
-39.60%
BXC
Bluelinx Holdings
80.41
-48.32
-37.54%
MAS
Masco
69.60
-5.22
-6.98%
TGLS
Tecnoglass
74.25
21.19
39.94%
JELD
JELD-WEN
6.23
-14.31
-69.67%
FGI Industries Ltd Earnings Call Summary
Earnings Call Date: Nov 11, 2024 | % Change Since: -3.23% | Next Earnings Date: Mar 26, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and strategic advancements, particularly in Bath Furniture and geographic expansion. However, increased operating expenses and a decline in gross margin impacted profitability, leading to a revised downward guidance for operating income. While there are positive growth indicators, the financial challenges present a balanced sentiment.Highlights
Significant Revenue Growth
FGI reported total revenue of $36.1 million, representing a year-over-year increase of 20.6%.
Record Gross Profit
Gross profit was a record $9.3 million, growing 18.9% compared to the prior year.
Geographic Revenue Increase
Revenue grew 21%, 9%, and 39% in the U.S., Canada, and Europe markets, respectively.
Bath Furniture and Shower Systems Growth
Bath Furniture revenue increased 64% and Shower Systems revenue increased 45% year-over-year.
Custom Kitchen Cabinetry Surge
Covered Bridge revenue increased 93% in the quarter, driven by strong dealer and customer expansion.
Promising Geographic Expansion
Plans for geographic expansion in Europe and India hold significant growth potential for future quarters.
Lowlights
Decline in Gross Margin
Gross margin declined to 25.8% from 26.2% in the prior year, a reduction of 40 basis points.
Increased Operating Expenses
Operating expenses increased 27.6% year-over-year to $9.4 million due to investment in growth initiatives.
Negative Operating Income
GAAP operating income was negative $0.1 million, down from a positive $0.5 million in the prior year.
Revised Downward Profitability Guidance
Adjusted operating income guidance revised to negative $1 million to breakeven, down from $2.8 million to $3.8 million.
Company Guidance
During the FGI Industries Q3 2024 earnings call, the company provided updated guidance for the full year 2024, reflecting significant adjustments based on current performance metrics. Revenue guidance was increased to a range of $127 million to $131 million, up from the previous range of $115 million to $128 million, indicating strong growth across all business segments and geographies. However, the adjusted operating income guidance was revised to a range of negative $1 million to breakeven, down from the prior guidance of $2.8 million to $3.8 million, largely due to increased operating expenses and lower gross margins influenced by higher freight costs and investments in growth initiatives like Cover Bridge and Isla Porter. The adjusted net income guidance was similarly revised to negative $1 million to breakeven from the earlier range of $1.2 million to $2 million, with adjustments excluding certain nonrecurring items and accounting for minority interest. Despite these challenges, the company remains optimistic about its strategic growth initiatives and continued market share gains.FGI Industries Ltd Corporate Events
Executive/Board Changes
FGI Industries Appoints Jae Chung as New CFO
Neutral
Jan 28, 2025
On January 22, 2025, FGI Industries Ltd. announced the resignation of its Chief Financial Officer, Perry Lin, effective June 30, 2025, due to personal reasons. On January 25, 2025, the Board of Directors appointed Jae Chung as the new CFO, effective July 1, 2025. Mr. Chung has been with the company since April 2024, serving as Vice President, Investor Relations and Corporate Development, and previously worked as Vice President at Oakmont Corporation. His appointment as CFO does not involve any family relationships or related-party transactions, and he will receive a salary of $180,000 along with participation in the company’s incentive plans.
Executive/Board Changes
FGI Industries Announces Leadership Changes and Role Updates
Neutral
Nov 12, 2024
On November 5, 2024, FGI Industries announced key leadership changes with Bob Kermelewicz transitioning to Sales Director, focusing on business development in the U.S., and Jennifer Earl taking on additional responsibilities related to this change. Kermelewicz will earn a $150,000 salary plus commissions, while both leaders will have their contracts updated to reflect their new roles.
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.