Bassett Furniture Industries Inc (BSET) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Bassett Furniture Industries's EV/EBITDA of 7.8 is above its 5-year median of 2.7.

P/B below the industry

Bassett Furniture Industries's price-to-book of 1.15 is below the Consumer discretionary median of 1.26.

Trading above fair value

The share price of $21.89 is above our fair value estimate of $16.53.

Margin of safety under 20%

The price is 32.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -11.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -53.5% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 1.4% over the last twelve months; the Consumer discretionary median is 0.2%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 56.6% over the last twelve months, against 56.3% a year earlier.

Return on equity under 15%

Return on equity was 4.1% over the last twelve months and averaged 8.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.3%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Bassett Furniture Industries's return on equity of 4.1% is above the Consumer discretionary median of -7.4%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 2.0% over the last twelve months, against a 5-year average of 3.1%.

Net margin above the industry

Bassett Furniture Industries's net margin of 2.0% is above the Consumer discretionary median of -2.4%.

No debt

Bassett Furniture Industries has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.95 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.73; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Bassett Furniture Industries paid dividends worth 3.7% of the share price over the last twelve months.

Yield below Treasuries

The 3.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Bassett Furniture Industries yields 3.7%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Not covered by earnings

Dividends take 102% of net income, leaving little room.

Covered by free cash flow

Dividends take 85.2% of free cash flow.