Dixie Group Inc (DXYN) 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 against its history

Needs positive EBITDA and price history.

P/B against the industry

Needs positive book value.

Price against fair value

We could not estimate a fair value: it needs at least two valuation methods with positive inputs.

Margin of safety

Depends on the fair value estimate.

Revenue growing under 10% a year

Revenue grew -5.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

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

Growing slower than the industry

Revenue grew -0.6% over the last twelve months; the Consumer discretionary median is 4.8%.

Guidance issued

The latest outlook (full fiscal year 2026 Capital expenditures, May 11, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 28.8% over the last twelve months, against 25.7% a year earlier.

Return on equity under 15%

Return on equity was -1.6% over the last twelve months and averaged -39.2% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 7.5%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Dixie's return on equity of -1.6% is below the Consumer discretionary median of 5.6%.

Earnings over 5 years

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

Net margin above its 5-year average

Net margin was -0.1% over the last twelve months, against a 5-year average of -4.0%.

Net margin below the industry

Dixie's net margin of -0.1% is below the Consumer discretionary median of 1.4%.

High debt

Debt is 702% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 123% five years ago to 702%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 1.9% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 1.0 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.96 times current liabilities.

Bankruptcy risk (Altman Z)

Needs market value, working capital and retained earnings.

No dividend

Dixie has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.