DB:DX6

Stock Analysis Report

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Executive Summary

The Dixie Group, Inc. manufactures, markets, and sells floorcovering products for residential and commercial applications in North America and internationally.


Snowflake Analysis

Undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

How has Dixie Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DX6's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.1%

DX6

2.6%

DE Consumer Durables

6.8%

DE Market


1 Year Return

50.0%

DX6

-10.6%

DE Consumer Durables

5.6%

DE Market

Return vs Industry: DX6 exceeded the German Consumer Durables industry which returned -11.5% over the past year.

Return vs Market: DX6 exceeded the German Market which returned 4.4% over the past year.


Shareholder returns

DX6IndustryMarket
7 Day-5.1%2.6%6.8%
30 Day8.7%13.0%14.0%
90 Day-31.2%2.6%7.5%
1 Year50.0%50.0%-9.0%-10.6%7.4%5.6%
3 Year-80.3%-80.3%-13.5%-19.9%0.3%-7.3%
5 Year-92.2%-92.2%21.0%5.2%12.4%-2.0%

Price Volatility Vs. Market

How volatile is Dixie Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Dixie Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DX6 (€0.75) is trading below our estimate of fair value (€20.91)

Significantly Below Fair Value: DX6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DX6 is good value based on its PE Ratio (0.7x) compared to the Consumer Durables industry average (21.1x).

PE vs Market: DX6 is good value based on its PE Ratio (0.7x) compared to the German market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DX6's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DX6 is good value based on its PB Ratio (0.2x) compared to the DE Consumer Durables industry average (1.4x).


Next Steps

Future Growth

How is Dixie Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.1%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Dixie Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Dixie Group performed over the past 5 years?

-9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DX6 has a large one-off gain of $21.3M impacting its March 28 2020 financial results.

Growing Profit Margin: DX6 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: DX6 has become profitable over the past 5 years, growing earnings by -9.3% per year.

Accelerating Growth: DX6 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: DX6 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Durables industry (-30.7%).


Return on Equity

High ROE: Whilst DX6's Return on Equity (28.28%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Dixie Group's financial position?


Financial Position Analysis

Short Term Liabilities: DX6's short term assets ($145.0M) exceed its short term liabilities ($55.8M).

Long Term Liabilities: DX6's short term assets ($145.0M) exceed its long term liabilities ($121.9M).


Debt to Equity History and Analysis

Debt Level: DX6's debt to equity ratio (104.6%) is considered high.

Reducing Debt: DX6's debt to equity ratio has reduced from 152.4% to 104.6% over the past 5 years.

Debt Coverage: DX6's debt is not well covered by operating cash flow (14.7%).

Interest Coverage: DX6's interest payments on its debt are not well covered by EBIT (0.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Dixie Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DX6's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DX6's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DX6's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DX6's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DX6's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.7yrs

Average management tenure


CEO

Dan Frierson (77yo)

40.42yrs

Tenure

US$630,629

Compensation

Mr. Daniel K. Frierson, also known as Dan, has been the Chief Executive Officer of The Dixie Group, Inc. since 1980. Mr. Frierson has been the Chairman of The Dixie Group, Inc. since 1987 and has been its  ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD630.63K) is above average for companies of similar size in the German market ($USD417.41K).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Frierson
Chairman & CEO40.42yrsUS$630.63k4.25% $487.6k
Daniel Frierson
VP, COO & Director8.42yrsUS$325.37k1.76% $201.5k
W. Davis
VP of Human Resources & Corporate Secretary29.42yrsUS$234.48k0.66% $75.4k
Thomas Nuckols
VP & President of Dixie Residential2.58yrsUS$280.09k0.33% $38.4k
Jon Faulkner
Vice President of Strategic Initiatives0.42yrUS$275.23k1.21% $139.4k
Allen Danzey
VP & CFO0.42yrno data0.063% $7.3k

6.7yrs

Average Tenure

55.5yo

Average Age

Experienced Management: DX6's management team is seasoned and experienced (6.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Frierson
Chairman & CEO40.42yrsUS$630.63k4.25% $487.6k
Daniel Frierson
VP, COO & Director8.42yrsUS$325.37k1.76% $201.5k
Lowry Kline
Independent Director16.42yrsUS$45.22k0.20% $23.3k
Hilda Murray
Independent Director8.42yrsUS$37.22k0.17% $18.9k
William Blue
Independent Director5.67yrsUS$37.22k0.082% $9.4k
Charles Brock
Independent Director8.42yrsUS$33.22k0.17% $18.9k
Michael Owens
Independent Director6.42yrsUS$41.22k0.14% $15.8k

8.4yrs

Average Tenure

62yo

Average Age

Experienced Board: DX6's board of directors are considered experienced (8.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Dixie Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Dixie Group, Inc.
  • Ticker: DX6
  • Exchange: DB
  • Founded: 1920
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: US$12.983m
  • Listing Market Cap: US$11.472m
  • Shares outstanding: 15.35m
  • Website: https://www.thedixiegroup.com

Number of Employees


Location

  • The Dixie Group, Inc.
  • 475 Reed Road
  • Dalton
  • Georgia
  • 30720
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DXYNNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJan 1975
DX6DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1975

Biography

The Dixie Group, Inc. manufactures, markets, and sells floorcovering products for residential and commercial applications in North America and internationally. It offers residential carpets, custom rugs, and engineered wood products under the Fabrica brand for interior decorators and designers, selected retailers and furniture stores, luxury home builders, and manufacturers of luxury motor coaches and yachts; and specialty carpets and rugs for the high-end residential marketplace, as well as luxury vinyl flooring products and broadloom carpet products under the Masland Residential brand name through the interior design community and specialty floorcovering retailers. The company also provides residential tufted broadloom carpets and rugs to selected retailers and home centers under the Dixie Home and private label brands, as well as luxury vinyl flooring products to the marketplace it serve. In addition, it offers modular carpet tiles, broadloom carpets, luxury vinyl floorings, and wool and nylon rugs under the Atlas | Masland Contract brand name to commercial end users, as well as to consumers through specialty floorcovering retailers. The company was founded in 1920 and is based in Dalton, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 00:07
End of Day Share Price2020/06/05 00:00
Earnings2020/03/28
Annual Earnings2019/12/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.