NasdaqGS:BSET

Stock Analysis Report

Executive Summary

Bassett Furniture Industries, Incorporated manufactures, markets, and retails home furnishings in the United States and internationally.

Rewards

Trading at 77.7% below its fair value

Earnings are forecast to grow 101.08% per year

Risk Analysis

Dividend of 4.74% is not well covered by earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Bassett Furniture Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.9%

BSET

-0.4%

US Consumer Durables

0.06%

US Market


1 Year Return

-43.5%

BSET

28.5%

US Consumer Durables

19.4%

US Market

Return vs Industry: BSET underperformed the US Consumer Durables industry which returned 28.5% over the past year.

Return vs Market: BSET underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

BSETIndustryMarket
7 Day-7.9%-0.4%0.06%
30 Day-37.0%3.4%1.1%
90 Day-30.4%8.5%8.9%
1 Year-41.4%-43.5%30.2%28.5%21.9%19.4%
3 Year-57.9%-61.2%32.9%27.0%48.9%39.3%
5 Year-52.8%-58.3%37.6%28.6%71.9%53.1%

Price Volatility Vs. Market

How volatile is Bassett Furniture Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bassett Furniture Industries 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: BSET ($10.54) is trading below our estimate of fair value ($47.29)

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


Price To Earnings Ratio

PE vs Industry: BSET is unprofitable, so we can't compare its PE Ratio to the Consumer Durables industry average.

PE vs Market: BSET is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BSET is good value based on its PB Ratio (0.6x) compared to the US Consumer Durables industry average (1.5x).


Next Steps

Future Growth

How is Bassett Furniture Industries forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

101.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSET is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: BSET is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BSET's is expected to become profitable in the next 3 years.

Revenue vs Market: BSET's revenue (1.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BSET's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BSET's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has Bassett Furniture Industries performed over the past 5 years?

-17.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BSET is currently unprofitable.

Growing Profit Margin: BSET is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BSET is unprofitable, and losses have increased over the past 5 years at a rate of -17.6% per year.

Accelerating Growth: Unable to compare BSET's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BSET is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Durables industry (7.3%).


Return on Equity

High ROE: BSET has a negative Return on Equity (-1.08%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bassett Furniture Industries's financial position?


Financial Position Analysis

Short Term Liabilities: BSET's short term assets ($136.8M) exceed its short term liabilities ($72.3M).

Long Term Liabilities: BSET's short term assets ($136.8M) exceed its long term liabilities ($24.8M).


Debt to Equity History and Analysis

Debt Level: BSET is debt free.

Reducing Debt: BSET has no debt compared to 5 years ago when its debt to equity ratio was 1.6%.


Balance Sheet

Inventory Level: BSET has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if BSET's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BSET has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: BSET has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Bassett Furniture Industries's current dividend yield, its reliability and sustainability?

4.74%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years5.0%

Current dividend yield vs market & industry

Notable Dividend: BSET's dividend (4.74%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: BSET's dividend (4.74%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

Stable Dividend: BSET has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BSET's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: BSET is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: BSET's dividends in 3 years are forecast to be well covered by earnings (43.2% payout ratio).


Next Steps

Management

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

9.1yrs

Average management tenure


CEO

Robert Spilman (63yo)

20.1yrs

Tenure

US$1,005,160

Compensation

Mr. Robert H. Spilman, Jr., also known as Rob, has been President and Chief Executive Officer of Bassett Furniture Industries, Incorporated since March 2000. He has been with Bassett Furniture Industries I ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD1.01M) is above average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Robert's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Spilman
President20.1yrsUS$1.01m2.15% $2.3m
J. Daniel
Senior VP and Chief Financial & Administrative Officer7.1yrsUS$338.95k0.43% $467.8k
John Bassett
Senior VP & Chief Operations Officer0yrsUS$334.64k0.39% $422.2k
Bruce Cohenour
Senior VP & Chief Sales Officer7.1yrsUS$509.04k0.31% $340.7k
Mark Jordan
Senior Vice President of Upholstery11.1yrsUS$331.60k0.13% $139.3k
Brian Claspell
VP & Chief Information Officer0yrsno datano data
Jay Hervey
VP, General Counsel & Secretary23.1yrsno data0.078% $84.4k
Edward White
Vice President of Human Resources0yrsno datano data
David Baker
Senior VP & Chief Retail Officer5.1yrsno data0.31% $338.5k
Peter Morrison
Vice President & Chief Creative Officer0yrsno datano data

9.1yrs

Average Tenure

60yo

Average Age

Experienced Management: BSET's management team is seasoned and experienced (9.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Spilman
President20.1yrsUS$1.01m2.15% $2.3m
John Belk
Independent Director3.6yrsUS$74.99k0.29% $312.5k
William Warden
Lead Independent Director3.9yrsUS$89.99k0.32% $344.0k
Paul Fulton
Chairman Emeritus3.9yrsUS$24.99k0.64% $688.5k
Kristina Cashman
Independent Director13.1yrsUS$84.99k0.11% $115.1k
William Wampler
Independent Director15.4yrsUS$79.99k0.15% $157.9k
John McDowell
Independent Director9.1yrsUS$74.99k0.093% $101.2k
Virginia Hamlet
Independent Director1.9yrsUS$74.99k0.045% $48.3k

3.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: BSET's board of directors are considered experienced (3.9 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Bassett Furniture Industries, Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bassett Furniture Industries, Incorporated
  • Ticker: BSET
  • Exchange: NasdaqGS
  • Founded: 1902
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: US$108.210m
  • Shares outstanding: 10.10m
  • Website: https://www.bassettfurniture.com

Number of Employees


Location

  • Bassett Furniture Industries, Incorporated
  • 3525 Fairystone Park Highway
  • Bassett
  • Virginia
  • 24055
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BSETNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1969

Biography

Bassett Furniture Industries, Incorporated manufactures, markets, and retails home furnishings in the United States and internationally. It operates in three segments: Wholesale, Retail, and Logistical Services. The company engages in the design, manufacture, sourcing, distribution, and sale of furniture products to a network of company-owned and licensee-owned Bassett Home Furnishings retail stores, as well as independent furniture retailers; and wood and upholstery operations. As of January 23, 2020, it operated a network of 103 company- and licensee-owned stores. It also provides shipping, delivery, and warehousing services to customers in the furniture industry. In addition, the company owns and leases retail store properties; and distributes its products through other multi-line furniture stores, Bassett galleries or design centers, specialty stores, and mass merchants. Bassett Furniture Industries, Incorporated was founded in 1902 and is based in Bassett, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 23:42
End of Day Share Price2020/02/18 00:00
Earnings2019/11/30
Annual Earnings2019/11/30


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.