Bassett Furniture Industries (NasdaqGS:BSET) - Share price, News & Analysis

Q: What is the Fair Price of BSET when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BSET ($21.04) is trading below our estimate of [[fair value]] ($23.25)

BSET fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	1/6
Financial Health	6/6
Dividends	3/6

BSET Stock Overview

Bassett Furniture Industries, Incorporated engages in the manufacture, marketing, and retail of home furnishings in the United States and internationally.

Rewards

Trading at 9.5% below our estimate of its fair value

Risk Analysis

Earnings are forecast to decline by an average of 37.8% per year for the next 3 years

High level of non-cash earnings

Dividend of 3.04% is not well covered by earnings

Bassett Furniture Industries Competitors

Hooker Furnishings

NasdaqGS:HOFT

US$192.6m

Flexsteel Industries

NasdaqGS:FLXS

US$97.5m

Live Ventures

NasdaqCM:LIVE

US$99.1m

Ethan Allen Interiors

NYSE:ETD

US$657.9m

Price History & Performance

Summary of all time highs, changes and price drops for Bassett Furniture Industries
Historical stock prices
Current Share Price	US$21.04
52 Week High	US$24.79
52 Week Low	US$13.16
Beta	1.46
1 Month Change	-1.91%
3 Month Change	33.17%
1 Year Change	-14.75%
3 Year Change	67.92%
5 Year Change	-41.23%
Change since IPO	8.08%

Recent News & Updates

Jul 18

Bassett Furniture Industries (NASDAQ:BSET) Will Pay A Larger Dividend Than Last Year At $0.16

The board of Bassett Furniture Industries, Incorporated ( NASDAQ:BSET ) has announced that it will be paying its...

Jul 14

Bassett Furniture raises dividend by 14% to $0.16/share

Bassett Furniture (NASDAQ:BSET) declares $0.16/share quarterly dividend, 14.3% increase from prior dividend of $0.14. Forward yield 2.84% Payable Aug. 26; for shareholders of record Aug. 12; ex-div Aug. 11. See BSET Dividend Scorecard, Yield Chart, & Dividend Growth.

Jul 13

A Look At The Fair Value Of Bassett Furniture Industries, Incorporated (NASDAQ:BSET)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Bassett Furniture...

Shareholder Returns

	BSET	US Consumer Durables	US Market
7D	-4.5%	3.6%	1.2%
1Y	-14.7%	-28.5%	-11.6%

Return vs Industry: BSET exceeded the US Consumer Durables industry which returned -29.7% over the past year.

Return vs Market: BSET underperformed the US Market which returned -13.5% over the past year.

Price Volatility

Is BSET's price volatile compared to industry and market?
BSET volatility
BSET Average Weekly Movement	7.1%
Consumer Durables Industry Average Movement	8.0%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.2%

Stable Share Price: BSET is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: BSET's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1902	2,219	Rob Spilman	https://www.bassettfurniture.com

Bassett Furniture Industries, Incorporated engages in the manufacture, marketing, and retail of home furnishings in the United States and internationally. It operates through three segments: Wholesale, Retail –company-owned Stores, and Logistical Services. The company engages in the design, manufacture, sourcing, sale, and distribution of furniture products to a network of company-owned retail stores and licensee-owned stores, and independent furniture retailers; and wood and upholstery operations.

Bassett Furniture Industries Fundamentals Summary

How do Bassett Furniture Industries's earnings and revenue compare to its market cap?
BSET fundamental statistics
Market Cap	US$194.57m
Earnings (TTM)	US$21.30m
Revenue (TTM)	US$521.45m

9.1x

P/E Ratio

0.4x

P/S Ratio

Is BSET overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BSET income statement (TTM)
Revenue	US$521.45m
Cost of Revenue	US$285.78m
Gross Profit	US$235.67m
Other Expenses	US$214.37m
Earnings	US$21.30m

Last Reported Earnings

May 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.30
Gross Margin	45.20%
Net Profit Margin	4.09%
Debt/Equity Ratio	0%

How did BSET perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

26%

Payout Ratio

Does BSET pay a reliable dividends?

See BSET dividend history and benchmarks

When do you need to buy BSET by to receive an upcoming dividend?
Bassett Furniture Industries dividend dates
Ex Dividend Date	Aug 11 2022
Dividend Pay Date	Aug 26 2022
Days until Ex dividend	1 day
Days until Dividend pay date	14 days

Does BSET pay a reliable dividends?

See BSET dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is BSET undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BSET?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BSET. This is calculated by dividing BSET's market cap by their current preferred multiple.
What is BSET's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$194.57m

BSET key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	4.9x
PEG Ratio	-0.2x

Price to Earnings Ratio vs Peers

How does BSET's PE Ratio compare to its peers?

BSET PE Ratio vs Peers

The above table shows the PE ratio for BSET vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.3x
HOFT Hooker Furnishings	35.9x	66.5%	US$192.6m
FLXS Flexsteel Industries	12.2x	53.8%	US$97.5m
LIVE Live Ventures	2.5x	n/a	US$99.1m
ETD Ethan Allen Interiors	6.4x	-20.8%	US$657.9m
BSET Bassett Furniture Industries	9.1x	-37.8%	US$194.6m

Price-To-Earnings vs Peers: BSET is good value based on its Price-To-Earnings Ratio (9.1x) compared to the peer average (14.3x).

Price to Earnings Ratio vs Industry

How does BSET's PE Ratio compare vs other companies in the US Consumer Durables Industry?

Price-To-Earnings vs Industry: BSET is expensive based on its Price-To-Earnings Ratio (9.1x) compared to the US Consumer Durables industry average (7.9x)

Price to Earnings Ratio vs Fair Ratio

What is BSET's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BSET PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.1x
Fair PE Ratio	3.5x

Price-To-Earnings vs Fair Ratio: BSET is expensive based on its Price-To-Earnings Ratio (9.1x) compared to the estimated Fair Price-To-Earnings Ratio (3.5x).

Share Price vs Fair Value

What is the Fair Price of BSET when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BSET ($21.04) is trading below our estimate of fair value ($23.25)

Significantly Below Fair Value: BSET is trading below fair value, but not by a significant amount.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-37.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSET's earnings are forecast to decline over the next 3 years (-37.8% per year).

Earnings vs Market: BSET's earnings are forecast to decline over the next 3 years (-37.8% per year).

High Growth Earnings: BSET's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BSET's revenue is expected to decline over the next 3 years (-6% per year).

High Growth Revenue: BSET's revenue is forecast to decline over the next 3 years (-6% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if BSET's Return on Equity is forecast to be high in 3 years time

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Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-9.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BSET has a high level of non-cash earnings.

Growing Profit Margin: BSET's current net profit margins (4.1%) are lower than last year (4.1%).

Past Earnings Growth Analysis

Earnings Trend: BSET's earnings have declined by 9.4% per year over the past 5 years.

Accelerating Growth: BSET's earnings growth over the past year (23.7%) exceeds its 5-year average (-9.4% per year).

Earnings vs Industry: BSET earnings growth over the past year (23.7%) underperformed the Consumer Durables industry 34.9%.

Return on Equity

High ROE: BSET's Return on Equity (11.2%) is considered low.

Discover strong past performing companies

Financial Health

How is Bassett Furniture Industries's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BSET's short term assets ($221.7M) exceed its short term liabilities ($121.1M).

Long Term Liabilities: BSET's short term assets ($221.7M) exceed its long term liabilities ($102.5M).

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 2.1%.

Debt Coverage: BSET has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BSET has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

3.04%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BSET's dividend (3.04%) is higher than the bottom 25% of dividend payers in the US market (1.51%).

High Dividend: BSET's dividend (3.04%) is low compared to the top 25% of dividend payers in the US market (4.09%).

Stability and Growth of Payments

Stable Dividend: BSET's dividend payments have been volatile in the past 10 years.

Growing Dividend: BSET's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.5%), BSET's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: BSET is paying a dividend but the company has no free cash flows.

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Management

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

13.6yrs

Average management tenure

CEO

Rob Spilman (66 yo)

22.58yrs

Tenure

US$1,657,643

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: Rob's total compensation ($USD1.66M) is about average for companies of similar size in the US market ($USD1.68M).

Compensation vs Earnings: Rob's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: BSET's management team is seasoned and experienced (13.6 years average tenure).

Board Members

Experienced Board: BSET's board of directors are seasoned and experienced ( 11.6 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2022/05/28
Annual Earnings	2021/11/27