Hooker Furnishings Valuation

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

HOFT ($18.9) is trading below our estimate of [[fair value]] ($24.01)

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

Valuation Score

4/6

Valuation Score 4/6

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

Share Price vs Fair Value

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

Below Fair Value: HOFT ($18.9) is trading below our estimate of fair value ($24.01)

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

Key Valuation Metric

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

Key metric: As HOFT is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for HOFT. This is calculated by dividing HOFT's market cap by their current revenue.
What is HOFT's PS Ratio?
PS Ratio	0.5x
Sales	US$402.26m
Market Cap	US$199.05m

HOFT 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	0.6x
Enterprise Value/EBITDA	23.9x
PEG Ratio	0.8x

Price to Sales Ratio vs Peers

How does HOFT's PS Ratio compare to its peers?

The above table shows the PS ratio for HOFT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.4x
BSET Bassett Furniture Industries	0.4x	2.2%	US$127.7m
FLXS Flexsteel Industries	0.7x	4.3%	US$306.5m
PRPL Purple Innovation	0.2x	3.3%	US$89.3m
NTZ Natuzzi	0.1x	n/a	US$47.6m
HOFT Hooker Furnishings	0.5x	10.0%	US$199.0m

Price-To-Sales vs Peers: HOFT is expensive based on its Price-To-Sales Ratio (0.5x) compared to the peer average (0.4x).

Price to Sales Ratio vs Industry

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

7 Companies	Price / Sales	Estimated Growth	Market Cap
NTZ Natuzzi	0.1x	n/a	US$47.64m
LIVE Live Ventures	0.07x	n/a	US$31.32m
DXYN Dixie Group	0.04x	n/a	US$9.62m
RIME Algorhythm Holdings	0.09x	n/a	US$2.78m

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: HOFT is good value based on its Price-To-Sales Ratio (0.5x) compared to the US Consumer Durables industry average (0.8x).

Price to Sales Ratio vs Fair Ratio

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

HOFT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.5x
Fair PS Ratio	0.5x

Price-To-Sales vs Fair Ratio: HOFT is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.