NasdaqGS:HOFT

Stock Analysis Report

Executive Summary

Hooker Furniture Corporation, together with its subsidiaries, designs, manufactures, imports, and markets residential household, hospitality, and contract furniture in the United States.

Snowflake

Fundamentals

Very undervalued with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.3%

HOFT

2.0%

US Consumer Durables

0.07%

US Market


1 Year Return

-28.0%

HOFT

44.5%

US Consumer Durables

8.9%

US Market

Return vs Industry: HOFT underperformed the US Consumer Durables industry which returned 44.5% over the past year.

Return vs Market: HOFT underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

HOFTIndustryMarket
7 Day4.3%2.0%0.07%
30 Day7.8%7.2%-0.3%
90 Day3.4%15.5%-1.6%
1 Year-26.2%-28.0%46.5%44.5%11.3%8.9%
3 Year-10.2%-14.6%35.1%28.8%46.3%36.8%
5 Year59.1%46.0%39.2%30.2%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hooker Furniture 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: HOFT ($22.49) is trading below our estimate of fair value ($71.11)

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


Price To Earnings Ratio

PE vs Industry: HOFT is good value based on its PE Ratio (8.8x) compared to the Consumer Durables industry average (13.3x).

PE vs Market: HOFT is good value based on its PE Ratio (8.8x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: HOFT is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: HOFT is good value based on its PB Ratio (1x) compared to the US Consumer Durables industry average (1.6x).


Next Steps

Future Growth

How is Hooker Furniture forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

17.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOFT's forecast earnings growth (17.1% per year) is above the savings rate (2.7%).

Earnings vs Market: HOFT's earnings (17.1% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: HOFT's earnings are forecast to grow, but not significantly.

Revenue vs Market: HOFT's revenue (3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: HOFT's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Hooker Furniture performed over the past 5 years?

24.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HOFT's earnings have grown significantly by 24.6% per year over the past 5 years.

Accelerating Growth: HOFT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HOFT had negative earnings growth (-5%) over the past year, making it difficult to compare to the Consumer Durables industry average (13.5%).


Return on Equity

High ROE: HOFT's Return on Equity (11.3%) is considered low.


Return on Assets

ROA vs Industry: HOFT has a higher Return on Assets than the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: HOFT has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Hooker Furniture's financial position?


Financial Position Analysis

Short Term Liabilities: HOFT's short term assets ($224.0M) exceeds its short term liabilities ($59.4M)

Long Term Liabilities: HOFT's short term assets (224.0M) exceeds its long term liabilities (74.1M)


Debt to Equity History and Analysis

Debt Level: HOFT's debt to equity ratio (12.2%) is considered satisfactory

Reducing Debt: Insufficient data to determine if HOFT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HOFT's debt is not well covered by operating cash flow (16%).

Interest Coverage: HOFT's interest payments on its debt are well covered by EBIT (29.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: HOFT's debt is covered by short term assets (assets are 6.883260x debt).


Next Steps

Dividend

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

2.67%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years2.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HOFT's dividend (2.67%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HOFT's dividend (2.67%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: HOFT's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.1%), HOFT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Hooker Furniture's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Paul Toms (64yo)

18.8yrs

Tenure

US$1,539,886

Compensation

Mr. Paul B. Toms, Jr., has been the Chairman of the Board and Chief Executive Officer of Hooker Furniture Corp. of Opus Designs, LLC since December 2000 and served as its President since November 1, 2006 u ...


CEO Compensation Analysis

Compensation vs. Market: Paul's total compensation ($USD1.54M) is about average for companies of similar size in the US market ($USD1.22M).

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


Management Age and Tenure

2.8yrs

Average Tenure

57yo

Average Age

Experienced Management: HOFT's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: HOFT's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: HOFT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$20,96004 Oct 19
Donald Boone
EntityIndividual
Role
Senior Key Executive
Co-President of Home Meridian Segment
Shares1,000
Max PriceUS$20.96
SellUS$41,90001 Jul 19
Douglas Townsend
EntityIndividual
Role
Senior Key Executive
Co-President of Home Meridian Segment
Shares2,000
Max PriceUS$20.95
BuyUS$106,03601 Jul 19
Douglas Townsend
EntityIndividual
Role
Senior Key Executive
Co-President of Home Meridian Segment
Shares4,900
Max PriceUS$21.64
BuyUS$9,85520 Jun 19
Anne Jacobsen
EntityIndividual
Role
Chief Administrative Officer
Chief Administration Officer
Shares500
Max PriceUS$19.71
BuyUS$100,15018 Jun 19
Paul Toms
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,000
Max PriceUS$20.03
BuyUS$99,12026 Apr 19
W. Beeler
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,500
Max PriceUS$28.32
BuyUS$27,97926 Apr 19
Paul Toms
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares1,000
Max PriceUS$28.00
BuyUS$14,43525 Apr 19
Paul Huckfeldt
EntityIndividual
Role
Chief Financial Officer
CFO and Senior VP of Finance & Accounting
Shares500
Max PriceUS$28.87
BuyUS$28,96923 Apr 19
Paul Toms
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares1,000
Max PriceUS$28.98
BuyUS$225,04023 Apr 19
Henry Williamson
EntityIndividual
Role
Lead Director
Lead Director
Shares8,000
Max PriceUS$28.13

Ownership Breakdown


Management Team

  • Mike Delgatti (65yo)

    President of Hooker Domestic Upholstery & Emerging Channels

    • Tenure: 2.8yrs
    • Compensation: US$625.14k
  • Robert Sherwood

    VP of Credit

    • Tenure: 0yrs
  • Paul Toms (64yo)

    Chairman & CEO

    • Tenure: 18.8yrs
    • Compensation: US$1.54m
  • Anne Jacobsen (57yo)

    Chief Administration Officer

    • Tenure: 5.8yrs
    • Compensation: US$511.15k
  • Paul Huckfeldt (61yo)

    CFO and Senior VP of Finance & Accounting

    • Tenure: 8.8yrs
    • Compensation: US$618.08k
  • Doug Townsend (52yo)

    Co-President of Home Meridian Segment

    • Tenure: 1.3yrs
    • Compensation: US$692.95k
  • Donald Boone (56yo)

    Co-President of Home Meridian Segment

    • Tenure: 1.3yrs
    • Compensation: US$682.87k
  • Jeremy Hoff (46yo)

    President of Hooker Branded Segment

    • Tenure: 2.2yrs
    • Compensation: US$537.98k
  • Johne Albanese

    VP of Corporate Marketing

    • Tenure: 0yrs
  • Charlene Bowling

    Chief Information Officer & VP

    • Tenure: 0yrs

Board Members

  • Henry Williamson (71yo)

    Lead Director

    • Tenure: 3.3yrs
    • Compensation: US$118.13k
  • Edwin Ryder (71yo)

    Director

    • Tenure: 8.7yrs
    • Compensation: US$90.00k
  • John Gregory (71yo)

    Director

    • Tenure: 31.8yrs
    • Compensation: US$90.00k
  • W. Beeler (67yo)

    Director

    • Tenure: 26.8yrs
    • Compensation: US$105.00k
  • Paulette Garafalo (63yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$99.38k
  • Ellen Taaffe (57yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$99.38k
  • Paul Toms (64yo)

    Chairman & CEO

    • Tenure: 18.8yrs
    • Compensation: US$1.54m
  • Tonya Jackson (55yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$90.00k

Company Information

Hooker Furniture Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hooker Furniture Corporation
  • Ticker: HOFT
  • Exchange: NasdaqGS
  • Founded: 1924
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: US$265.749m
  • Shares outstanding: 11.82m
  • Website: https://www.hookerfurniture.com

Number of Employees


Location

  • Hooker Furniture Corporation
  • 440 East Commonwealth Boulevard
  • Martinsville
  • Virginia
  • 24112
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HOFTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1999

Biography

Hooker Furniture Corporation, together with its subsidiaries, designs, manufactures, imports, and markets residential household, hospitality, and contract furniture in the United States. The company operat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:38
End of Day Share Price2019/10/22 00:00
Earnings2019/08/04
Annual Earnings2019/02/03


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.