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 Analysis

Very undervalued with excellent 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

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


Market Performance


7 Day Return

-25.5%

HOFT

-14.6%

US Consumer Durables

-2.8%

US Market


1 Year Return

-58.2%

HOFT

-33.9%

US Consumer Durables

-15.9%

US Market

Return vs Industry: HOFT underperformed the US Consumer Durables industry which returned -33.2% over the past year.

Return vs Market: HOFT underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

HOFTIndustryMarket
7 Day-25.5%-14.6%-2.8%
30 Day-25.6%-41.8%-18.8%
90 Day-50.8%-43.0%-24.0%
1 Year-56.9%-58.2%-33.0%-33.9%-14.2%-15.9%
3 Year-66.2%-68.2%-31.8%-34.9%9.9%2.8%
5 Year-37.1%-42.6%-27.9%-32.7%27.2%13.3%

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 ($12.31) is trading below our estimate of fair value ($40.84)

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 (5.9x) compared to the Consumer Durables industry average (6.4x).

PE vs Market: HOFT is good value based on its PE Ratio (5.9x) compared to the US market (12.4x).


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 (0.5x) compared to the US Consumer Durables industry average (0.7x).


Next Steps

Future Growth

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

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOFT's forecast earnings growth (13% per year) is above the savings rate (1.7%).

Earnings vs Market: HOFT's earnings (13% per year) are forecast to grow slower than the US market (13.4% per year).

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

Revenue vs Market: HOFT's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: HOFT's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HOFT's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Hooker Furniture performed over the past 5 years?

20.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOFT has high quality earnings.

Growing Profit Margin: HOFT's current net profit margins (3.8%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: HOFT's earnings have grown significantly by 20.8% 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 (-27.5%) over the past year, making it difficult to compare to the Consumer Durables industry average (10%).


Return on Equity

High ROE: HOFT's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is Hooker Furniture's financial position?


Financial Position Analysis

Short Term Liabilities: HOFT's short term assets ($227.2M) exceed its short term liabilities ($62.0M).

Long Term Liabilities: HOFT's short term assets ($227.2M) exceed its long term liabilities ($71.2M).


Debt to Equity History and Analysis

Debt Level: HOFT's debt to equity ratio (11.5%) 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 well covered by operating cash flow (49.4%).

Interest Coverage: HOFT's interest payments on its debt are well covered by EBIT (25.1x 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 7.3x debt).


Next Steps

Dividend

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

5.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HOFT's dividend (5.2%) is higher than the bottom 25% of dividend payers in the US market (2.05%).

High Dividend: HOFT's dividend (5.2%) is low compared to the top 25% of dividend payers in the US market (5.71%).


Stability and Growth of Payments

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 reasonably low payout ratio (28.6%), 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

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

2.8yrs

Average management tenure


CEO

Paul Toms (64yo)

19.33s

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 ($USD1.54M) is above average for companies of similar size in the US market ($USD618.59K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Toms
Chairman & CEO19.33yrsUS$1.54m1.09% $1.6m
Paul Huckfeldt
CFO and Senior VP of Finance & Accounting9.25yrsUS$618.08k0.18% $268.8k
Anne Jacobsen
Chief Administration Officer6.25yrsUS$511.15k0.071% $103.1k
Jeremy Hoff
President of Hooker Branded Segment2.67yrsUS$537.98k0.0037% $5.3k
Donald Boone
Co-President of Home Meridian Segment1.83yrsUS$682.87k0.017% $24.6k
Douglas Townsend
Co-President of Home Meridian Segment1.83yrsUS$692.95k0.041% $60.3k
Charlene Bowling
Chief Information Officer & VPno datano datano data
Johne Albanese
VP of Corporate Marketingno datano datano data
Robert Sherwood
VP of Creditno datano datano data
Craig Young
President of Bradington-Young2.83yrsno datano data

2.8yrs

Average Tenure

56.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Paul Toms
Chairman & CEO19.33yrsUS$1.54m1.09% $1.6m
Henry Williamson
Lead Director3.83yrsUS$118.13k0.36% $516.5k
Edwin Ryder
Independent Director9.17yrsUS$90.00k0.13% $196.0k
John Gregory
Independent Director32.25yrsUS$90.00k0.18% $260.4k
W. Beeler
Independent Director27.25yrsUS$105.00k0.33% $478.8k
Paulette Garafalo
Independent Director2.67yrsUS$99.38k0.038% $55.0k
Ellen Taaffe
Independent Director4.75yrsUS$99.38k0.054% $77.9k
Tonya Jackson
Independent Director2.67yrsUS$90.00k0.037% $53.9k

7.0yrs

Average Tenure

65.5yo

Average Age

Experienced Board: HOFT's board of directors are considered experienced (7 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

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$145.459m
  • 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 operates through Hooker Branded, Home Meridian, and All Other segments. The Hooker Branded segment offers a range of design categories, including home entertainment, home office, accent, dining, and bedroom furniture under the Hooker Furniture brand name; and imported upholstered furniture. The Home Meridian segment provides home furnishings under the Accentrics Home brand; a range of bedroom, dining room, accent, display cabinet, home office, and youth furnishings under the Pulaski Furniture and Samuel Lawrence Furniture brands; and leather motion upholstery under the Prime Resources brand. It also designs and supplies hotel furnishings for four and five-star hotels under the Samuel Lawrence Hospitality brand name. The All Other segment offers motion and stationary leather furniture under the Bradington-Young brand; occasional chairs, settees, sofas, and sectional seating under the Sam Moore Furniture brand name; and upholstered furniture, such as private label sectionals, modulars, sofas, chairs, ottomans, benches, beds, and dining chairs for lifestyle specialty retailers under the Shenandoah Furniture brand. It also supplies upholstered seating and case goods under the H Contract brand name. The company sells home furnishings products through retailers comprising independent furniture stores, department stores, mass merchants, national chains, warehouse clubs, catalog merchants, interior designers, and e-commerce retailers. Hooker Furniture Corporation was founded in 1924 and is headquartered in Martinsville, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 00:35
End of Day Share Price2020/04/03 00:00
Earnings2019/11/03
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.