NYSE:CULP

Stock Analysis Report

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Executive Summary

Culp, Inc. manufactures, sources, markets, and sells mattress fabrics, sewn covers, and cut and sewn kits for use in mattresses, foundations, and other bedding products in North America, the Far East, Asia, and internationally.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

9.7%

CULP

6.1%

US Luxury

2.0%

US Market


1 Year Return

-60.6%

CULP

3.2%

US Luxury

7.1%

US Market

Return vs Industry: CULP underperformed the US Luxury industry which returned 3.2% over the past year.

Return vs Market: CULP underperformed the US Market which returned 7.1% over the past year.


Shareholder returns

CULPIndustryMarket
7 Day9.7%6.1%2.0%
30 Day-2.8%9.8%6.0%
90 Day-24.6%0.8%-0.05%
1 Year-59.2%-60.6%4.5%3.2%9.5%7.1%
3 Year-77.3%-78.9%54.4%46.9%30.7%22.1%
5 Year-71.9%-74.8%31.7%23.0%55.6%38.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Culp undervalued compared to its fair value and its price relative to the market?

5.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CULP ($6.88) is trading below our estimate of fair value ($7.32)

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


Price To Earnings Ratio

PE vs Industry: CULP is poor value based on its PE Ratio (38.6x) compared to the Luxury industry average (14.4x).

PE vs Market: CULP is poor value based on its PE Ratio (38.6x) compared to the US market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: CULP is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CULP is good value based on its PB Ratio (0.5x) compared to the US Luxury industry average (0.9x).


Next Steps

Future Growth

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

55.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CULP's forecast earnings growth (55.7% per year) is above the savings rate (2.2%).

Earnings vs Market: CULP's earnings (55.7% per year) are forecast to grow faster than the US market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CULP's revenue (1.6% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: CULP's revenue (1.6% 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 CULP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Culp performed over the past 5 years?

-12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CULP has a large one-off loss of $7.4M impacting its February 2 2020 financial results.

Growing Profit Margin: CULP's current net profit margins (0.8%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: CULP's earnings have declined by -12.2% per year over the past 5 years.

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

Earnings vs Industry: CULP had negative earnings growth (-88.2%) over the past year, making it difficult to compare to the Luxury industry average (-7.9%).


Return on Equity

High ROE: CULP's Return on Equity (-1.5%) is considered low.


Next Steps

Financial Health

How is Culp's financial position?


Financial Position Analysis

Short Term Liabilities: CULP's short term assets ($120.9M) exceed its short term liabilities ($32.8M).

Long Term Liabilities: CULP's short term assets ($120.9M) exceed its long term liabilities ($17.4M).


Debt to Equity History and Analysis

Debt Level: CULP's debt to equity ratio (0.6%) is considered satisfactory.

Reducing Debt: CULP's debt to equity ratio has reduced from 1.9% to 0.6% over the past 5 years.

Debt Coverage: CULP's debt is well covered by operating cash flow (569.6%).

Interest Coverage: CULP earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

6.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CULP's dividend (6.1%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: CULP's dividend (6.1%) is in the top 25% of dividend payers in the US market (4.54%)


Stability and Growth of Payments

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

Growing Dividend: CULP's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (227%), CULP's dividend payments are not 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?

9.0yrs

Average management tenure


CEO

Robert Culp (48yo)

0.33

Tenure

US$609,392

Compensation

Mr. Robert G. Culp, IV, serves as Chief Executive Officer at Culp, Inc. since January 1, 2020 and its President and Chief Operating Officer since March 06, 2019 and October 01, 2018 respectively and Direct ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD609.39K) is about average for companies of similar size in the US market ($USD589.04K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Franklin Saxon
Executive Chairman1.08yrsUS$1.11m0.88% $743.3k
Robert Culp
President0.33yrUS$609.39k2.05% $1.7m
Kenneth Bowling
Executive VP13yrsUS$435.03k0.20% $166.4k
Boyd Chumbley
President of Culp Upholstery Fabrics Division5.75yrsUS$667.44k0.35% $295.6k
Thomas Gallagher
Corporate Controller12.92yrsUS$213.33kno data
Ashley Durbin
VP, General Counsel & Corporate Secretary1.33yrsno data0.041% $34.3k
Teresa Huffman
Vice President of Human Resources12.25yrsno datano data
Paul Saunders
Chief Executive Officer of eLuxuryno datano datano data

9.0yrs

Average Tenure

52.5yo

Average Age

Experienced Management: CULP's management team is seasoned and experienced (9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Franklin Saxon
Executive Chairman1.08yrsUS$1.11m0.88% $743.3k
Robert Culp
President0.33yrUS$609.39k2.05% $1.7m
Fred Jackson
Director4.33yrsUS$102.82k0.24% $205.9k
Kenneth McAllister
Independent Lead Director13.67yrsUS$105.32k0.28% $237.1k
Sharon Decker
Independent Director1.17yrsUS$27.50k0.044% $36.9k
Kenneth Larson
Independent Director15.67yrsUS$97.82k0.14% $121.7k
Perry Davis
Independent Director0.83yrno data0.038% $32.0k

1.2yrs

Average Tenure

67yo

Average Age

Experienced Board: CULP's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CULP 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

Culp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Culp, Inc.
  • Ticker: CULP
  • Exchange: NYSE
  • Founded: 1972
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: US$84.448m
  • Shares outstanding: 12.27m
  • Website: https://www.culp.com

Number of Employees


Location

  • Culp, Inc.
  • 1823 Eastchester Drive
  • High Point
  • North Carolina
  • 27265
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CULPNYSE (New York Stock Exchange)YesCommon SharesUSUSDAug 1983
CUZDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1983

Biography

Culp, Inc. manufactures, sources, markets, and sells mattress fabrics, sewn covers, and cut and sewn kits for use in mattresses, foundations, and other bedding products in North America, the Far East, Asia, and internationally. It operates in Mattress Fabrics, Upholstery Fabrics, and Home Accessories segments. The Mattress Fabrics segment offers woven jacquard, knitted, and converted fabrics for use in the production of bedding products, including mattresses, box springs, foundations, and top of bed components. The Upholstery Fabrics segment provides jacquard woven fabrics, velvets, micro denier suedes, woven dobbies, knitted fabrics, piece-dyed woven products, and polyurethane fabrics for use in the production of residential and commercial upholstered furniture, such as sofas, recliners, chairs, loveseats, sectionals, and sofa-beds, as well as office seating and window treatment products; and installation services. The Home Accessories segment offers bedding accessories and home goods comprising mattress pads, mattress protectors, sheet sets, pillows, comforters, duvet covers, towels, fabric by the yard, and dog beds through e-commerce and business-to-business sales channels. Culp, Inc. was founded in 1972 and is headquartered in High Point, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 01:43
End of Day Share Price2020/05/27 00:00
Earnings2020/02/02
Annual Earnings2019/04/28


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.