NYSE:CULP

Stock Analysis Report

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

Fundamentals

Flawless balance sheet and slightly overvalued.


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


Market Performance


7 Day Return

4.0%

CULP

1.8%

US Luxury

0.5%

US Market


1 Year Return

-28.4%

CULP

15.3%

US Luxury

6.8%

US Market

Return vs Industry: CULP underperformed the US Luxury industry which returned 15.3% over the past year.

Return vs Market: CULP underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

CULPIndustryMarket
7 Day4.0%1.8%0.5%
30 Day-9.3%8.0%-0.8%
90 Day-12.5%5.0%-0.9%
1 Year-26.8%-28.4%17.6%15.3%9.2%6.8%
3 Year-43.6%-46.5%56.6%49.6%45.6%36.2%
5 Year-3.2%-11.7%53.3%43.3%63.2%45.4%

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?

26.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CULP ($15.4) is trading below our estimate of fair value ($21.34)

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 (31.6x) compared to the Luxury industry average (16.7x).

PE vs Market: CULP is poor value based on its PE Ratio (31.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CULP is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: CULP is good value based on its PB Ratio (1.2x) compared to the US Luxury industry average (1.6x).


Next Steps

Future Growth

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

19.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CULP's forecast earnings growth (19.9% per year) is above the savings rate (2.7%).

Earnings vs Market: CULP's earnings (19.9% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: CULP's revenue (3.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CULP's revenue (3.8% 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?

-4.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CULP's earnings have declined by -4% 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 (-63.9%) over the past year, making it difficult to compare to the Luxury industry average (23.9%).


Return on Equity

High ROE: CULP's Return on Equity (3.4%) is considered low.


Return on Assets

ROA vs Industry: CULP's Return on Assets is below or equal to the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: CULP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Culp's financial position?


Financial Position Analysis

Short Term Liabilities: CULP's short term assets ($122.4M) exceeds its short term liabilities ($35.6M)

Long Term Liabilities: CULP's short term assets (122.4M) exceeds its long term liabilities (24.6M)


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 4.5% to 0.6% over the past 5 years.

Debt Coverage: CULP's debt is well covered by operating cash flow (1927.8%).

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


Balance Sheet

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

Debt Coverage by Assets: CULP's debt is covered by short term assets (assets are 132.367560x debt).


Next Steps

Dividend

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

2.55%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CULP's dividend (2.6%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CULP's dividend (2.6%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.1%), CULP's payments are 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 Culp's salary, the management and board of directors tenure and is there insider trading?

11.7yrs

Average management tenure


CEO

Frank Saxon (67yo)

12.4yrs

Tenure

US$1,111,452

Compensation

Mr. Franklin N. Saxon, also known as Frank, has been the Chief Executive Officer of Culp, Inc. since May 1, 2007 and was its President since June 2004. Mr. Saxon served as Vice Chairman of the Board for Cu ...


CEO Compensation Analysis

Compensation vs. Market: Frank 's total compensation ($USD1.11M) is about average for companies of similar size in the US market ($USD1.16M).

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


Management Age and Tenure

11.7yrs

Average Tenure

52.5yo

Average Age

Experienced Management: CULP's management team is seasoned and experienced (11.7 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

68yo

Average Age

Experienced Board: CULP's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$30,52011 Sep 19
Kenneth McAllister
EntityIndividual
Role
Lead Director
Lead Director
Shares2,000
Max PriceUS$15.26
SellUS$25,56424 Jun 19
Thomas Gallagher
EntityIndividual
Role
Controller
Corporate Controller
Shares1,400
Max PriceUS$18.26
BuyUS$35,00013 Mar 19
Kenneth McAllister
EntityIndividual
Role
Lead Director
Lead Director
Shares2,000
Max PriceUS$17.50
BuyUS$52,70113 Mar 19
Fred Jackson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$17.57

Ownership Breakdown


Management Team

  • Frank Saxon (67yo)

    Chairman & CEO

    • Tenure: 12.4yrs
    • Compensation: US$1.11m
  • Boyd Chumbley (62yo)

    President of Culp Upholstery Fabrics Division

    • Tenure: 5.2yrs
    • Compensation: US$667.44k
  • Kenneth Bowling (57yo)

    Executive VP

    • Tenure: 12.4yrs
    • Compensation: US$435.03k
  • Robert Culp (48yo)

    President & COO

    • Tenure: 0.6yrs
    • Compensation: US$609.39k
  • Thomas Gallagher (47yo)

    Corporate Controller

    • Tenure: 12.3yrs
    • Compensation: US$213.33k
  • Teresa Huffman

    Vice President of Human Resources

    • Tenure: 11.7yrs
  • Paul Saunders

    Chief Executive Officer of eLuxury

    • Tenure: 0yrs
  • Ashley Durbin (39yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 0.8yrs

Board Members

  • Fred Jackson (69yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$102.82k
  • Ken McAllister (70yo)

    Lead Director

    • Tenure: 13.1yrs
    • Compensation: US$105.32k
  • Frank Saxon (67yo)

    Chairman & CEO

    • Tenure: 12.4yrs
    • Compensation: US$1.11m
  • Sharon Decker (62yo)

    Independent Director

    • Tenure: 0.6yrs
    • Compensation: US$27.50k
  • Kenny Larson (76yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$97.82k
  • Perry Davis (60yo)

    Independent Director

    • Tenure: 0.3yrs

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$194.635m
  • Shares outstanding: 12.41m
  • 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

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:34
End of Day Share Price2019/10/21 00:00
Earnings2019/08/04
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.