Culp, Inc. (CULP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Unifi, Inc.

Culp, Inc.

Albany International Corp.

Why is Culp, Inc. ?

Poor Management Efficiency with a low ROE of 0.50%

The company has been able to generate a Return on Equity (avg) of 0.50% signifying low profitability per unit of shareholders funds

Flat results in Jul 25

INTEREST(HY) At USD 0.29 MM has Grown at 651.28%
OPERATING CASH FLOW(Y) Lowest at USD -18.14 MM
DEBT-EQUITY RATIO (HY) Highest at 17.1 %

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -24.40%, its profits have fallen by -8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -24.40% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Culp, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Culp, Inc.

-26.2%

-0.28

44.19%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.39%

EBIT Growth (5y)

-213.77%

EBIT to Interest (avg)

-6.78

Debt to EBITDA (avg)

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

2.83

Tax Ratio

2.10%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

68.72%

ROCE (avg)

2.94%

ROE (avg)

0.50%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.87

EV to EBIT

-4.17

EV to EBITDA

-8.44

EV to Capital Employed

0.87

EV to Sales

0.24

PEG Ratio

Dividend Yield

ROCE (Latest)

-20.78%

ROE (Latest)

-23.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

NET PROFIT(Q)

Highest at USD 0.48 MM

RAW MATERIAL COST(Y)

Fallen by -66.17% (YoY

EPS(Q)

Highest at USD -0.02

-15What is not working for the Company

INTEREST(HY)

At USD 0.29 MM has Grown at 651.28%

OPERATING CASH FLOW(Y)

Lowest at USD -18.14 MM

DEBT-EQUITY RATIO (HY)

Highest at 17.1 %

CASH AND EQV(HY)

Lowest at USD 19.44 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.89 times

Here's what is working for Culp, Inc.

Net Profit

Highest at USD 0.48 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Profit

At USD 0.48 MM has Grown at 119.52%

over average net sales of the previous four periods of USD -2.46 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

EPS

Highest at USD -0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -66.17% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Culp, Inc.

Interest

At USD 0.29 MM has Grown at 651.28%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD -18.14 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at 17.1 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Cash and Eqv

Lowest at USD 19.44 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 3.89 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio