Why is The Dixie Group, Inc. ?
1
Weak Long Term Fundamental Strength with a 16.54% CAGR growth in Operating Profits over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 12.33 times
- The company has been able to generate a Return on Equity (avg) of 0.42% signifying low profitability per unit of shareholders funds
2
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -10.47%, its profits have risen by 38.7%
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -10.47% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
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 Furniture, Home Furnishing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is The Dixie Group, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
The Dixie Group, Inc.
-10.47%
-0.72
84.34%
S&P 500
16.06%
1.22
13.16%
Quality key factors
Factor
Value
Sales Growth (5y)
-4.01%
EBIT Growth (5y)
16.54%
EBIT to Interest (avg)
-0.62
Debt to EBITDA (avg)
17.07
Net Debt to Equity (avg)
5.70
Sales to Capital Employed (avg)
2.48
Tax Ratio
0.29%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
23.16%
ROCE (avg)
0.85%
ROE (avg)
0.42%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.64
EV to EBIT
48.41
EV to EBITDA
12.67
EV to Capital Employed
0.97
EV to Sales
0.34
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
1.99%
ROE (Latest)
-77.20%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
15What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -1.06% (YoY
NET SALES(Q)
Highest at USD 68.61 MM
OPERATING PROFIT(Q)
Highest at USD 4.71 MM
PRE-TAX PROFIT(Q)
Highest at USD 1.68 MM
NET PROFIT(Q)
Highest at USD 1.55 MM
-3What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 8.5 times
Here's what is working for The Dixie Group, Inc.
Net Sales
Highest at USD 68.61 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 4.71 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 1.68 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 1.55 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Raw Material Cost
Fallen by -1.06% (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 The Dixie Group, Inc.
Debtors Turnover Ratio
Lowest at 8.5 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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