The Dixie Group, Inc. (DXYN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Flexsteel Industries, Inc.

Hooker Furnishings Corp.

Lifetime Brands, Inc.

The Lovesac Co.

Live Ventures, Inc.

Bassett Furniture Industries, Inc.

Crown Crafts, Inc.

The Dixie Group, Inc.

Arhaus, Inc.

Purple Innovation, Inc.

Research Frontiers, Inc.

Why is The Dixie Group, Inc. ?

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

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%

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

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 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%

-0.71

85.50%

S&P 500

20.78%

1.56

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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

Pledged Shares

Institutional Holding

23.16%

ROCE (avg)

0.85%

ROE (avg)

0.42%

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

0.64

EV to EBIT

48.41

EV to EBITDA

12.67

EV to Capital Employed

0.97

EV to Sales

0.34

PEG Ratio

Dividend Yield

ROCE (Latest)

1.99%

ROE (Latest)

-77.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

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

17What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -21.87% (YoY

OPERATING PROFIT(Q)

Highest at USD 4.54 MM

OPERATING PROFIT MARGIN(Q)

Highest at 7.65 %

PRE-TAX PROFIT(Q)

Highest at USD 1.5 MM

NET PROFIT(Q)

Highest at USD 1.4 MM

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -0.91 MM

DEBT-EQUITY RATIO (HY)

Highest at 1,053.99 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.78 times

NET SALES(Q)

Lowest at USD 59.38 MM

Here's what is working for The Dixie Group, Inc.

Pre-Tax Profit

At USD 1.5 MM has Grown at 203.3%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 1.4 MM has Grown at 195.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Profit

Highest at USD 4.54 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 7.65 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 1.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 1.4 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Raw Material Cost

Fallen by -21.87% (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.

Debt-Equity Ratio

Highest at 1,053.99 % 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

Operating Cash Flow

Lowest at USD -0.91 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

Lowest at USD 59.38 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Debtors Turnover Ratio

Lowest at 8.78 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio