Bassett Furniture Industries, Inc.: Strong price momentum but will it sustain?

Bassett Furniture Industries, Inc. relative valuation is OVERVALUED and it has a fundamental analysis score of 53.

Our analysis is based on comparing Bassett Furniture Industries, Inc. with the following peers – LaZBoy Incorporated, Ethan Allen Interiors Inc., Flexsteel Industries, Inc., Stanley Furniture Company, Inc. and Hooker Furniture Corporation (LZB-US, ETH-US, FLXS-US, STLY-US and HOFT-US).

Bassett Furniture Industries, Inc. has shown good performance overall, both over the last one year (at 30.88%) as well as over the last month (at 25.09%). Share price performance over the last month, though has been lower than that over the last year. But Bassett Furniture Industries, Inc.’s stock has done better than its overall peer group whose performance was 15.51% over the last month.

Company Snapshot

  • Considering peers, relative outperformance over the last year and the last month suggest a leading position.
  • It’s current Price/Book of 2.07 is about median in its peer group.
  • The market expects BSET-US to grow at about the same rate as the peers and to maintain the median returns it currently generates.
  • BSET-US‘s relative asset efficiency and net profit margins are both around the median level.
  • Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.
  • Over the last five years, BSET-US‘s return on assets has declined from about median to less than the median among its peers suggesting that the company’s historical competitiveness in operations is slipping away.
  • The company’s relatively high gross margin suggests some differentiation with pricing advantages versus peers.
  • While BSET-US‘s revenues in recent years have grown faster than the peer median, the market gives the stock a P/E ratio that is around peer median suggesting that the market has some questions about the company’s long-term strategy.
  • The company’s capital investment seems appropriate for a business with peer median returns.
  • BSET-US has the financial and operating capacity to borrow quickly.
  • Our analysis rates Bassett Furniture Industries, Inc. as OVERVALUED relative to its peers.

Share Price Performance

Considering peers, relative outperformance over the last year and the last month suggest a leading position.

BSET-US‘s share price performance of 30.88% over the last 12 months is above peer median of 23.58%. The 30-day trend in its share price performance of 25.09% is also above the peer median of 15.51% suggesting that this company is a leading performer relative to its peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Bassett Furniture Industries, Inc.’s price of USD 36.15 is greater than CapitalCube’s implied price of USD 32.04. At this level, CapitalCube believes that Bassett Furniture Industries, Inc. is overvalued. Over the last 52 week period, the stock has fluctuated between USD 22.42 and USD 37.25.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Bassett Furniture Industries, Inc. engages in the manufacture and sale of home furnishings. It operates through the following segments: Wholesale, Retail, and Logistical Services. The Wholesale segment focuses on the design, manufacture, sourcing, sale, and distribution of furniture products. The Retail segment consists of company owned stores. The Logistical Services segment offers shipping, delivery, and warehousing services. The company was founded by John David Bassett in 1902 and is headquartered in Bassett, VA.


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