Quality Investor

Flexsteel Industries, Inc.

Rank #110Capital Return

FLXS · Nasdaq · Consumer Cyclical

Flexsteel Industries, Inc. (FLXS) — Rank #110 by gross profitability (GP/assets 0.45) · ROE 24.8% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0000037472 · all metrics point-in-time as of the filing date.

About

Flexsteel Industries, Inc., together with its subsidiaries, manufactures, distributes, imports, and markets residential furniture products in the United States.

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The company offers stationary and motion sofas; loveseats; chairs and sectionals; bedroom furniture; dining tables and chairs; occasional and entertainment tables; and kitchen storage. It distributes its products through its e-commerce channel and direct sales force.

The company was founded in 1893 and is based in Dubuque, Iowa.

Industry
Furnishings, Fixtures & Appliances
Sector
Consumer Cyclical
State
MN
Filer Category
Accelerated filerSmaller reporting company
Fiscal Year End
June 30

Price History

FLXS+161.5% · +21.2% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$327.07M

P/E (annual)

13.2

P/S (annual)

0.7

P/B

2.5

P/OCF (annual)

6.3

Shareholder Yield

5.2%

Employees

1,200

Industry

Furnishings, Fixtures & Appliances

Exchange

Nasdaq

Signal Flags

3 green
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.45
Return on equity
24.8%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.90
Current ratio
2.09×
Net cash
$16.68M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.0%

Growth

2/2 pass
Revenue growth
4.1%
Piotroski F-Score
7 / 9
Share dilution
-3.9%

Terry Smith quality gate

Passes 3/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

-3.0%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -3.9% — per-share value needs a total required return of -6.9% once share-count change is priced in.

vs. own 6-year median revenue growth: 5.9%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-6.7%

r = 10% (base)

-3.0%

r = 12%

0.1%

Net debt / market cap: -3.8%

Base FCF: $47.6M3Y mean FCF: $36.1M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

12.9xFair
5.5xmed 11.8x66.8x

P / S

Price / revenue per share

0.9xExpensive
0.2xmed 0.3x0.9x

P / B

Price / book value per share

3.2xExpensive
0.5xmed 0.9x3.2x

P / GP

Price / gross profit per share

3.8xExpensive
1.2xmed 2.2x3.8x

P / FCF

Price / free cash flow per share

9.0xFair
6.6xmed 9.0x29.4x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.45

Primary signal (Novy-Marx).

3rd of 5 SIC 25 peers

Return on equity

24.8%

Gross margin

24.7%

5th of 5 SIC 25 peers

Revenue growth (YoY)

4.1%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

5.3%

Revenue CAGR (5Y)

-0.8%

Earnings CAGR (3Y)

30.9%

FCF CAGR (3Y)

37.8%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.90

3rd of 5 SIC 25 peers (best = lowest)

Current ratio

2.09×

2nd of 5 SIC 25 peers

Quick ratio

0.78×

Net cash

$16.68M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$47.58M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.44

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.0%

Stock-based comp intensity.

Dividend safety

Composite score

3.8 / 5

Good
Payout ratio
13.2%5/5 Strong
FCF coverage
10.87×5/5 Strong
Dividend growth streak
2 yr1/5 Weak
Balance-sheet health
D/E 0.90 · IC 1934.09×4/5 Strong

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20212026
Hypergrowth
Capital Return
Value