Culp Inc (NYSE: CULP)

Sector: Consumer Cyclical Industry: Textile Manufacturing CIK: 0000723603
Market Cap 43.44 Mn
P/B 0.81
P/E -4.05
P/S 0.21
ROIC (Qtr) -13.84
Div Yield % 0.00
Rev 1y % (Qtr) -4.44
Total Debt (Qtr) 21.37 Mn
Debt/Equity (Qtr) 0.40
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About

Culp Inc., a prominent player in the bedding and furniture industries, trades under the symbol CULP on the New York Stock Exchange. The company's primary business activities revolve around the design, production, and marketing of a wide array of fabrics, including knitted and woven varieties. These fabrics are primarily used in the manufacture of bedding products such as mattresses, foundations, and mattress sets. Culp's operations span across various countries, including the United States, Canada, and others. Culp generates its revenue through...

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Investment thesis

Bull case

  • Robust free cash flow of (15.37M) exceeds capital expenditure of (810000) by 18.98x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 124.48M provides 5.83x coverage of total debt 21.37M, indicating robust asset backing and low credit risk.
  • Tangible assets of 124.48M provide exceptional 140.02x coverage of deferred revenue 889000, showing strong service capability backing.
  • Robust tangible asset base of 124.48M provides 3.18x coverage of working capital 39.10M, indicating strong operational backing.
  • Tangible assets of 124.48M provide robust 14.33x coverage of other current liabilities 8.69M, indicating strong asset backing.

Bear case

  • Operating cash flow of (16.18M) barely covers its investment activities of 2.55M, with a coverage ratio of -6.34, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 10.73M against inventory of 49.94M, the 0.21 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of (16.18M) provides insufficient coverage of deferred revenue obligations of 889000, which is -18.20x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (16.18M) shows concerning coverage of stock compensation expenses of 619000, with a -26.14 ratio indicating potential earnings quality issues.
  • Operating cash flow of (16.18M) provides minimal -9.10x coverage of tax expenses of 1.78M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Statement Business Segments Breakdown of Revenue (2025)

Statement Business Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Textile Manufacturing
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AIN Albany International Corp /De/ 1.85 Bn 24.78 2.48 480.63 Mn
2 UFI Unifi Inc 0.07 Bn -3.27 0.14 112.98 Mn
3 CULP Culp Inc 0.04 Bn -4.05 0.21 21.37 Mn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.44 0.73
EV to Cash from Ops. EV/CFO -3.38 12.69
EV to Debt EV to Debt 2.56 2.88
EV to EBIT EV/EBIT -6.51 2.43
EV to EBITDA EV/EBITDA -10.36 8.43
EV to Free Cash Flow [EV/FCF] EV/FCF -3.56 21.73
EV to Market Cap EV to Market Cap 1.26 1.63
EV to Revenue EV/Rev 0.27 1.17
Price to Book Value [P/B] P/B 0.81 1.56
Price to Earnings [P/E] P/E -4.05 5.82
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.54
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -18.67
Dividend per Basic Share Div per Share (Qtr) 0.00 0.36
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 11.42
Interest Coverage Int. cover (Qtr) -15.14 -6.18
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 129.85 235.81
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1.87 16.24
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 51.78 -14.26
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 59.49 -4.36
EBIT Growth (1y) % EBIT 1y % (Qtr) 55.47 -16.74
EBT Growth (1y) % EBT 1y % (Qtr) 52.70 -25.37
EPS Growth (1y) % EPS 1y % (Qtr) 48.81 -26.11
FCF Growth (1y) % FCF 1y % (Qtr) -69.03 73.38
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.69 -37.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.64 1.24
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 0.21 0.39
Current Ratio Curr Ratio (Qtr) 1.76 2.70
Debt to Equity Ratio Debt/Equity (Qtr) 0.40 0.51
Interest Cover Ratio Int Coverage (Qtr) -15.14 -6.18
Times Interest Earned Times Interest Earned (Qtr) -15.14 -6.18
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1.70 1.47
EBIT Margin % EBIT Margin % (Qtr) -4.10 -3.37
EBT Margin % EBT Margin % (Qtr) -4.37 -4.63
Gross Margin % Gross Margin % (Qtr) 13.20 11.53
Net Profit Margin % Net Margin % (Qtr) -5.20 -4.67