Haverty Furniture Companies Inc (NYSE: HVT)

Sector: Consumer Cyclical Industry: Home Improvement Retail CIK: 0000216085
Market Cap 568.13 Mn
P/B 2.24
P/E 67.28
P/S 0.92
ROIC (Qtr) 2.87
Div Yield % 1.64
Rev 1y % (Qtr) 10.56
Total Debt (Qtr) 211.84 Mn
Debt/Equity (Qtr) 0.69
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About

Investment thesis

Bull case

  • Healthy cash reserves of 136.98M provide 3.71x coverage of short-term debt 36.94M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 651.71M provides 3.08x coverage of total debt 211.84M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 39.19M exceeds capital expenditure of 23.01M by 1.70x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 651.71M provides 6.06x coverage of working capital 107.46M, indicating strong operational backing.
  • Retained earnings of 414.62M provide full 2.37x coverage of long-term debt 174.91M, indicating strong internal capital position.

Bear case

  • Operating cash flow of 62.20M barely covers its investment activities of (23.01M), with a coverage ratio of -2.70, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 62.20M provides thin coverage of dividend payments of (20.71M) with a -3 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 25.68M show weak coverage of depreciation charges of 23.71M, with a 1.08 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 62.20M barely covers operating expenses of (373000) with a -166.77 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Retained earnings of 414.62M provide limited buffer against comprehensive income items of (869000), which is -477.13x, indicating elevated exposure to market risks.

Product and Service Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Home Improvement Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 HD Home Depot, Inc. 424.87 Bn 37.92 3.86 65.42 Bn
2 LOW Lowes Companies Inc 282.71 Bn 110.69 5.11 44.70 Bn
3 FND Floor & Decor Holdings, Inc. 7.47 Bn 34.45 1.60 1.99 Bn
4 HVT Haverty Furniture Companies Inc 0.57 Bn 67.28 0.92 0.21 Bn
5 LIVE LIVE VENTURES Inc 0.06 Bn 2.60 0.13 0.22 Bn
6 TBHC Brand House Collective, Inc. 0.03 Bn -1.00 0.07 0.19 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.78 2.29
EV to Cash from Ops. EV/CFO 21.08 22.64
EV to Debt EV to Debt 2.41 3.80
EV to EBIT EV/EBIT 53.78 29.44
EV to EBITDA EV/EBITDA 19.37 17.00
EV to Free Cash Flow [EV/FCF] EV/FCF 39.24 92.96
EV to Market Cap EV to Market Cap 0.90 2.67
EV to Revenue EV/Rev 0.82 2.22
Price to Book Value [P/B] P/B 2.24 -55.76
Price to Earnings [P/E] P/E 67.28 41.99
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.94 0.86
Dividend Payout Ratio % Div Payout % (Qtr) 106.70 34.62
Dividend per Basic Share Div per Share (Qtr) 1.28 2.52
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 53.13 25.87
Interest Coverage Int. cover (Qtr) 0.00 17.24
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 24.58 10.53
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 7.55 8.26
Dividend Growth (1y) % Div 1y % (Qtr) -42.86 -5.82
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -27.53 58.71
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -10.46 -15.87
EBIT Growth (1y) % EBIT 1y % (Qtr) -26.68 62.53
EBT Growth (1y) % EBT 1y % (Qtr) -26.68 24.00
EPS Growth (1y) % EPS 1y % (Qtr) -27.27 34.92
FCF Growth (1y) % FCF 1y % (Qtr) 33.74 -7.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.82 -1.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.14 1.34
Cash Payout Ratio Cash Payout (Qtr) 0.24 0.15
Cash Ratio Cash Ratio (Qtr) 0.96 0.23
Current Ratio Curr Ratio (Qtr) 1.75 1.29
Debt to Equity Ratio Debt/Equity (Qtr) 0.69 0.10
Interest Cover Ratio Int Coverage (Qtr) 0.00 17.24
Times Interest Earned Times Interest Earned (Qtr) 0.00 17.24
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 6.70 9.97
EBIT Margin % EBIT Margin % (Qtr) 3.46 6.49
EBT Margin % EBT Margin % (Qtr) 3.46 5.16
Gross Margin % Gross Margin % (Qtr) 61.00 38.12
Net Profit Margin % Net Margin % (Qtr) 2.60 3.72