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Flexsteel Industries, Inc. (FLXS)

Company Dividend Discount ModelIndustry: Furnishings, Fixtures & AppliancesSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$27.18 - $38.71$32.85
Multi-Stage$44.55 - $49.00$46.73
Blended Fair Value$39.79
Current Price$46.35
Upside-14.15%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-12.72%-3.57%0.640.580.590.710.471.271.251.221.100.99
YoY Growth--10.47%-0.68%-17.13%49.16%-62.66%1.50%2.55%11.28%11.13%6.65%
Dividend Yield--1.39%1.31%2.82%4.50%1.53%5.29%8.44%4.05%2.16%1.91%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)22.51
(-) Cash Dividends Paid (M)3.83
(=) Cash Retained (M)18.68
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4.502.811.69
Cash Retained (M)18.6818.6818.68
(-) Cash Required (M)-4.50-2.81-1.69
(=) Excess Retained (M)14.1815.8616.99
(/) Shares Outstanding (M)5.535.535.53
(=) Excess Retained per Share2.562.873.07
LTM Dividend per Share0.690.690.69
(+) Excess Retained per Share2.562.873.07
(=) Adjusted Dividend3.253.563.76
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.57%-1.57%-0.57%
Fair Value$27.18$32.85$38.71
Upside / Downside-41.35%-29.12%-16.48%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)22.5122.1521.8021.4621.1320.8021.42
Payout Ratio17.01%31.61%46.21%60.81%75.40%90.00%92.50%
Projected Dividends (M)3.837.0010.0813.0515.9318.7219.81

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.57%-1.57%-0.57%
Year 1 PV (M)6.356.426.48
Year 2 PV (M)8.298.478.64
Year 3 PV (M)9.7510.0510.36
Year 4 PV (M)10.7911.2411.71
Year 5 PV (M)11.5112.1112.74
PV of Terminal Value (M)199.76210.22221.12
Equity Value (M)246.46258.51271.05
Shares Outstanding (M)5.535.535.53
Fair Value$44.55$46.73$49.00
Upside / Downside-3.88%0.82%5.71%

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