FLXSFlexsteel Industries, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.6×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 17% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is FLXS?
Flexsteel Industries, Inc. earns 29% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 20 points above what the capital costs: growth creates value
- Operating margin
- 9.3%
Operating margin · Furnishings, Fixtures & Appliances median 7.8% · 12 months to Q4 2026
- Cash conversion
- 1.60×
Cash conversion · 1.86× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 25%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 6.5% |
| FY2022 | 1.2% |
| FY2023 | 2.7% |
| FY2024 | 4.1% |
| FY2025 | 6.0% |
| FY2026 | 9.3% |
Details›
- Gross margin12 months to Q4 2026
- 25%
- Operating margin12 months to Q4 2026
- 9.3%
- Net margin12 months to Q4 2026
- 7.2%
- Free cash flow margin
- 10%
- Revenue, trailing twelve months
- $459M
- Free cash flow, trailing twelve months
- $48M
- Net income, trailing twelve months
- $33M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 29%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Furnishings, Fixtures & Appliances
Ranks #1 of 13 by RyuScore