HVTHaverty Furniture Companies, Inc.
Is the business good?
The checks split: earnings fully cash-backed (3.1×), but margins compressing.
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 7% = 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 HVT?
Haverty Furniture Companies, Inc. earns 11% 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% · 2.0 points above what the capital costs: growth creates value
- Operating margin
- 3.4%
Operating margin · Consumer Cyclical median 7.6% · 12 months to Q2 2026
- Cash conversion
- 3.09×
Cash conversion · 3.59× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 61%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 10% |
| FY2021 | 12% |
| FY2022 | 11% |
| FY2023 | 7.8% |
| FY2024 | 2.8% |
| FY2025 | 2.9% |
Details›
- Gross margin12 months to Q2 2026
- 61%
- Operating margin12 months to Q2 2026
- 3.4%
- Net margin12 months to Q2 2026
- 2.9%
- Free cash flow margin
- 5.1%
- Revenue, trailing twelve months
- $780M
- Free cash flow, trailing twelve months
- $40M
- Net income, trailing twelve months
- $23M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.