Culp Inc Stock Buy Hold or Sell Recommendation

CULP Stock  USD 4.80  0.03  0.62%   
Given the investment horizon of 90 days and your way above-average risk tolerance, our recommendation regarding Culp Inc is 'Strong Hold'. Macroaxis provides Culp buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Culp positions. The advice algorithm takes into account all of Culp's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Culp's buy or sell advice are summarized below:
Real Value
4.93
Target Price
8
Hype Value
4.8
Market Value
4.8
Naive Value
4.96
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Culp Inc given historical horizon and risk tolerance towards Culp. When Macroaxis issues a 'buy' or 'sell' recommendation for Culp Inc, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Culp Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Culp and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Culp Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.

Execute Culp Buy or Sell Advice

The Culp recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Culp Inc. Macroaxis does not own or have any residual interests in Culp Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Culp's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell CulpBuy Culp
Strong Hold

Market Performance

Very WeakDetails

Volatility

Somewhat reliableDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

Strong SellDetails

Reporting Quality (M-Score)

UnavailableDetails
For the selected time horizon Culp Inc has a Risk Adjusted Performance of (0.05), Jensen Alpha of (0.31), Total Risk Alpha of (0.63) and Treynor Ratio of (0.25)
We provide trade advice to complement the prevailing expert consensus on Culp Inc. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Culp is not overpriced, please confirm all Culp Inc fundamentals, including its debt to equity, market capitalization, and the relationship between the ebitda and earnings per share . Given that Culp Inc has a price to earning of 9.44 X, we suggest you to validate Culp Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Culp Trading Alerts and Improvement Suggestions

Culp Inc generated a negative expected return over the last 90 days
The company reported the previous year's revenue of 234.93 M. Net Loss for the year was (31.52 M) with profit before overhead, payroll, taxes, and interest of 10.9 M.
About 63.0% of the company shares are held by institutions such as insurance companies
Latest headline from MacroaxisInsider: Acquisition by Jonathan Kelly of 1900 shares of Culp at 5.4 subject to Rule 16b-3

Culp Returns Distribution Density

The distribution of Culp's historical returns is an attempt to chart the uncertainty of Culp's future price movements. The chart of the probability distribution of Culp daily returns describes the distribution of returns around its average expected value. We use Culp Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Culp returns is essential to provide solid investment advice for Culp.
Mean Return
-0.2
Value At Risk
-2.44
Potential Upside
3.19
Standard Deviation
1.86
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Culp historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Culp Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Culp is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Culp Inc backward and forwards among themselves. Culp's institutional investor refers to the entity that pools money to purchase Culp's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Ancora Advisors Llc2023-09-30
146 K
Geode Capital Management, Llc2023-09-30
84.7 K
U.s. Bancorp2023-12-31
73.4 K
Essex Investment Management Company, Llc2023-12-31
44.3 K
State Street Corporation2023-09-30
41.2 K
Wolverine Trading Llc2023-12-31
36.5 K
Northern Trust Corp2023-09-30
29.7 K
Thrivent Financial For Lutherans2023-12-31
28.9 K
Bridgeway Capital Management, Llc2023-12-31
28.9 K
22nw, Lp2023-12-31
1.2 M
Atlantic Trust Group, Llc2023-12-31
879.8 K
Note, although Culp's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Culp Cash Flow Accounts

201920202021202220232024 (projected)
Change In Cash29.8M(32.8M)(22.5M)6.4M5.8M6.1M
Free Cash Flow385K14.8M(23.1M)5.7M6.6M8.8M
Depreciation8.5M7.3M7.6M7.3M6.6M8.0M
Other Non Cash Items29.4M607K466K5.8M6.6M3.8M
Capital Expenditures4.6M6.7M5.7M2.1M1.9M1.8M
Net Income(28.7M)3.2M(3.2M)(31.5M)(28.4M)(26.9M)
End Period Cash Flow69.8M37.0M14.6M21.0M24.1M16.1M
Change To Inventory(837K)(7.2M)(10.8M)15.4M13.8M14.5M
Dividends Paid4.7M5.1M5.3M5.5M6.3M3.7M
Change To Netincome532K4.0M2.3M6.9M7.9M8.3M
Investments(3.3M)(2.7M)9.2M(752K)(864.8K)(908.0K)

Culp Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Culp or Textiles, Apparel & Luxury Goods sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Culp's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Culp stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.31
β
Beta against NYSE Composite0.84
σ
Overall volatility
1.85
Ir
Information ratio -0.18

Culp Volatility Alert

Culp Inc exhibits very low volatility with skewness of 0.78 and kurtosis of 3.41. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Culp's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Culp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Culp Fundamentals Vs Peers

Comparing Culp's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Culp's direct or indirect competition across all of the common fundamentals between Culp and the related equities. This way, we can detect undervalued stocks with similar characteristics as Culp or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Culp's fundamental indicators could also be used in its relative valuation, which is a method of valuing Culp by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Culp to competition
FundamentalsCulpPeer Average
Return On Equity-0.16-0.31
Return On Asset-0.0455-0.14
Profit Margin(0.06) %(1.27) %
Operating Margin(0.03) %(5.51) %
Current Valuation51.89 M16.62 B
Shares Outstanding12.47 M571.82 M
Shares Owned By Insiders6.90 %10.09 %
Shares Owned By Institutions63.46 %39.21 %
Number Of Shares Shorted11.99 K4.71 M
Price To Earning9.44 X28.72 X
Price To Book0.75 X9.51 X
Price To Sales0.25 X11.42 X
Revenue234.93 M9.43 B
Gross Profit10.9 M27.38 B
EBITDA(19.71 M)3.9 B
Net Income(31.52 M)570.98 M
Cash And Equivalents18.87 M2.7 B
Cash Per Share1.54 X5.01 X
Total Debt6.25 M5.32 B
Debt To Equity0.08 %48.70 %
Current Ratio2.69 X2.16 X
Book Value Per Share6.48 X1.93 K
Cash Flow From Operations7.8 M971.22 M
Short Ratio0.44 X4.00 X
Earnings Per Share(1.10) X3.12 X
Price To Earnings To Growth0.64 X4.89 X
Target Price8.0
Number Of Employees1.33 K18.84 K
Beta1.29-0.15
Market Capitalization59.86 M19.03 B
Total Asset152.18 M29.47 B
Retained Earnings44.2 M9.33 B
Working Capital51.5 M1.48 B
Note: Acquisition by Jonathan Kelly of 1900 shares of Culp at 5.4 subject to Rule 16b-3 [view details]

Culp Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Culp . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Culp Buy or Sell Advice

When is the right time to buy or sell Culp Inc? Buying financial instruments such as Culp Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total10.3M6.3M5.6M5.3M
Total Assets177.6M152.2M175.0M202.4M

Use Investing Ideas to Build Portfolios

In addition to having Culp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

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Iron
Iron Theme
Companies involved in production of steel and iron. The Iron theme has 47 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Iron Theme or any other thematic opportunities.
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When determining whether Culp Inc is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Culp Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Culp Inc Stock. Highlighted below are key reports to facilitate an investment decision about Culp Inc Stock:
Check out Culp Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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Is Culp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Culp. If investors know Culp will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Culp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.63)
Earnings Share
(1.10)
Revenue Per Share
19.142
Quarterly Revenue Growth
0.15
Return On Assets
(0.05)
The market value of Culp Inc is measured differently than its book value, which is the value of Culp that is recorded on the company's balance sheet. Investors also form their own opinion of Culp's value that differs from its market value or its book value, called intrinsic value, which is Culp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Culp's market value can be influenced by many factors that don't directly affect Culp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Culp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Culp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Culp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.