Culp Inc currently holds 42.19
M in liabilities with Debt to Equity (D/E) ratio of 0.33, which is about average as compared to similar companies. The entity has a current ratio of 3.7, suggesting that it is liquid enough and is able to pay its financial obligations when due. Our trade advice tool can cross-verify current
analyst consensus on Culp Inc and to analyze the company potential to grow in the current economic cycle.
We determine the current worth of Culp Inc using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Culp Inc based exclusively on its
fundamental and basic
technical indicators. By analyzing Culp's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Culp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Culp. We calculate exposure to Culp's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Culp's related companies.
Culp Inc Investment Alerts
Culp investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Culp Inc performance across your portfolios.Please check all
investment alerts for Culp
Culp Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Culp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Culp competition to find
correlations between indicators driving the intrinsic value of Culp.
Culp Gross Profit
Culp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Culp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Culp Gross Profit growth over the last 10 years. Please check Culp's
gross profit and other
fundamental indicators for more details.
An Additional Perspective On Culp Inc
The firm reported the previous year's revenue of 256.17
M. Net Loss for the year was (11.16
M) with profit before overhead, payroll, taxes, and interest of 40.5
M.
| 2010 | 2011 | 2016 | 2020 (projected) |
Receivables | 20.21 M | 23.48 M | 25.09 M | 26.14 M | Inventories | 28.72 M | 46.53 M | 47.91 M | 52.31 M |
Margins Breakdown
Culp profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Culp itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Culp profit margins.
| Operating Margin | 3.56 |
| EBITDA Margin | 0.0284 |
| Gross Margin | 0.2 |
| Profit Margin | (0.0211) |
Culp Net Income Per Employee is very stable at the moment. Culp Revenue Per Employee is very stable at the moment. Furthermore, Culp Average Assets is very stable at the moment. Culp Net Income Per Employee is decreasing over the last 4 years. The previous year's value of Culp Net Income Per Employee was 15.26. Culp Revenue Per Employee is very stable at the moment. Furthermore, Culp Average Assets is increasing over the last 4 years.
Over 3 percent roll up for Culp. What does it mean for insiders?
The risk adjusted performance is down to 0.29 as of today. Culp Inc shows above-average downside volatility for the selected time horizon. We advise investors to inspect Culp Inc further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Culp future alpha.
The Bottom Line
Although other entities within the textile manufacturing industry are still a little expensive, even after the recent corrections, Culp may offer a potential longer-term growth to insiders. While some insiders may not share our view we believe it may be a good time to drop Culp as the risk-reward trade off is not appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Culp.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Culp Inc. Please refer to our
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