Haverty Furniture Profitability Analysis

HVT Stock  USD 33.06  0.81  2.51%   
Based on the measurements of profitability obtained from Haverty Furniture's financial statements, Haverty Furniture Companies is performing exceptionally good at the moment. It has a great risk to showcase excellent profitability results in April. Profitability indicators assess Haverty Furniture's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1989-09-30
Previous Quarter
17.2 M
Current Value
15 M
Quarterly Volatility
6.4 M
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
Operating Cash Flow Sales Ratio is likely to gain to 0.12 in 2024, whereas Price To Sales Ratio is likely to drop 0.38 in 2024. At this time, Haverty Furniture's Operating Income is comparatively stable compared to the past year. Income Before Tax is likely to gain to about 76.3 M in 2024, whereas Net Income From Continuing Ops is likely to drop slightly above 44.9 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.410.5852
Way Down
Pretty Stable
Net Profit Margin0.06860.0653
Sufficiently Up
Slightly volatile
Operating Profit Margin0.08190.078
Sufficiently Up
Slightly volatile
Pretax Profit Margin0.08860.0843
Sufficiently Up
Slightly volatile
Return On Assets0.08270.0787
Sufficiently Up
Slightly volatile
Return On Equity0.190.1826
Sufficiently Up
Slightly volatile
For Haverty Furniture profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Haverty Furniture to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Haverty Furniture Companies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Haverty Furniture's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Haverty Furniture Companies over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Is Haverty Furniture'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 Haverty Furniture. If investors know Haverty 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 Haverty Furniture 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
(0.36)
Dividend Share
1.18
Earnings Share
3.36
Revenue Per Share
52.989
Quarterly Revenue Growth
(0.25)
The market value of Haverty Furniture is measured differently than its book value, which is the value of Haverty that is recorded on the company's balance sheet. Investors also form their own opinion of Haverty Furniture's value that differs from its market value or its book value, called intrinsic value, which is Haverty Furniture'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 Haverty Furniture's market value can be influenced by many factors that don't directly affect Haverty Furniture'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 Haverty Furniture's value and its price as these two are different measures arrived at by different means. Investors typically determine if Haverty Furniture is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Haverty Furniture'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.

Haverty Furniture Debt To Equity vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Haverty Furniture's current stock value. Our valuation model uses many indicators to compare Haverty Furniture value to that of its competitors to determine the firm's financial worth.
Haverty Furniture Companies is rated below average in current valuation category among related companies. It is rated below average in debt to equity category among related companies . The ratio of Current Valuation to Debt To Equity for Haverty Furniture Companies is about  707,988,466 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Haverty Furniture by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Haverty Furniture's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Haverty Furniture's earnings, one of the primary drivers of an investment's value.

Haverty Current Valuation vs. Competition

Haverty Furniture Companies is rated below average in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Consumer Discretionary industry is currently estimated at about 492.87 Billion. Haverty Furniture adds roughly 618.07 Million in current valuation claiming only tiny portion of stocks in Consumer Discretionary industry.

Haverty Debt To Equity vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Haverty Furniture

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
618.07 M
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.

Haverty Furniture

D/E

 = 

Total Debt

Total Equity

 = 
0.87 %
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.

Haverty Debt To Equity Comparison

Haverty Furniture is currently under evaluation in debt to equity category among related companies.

Haverty Furniture Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Haverty Furniture, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Haverty Furniture will eventually generate negative long term returns. The profitability progress is the general direction of Haverty Furniture's change in net profit over the period of time. It can combine multiple indicators of Haverty Furniture, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-983 K-1 M
Operating Income67.3 M70.6 M
Income Before Tax72.7 M76.3 M
Total Other Income Expense Net5.4 M6.4 M
Net Income56.3 M59.1 M
Income Tax Expense16.4 M10.9 M
Net Income Applicable To Common Shares102.8 M107.9 M
Net Income From Continuing Ops65.1 M44.9 M
Interest Income4.6 M4.9 M
Net Interest Income4.6 M4.9 M
Change To NetincomeM8.4 M
Net Income Per E B T 0.77  0.61 

Haverty Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Haverty Furniture. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Haverty Furniture position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Haverty Furniture's important profitability drivers and their relationship over time.

Haverty Furniture Profitability Trends

Haverty Furniture profitability trend refers to the progression of profit or loss within a business. An upward trend means that Haverty Furniture's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Haverty Furniture's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Haverty Furniture Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Haverty Furniture different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Haverty Furniture in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Haverty Furniture's future profitability.

Use Haverty Furniture in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Haverty Furniture position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Haverty Furniture will appreciate offsetting losses from the drop in the long position's value.

Haverty Furniture Pair Trading

Haverty Furniture Companies Pair Trading Analysis

The ability to find closely correlated positions to Haverty Furniture could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Haverty Furniture when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Haverty Furniture - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Haverty Furniture Companies to buy it.
The correlation of Haverty Furniture is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Haverty Furniture moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Haverty Furniture moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Haverty Furniture can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Haverty Furniture position

In addition to having Haverty Furniture 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.

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Measuring and Control Equipment
Measuring and Control Equipment Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Measuring and Control Equipment theme has 61 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 Measuring and Control Equipment Theme or any other thematic opportunities.
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When determining whether Haverty Furniture 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 Haverty 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 Haverty Furniture Companies Stock. Highlighted below are key reports to facilitate an investment decision about Haverty Furniture Companies Stock:
Check out Risk vs Return Analysis.
You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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When running Haverty Furniture's price analysis, check to measure Haverty Furniture's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Haverty Furniture is operating at the current time. Most of Haverty Furniture's value examination focuses on studying past and present price action to predict the probability of Haverty Furniture's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Haverty Furniture's price. Additionally, you may evaluate how the addition of Haverty Furniture to your portfolios can decrease your overall portfolio volatility.
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To fully project Haverty Furniture's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Haverty Furniture at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Haverty Furniture's income statement, its balance sheet, and the statement of cash flows.
Potential Haverty Furniture investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Haverty Furniture investors may work on each financial statement separately, they are all related. The changes in Haverty Furniture's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Haverty Furniture's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.