📊 CULP Key Takeaways
Investment Thesis
Culp Inc is experiencing severe financial distress with negative net income of -$8.0M, negative operating cash flow of -$2.3M, and deteriorating profitability margins across the board. The company is burning cash and unable to cover operating expenses from operations, indicating fundamental business model challenges in the competitive textile industry.
CULP Strengths
- Modest balance sheet leverage with Debt/Equity of 0.14x provides some financial flexibility
- Current ratio of 1.71x suggests adequate short-term liquidity to meet near-term obligations
- Maintains $9.7M in cash reserves providing a small buffer
CULP Risks
- Negative operating income of -$5.6M and deteriorating profitability with -3.7% operating margin indicates core business is unprofitable
- Negative free cash flow of -$2.7M combined with negative operating cash flow signals unsustainable capital consumption
- Revenue decline of -5.4% YoY coupled with negative ROE of -15.9% and ROA of -6.6% demonstrates value destruction and operational deterioration
- Quick ratio of 0.70x below 1.0x indicates potential liquidity stress when inventory cannot be quickly converted to cash
- Negative interest coverage ratio of -9.8x means operating earnings cannot cover debt service obligations
Key Metrics to Watch
- Operating cash flow trend - critical to assess if cash burn stabilizes or accelerates
- Revenue stabilization - must determine if -5.4% decline continues or reverses
- Return to operating profitability - path to positive operating income is essential for survival
- Cash position depletion rate - how quickly remaining $9.7M will be consumed at current burn rate
CULP Financial Metrics
💡 AI Analyst Insight
CULP INC presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CULP Profitability Ratios
CULP vs Default Sector
How CULP INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CULP Balance Sheet & Liquidity
CULP 5-Year Financial Trend
5-Year Trend Summary: CULP INC's revenue has declined by 22% over the 5-year period, indicating business contraction. The most recent EPS of $-2.57 indicates the company is currently unprofitable.
CULP Growth Metrics (YoY)
CULP Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $48.0M | -$231.0K | $-0.27 |
| Q2 2026 | $53.2M | -$231.0K | $-0.34 |
| Q1 2026 | $50.7M | -$231.0K | $-0.02 |
| Q3 2025 | $52.3M | -$2.4M | $-0.26 |
| Q2 2025 | $55.7M | -$2.4M | $-0.19 |
| Q1 2025 | $56.5M | -$3.3M | $-0.27 |
| Q3 2024 | $52.5M | -$2.4M | $-0.26 |
| Q3 2023 | $52.5M | -$289.0K | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CULP Capital Allocation
CULP SEC Filings
Access official SEC EDGAR filings for CULP INC (CIK: 0000723603)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CULP
What is the AI rating for CULP?
CULP INC (CULP) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CULP's key strengths?
Modest balance sheet leverage with Debt/Equity of 0.14x provides some financial flexibility. Current ratio of 1.71x suggests adequate short-term liquidity to meet near-term obligations.
What are the risks of investing in CULP?
Negative operating income of -$5.6M and deteriorating profitability with -3.7% operating margin indicates core business is unprofitable. Negative free cash flow of -$2.7M combined with negative operating cash flow signals unsustainable capital consumption.
What is CULP's revenue and growth?
CULP INC reported revenue of $151.9M.
Does CULP pay dividends?
CULP INC pays dividends, with $5.5M distributed to shareholders in the trailing twelve months.
Where can I find CULP SEC filings?
Official SEC filings for CULP INC (CIK: 0000723603) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CULP's EPS?
CULP INC has a diluted EPS of $-0.63.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.