Hooker Furnishings Corporation (HOFT) AI Stock Analysis

NASDAQ: HOFTAI research summary: business, growth, valuation, analysts, bull and bear case.

HOFT AI stock analysis summary

AI Research

Hooker Furnishings Corporation (HOFT) designs and distributes residential, hospitality, and contract furniture. While revenue fell 23.2% in FY2026 to $305.2M with net income of -$27.0M, the company generated $17.2M in free cash flow. HOFT maintains a conservative debt-to-equity ratio of 0.14 and offers a 3.58% dividend yield.

Market cap
$137.4M
Revenue (TTM)
$270.4M
P/E
—
fwd 14.9x
1Y return
47.9%
S&P 500 16.8%
Avg. target
$16.50
28.4% vs last close

Bull case

  • Free cash flow recovered to $17.2M in FY2026 after negative free cash flow of -$26.1M in FY2025.
  • The balance sheet remains lightly leveraged, with a debt-to-equity ratio of 0.14 and a current ratio of 3.03 as of July 31, 2026.
  • The stock offers consistent shareholder income via a 3.58% dividend yield backed by 26 consecutive years of payments.

Bear case

  • Revenue decreased at a 5-year CAGR of -10.8% through FY2026, dropping to $305.2M.
  • Profitability contracted sharply in FY2026, ending with a net margin of -8.8% and net income of -$27.0M.
  • The company's EV to EBITDA multiple of 17.6x trades well above the 11.1x median of its US-listed Consumer Cyclical peers.

What Hooker Furnishings does

Established in 1924, Hooker Furnishings Corporation produces residential household, hospitality, and contract furniture across three primary segments. The Hooker Branded segment manufactures home entertainment, office, dining, bedroom, and imported upholstered furnishings under Hooker Furniture and Hooker Upholstery. Its Home Meridian segment delivers home furnishings through brands including Pulaski Furniture, Samuel Lawrence Furniture, and Prime Resources International. The Domestic Upholstery segment offers motion and stationary leather furniture via Bradington-Young, occasional and sectional seating through Sam Moore, custom seating with Shenandoah Furniture, and senior living furnishings through H Contract.

Growth and profitability

Hooker Furnishings has faced ongoing top-line pressure, resulting in a 5-year revenue CAGR of -10.8% through FY2026. Annual revenue contracted from $593.6M in FY2022 to $305.2M in FY2026, which included a 23.2% year-over-year decrease. Gross margin was 24.3% in FY2026, while operating margin stood at -7.7%, leading to net income of -$27.0M. Over the trailing twelve months, revenue totaled $270.4M with an operating margin of -4.7% and diluted EPS of -$0.89. In the latest quarter ended July 31, 2026, revenue fell 8.7% year-over-year, while quarterly earnings grew 57.5%.

HOFT income statement →

Balance sheet and cash flow

As of July 31, 2026, Hooker Furnishings held $18.7M in cash and short-term investments against $24.0M in total debt, leaving net debt of $5.3M. Shareholders' equity was $168.6M, and the debt-to-equity ratio stood at 0.14. Short-term liquidity is supported by a current ratio of 3.03. In FY2026, operating cash flow reached $20.4M, funding capital expenditures of $3.2M and delivering $17.2M in free cash flow. The company returned capital by paying $8.8M in dividends during FY2026, while its 5-year share count change was -9.3%.

HOFT balance sheet →

Valuation and performance

At a share price of $12.85, Hooker Furnishings has a market cap of $137.4M and an enterprise value of $142.9M. The stock trades at a forward P/E of 14.9x, slightly above the 14.1x median of its US-listed Consumer Cyclical peers. Its EV to EBITDA ratio of 17.6x also trades at a premium to the peer median of 11.1x, although its price-to-sales ratio of 0.5x is below the peer median of 0.7x. Over the past year, HOFT gained 47.9% compared to 16.8% for the S&P 500, though its 5-year return of -36.6% lags the index gain of 83.0%.

HOFT key metrics →

HOFT dividend

Hooker Furnishings pays a quarterly dividend with an annual forward payout of $0.46 per share, yielding 3.58%. The company has maintained consecutive dividend payments for 26 years, with an annualized 5-year dividend growth rate of 4.1%. Its last ex-dividend date was September 15, 2026.

HOFT dividend history →

What analysts expect

Analysts project current fiscal year revenue of $289.6M and EPS of $0.99 for the period ending January 31, 2027. For the following fiscal year, 2 analysts expect revenue to rise 9.6% to $317.5M with EPS of $1.21. The mean price target is $16.50, representing a 28.4% premium over the last close of $12.85. The company beat EPS estimates in each of the last 4 quarters, and its next earnings release is scheduled for December 10, 2026.

HOFT forecast and price target →

Key risks and what to watch

  • Revenue contraction continued in the quarter ended July 31, 2026, with sales falling 8.7% year-over-year.
  • Trailing twelve months performance shows negative profitability, with a profit margin of -6.6% and diluted EPS of -$0.89.
  • Long-term share performance has trailed broader equity markets, posting a 5-year return of -36.6% versus an 83.0% gain for the S&P 500.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this HOFT AI stock analysis

This page is an AI-written research summary of Hooker Furnishings Corporation (HOFT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: HOFT income statement, HOFT balance sheet, HOFT key metrics, HOFT analyst forecast, HOFT chart. See the HOFT stock overview for the latest quote and news.

HOFT AI stock analysis FAQ

What is Hooker Furnishings' current dividend yield?

HOFT pays an annual forward dividend of $0.46 per share, which represents a dividend yield of 3.58%. The company has paid dividends for 26 consecutive years.

How did HOFT perform in fiscal year 2026?

In FY2026, revenue fell 23.2% to $305.2M, resulting in net income of -$27.0M. Despite the net loss, the company generated $20.4M in operating cash flow and $17.2M in free cash flow.

What is Hooker Furnishings' debt level?

As of July 31, 2026, the company reported total debt of $24.0M and cash and short-term investments of $18.7M, resulting in net debt of $5.3M and a debt-to-equity ratio of 0.14.

What are analysts forecasting for HOFT's earnings?

Analysts estimate EPS of $0.99 on revenue of $289.6M for the fiscal year ending January 31, 2027. The mean price target is $16.50, which is 28.4% above its last close of $12.85.

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