3/09/2014

Value Based Mean Reversion Candidate within Home Furnishings Industry

Last week I added shares of tiny micro cap Stanley Furniture (STLY). STLY trades at 52 week low and has a 1996 market value. Recent and continued negative financial performance affected the price decline. Furthermore, strong financial position, revenue and gross profits to the current enterprise value justify further investigation. Additionally deep value attributes has attracted John Rogers founder of Ariel Capital Management. 

The current market value is 44.04M with cash 17.22M, revenue 96.96M, GP 9.77M and a negative 52 week price change of -36.00%. Stanley Furniture founded in 1924 is based North Carolina.

STLY is selling at historical and relative industry low valuations.
Current price = $2.96

Market Cap: 44.04M , Enterprise Value: 27.40M
Price/Sales: 0.45 , Price/Book:0.57
Enterprise Value/Revenue: 0.28
Revenue(ttm):96.94M , Revenue Per Share (ttm): 6.85
Qtrly Revenue Growth (yoy):  -2.70%
Gross Profit (ttm):9.77M , EBITDA (ttm):  -7.19M
Total Cash (mrq): 17.22M, Total Cash Per Share (mrq):1.16
Current Ratio (mrq): 5.25 , Book Value Per Share (mrq):5.21

52-Week Change:        -35.93%
52-Week High(Mar 13, 2013):4.85 ,52-Week Lo(Mar 6, 2014:2.89
Shares Outstanding: 14.88M , Float:  14.05M
% Held by Insiders:3.92% , % Held by Institutions: 70.50%
Short % of Float: 0.80%

Natuzzi is also a deep value based turnaround situation. The stock has moved up quickly from the October 2013 low of 1.70. It last traded at 2.70.

NTZ:
 Natuzzi 
an Italian internationally recognized designer, manufacturer and marketer of furniture.The company was founded in 1959 and headquartered in Santeramo Colle, Italy. As of March 31, 2013, "it had 99 Divani & Divani by Natuzzi stores, and 186 Natuzzi Italia stores, as well as 314 Natuzzi galleries".


Current price = $2.70

Market Cap:148.50M , Enterprise Value:113.54M
Price/Sales (ttm): 0.25 ,Price/Book (mrq):  0.48
Enterprise Value/Revenue(ttm): 0.19
Enterprise Value/EBITDA (ttm): -6.42
Revenue (ttm):  588.63M , Revenue Per Share (ttm):  10.59
Qtrly Revenue Growth (yoy):   -7.60%
Gross Profit (ttm):   204.35M
Total Cash (mrq):    82.21M ,Total Cash Per Share (mrq): 1.50
Total Debt (mrq):  47.26M
Current Ratio (mrq): 2.13
Book Value Per Share (mrq):  5.66
% Held by Insiders:5.03%, % Held by Institutions:31.40%



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