- The coronavirus pandemic crisis has come just after the trade conflicts between China and the United States.
- Sales have been falling during fiscal 2019 and 2020, and are falling again after a promising fiscal 2021.
- Gross profit margins and EBITDA margins are declining due to inflationary pressures, labor shortages, declining volumes, and increased freight costs.
- The company has a solid balance sheet with zero debt.
- In the long term, the company is prepared to withstand the current headwinds, so this is a turnaround play definitely worth the risk.
For further details see:
Culp Inc.: Long-Term Prospects Are Good