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Hooker Furniture (NASDAQ:HOFT) is an enticing investment opportunity for value investors as it poses large potential upside with solid financial stability in earnings and free cash flow. With the current COVID-19 conditions, Hooker Furniture's share price has been lowered and poses an opportunity to find value in this undervalued stock using measures including backlogged sales, key housing market data, book value per share, EV/EBITDA, and P/E ratios compared to competitors.
To give some background as to why Hooker Furniture can prove to be a valuable investment over several months or years, it's important to first learn the history of the firm.
Hooker Furniture's 96-Year History
Hooker Furniture is a Virginia-based designer, importer, and manufacturer of residential home leather and upholstery fabric furniture as well as metal furniture. Of all domestic furniture stores that are publicly traded, Hooker Furniture is ranked among the top-5 based on domestic shipments as well as top 21 in FDMC 300 list of top North American wood products producers.
For over 95 years the business had been family run and dedicated to creating one of the top importers and manufacturers of casegoods. Hooker Furniture's slow growing base business has expanded into new markets organically through the Hooker brand as well as inorganically through acquisitions.
(Source: Hooker Furniture)
A New Era of Leadership
As of January 31, 2021 Hooker Furniture's first non family member CEO will take control of the company. The current serving President, Jeremy Hoff, will take charge as Paul Toms, the current CEO, will retire. The beneficial aspect of the transition holds itself in the
