Bassett Furniture Industries Incorporated Common Stock (BSET)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look for durable businesses bought below intrinsic value. Bassett is a $183.7M market-cap furniture maker and retailer with 1,194 employees. It has no wide moat: furniture is competitive, cyclical, and tied to housing and consumer spending. But the numbers show a real turnaround. In fiscal Q3 2026, the quarter ended 2026-08-29, revenue was $82.8M and net income $2.1M; in fiscal Q2 2026, the quarter ended 2026-05-30, revenue was $83.8M and net income $2.0M; in fiscal Q1 2026, the quarter ended 2026-02-28, revenue was $80.3M and net income $1.1M. That follows FY2025, period ended 2025-11-29, revenue of $335.3M and net income of $6.1M, compared with a FY2024, period ended 2024-11-30, net loss of $9.7M. The Piotroski F-Score of 8/9 supports improving fundamentals. Still, returns are weak: FairStock calculations show ROE 3.31%, ROCE 1.26%, and trailing FCF of only $3.6M, a 2.0% FCF yield. The balance sheet has D/E 0.53 and Altman Z-Score 1.80, neither alarming nor fortress-like. Valuation is the rub. At the 2026-10-13 close of $21.23, the FairStock P/E is 33.17, P/B 1.11, PEG 5.26, EV/EBITDA 13.57, and Graham Number $16.57, implying a -28.12% margin of safety. The 4.52% dividend yield is attractive, but with thin FCF, coverage is a question. This is a Lynch-style TURNAROUND, not a bargain. I would need evidence that margins and cash flow can normalize before paying a premium to Graham value.

In plain English: Bassett Furniture makes and sells sofas, tables, beds, and other home furnishings in the United States through its own stores and wholesale business. It lost money in fiscal 2023 and 2024 but earned a small profit in fiscal 2025 and in recent quarters, so the business is improving but still only modestly profitable. At $21.23 on 2026-10-13, the stock looks expensive compared with its earnings and asset values.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-08-29) · fiscal Q2 2026 10-Q (period ended 2026-05-30) · fiscal Q1 2026 10-Q (period ended 2026-02-28) · fiscal Q3 2025 10-Q (period ended 2025-08-30) · FY2025 10-K (period ended 2025-11-29) · FY2024 10-K (period ended 2024-11-30) · FY2023 10-K (period ended 2023-11-25)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer