HomesToLife Ltd Ordinary Shares (HTLM)

FairStock Score: 89/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

I look for a business I can understand, bought at a sensible price, with a durable edge. HomesToLife sells furniture through retail, export, and leather trading, mostly in Asia Pacific, Europe, and North America. It is small - 169 employees and a $165.9M market cap at the 2026-10-13 close of $1.75 - so I must weigh opportunity against fragility. The latest filed quarter, 2026-Q1, shows revenue of $92.5M and net income of $3.2M, a 3.51% margin. That is thin, but the supplied growth figures are very high, though the period is not specified in the data. FairStock's calculations show a P/E of 9.21, P/B of 5.15, ROE of 83.91%, ROCE of 10.00%, and D/E of 0.36. The high ROE may reflect a slim equity base rather than a wide moat; P/B above 5 and a Graham Number of $1.21 give no asset cushion. Free cash flow of $13.0M supports a 7.8% FCF yield, and EV/EBITDA of 5.73 is not demanding. Piotroski 7/9 is decent, but Altman Z of 2.15 sits in the grey zone. There is no Peter Lynch category because only 0 years of filed results exist; I need three years to judge consistency. A PEG of 0.07 looks cheap only if growth persists. In short, the numbers show a fast-growing, cash-generative but thinly margined furniture seller with limited public history. Price is low on earnings, not on book value. I would want more filed history and a steadier margin before calling it a durable bargain.

In plain English: HomesToLife sells upholstered and custom furniture, plus leather, through stores and exports. The business looks profitable and fast-growing, but its profit margin is thin and it has a short public record. At $1.75, the shares look cheap compared with earnings but not compared with their conservative asset value, so the price is not an obvious bargain without more history.

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

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