Culp, Inc. Common Stock logo

Culp, Inc. Common Stock(CULP)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL RECENCY
1-STAR RATING
Consider higher Upturn Star rating
BUY for 20 days
PROFIT SINCE LAST BUY
-3.2% ▼
LAST CLOSE
$3.63
10/08/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Upturn Advisory & Investor View for CULP

10/08/2026: CULP (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Culp, Inc. is a global manufacturer of fabrics and covers for the bedding and furniture industries. The company benefits from deep relationships with major brands and a design-driven approach to product development, which provides a competitive edge in a crowded market. Its primary investment story centers on capturing value through performance fabrics and expanding its footprint in direct-to-consumer channels. However, investors must monitor risks related to its high cyclicality, raw material price volatility, and intense competition from low-cost imports. Culp is generally suited for investors comfortable with industry-specific cycles who seek exposure to the home furnishing sector.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitGrowth is largely tied to cyclical home furnishing demand rather than secular market disruption.
Momentum investorWeak fitThe stock often lacks the high-volume, rapid trend movement sought by momentum traders.
Value investorStrong fitThe stock can offer value entry points during cyclical downturns in the housing market.
Dividend investorMixed fitDividends are provided, but sustainability depends on the cyclical profitability of the textile business.
Low-risk investorWeak fitCyclicality and exposure to global manufacturing risks create volatility inappropriate for low-risk portfolios.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock reacts significantly to changes in consumer spending and macroeconomic housing reports.
Valuation riskMediumValuation is sensitive to earnings cycles; overpaying during peak cycles can lead to capital loss.
Competition risk (Low-cost imports)HighGlobal competition exerts constant pressure on margins and pricing power.
Business qualityMediumWhile operationally disciplined, the business operates in a highly commoditized industry.
Dividend incomeMediumDividends are discretionary and dependent on the cyclical health of the firm.
Execution riskMediumManaging global supply chains across multiple regions carries inherent logistical and cost risks.

Price Behavior

Steady Uptrend
PRICE PATH

Steady Uptrend

The stock demonstrates consistent and steady upward price momentum.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit -38.2%
Avg. Invested days 21
Today’s Advisory Consider higher Upturn Star rating
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/08/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
CULP receives a 2-star rating, reflecting soft or weak scores across the available pillars. The rating is constrained by weak unit economics, and weak price momentum.

Company Fundamentals

★★★★★
CULP has moderate overall fundamentals (3 stars), with soft financial health, solid growth momentum, and solid ownership. In FY2026 versus FY2025, strong earnings growth (+46.5%) is partially offset by weak cash generation (FCF margin -4.9%), moderate revenue growth (+7.1%), weak profitability (net margin -5.0%).

Financial Health Rating

★★★★★
CULP's financial health is soft, with the relatively strongest area being solid liquidity, including working-capital and asset support (WC/assets 32.2%). Profitability is weak (1 stars), which helps explain the 2-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is CULP's strongest growth driver at +51.6% FY2026 versus FY2025 (strong, 5 stars). By comparison, earnings growth (+46.5%, strong) is also strong, while revenue growth (+7.1%, moderate) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 58.4% and approximately 75.9% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 8.30% supports management-shareholder alignment.

Top 5 Institutional Investors

22NW, LP 14.60%
CIBC Bancorp USA Inc. 6.91%
Ameriprise Financial Inc 6.83%
Gate City Capital Management, LLC 4.91%
Renaissance Technologies Corp 4.35%

Unit Economics (Per $1K Revenue)

★★★★★
CULP generates approximately $124 of gross profit, $-47 of operating income, and $-49 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Operating losses and cash burn explain the 1-star rating, with weak cash conversion and weak capital efficiency.

Economic Dimensions

★★★★★
Effective Tax Rate: -23.25% (Tax Credit)

Quantitative Style Profile

★★★★★
CULP has a liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

High VolatilitySmall / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 46.48M USD
Price to earnings Ratio -
1Y Target Price 8
Price to earnings Ratio -
1Y Target Price 8
Volume (30-day avg) 166.2K shares
Beta 1.23
52 Weeks Range 2.70 - 4.44
Updated Date 10/08/2026
52 Weeks Range 2.70 - 4.44
Updated Date 10/08/2026
Dividends yield (FY) -
Basic EPS (TTM) -0.32

How Company Makes Money

Business areaWhat it includesRetail investor read
Mattress FabricsKnitted/woven fabrics and mattress covers sold to bedding manufacturers.This is the core revenue driver, relying on the health of the mattress and sleep industry.
Upholstery FabricsPerformance fabrics and decorative textiles for furniture manufacturers.This segment tracks consumer demand for living room and commercial furniture.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Earnings Date

Report Date 2026-09-09
When After Market
Estimate 0.44
Actual 0.47

Profitability

Profit Margin -1.93%
Operating Margin (TTM) -0.5%

Management Effectiveness

Return on Assets (TTM) -3.7%
Return on Equity (TTM) -7.15%

Valuation

Trailing PE -
Forward PE 10.62
Enterprise Value 48.84M
Price to Sales(TTM) 0.22
Enterprise Value 48.84M
Price to Sales(TTM) 0.22
Enterprise Value to Revenue 0.24
Enterprise Value to EBITDA 21.41
Shares Outstanding 12.74M
Shares Floating 9.66M
Shares Outstanding 12.74M
Shares Floating 9.66M
Percent Insiders 8.3
Percent Institutions 58.36

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

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