Bassett Furniture Industries (BSET) has wrapped up FY 2025 with fourth quarter revenue of US$88.7 million and basic EPS of US$0.18, alongside net income of US$1.5 million. Trailing 12 month figures show revenue of US$335.3 million and EPS of US$0.70. The company has seen revenue move from US$84.3 million in Q4 FY 2024 to US$88.7 million in Q4 FY 2025, with basic EPS shifting from US$0.38 to US$0.18 over the same period, as trailing 12 month net income reached US$6.1 million. Overall, these results indicate that the business is generating profit but still experiencing margin pressure.

With the headline numbers on the table, the next step is to weigh them against the prevailing market stories around growth, profitability and risks to assess which narratives remain relevant and which may be outdated.

TTM Profitability Rebounds To US$6.1 Million

• On a trailing 12 month basis, Bassett moved from a loss of US$17.0 million in Q3 FY 2024 to net income of US$6.1 million by Q4 FY 2025, with TTM EPS shifting from a loss of US$1.95 to a profit of US$0.70 over the same window.
• What stands out for a bullish view is that this return to profit sits alongside four straight quarters of positive quarterly EPS in FY 2025. However, the bullish argument still has to grapple with the fact that the most recent quarter’s EPS of US$0.18 is below the Q1 and Q2 FY 2025 range of roughly US$0.21 to US$0.22, so the improvement is clear over 12 months but not consistently building each quarter.

After a year that swung from losses to profits, bulls and skeptics are likely to disagree on how durable this earnings run really is. 📊 Read the full Bassett Furniture Industries Consensus Narrative.

Premium 22.4x P/E Versus Peers

• The company is trading on a reported P/E of 22.4x compared with a peer average of 14.5x and a US Consumer Durables industry average of 12.5x. Investors are therefore currently paying a higher multiple for Bassett’s trailing EPS than for many comparable names.
• Bears argue that a premium multiple needs stronger support, and the current numbers give them material talking points:
  • Revenue on a trailing 12 month basis is US$335.3 million versus US$340.3 million in the earlier TTM snapshot, while revenue growth in the analysis is forecast at 3.2% per year against a 10.2% market benchmark. This leaves little room for a slowdown if investors are paying up at 22.4x earnings.
  • At the same time, the dividend yield of 5.08% is flagged as not being well covered by trailing earnings, so higher income obligations sit alongside that premium P/E, adding another pressure point for those cautious about paying more than the 14.5x peer average.

DCF Fair Value Sits Well Above US$15.76 Price

• The provided DCF fair value for Bassett is US$26.46 per share against a current share price of US$15.76. This implies the stock trades materially below that model’s estimate even after the return to TTM profitability of US$6.1 million.
• Supporters with a bullish tilt often point to this gap, yet the data also builds in some tension that readers should be aware of:
  • Forecast earnings growth of about 25.6% per year contrasts with more modest forecast revenue growth of 3.2% per year. As a result, a lot of the DCF upside depends on margin and earnings outcomes rather than rapid top line expansion.
  • Even with that implied upside, the same dataset highlights that the 5.08% dividend is not well covered by trailing earnings, which means any bullish case built around the DCF fair value of US$26.46 has to weigh both the growth forecasts and the current income strain.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Bassett Furniture Industries's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Bassett carries a premium 22.4x P/E and a 5.08% dividend that is not well covered by earnings, so its income profile looks strained.

If you want income that feels more secure, check out our 14 dividend fortresses to quickly spot companies where higher yields sit on firmer earnings support.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.