| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 87.23 | 245 |
| Intrinsic value (DCF) | 8.35 | -67 |
| Graham-Dodd Method | 6.14 | -76 |
| Graham Formula | n/a |
Haverty Furniture Companies, Inc. (NYSE: HVT) is a leading specialty retailer of residential furniture and accessories in the United States, operating under the Havertys brand. Founded in 1885 and headquartered in Atlanta, Georgia, the company offers a diverse range of home furnishings, including custom upholstery, eclectic designs, and premium mattress brands like Sealy, Stearns & Foster, Tempur-Pedic, and Serta, alongside its private-label Skye collection. Havertys serves customers through 121 showrooms across 16 Southern and Midwestern states, complemented by an e-commerce platform. Positioned in the competitive consumer cyclical sector, Havertys differentiates itself through a curated product mix, strong regional brand recognition, and a focus on mid-to-high-end furniture. With a market cap of approximately $327 million, the company continues to leverage its long-standing reputation for quality and customer service in the fragmented home furnishings industry.
Haverty Furniture presents a mixed investment profile. On the positive side, the company maintains a stable revenue base ($722.9M in FY 2023) and a modest net income ($19.96M), supported by its regional footprint and omnichannel strategy. Its dividend yield (~3% based on a $0.96 annual payout) may appeal to income-focused investors. However, risks include a high beta (1.3), indicating sensitivity to economic cycles, and exposure to discretionary consumer spending amid inflationary pressures. The company’s debt-to-equity ratio (~0.67) is manageable but warrants monitoring. While Havertys’ niche focus and brand loyalty provide resilience, its smaller scale compared to national rivals could limit margin expansion. Investors should weigh its regional strengths against macroeconomic headwinds in the home furnishings sector.
Haverty Furniture competes in a fragmented industry dominated by large national chains and e-commerce disruptors. Its primary competitive advantage lies in its regional brand equity, with deep customer relationships in the Southern and Midwestern U.S. The company’s curated product assortment—blending national brands with private-label offerings—allows for differentiation in design and quality. However, Havertys faces stiff competition from bigger players with greater economies of scale, such as Williams-Sonoma (Pottery Barn) and RH (Restoration Hardware), which invest heavily in omnichannel capabilities and luxury positioning. Havertys’ store-centric model, while fostering personalized service, lags in digital innovation compared to pure-play online retailers like Wayfair. Its mid-tier pricing strategy positions it between value-focused chains (Ashley Furniture) and premium brands, but this also exposes it to pricing pressure. The company’s ability to maintain margins hinges on localized marketing and supply chain efficiency, though its smaller scale limits bargaining power with suppliers. In the mattress segment, competition is intense from Casper and Tempur Sealy’s direct-to-consumer push. Havertys’ longevity and regional focus remain key differentiators, but scalability challenges persist.