One-glance verdict
Overvalued
$-7.04 our estimate vs market $7.66
Wall Street consensus: $10.00 (-242.1% lower than our fair-value estimate)
209% below our estimate, beyond the bull case
Fundamentals snapshot
FGI Industries Ltd.
FGI · NCM · Consumer Cyclical · Furnishings, Fixtures & Appliances
Current price
$7.66
52-week range
$3.14 - $19.93
Market cap
$14.79M
Balance sheet
Distressed
-1.81x Concerning
Net debt $19.26M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 1/10 years.
- Risk Net debt grew 137.8% over 3 years.
- Risk Return on equity was -28.1% last year — the company lost money on shareholders' equity.
What this company does
FGI Industries Ltd.
FGI Industries makes and sells everyday kitchen and bathroom products like toilets, sinks, cabinets, and showers. The company's money primarily comes from selling to large home improvement stores and online retailers, which often sell these items under their own private store brand names. This means FGI's success is closely tied to its ability to maintain a good supply chain (the entire process of making and delivering products to stores) to keep these major retail partners stocked.
How the company got here
FGI Industries began in 1988 as a private company in New Jersey that imported wood cabinets and bathroom fixtures to sell to retailers. For over 30 years, it operated as part of a larger company, Foremost Groups, building a reputation for innovation and service in the kitchen and bath industry. In 2022, FGI was spun off from its parent company to operate as a standalone business, a move intended to allow it to better focus on its growth strategy. Shortly after, it became a publicly traded company on the Nasdaq stock exchange.
What it actually does
FGI Industries supplies products for kitchens and bathrooms that you would typically find in large home improvement stores, or that a contractor would use for a renovation. The company doesn't sell directly to the public, but instead sells to big retailers like The Home Depot and Lowe's, as well as to wholesalers and distributors who then sell to professionals. Many of its products are sold under its own brand names like Foremost, Jetcoat, and Craft + Main, but it also makes products for store brands, such as Glacier Bay for The Home Depot.
Sanitaryware
This is the company's largest business segment and includes the essential ceramic items in a bathroom. Think of toilets, sinks, and the pedestals that sinks sometimes sit on. These products are sold to customers in the United States, Canada, and Europe for both home renovations and new construction projects. This segment consistently brings in the largest portion of the company's revenue (the total money it makes from sales).
Bath Furniture
This part of the business provides the wooden or wood-like furniture you find in a bathroom. This includes items like vanities (the cabinet a sink sits in), mirrors, and various storage cabinets for medicine or laundry. These products are designed to complement the sinks and toilets and are a significant part of FGI's overall business.
Shower Systems
This segment focuses on the products needed to build or remodel a shower. This includes the shower walls, doors, and the basin or floor of the shower. FGI offers complete systems, like its JETCOAT® brand, which provides a streamlined way for homeowners or contractors to install a new shower. This is a growing area for the company.
Other (Kitchen Cabinetry)
This smaller segment primarily consists of custom kitchen cabinetry. While the company is mostly known for bathroom products, it also provides cabinets for kitchens. This part of the business also includes other accessory items that round out their kitchen and bath offerings.
What management is betting on now
The company's main focus is a strategy it calls “BPC,” which stands for Brands, Products, and Channels. This means they are working to sell more products under their own brand names, which they believe will improve their profit margins (the portion of sales that turns into profit). They are also focused on developing new and innovative products and expanding the ways they sell them, such as through different retailers and distributors. FGI is also looking to grow by acquiring other companies in what it sees as a fragmented market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-1.10M
FY2024 Q4
$-8.23M
FY2025 Q1
$-2.00M
FY2025 Q2
$1.64M
FY2025 Q3
$-2.13M
FY2025 Q4
$2.28M
FY2026 Q1
$-405.44K
FY2026 Q2
$2.05M
Revenue
$31.89M
Net income
$1.30M
Diluted EPS
0.65
Operating cash flow
$2.14M
Free cash flow
$2.05M
Fetching…
Sources
Revenue
$30.50M
Net income
$-969.40K
Diluted EPS
-0.50
Operating cash flow
$-325.71K
Free cash flow
$-405.44K
Fetching…
Sources
Revenue
$30.47M
Net income
$-2.63M
Diluted EPS
-1.63
Operating cash flow
$2.34M
Free cash flow
$2.28M
Fetching…
Sources
Revenue
$35.85M
Net income
$-1.65M
Diluted EPS
-0.86
Operating cash flow
$-1.87M
Free cash flow
$-2.13M
Fetching…
Sources
Revenue
$31.00M
Net income
$-1.23M
Diluted EPS
-0.64
Operating cash flow
$1.85M
Free cash flow
$1.64M
Fetching…
Sources
Revenue
$33.21M
Net income
$-629.09K
Diluted EPS
-0.07
Operating cash flow
$-1.65M
Free cash flow
$-2.00M
Fetching…
Sources
Revenue
$35.59M
Net income
$-402.33K
Diluted EPS
-0.05
Operating cash flow
$-7.40M
Free cash flow
$-8.23M
Fetching…
Sources
Revenue
$36.10M
Net income
$-550.14K
Diluted EPS
-0.06
Operating cash flow
$-914.97K
Free cash flow
$-1.10M
Fetching…
Sources
Is it cheap or expensive?
Fair value $-7.04 vs current price $7.66
Wall Street consensus is the average analyst price target: $10.00 (-242.1% lower than our fair-value estimate).
Our most-likely fair value is $-7.04 a share — about 191.9% below today's price of $7.66, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $19.3M. Interest coverage -1.8x.
Net debt
$19.26M
Interest coverage
-1.81x
FGI Industries Ltd.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
FGI
BASELINE
FGI Industries Ltd.
Total debt $23.68M Interest coverage -1.81x This is the baseline the peer rows are being compared against.
Total debt $38.00K Interest coverage -14.79x Neither company has much profit cushion over interest right now.
Total debt $1.84M Interest coverage -350.22x Neither company has much profit cushion over interest right now.
Total debt $7.62M Interest coverage 5.92x This peer still has a real interest-payment cushion, while FGI does not.
What you should know
The case for and against FGI
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Net debt grew 137.8% over 3 years.
-
Return on equity was -28.1% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
19.15x
P/B
0.87x
P/S
0.11x
EV/EBITDA
31.37x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
28.3%
Operating margin
4.4%
Net margin
-3.1%
ROE
-28.1%
ROA
0.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.57x
Current ratio
1.18x
Quick ratio
0.45x
Total debt
$23.68M
Total cash
$4.42M
Growth
How the business has been compounding
Revenue TTM
$128.70M
Revenue 5Y CAGR
-6.9%
EPS TTM
-2.06
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$2.29M
Free CF TTM
$-212.52K
FCF margin
-0.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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