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Office furniture company · MI · FY ends May · Revenue $3.80B · 5.31% margin · $83M FCF
Operating margin is thin at 1.38%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 1.1%, essentially flat. Margins also contracted 3.2pp. This is a business that needs a catalyst.
Free cash flow declined 63% versus the prior year, cash generation momentum has weakened. ROIC dropped from 4.70% to 1.25%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$3.80B
▲ +1.1% YoY
Net Income (TTM)
$11M
▼ -144.8% YoY
Op. Margin
5.31%
▼ -3.2pp YoY
ROIC
5.61%
▼ -3.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$83M
▼ -62.9% YoY
Op. Cash Flow (TTM)
$206M
▼ -40.6% YoY
Net Debt
$531M
Cash & Equiv.
$175M
5Y CAGR: +8.1%
5Y CAGR: -7.8%
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