📊 CRWS Key Takeaways
Is Crown Crafts Inc. (CRWS) a Good Investment?
Crown Crafts operates in a structurally declining broadwoven fabric industry with razor-thin operating margins (1.3%) and revenue contraction (-5.7% YoY). While the company generates positive free cash flow and maintains conservative leverage, weak capital returns (ROE 4.7%, ROA 2.6%) and critically low cash reserves ($200K) despite positive cash generation indicate limited financial flexibility and deteriorating competitive position.
Crown Crafts shows solid liquidity and healthy free cash flow generation despite essentially flat revenue, which gives the business financial flexibility. However, profitability is very thin, interest coverage is weak, and the gap between positive net income and negative diluted EPS suggests underlying earnings quality or capital structure complexity that warrants caution. Fundamentally, this looks like a stable but low-growth business rather than a strongly improving one.
Crown Crafts Inc. Key Strengths (CRWS)
- Positive free cash flow generation ($7.4M annually) with 9% FCF margin despite thin operating margins shows cash-generative capability
- Strong short-term liquidity (Current Ratio 3.58x, Quick Ratio 1.53x) provides operational stability and debt service capability
- Conservative capital structure (Debt/Equity 0.31x) with adequate interest coverage (3.4x) limits financial distress risk
- Strong liquidity with a 3.43x current ratio and 1.47x quick ratio
- Free cash flow generation is solid at $6.48M, or a 10.8% FCF margin
- Leverage appears manageable with debt/equity of 0.37x and positive operating cash flow
CRWS Stock Risks: Crown Crafts Inc. Investment Risks
- Revenue decline of -5.7% YoY indicates market share loss in a structurally declining broadwoven fabric industry with secular headwinds
- Extremely thin operating margins (1.3%) and net margins (2.2%) reflect commoditized products with minimal pricing power and high competitive pressure
- Critically depleted cash position ($200K) despite positive cash generation creates vulnerability to supply chain disruptions, working capital swings, or capital requirements
- Operating margin is only 0.9%, leaving little cushion against cost pressure or sales declines
- Revenue declined 0.4% YoY, indicating limited growth momentum
- Interest coverage of 1.7x is weak, and positive net income alongside negative diluted EPS raises earnings quality concerns
Key Metrics to Watch
- Revenue stabilization and growth trajectory - determine if decline is temporary or reflects permanent market share loss
- Operating margin expansion path - assess management's ability to improve profitability through operational efficiency or product mix
- Cash accumulation rate and absolute cash balance - monitor if company rebuilds reserves to adequate $5-10M minimum level
- Operating margin and gross margin trend
- Interest coverage and free cash flow consistency
Crown Crafts Inc. (CRWS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.58x current ratio provides a solid financial cushion.
CRWS Profit Margin, ROE & Profitability Analysis
CRWS vs Market Sector: How Crown Crafts Inc. Compares
How Crown Crafts Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Crown Crafts Inc. Stock Overvalued? CRWS Valuation Analysis 2026
Based on fundamental analysis, Crown Crafts Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Crown Crafts Inc. Balance Sheet: CRWS Debt, Cash & Liquidity
CRWS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Crown Crafts Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-0.90 indicates the company is currently unprofitable.
CRWS Revenue Growth, EPS Growth & YoY Performance
CRWS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $20.7M | $893.0K | N/A |
| Q2 2026 | $23.7M | $53.0K | N/A |
| Q1 2026 | $15.5M | -$322.0K | $-0.03 |
| Q3 2025 | $23.4M | $893.0K | N/A |
| Q2 2025 | $24.1M | $538.0K | N/A |
| Q1 2025 | $16.2M | -$322.0K | $-0.03 |
| Q3 2024 | $19.0M | $1.3M | N/A |
| Q2 2024 | $18.7M | $1.8M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Crown Crafts Inc. Dividends, Buybacks & Capital Allocation
CRWS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Crown Crafts Inc. (CIK: 0000025895)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CRWS
What is the AI rating for CRWS?
Crown Crafts Inc. (CRWS) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CRWS's key strengths?
Claude: Positive free cash flow generation ($7.4M annually) with 9% FCF margin despite thin operating margins shows cash-generative capability. Strong short-term liquidity (Current Ratio 3.58x, Quick Ratio 1.53x) provides operational stability and debt service capability. ChatGPT: Strong liquidity with a 3.43x current ratio and 1.47x quick ratio. Free cash flow generation is solid at $6.48M, or a 10.8% FCF margin.
What are the risks of investing in CRWS?
Claude: Revenue decline of -5.7% YoY indicates market share loss in a structurally declining broadwoven fabric industry with secular headwinds. Extremely thin operating margins (1.3%) and net margins (2.2%) reflect commoditized products with minimal pricing power and high competitive pressure. ChatGPT: Operating margin is only 0.9%, leaving little cushion against cost pressure or sales declines. Revenue declined 0.4% YoY, indicating limited growth momentum.
What is CRWS's revenue and growth?
Crown Crafts Inc. reported revenue of $82.3M.
Does CRWS pay dividends?
Crown Crafts Inc. pays dividends, with $3.3M distributed to shareholders in the trailing twelve months.
Where can I find CRWS SEC filings?
Official SEC filings for Crown Crafts Inc. (CIK: 0000025895) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CRWS's EPS?
Crown Crafts Inc. has a diluted EPS of $0.17.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CRWS's fundamental grade?
Based on our AI fundamental analysis in July 2026, Crown Crafts Inc. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CRWS stock overvalued or undervalued?
Valuation metrics for CRWS: ROE of 4.7% (sector avg: 15%), net margin of 2.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is CRWS's AI grade for 2026?
Our dual AI analysis gives Crown Crafts Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CRWS's free cash flow?
Crown Crafts Inc.'s operating cash flow is $8.3M, with capital expenditures of $864.0K. FCF margin is 9.0%.
How does CRWS compare to other Market stocks?
Vs Default sector averages: Net margin 2.2% (avg: 12%), ROE 4.7% (avg: 15%), current ratio 3.58 (avg: 1.8).