Is DXYN undervalued? Our fair value estimate

The Dixie Group, Inc. · Consumer · OQB

Our fair value estimate
$0.65
Current share price
$0.39
Upside to fair value
+66.7%

Price as at 2 Oct 2026, 03:59 UTC. Quotes are delayed.

Screens as clearly undervalued. The Dixie Group, Inc. trades 67% below the $0.65 our model puts on the business. A fair value estimate is an argument, not a measurement: it is only as good as its growth assumption, and the market is frequently right about why something trades where it does.
Overall rating: 44/100, low qualityMoat score: 9/100Data quality: high confidence (83/100 of the inputs on file)

How we got here

The estimate is computed from DXYN's reported fundamentals, with a growth assumption that is deliberately capped: small changes to an uncapped growth or terminal assumption can justify any price, and a number that can justify anything means nothing. These are the inputs the model holds for DXYN today; the exact method, and where it goes wrong, is on the methodology page.

Revenue growth (YoY)-5.7%

The trailing growth rate informs the growth assumption, which the model caps deliberately: uncapped growth assumptions can justify any price.

Profit margin-1.9%

Margins tell the model how much of each unit of revenue survives as profit, and how much room there is for that to erode.

Return on equity-35.3%

Persistent high returns on capital are what a moat looks like in the accounts, and they feed the moat score alongside the valuation.

Beta1.44

A volatility measure against the wider market. A jumpier share earns a larger discount for risk, which lowers the estimate.

Debt to equity10.77

Leverage haircuts the estimate: debt claims cash before shareholders do, and it turns bad years into dangerous ones.

Consumer peers, by our rating

The same model, run on the highest-rated names in the same sector. A gap to fair value is only comparable when the method behind it is identical, which here it is.

Common questions

Is The Dixie Group, Inc. (DXYN) undervalued?

On our model, DXYN at $0.39 trades 67% below our fair value estimate of $0.65, so it screens as undervalued today. That is one model's answer, not a recommendation: a fair value estimate is an argument about the future, and the market is frequently right about why something is cheap.

What is the fair value of DXYN?

Our current fair value estimate for The Dixie Group, Inc. is $0.65 per share. The estimate moves as prices and fundamentals move.

How is DXYN's fair value calculated?

From The Dixie Group, Inc.'s reported fundamentals: earnings power, a deliberately capped growth assumption, and a discount for balance sheet and volatility risk. The full method, including its known weaknesses, is published on our methodology page, and the interactive Valuation Lab lets you change every assumption and watch the value move.

Disagree with an assumption? Good. The Valuation Lab on the DXYN app page restates this estimate as a separate five-year discounted cash flow, puts its growth and discount rates on sliders, and runs it backwards to show the growth the market is currently pricing in.

A fair value estimate is a model output computed from company filings and market data, refreshed daily; quotes are delayed. It is educational information, not financial advice and not a recommendation to buy or sell anything. Read the full disclaimer.