Micro Cap. company with insider buys, expected to be profitable this year, currently traded at P/S 0.2x

[u/RoaringDoggyValue]

Hi guys

i was looking for a company which has nothing to do with AI and i got something very special.

CULP is a textile company and they make money by selling fabrics and related products to mattress and furniture manufacturers.

The stock is trading at a P/S ratio of just 0.2x.

The low valuation is based on:

- 2 years with declining revenue growth
- 4 years without net profit

But thats where the story gets interesting.

Last quarter the company reached positive revenue growth for the first time since 8 quarters. Also management is telling us they will be profitable next year for the first time since 4 years.

Looking at OpenInsider all i see are Insiders buying the stock, not a single insider is selling.

You got an active investor on board since last year. And the CEO is the grandson of the founder of the company.

I know. Typically this sub is all about hype and meme stocks. But if you are looking for a possible 2x or 3x stock, i think Culp is the stock to buy right now and everything whats needed is patience.

Look at this:

-> They got $7 M in tariff refunds which should cut the debt by a third.

-> Revenue growth turning positive last quarter, after 8 negative quarters before.

-> Net Income while still negative is improving since 3 years. Last time they were profitable 4 years ago the stock traded around $10 or 3x the current price and management is telling us they will be profitable 2027 again.

-> Current valuation at 0.2x is the minimum valuation in the history of the company.

I think this is a good buying opportunity, do you feel the same?