Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 stocks made the list for top value stocks in the Household Durables industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.
Why Focus on Undervalued Household Durables Stocks?
Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.
AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
What Goes Into AAII’s Value Grade?
Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.
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4 Undervalued Household Durables Stocks
Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 4 undervalued stocks in the Household Durables industry for Wednesday, March 05, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Household Durables industry median.
| Company | Ticker | Price/Sales | Price/Earnings | EV/EBITDA | Shareholder Yield | Price/Book Value | Price/Free Cash Flow | Value Grade |
| Beazer Homes USA, Inc. | BZH | 0.27 | 5.5 | 12.7 | 0.6% | 0.53 | na | A |
| Flexsteel Industries, Inc. | FLXS | 0.52 | 12.1 | 9.9 | 0.4% | 1.50 | 12.8 | B |
| Helen of Troy Limited | HELE | 0.65 | 10.8 | 10.9 | 3.7% | 0.75 | 10.2 | A |
| Toll Brothers, Inc. | TOL | 1.04 | 7.4 | 6.1 | 4.9% | 1.42 | 15.4 | A |
The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.
The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)
Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).
As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.
Beazer Homes USA, Inc.’s Value Grade
Value Grade:
| Metric | Score | BZH | Industry Median |
| Price/Sales | 12 | 0.27 | 0.65 |
| Price/Earnings | 6 | 5.5 | 10.8 |
| EV/EBITDA | 53 | 12.7 | 10.1 |
| Shareholder Yield | 40 | 0.6% | 1.2% |
| Price/Book Value | 16 | 0.53 | 1.09 |
| Price/Free Cash Flow | na | na | 17.8 |
Beazer Homes USA, Inc. operates as a homebuilder in the United States. It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names. The company also sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Indiana, Delaware, Maryland, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina. Beazer Homes USA, Inc. was founded in 1985 and is headquartered in Atlanta, Georgia.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Beazer Homes USA, Inc. has a Value Score of 90, which is considered to be undervalued.
When you look at Beazer Homes USA, Inc.’s price-to-sales ratio at 0.27 compared to the industry median at 0.65, this company has a lower price relative to revenue compared to its peers. This could make Beazer Homes USA, Inc.’s stock more attractive for value investors.
Beazer Homes USA, Inc.’s price-earnings ratio is 5.50 compared to the industry median at 10.75. This means it has a lower share price relative to earnings compared to its peers. This could make Beazer Homes USA, Inc. more attractive for value investors.
Now, let’s assess Beazer Homes USA, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 12.7, when compared to the industry median of 10.1, the company may be considered overvalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.
Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Beazer Homes USA, Inc.’s shareholder yield is lower than its industry median ratio of 1.20%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.
As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Beazer Homes USA, Inc.’s price-to-book ratio is lower than its industry median ratio of 1.09. This could make Beazer Homes USA, Inc. more attractive to investors looking for a new addition to their portfolio.
Flexsteel Industries, Inc.’s Value Grade
Value Grade:
| Metric | Score | FLXS | Industry Median |
| Price/Sales | 20 | 0.52 | 0.65 |
| Price/Earnings | 29 | 12.1 | 10.8 |
| EV/EBITDA | 37 | 9.9 | 10.1 |
| Shareholder Yield | 41 | 0.4% | 1.2% |
| Price/Book Value | 50 | 1.50 | 1.09 |
| Price/Free Cash Flow | 33 | 12.8 | 17.8 |
Flexsteel Industries, Inc., together with its subsidiaries, operates as a manufacturer, importer, and markets of furniture for residential markets in the United States. It provides furniture, such as sofas, loveseats, chairs, reclining rocking chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, kitchen storage, bedroom furniture, and outdoor furniture. The company distributes its products through e-commerce channels and dealer sales force. Flexsteel Industries, Inc. was founded in 1893 and is based in Dubuque, Iowa.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Flexsteel Industries, Inc. has a Value Score of 75, which is considered to be undervalued.
Flexsteel Industries, Inc.’s price-earnings ratio is 12.1 compared to the industry median at 10.8. This means that it has a higher price relative to its earnings compared to its peers. This makes Flexsteel Industries, Inc. less attractive for value investors.
Flexsteel Industries, Inc.’s price-to-book ratio is lower than its peers. This could make Flexsteel Industries, Inc. more attractive for value investors when compared to the industry median at 1.09.
You can read more about Flexsteel Industries, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Helen of Troy Limited’s Value Grade
Value Grade:
| Metric | Score | HELE | Industry Median |
| Price/Sales | 25 | 0.65 | 0.65 |
| Price/Earnings | 23 | 10.8 | 10.8 |
| EV/EBITDA | 43 | 10.9 | 10.1 |
| Shareholder Yield | 21 | 3.7% | 1.2% |
| Price/Book Value | 23 | 0.75 | 1.09 |
| Price/Free Cash Flow | 25 | 10.2 | 17.8 |
Helen of Troy Limited provides various consumer products in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates in two segments: Home & Outdoor and Beauty & Wellness. The Home & Outdoor segment offers food storage containers, kitchen utensils for cooking and preparing salads, fruits, vegetables and meats, graters, slicers and choppers, baking essentials, kitchen organization, bath, cleaning, infant and toddler products, and coffee preparation tools and electronics; and insulated beverageware, including bottles, travel tumblers, drinkware, mugs, food and lunch containers, insulated totes, soft coolers, outdoor kitchenware, and accessories. This segment also provides technical and outdoor sports packs, bike packs and bags, hydration and travel packs, duffel bags and luggage, lifestyle and everyday packs, kid carrier packs, and accessories. The Beauty & Wellness segment offers mass, professional and prestige hair appliances, brushes, grooming tools, and accessories; and prestige shampoos, liquid hair styling products, treatments, and conditioners. This segment also provides thermometers, blood pressure monitors, pulse oximeters, nasal aspirators, humidifiers, faucet mount and pitcher water filtration systems, air purifiers, heaters, fans, and humidification, thermometry, water filtration, and air purification consumables. The company sells its products through mass merchandisers, sporting goods retailers, department stores, drugstore chains, home improvement stores, grocery stores, specialty stores, prestige beauty chains, beauty supply retailers, e-commerce retailers, wholesalers, warehouse clubs, and various types of distributors, as well as directly to consumers under the OXO, Good Grips, Soft Works, OXO tot, OXO Brew, OXO Strive, OXO Outdoor, Hydro Flask, Osprey, Drybar, Hot Tools, Curlsmith, and PUR brands. Helen of Troy Limited was incorporated in 1968 and is headquartered in El Paso, Texas.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Helen of Troy Limited has a Value Score of 89, which is considered to be undervalued.
Helen of Troy Limited’s price-earnings ratio is 10.8 compared to the industry median at 10.8. This means that it has a higher price relative to its earnings compared to its peers. This makes Helen of Troy Limited fairly attractive for value investors.
Helen of Troy Limited’s price-to-book ratio is higher than its peers. This could make Helen of Troy Limited less attractive for value investors when compared to the industry median at 1.09.
You can read more about Helen of Troy Limited’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Toll Brothers, Inc.’s Value Grade
Value Grade:
| Metric | Score | TOL | Industry Median |
| Price/Sales | 35 | 1.04 | 0.65 |
| Price/Earnings | 10 | 7.4 | 10.8 |
| EV/EBITDA | 17 | 6.1 | 10.1 |
| Shareholder Yield | 16 | 4.9% | 1.2% |
| Price/Book Value | 48 | 1.42 | 1.09 |
| Price/Free Cash Flow | 39 | 15.4 | 17.8 |
Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. It designs, builds, markets, and sells condominiums through Toll Brothers City Living. The company also develops a range of single-story living and first-floor primary bedroom suite home designs, as well as communities with recreational amenities, such as golf courses, marinas, pool complexes, country clubs, and fitness and recreation centers; and develops, operates, and rents apartments. In addition, it provides various interior fit-out options, such as flooring, wall tile, plumbing, cabinets, fixtures, appliances, lighting, and home-automation and security technologies. Further, the company owns and operates architectural, engineering, mortgage, title, land development, insurance, smart home technology, landscaping, lumber distribution, house component assembly, and component manufacturing operations. It serves luxury first-time, move-up, empty-nester, active-adult, and second-home buyers. The company was founded in 1967 and is headquartered in Fort Washington, Pennsylvania.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Toll Brothers, Inc. has a Value Score of 88, which is considered to be undervalued.
Toll Brothers, Inc.’s price-earnings ratio is 7.4 compared to the industry median at 10.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Toll Brothers, Inc. more attractive for value investors.
Toll Brothers, Inc.’s price-to-book ratio is lower than its peers. This could make Toll Brothers, Inc. more attractive for value investors when compared to the industry median at 1.09.
You can read more about Toll Brothers, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Other Household Durables Stock Grades
Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.
Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Household Durables stocks as well as other industrys.
Choosing Which of the 4 Best Household Durables Stocks Is Right for You
Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.
- Beazer Homes USA, Inc. stock has a Value Grade of A.
- Flexsteel Industries, Inc. stock has a Value Grade of B.
- Helen of Troy Limited stock has a Value Grade of A.
- Toll Brothers, Inc. stock has a Value Grade of A.
Now that you have a bit more background about each of the 4 undervalued stocks in the Household Durables industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.
We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.
A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
Additional Resources About Household Durables Stocks
Want to learn more about Household Durables stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.
- 4 Undervalued Household Durables Stocks for Wednesday, March 05
- 3 Undervalued Household Durables Stocks for Tuesday, March 04
- 4 Undervalued Household Durables Stocks for Monday, March 03
- 3 Undervalued Household Durables Stocks for Friday, February 28
AAII Disclaimer
We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.
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