This week, I'm looking for the fifth consumer cyclical representative of five for my Ivy portfolio.

The consumer cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Plastics, Textiles, and all such consumer aimed enterprises.

Today I'm reviewing a small-cap textile manufacturing company named Culp Inc. Its trading ticker symbol is CULP.

Culp Inc manufacturers, sources, and markets mattress fabrics and sewn covers used for covering mattresses and box springs and upholstery fabrics including cut and sewn kits used in the production of upholstered furniture. The company has two operating segments Mattress fabrics and Upholstery fabrics. The mattress fabrics segment, also known as Culp Home Fashions, manufactures and markets mattress fabrics and mattress covers to bedding manufacturers. The upholstery fabrics segment markets fabrics for residential and commercial furniture, including jacquard woven fabrics, velvets, micro-denier suedes, woven dobbies, knitted fabrics, piece-dyed woven products, and polyurethane leather look fabrics.

It operates in North America, the Far East, Asia, and internationally. Culp, Inc. was founded in 1972 and is headquartered in High Point, North Carolina.

I use three key data points to gauge the value of any dividend equity-like Culp Inc:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

CULP Price

CULP's price per share closed at $19.20 yesterday. A year ago its price was $30.00. Price fell $10.80  or  36% in the past year.

Assuming CULP's stock trades in the range of 16.00 to $28.00 this year,

CULP's recent $19.20 price could rise by $2.80 and go to $22.00 by mid- May 2020.

CULP Dividends

CULP's most recent declared quarterly dividend was $0.10 declared February 27th and paid, April 15th.

A $0.10 Q dividend equates to an annual payout of $0.40 for a yield of 2.08% at yesterday's $19.20 closing price.

Gains For CULP?

Adding a $0.40 annual estimated dividend to my $2.80 estimate of Miller's price upside shows a $3.20 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we pay a little under $1,000.00 today at the $19.20 recent stock price would buy us 52 Culp Inc shares.

A $10 broker fee paid half at purchase and half at sale will cost us $0.19 per share.

Subtract that $0.19 brokerage cost from the estimated $3.20 gross annual gain leaves a net gain of $3.01 X 52 shares = $156.52 or a 15.7% net gain on a $998.40 investment.

Therefore, Culp Inc whose trading ticker symbol is CULP now shows a possible net gain of 15.7% including a 2.08% dividend yield.

Two brokers cover Culp Inc stock:

One says "buy" CULP.

One says CULP will "outperform".

The consensus score is 1.5 or "outperform".

Therefore, you can look at Culp Inc and see it has made money, is making money, and could net a 10.8% gain including a 2.08% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to determine if Culp Inc is worth your time and money.