One-glance verdict
Overvalued
$9.00 our estimate vs market $50.23
Wall Street consensus: $58.59 (550.8% higher than our fair-value estimate)
458% above our estimate, beyond the bull case
Fundamentals snapshot
Floor & Decor Holdings, Inc.
FND · NYQ · Consumer Cyclical · Home Improvement Retail
Current price
$50.23
52-week range
$42.64 - $92.41
Market cap
$5.35B
Balance sheet
Watch
23.97x Strong cushion
Net debt $1.69B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.6% last year.
- Reward Returns 9.7% on equity, ahead of 50% of its peers.
- Risk Insider ownership is only 1.3% (peer median: 8.1%).
- Risk Operating margin compressed from 10.2% to 5.4% over 3 years.
What this company does
Floor & Decor Holdings, Inc.
Floor & Decor is a large specialty store that sells hard-surface flooring like tile, wood, and vinyl, plus all the tools and accessories for installation. The company makes money by selling a huge selection of these products from its big warehouse-style stores to both professional contractors and regular homeowners. Because it sells big-ticket items for home remodels, its success is often tied to the health of the housing market and its supply chain (the network of companies that get products from the factory to the store shelves).
How the company got here
Floor & Decor was founded in 2000 in Atlanta, Georgia, with a focus on hard-surface flooring. The company grew steadily and went public with an initial public offering (an IPO, which is the first time a private company sells its stock to the public) in 2017. A key part of its strategy has been opening large, warehouse-style stores that are much bigger than its competitors. This allows them to keep a huge selection of products in stock, ready for customers to take home the same day.
What it actually does
Floor & Decor is a specialty retail store that sells hard-surface flooring and related accessories. Think of it as a giant warehouse full of options like tile, wood, vinyl, and natural stone floors. They also sell all the extra things you would need for a flooring project, like grout (the stuff that goes between tiles), tools, and decorative pieces. The company serves everyone from professional contractors and home builders to everyday homeowners doing a do-it-yourself (DIY) project.
Retail and Commercial Sales
The company operates through one main business line: selling flooring and installation products directly to customers. This happens through their large warehouse stores, a few smaller design studios, and their website. This single segment is split between two main customer types: homeowners and professional contractors, with sales divided roughly equally between them. By sourcing materials directly from manufacturers across the globe, the company aims to offer lower prices than many competitors.
What management is betting on now
The company's main strategy is to keep opening new warehouse stores across the United States, with a long-term goal of reaching 500 locations. Management is also focused on attracting more professional customers, like contractors and builders, by offering services and loyalty programs tailored to their needs. They are also investing in their supply chain (the network for getting products from the factory to the store) to make sure products are available for customers when they want them. Another priority is enhancing their design services, which help customers plan their projects at no extra cost.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$36.54M
FY2024 Q4
$3.92M
FY2025 Q1
$4.44M
FY2025 Q2
$-9.99M
FY2025 Q3
$24.48M
FY2025 Q4
$45.14M
FY2026 Q1
$45.81M
FY2026 Q2
$95.96M
Revenue
$1.25B
Net income
$95.87M
Diluted EPS
0.89
Operating cash flow
$169.20M
Free cash flow
$95.96M
Fetching…
Sources
Revenue
$1.15B
Net income
$39.71M
Diluted EPS
0.37
Operating cash flow
$109.25M
Free cash flow
$45.81M
Fetching…
Sources
Revenue
$1.13B
Net income
$39.33M
Diluted EPS
0.36
Operating cash flow
$124.07M
Free cash flow
$45.14M
Fetching…
Sources
Revenue
$1.18B
Net income
$57.26M
Diluted EPS
0.53
Operating cash flow
$102.49M
Free cash flow
$24.48M
Fetching…
Sources
Revenue
$1.21B
Net income
$63.18M
Diluted EPS
0.58
Operating cash flow
$84.11M
Free cash flow
$-9.99M
Fetching…
Sources
Revenue
$1.16B
Net income
$48.88M
Diluted EPS
0.45
Operating cash flow
$71.16M
Free cash flow
$4.44M
Fetching…
Sources
Revenue
$1.11B
Net income
$47.48M
Diluted EPS
0.44
Operating cash flow
$101.39M
Free cash flow
$3.92M
Fetching…
Sources
Revenue
$1.12B
Net income
$51.69M
Diluted EPS
0.48
Operating cash flow
$160.29M
Free cash flow
$36.54M
Fetching…
Sources
Is it cheap or expensive?
Fair value $9.00 vs current price $50.23
Wall Street consensus is the average analyst price target: $58.59 (550.8% higher than our fair-value estimate).
Our most-likely fair value is $9.00 a share — about 82.1% below today's price of $50.23, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $1.7B. Interest coverage 24.0x.
Net debt
$1.69B
Interest coverage
23.97x
Floor & Decor Holdings, Inc.'s profit covers its interest bill about 24.0 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
FND
BASELINE
Floor & Decor Holdings, Inc.
Total debt $2.01B Interest coverage 23.97x This is the baseline the peer rows are being compared against.
Total debt $63.19B Interest coverage 8.66x -64% vs FND Carries about 2.8x less debt cushion than FND.
Total debt $42.03B Interest coverage 6.65x -72% vs FND Carries about 3.6x less debt cushion than FND.
Total debt $159.84M Interest coverage -141.80x -100% vs FND This peer has almost no interest-payment cushion compared with FND.
Total debt $2.36B Interest coverage 28.63x +19% vs FND Carries about 1.2x more debt cushion than FND.
What you should know
The case for and against FND
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.6% last year.
-
Returns 9.7% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Insider ownership is only 1.3% (peer median: 8.1%).
-
Operating margin compressed from 10.2% to 5.4% over 3 years.
-
Net debt grew 0.6% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.47x
Forward P/E
22.79x
P/B
2.15x
P/S
1.14x
EV/EBITDA
14.37x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
45.0%
Operating margin
5.4%
Net margin
4.9%
ROE
9.7%
ROA
2.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.81x
Current ratio
1.33x
Quick ratio
0.41x
Total debt
$2.01B
Total cash
$320.61M
Growth
How the business has been compounding
Revenue TTM
$4.71B
Revenue 5Y CAGR
8.1%
EPS TTM
2.14
EPS 5Y CAGR
-11.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$505.01M
Free CF TTM
$64.07M
FCF margin
1.4%
Dividend
Shareholder payout
Yield
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Payout ratio
0.0%
Last ex-div date
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