One-glance verdict
Overvalued
$9.39 our estimate vs market $45.11
Wall Street consensus: $57.14 (508.6% higher than our fair-value estimate)
380% above our estimate, beyond the bull case
Fundamentals snapshot
Floor & Decor Holdings, Inc.
FND · NYQ · Consumer Cyclical · Home Improvement Retail
Current price
$45.11
52-week range
$42.64 - $77.46
Market cap
$4.80B
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: 8.2%).
- Risk Operating margin compressed from 10.2% to 5.4% over 3 years.
What this company does
Floor & Decor Holdings, Inc.
Floor & Decor sells flooring like tile and wood, plus all the stuff needed to install it, from their big warehouse stores and online. Their main money comes from selling these products directly to both everyday homeowners and professional contractors. This matters because their business is focused on selling a lot of items for home improvement projects, and how well they sell those items affects their overall success.
How the company got here
Floor & Decor Holdings, Inc. was founded in 2000 by George West, whose family had experience in the building materials industry. The company started as FDO Holdings and later changed its name to Floor & Decor Holdings, Inc. in April 2017. It experienced significant growth, doubling in size between 2011 and 2016. Floor & Decor went public with an initial public offering (IPO) in 2017, which saw a substantial increase in its stock value on the first day of trading. The company has since expanded its national presence through a strategy of opening large warehouse-format stores and complementary design studios. It has also focused on building a robust supply chain and direct sourcing from manufacturers to offer competitive pricing.
What it actually does
Floor & Decor is a specialty retailer focused on hard surface flooring and related accessories. Think of them as a one-stop shop for everything you need to put down new floors. They offer a wide variety of products like tile, wood, laminate, and vinyl flooring. Beyond just the flooring itself, they also sell installation materials such as grout and adhesives, as well as decorative items like mosaics and trim. Their customers include both homeowners looking to remodel and professional contractors who install floors for a living. They operate large warehouse-style stores and also have a presence online.
Flooring Products
This is the core of Floor & Decor's business, where they sell the actual flooring materials. This includes a vast selection of hard surfaces like porcelain and ceramic tile, natural stone such as marble and granite, and various types of wood flooring including solid hardwood, engineered hardwood, and laminate. They also offer vinyl flooring options, which are known for their durability and water resistance. These products are the primary revenue drivers for the company, catering to a wide range of aesthetic preferences and functional needs for both residential and commercial projects. The company emphasizes having a broad in-stock selection of these items.
Installation Materials and Accessories
To complement their flooring products, Floor & Decor also sells all the necessary items for installation and finishing touches. This category includes things like grout, mortar, adhesives, and underlayments, which are essential for properly laying down flooring. They also offer decorative accessories such as tile trims, mosaics, and stair treads that help complete the look of a finished floor. This segment of the business is important because it encourages customers to buy everything they need for a project from one place, increasing the overall amount each customer spends (known as basket size). This makes Floor & Decor a more convenient option for customers undertaking flooring projects.
Commercial Surfaces
Floor & Decor has expanded into selling commercial surfaces, which are flooring and related materials specifically for business environments. This segment involves selling products to commercial businesses, and the company has been growing this part of its business both internally and through acquisitions, like the purchase of Spartan Surfaces. The strategy here mirrors their approach in the residential market, focusing on sourcing high-quality, trend-forward products at competitive prices directly from manufacturers. This diversification allows them to tap into a different market segment beyond individual homeowners.
What management is betting on now
Floor & Decor's main strategy is to keep opening new warehouse-format stores across the United States, aiming for a significant national footprint. They are also focused on growing their business with professional contractors and commercial clients, offering them specialized services and support. Another key priority is to improve their online shopping experience and digital tools to make it easier for customers to research and purchase products. Management believes that by expanding their store base, enhancing their offerings for professionals, and improving their digital capabilities, they can continue to drive sales growth and solidify their position as a leading flooring retailer.
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 $9.39 vs current price $45.11
Wall Street consensus is the average analyst price target: $57.14 (508.6% higher than our fair-value estimate).
Our most-likely fair value is $9.39 a share — about 79.2% below today's price of $45.11, 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: 8.2%).
-
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)
21.08x
Forward P/E
20.73x
P/B
1.93x
P/S
1.02x
EV/EBITDA
13.28x
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
0.0%
Payout ratio
0.0%
Last ex-div date
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