One-glance verdict
Overvalued
$23.13 our estimate vs market $36.42
Wall Street consensus: $45.25 (95.6% higher than our fair-value estimate)
57% above our estimate, beyond the bull case
Fundamentals snapshot
Interface, Inc.
TILE · NMS · Consumer Cyclical · Furnishings, Fixtures & Appliances
Current price
$36.42
52-week range
$24.40 - $40.50
Market cap
$2.11B
Balance sheet
Watch
8.39x Adequate
Net debt $208.87M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.9% last year.
- Reward Returns 23.2% on equity, ahead of 80% of its peers.
- Risk Forward P/E (15.0x) is higher than trailing (14.7x) - earnings are expected to drop.
- Risk Insider ownership is only 2.2% (peer median: 3.5%).
What this company does
Interface, Inc.
Interface, Inc. makes and sells flooring products like modular carpets and vinyl tiles primarily for businesses such as offices and hospitals. Their sales come from these flooring products and related installation services, which is important because it shows how they make money and what their customers buy.
How the company got here
Interface, Inc. started in 1973, aiming to revolutionize the flooring industry. A major turning point was its early commitment to sustainability, becoming a pioneer in developing eco-friendly carpet manufacturing processes. This focus on environmental responsibility has shaped its brand identity and product development for decades, setting it apart from competitors. Over the years, the company expanded its product offerings beyond traditional carpet tiles to include other types of flooring solutions.
What it actually does
Interface designs, makes, and sells flooring products, primarily for businesses and public spaces. Think of the carpets you see in offices, hospitals, schools, and airports – Interface makes a lot of those. They offer modular carpet tiles, which are easier to replace if damaged, and have expanded into other flooring types like luxury vinyl tiles and rubber flooring. They also provide services related to installing and maintaining these floors, along with specialized installation products.
Modular Carpet
This is Interface's core business, where they produce carpet tiles that can be easily installed and replaced. These tiles are designed for commercial spaces like offices and retail stores, offering flexibility in design and maintenance. The company sells these products under well-known brands, reaching customers directly and through a network of installers and distributors. This segment represents a significant portion of Interface's overall revenue.
Luxury Vinyl Tile (LVT) and Resilient Flooring
Interface has broadened its offerings to include luxury vinyl tiles and other resilient flooring options. These products provide an alternative to carpet, often chosen for their durability and ease of cleaning in high-traffic areas like healthcare facilities and educational institutions. This segment caters to a growing demand for versatile and modern flooring solutions beyond traditional carpet.
Services and Installation Products
Beyond just selling flooring materials, Interface also offers related services and products. This includes things like carpet tile installation systems, adhesives, and maintenance products to help customers keep their floors looking good. They also provide project management services, assisting clients from the initial planning to the final installation, ensuring a comprehensive solution for their flooring needs.
What management is betting on now
Interface is focused on continuing its leadership in sustainable flooring solutions, aiming to reduce its environmental impact further. They are also investing in innovation to develop new flooring products that meet evolving customer needs for performance and aesthetics. A key strategy involves expanding their presence in global markets and strengthening their direct sales channels to better serve a diverse customer base.
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 Q4
$24.36M
FY2025 Q1
$4.27M
FY2025 Q2
$22.77M
FY2025 Q3
$66.07M
FY2025 Q4
$28.59M
FY2026 Q2
$3.21M
FY2026 Q3
$26.15M
Revenue
$395.70M
Net income
$51.41M
Diluted EPS
0.88
Operating cash flow
$38.35M
Free cash flow
$26.15M
Fetching…
Sources
Revenue
$331.04M
Net income
$23.61M
Diluted EPS
0.40
Operating cash flow
$13.54M
Free cash flow
$3.21M
Fetching…
Sources
Revenue
$349.39M
Net income
$24.39M
Diluted EPS
0.41
Operating cash flow
$49.31M
Free cash flow
$28.59M
Fetching…
Sources
Revenue
$364.53M
Net income
$46.15M
Diluted EPS
0.78
Operating cash flow
$76.73M
Free cash flow
$66.07M
Fetching…
Sources
Revenue
$375.52M
Net income
$32.56M
Diluted EPS
0.55
Operating cash flow
$30.13M
Free cash flow
$22.77M
Fetching…
Sources
Revenue
$297.41M
Net income
$13.00M
Diluted EPS
0.22
Operating cash flow
$11.74M
Free cash flow
$4.27M
Fetching…
Sources
Revenue
$335.01M
Net income
$21.77M
Diluted EPS
0.38
Operating cash flow
$38.04M
Free cash flow
$24.36M
Fetching…
Sources
Is it cheap or expensive?
Fair value $23.13 vs current price $36.42
Wall Street consensus is the average analyst price target: $45.25 (95.6% higher than our fair-value estimate).
Our most-likely fair value is $23.13 a share — about 36.5% below today's price of $36.42, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $208.9M. Interest coverage 8.4x.
Net debt
$208.87M
Interest coverage
8.39x
Interface, Inc.'s profit covers its interest bill about 8.4 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
TILE
BASELINE
Interface, Inc.
Total debt $290.40M Interest coverage 8.39x This is the baseline the peer rows are being compared against.
Total debt $2.36B Interest coverage 28.63x +241% vs TILE Carries about 3.4x more debt cushion than TILE.
Total debt $1.82B Interest coverage 3.01x -64% vs TILE Carries about 2.8x less debt cushion than TILE.
Total debt $1.64B Interest coverage 6.72x -20% vs TILE Carries about 1.2x less debt cushion than TILE.
Total debt $1.65B Interest coverage 3.29x -61% vs TILE Carries about 2.6x less debt cushion than TILE.
What you should know
The case for and against TILE
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.9% last year.
-
Returns 23.2% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (15.0x) is higher than trailing (14.7x) - earnings are expected to drop.
-
Insider ownership is only 2.2% (peer median: 3.5%).
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)
14.74x
Forward P/E
15.05x
P/B
3.10x
P/S
1.46x
EV/EBITDA
10.04x
PEG ratio
1.00x
Profitability
How much profit each dollar creates
Gross margin
40.5%
Operating margin
18.6%
Net margin
10.1%
ROE
23.2%
ROA
9.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.43x
Current ratio
2.53x
Quick ratio
1.18x
Total debt
$290.40M
Total cash
$81.53M
Growth
How the business has been compounding
Revenue TTM
$1.44B
Revenue 5Y CAGR
3.7%
EPS TTM
2.47
EPS 5Y CAGR
81.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$177.93M
Free CF TTM
$121.71M
FCF margin
8.4%
Dividend
Shareholder payout
Yield
0.3%
Payout ratio
4.0%
Last ex-div date
2026-09-04