One-glance verdict
Overvalued
$9.00 our estimate vs market $45.65
Wall Street consensus: $58.36 (548.3% higher than our fair-value estimate)
407% above our estimate, beyond the bull case
Fundamentals snapshot
Floor & Decor Holdings, Inc.
FND · NYQ · Consumer Cyclical · Home Improvement Retail
Current price
$45.65
52-week range
$42.64 - $77.46
Market cap
$4.86B
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 operates large, warehouse-style stores selling a wide variety of hard-surface flooring like tile and wood, plus all the materials needed for installation. It makes money by selling to both professional contractors and regular do-it-yourself homeowners. This is important because having these two different customer groups can help the company stay busy whether the economy is driving big professional construction projects or smaller personal home updates.
How the company got here
Floor & Decor was founded in 2000 by George West, whose family had a background in the building materials industry. The company's big idea was to create large, warehouse-style stores specializing in hard-surface flooring like tile, wood, and stone. This was different from big-box home improvement stores where flooring is just one of many departments. After a period of significant growth, the company went public with an initial public offering (IPO), which is when a private company first sells shares of stock to the public, in 2017.
What it actually does
Floor & Decor is a specialty retailer focused on hard-surface flooring and the accessories needed for installation. Think of them as a giant warehouse full of options like tile, wood, laminate, and natural stone flooring. They sell to both individual homeowners doing their own projects (DIY customers) and professional installers or contractors. The company aims to offer a wider selection of in-stock flooring than its competitors at low prices, which it achieves by sourcing products directly from manufacturers worldwide.
Retail Sales
This is the company's main business, making money by selling flooring and installation products directly to customers through its large warehouse stores and website. This segment serves two key customer groups: homeowners working on their own renovation projects and professional contractors who buy materials for their clients' jobs. Sales to these 'Pro' customers are a major focus and make up about half of the company's revenue. The company operates hundreds of warehouse-format stores across the United States.
Commercial Sales (Spartan)
Beyond its retail stores, Floor & Decor also sells flooring products to commercial businesses. This part of the business, known as Spartan, caters to larger projects for commercial spaces rather than individual homes. The customers here are developers, general contractors, and commercial flooring installers who are making purchasing decisions for bigger construction or renovation jobs. This is a way for the company to tap into a larger market beyond residential home improvement.
What management is betting on now
The company's main strategy for growth is to continue opening new warehouse stores across the country, with a long-term goal of operating around 500 locations. Management is also heavily focused on increasing its business with professional contractors, seeing them as a source of steady, repeat business. Another key priority is improving the company's supply chain (the process of getting products from the manufacturer to the store) to keep costs low and products in stock. They are also investing in their website and online tools to create a better shopping experience for both DIY customers and professionals.
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 $45.65
Wall Street consensus is the average analyst price target: $58.36 (548.3% higher than our fair-value estimate).
Our most-likely fair value is $9.00 a share — about 80.3% below today's price of $45.65, 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)
21.33x
Forward P/E
20.71x
P/B
1.95x
P/S
1.03x
EV/EBITDA
13.45x
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
—
Payout ratio
0.0%
Last ex-div date
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