Floor & Decor Holdings (FND) AI Stock Analysis

• Market Cap: $7.20B
• Dividend Yield: N/A
• Average Volume (3M): 2.19M
• Price to Earnings (P/E): 34.3
• Beta (1Y): 1.28
• Revenue Growth: 4.88%
• EPS Growth: 0.05%
• Country: US
• Employees: 10,413
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 0.58
• Shares Outstanding: 107,691,475
• 10 Day Avg. Volume: 2,508,310
• 30 Day Avg. Volume: 2,190,569
• PEG Ratio: -3.11
• Price to Book (P/B): 4.99
• Price to Sales (P/S): 2.43
• P/FCF Ratio: 69.23
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 2.17
• Enterprise Value/Gross Profit: 4.97
• Enterprise Value/Ebitda: 19.60
• 1Y Price Target: $84.53
• Price Target Upside: 26.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 56 Neutral
• Price Target: $76.00 ▲(13.72% Upside)

Floor & Decor Holdings' stock score is primarily influenced by its strong financial performance, despite concerns over cash flow generation. The technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold conditions. The high P/E ratio suggests the stock is overvalued, limiting upside potential. The earnings call provided a balanced outlook, but challenges remain.

Positive Factors

Revenue Growth

The 7.1% increase in sales indicates strong demand and effective market strategies, supporting long-term revenue growth and market presence.

Store Expansion

Expanding store count enhances market penetration and accessibility, driving future sales growth and strengthening competitive positioning.

Gross Margin Improvement

Improved gross margins reflect effective cost management and pricing strategies, contributing to sustainable profitability and financial health.

Negative Factors

Cash Flow Concerns

Declining free cash flow growth indicates challenges in cash generation, potentially limiting investment capacity and financial flexibility.

Tariff Challenges

Ongoing tariff issues could increase costs and pressure margins, necessitating strategic adjustments to maintain profitability.

Existing Home Sales Impact

Decline in existing home sales may reduce demand for flooring products, impacting sales growth and market dynamics in the home improvement sector.

Floor & Decor Holdings Business Overview & Revenue Model

Company Description

Floor & Decor Holdings, Inc. operates as a multi-channel specialty retailer and commercial flooring distributor of hard surface flooring and related accessories. The company's stores offer tile, wood, laminate, vinyl, and natural stone flooring products, as well as decorative and installation accessories. It serves professional installers, commercial businesses, and do it yourself customers. As of May 5, 2022, the company operated 166 warehouse-format stores and five design studios in 34 states. It also sells products through its Website, FloorandDecor.com. The company was formerly known as FDO Holdings, Inc. and changed its name to Floor & Decor Holdings, Inc. in April 2017. Floor & Decor Holdings, Inc. was founded in 2000 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Floor & Decor generates revenue primarily through the sale of hard surface flooring products and related accessories. The company's key revenue streams include direct sales from its retail stores, e-commerce sales through its online platform, and sales to professional contractors and builders. Additionally, Floor & Decor benefits from partnerships with various suppliers and manufacturers that allow it to offer a diverse range of products at competitive prices. The company's focus on providing a superior customer experience and maintaining a vast inventory of in-demand products contributes significantly to its earnings.

Floor & Decor Holdings Financial Statement Overview

Summary

Floor & Decor Holdings shows strong revenue growth and stable gross margins, indicating effective cost management. The balance sheet reflects improved leverage ratios, but cash flow generation is a concern with significant declines in free cash flow growth. Overall, the company is financially stable but needs to enhance cash flow efficiency.

Income Statement

Floor & Decor Holdings has demonstrated consistent revenue growth, albeit at a slowing rate, with a TTM revenue growth of 1.79%. The gross profit margin has remained stable around 43-44%, indicating strong pricing power and cost management. However, the net profit margin has slightly decreased to 4.59% in the TTM, reflecting some pressure on profitability. Overall, the company shows solid revenue growth and stable margins, but there is room for improvement in net profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.85 in the TTM, indicating a better balance between debt and equity financing. Return on equity is stable at around 9.6%, showing consistent returns for shareholders. The equity ratio stands at approximately 42.4%, suggesting a healthy capital structure. While the company has managed its leverage well, the return on equity could be enhanced further.

Cash Flow

Operating cash flow has decreased in the TTM, with a significant drop in free cash flow growth (-72.06%). The operating cash flow to net income ratio is at 0.43, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.24, highlighting challenges in converting earnings into free cash flow. The company needs to focus on improving cash flow generation to support future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.60B	4.46B	4.41B	4.26B	3.43B	2.43B
Gross Profit	2.01B	1.93B	1.86B	1.73B	1.42B	1.03B
EBITDA	509.28M	488.65M	523.30M	551.78M	457.19M	306.22M
Net Income	211.23M	205.87M	245.98M	298.19M	283.23M	194.98M
Balance Sheet
Total Assets	5.41B	5.05B	4.66B	4.35B	3.73B	2.88B
Cash, Cash Equivalents and Short-Term Investments	176.88M	187.67M	34.38M	9.79M	139.44M	307.77M
Total Debt	1.95B	1.69B	1.63B	1.74B	1.42B	1.24B
Total Liabilities	3.12B	2.88B	2.73B	2.69B	2.41B	1.88B
Stockholders Equity	2.29B	2.17B	1.93B	1.66B	1.32B	997.39M
Cash Flow
Free Cash Flow	34.91M	156.33M	255.98M	-344.15M	-106.33M	193.72M
Operating Cash Flow	416.95M	603.15M	803.59M	112.45M	301.34M	406.16M
Investing Cash Flow	-382.04M	-446.83M	-564.97M	-455.64M	-471.24M	-212.45M
Financing Cash Flow	3.90M	-3.04M	-214.03M	213.54M	1.57M	87.02M

Floor & Decor Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 66.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FND, the sentiment is Negative. The current price of 66.83 is below the 20-day moving average (MA) of 77.59, below the 50-day MA of 80.88, and below the 200-day MA of 83.46, indicating a bearish trend. The MACD of -3.90 indicates Positive momentum. The RSI at 24.90 is Positive, neither overbought nor oversold. The STOCH value of 4.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FND.

Floor & Decor Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARHS	70 Outperform	$1.35B	19.03	20.48%	―	4.76%	-19.79%
HVT	66 Neutral	$326.16M	16.99	6.40%	6.40%	-8.93%	-50.32%
HVT.A	63 Neutral	$326.16M	17.68	6.40%	6.00%	-8.93%	-50.32%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LOW	60 Neutral	$130.23B	19.08	-51.07%	2.00%	-0.49%	0.83%
FND	56 Neutral	$7.20B	34.29	9.73%	―	4.88%	0.05%
TTSH	47 Neutral	$269.02M	346.20	-0.02%	―	-5.41%	-100.49%

Floor & Decor Holdings Corporate Events

Floor & Decor Holdings Approves Key Governance Amendments

On May 7, 2025, Floor & Decor Holdings, Inc. held its Annual Meeting of Stockholders, where amendments to the company’s Certificate of Incorporation were approved. These amendments included eliminating outdated classified board provisions, allowing for officer exculpation under Delaware law, and enabling stockholders with at least 25% ownership to call special meetings. The subsequent filing of a Restated Certificate of Incorporation on May 8, 2025, incorporated these changes. Additionally, the Board adopted new bylaws to facilitate these amendments, specifying procedures for special meeting requests and conditions under which such requests may be invalidated. The meeting also included the election of directors and approval of other corporate governance matters.

The most recent analyst rating on (FND) stock is a Hold with a $95.00 price target. To see the full list of analyst forecasts on Floor & Decor Holdings stock, see the FND Stock Forecast page.