Interface (TILE) AI Stock Analysis

• Market Cap: $1.13B
• Dividend Yield: 0.21%
• Average Volume (3M): 541.97K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 1.15
• Revenue Growth: 4.29%
• EPS Growth: 95.04%
• Country: US
• Employees: 3,636
• Sector: Industrials
• Sector Strength: 79
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 1.47
• Shares Outstanding: 58,607,970
• 10 Day Avg. Volume: 451,962
• 30 Day Avg. Volume: 541,968
• PEG Ratio: 0.14
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.67
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $30.00
• Price Target Upside: 56.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Interface, Inc. demonstrates a stable financial position with strong profitability and operational efficiency. The earnings call highlighted growth in key segments and strategic initiatives, supporting a positive outlook. However, mixed technical indicators and a low dividend yield slightly temper expectations. Overall, Interface maintains a solid standing in its industry with potential for growth.

Positive Factors

Financial Performance

Interface, Inc. reported the financial results of its first quarter that topped expectations, provided strong second quarter guidance and raised revenue guidance for the full year.

Market Segment Growth

The education market segment remains a standout, with global billings up 18% year-over-year, led by strength in the Americas.

Valuation

Interface’s stock is trading at a discount to its peer group, with more than 50% upside from current levels.

Negative Factors

Currency Impact

Revenue was below expectations, due primarily to adverse FX.

Revenue Expectations

Revenue was below expectations due primarily to adverse FX.

Interface Business Overview & Revenue Model

Company Description

Interface, Inc., a modular flooring company, designs, produces, and sells modular carpet products primarily in the Americas, Europe, and the Asia-Pacific. The company offers modular carpets under the Interface and FLOR brand names; carpet tiles under the GlasBacRE name for use in commercial interiors, including offices, healthcare facilities, airports, educational and other institutions, hospitality spaces, and retail facilities, as well as residential interiors; modular resilient flooring products; rubber flooring under the norament and noraplan brand names; and luxury vinyl tile products. It also produces and sells an adapted version of its carpet tile for the healthcare facilities market; and two-meter roll goods that are structure-backed for use in education, healthcare, and government markets, as well as carpet replacement, installation, and maintenance services. In addition, the company sells and licenses a proprietary antimicrobial chemical compound under the Intersept name for use in interior finishes; sells TacTiles, a carpet tile installation system, as well as various adhesives and products; and provides turnkey project management services for global accounts and other customers through its InterfaceSERVICES business. It sells its products directly to end-users, as well as indirectly through independent contractors or distributors, and FLOR line of products through Internet sales and commercial sales force. The company has product showrooms or design studios in the United States, Canada, Mexico, England, France, Germany, Spain, the Netherlands, India, Australia, Norway, the United Arab Emirates, Russia, Singapore, Hong Kong, Thailand, China, and others. Interface, Inc. was incorporated in 1973 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Interface, Inc. generates revenue through the sale of its modular carpet tiles and other flooring solutions. The company's revenue streams are primarily driven by direct sales to commercial clients, as well as through partnerships with architects, designers, and flooring contractors. Interface also invests in research and development to produce innovative and sustainable products, which helps maintain its competitive edge and appeal to environmentally conscious customers. Significant factors contributing to earnings include its strong brand reputation, global distribution network, and focus on sustainable practices, which align with the increasing demand for eco-friendly products in the commercial interiors market.

Interface Financial Statement Overview

Summary

Interface's financial performance demonstrates strong gross profit margins, balanced leverage, and solid cash flow generation. While revenue growth is moderate, the company maintains profitability and operational efficiency, indicating a stable and resilient financial position.

Income Statement

Interface's income statement reflects a strong gross profit margin of 36.5% for TTM, indicating effective cost management. The net profit margin stands at 6.5%, showcasing reasonable profitability. Revenue growth is modest at 0.58%, while EBIT and EBITDA margins show healthy operational efficiency at 10.1% and 11.6%, respectively. Continued improvement in net income over recent years highlights a positive trajectory.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 0.32, suggesting a balanced capital structure with manageable leverage. Return on equity is robust at 7.2%, reflecting efficient use of shareholder funds. The equity ratio is 100%, indicating strong equity financing. Overall, Interface maintains a stable financial position with potential for further strengthening.

Cash Flow

Interface exhibits solid cash generation capabilities, with a free cash flow growth rate of -3.77% due to slightly higher capital expenditures. The operating cash flow to net income ratio is healthy at 1.72, and the free cash flow to net income ratio is 1.29, underscoring strong cash flow relative to profits. Despite a minor decline in free cash flow, the company demonstrates sound cash management practices.

Breakdown
Dec 2024	Dec 2023	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
1.32B	1.26B	1.30B	1.20B	1.10B
	Gross Profit
482.95M	441.07M	437.73M	432.73M	410.57M
	EBIT
134.41M	104.52M	109.99M	104.80M	66.46M
	EBITDA
134.41M	140.41M	114.41M	149.43M	-6.09M
	Net Income Common Stockholders
86.95M	44.52M	19.56M	55.23M	-71.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
99.23M	110.50M	97.56M	97.25M	103.05M
	Total Assets
1.17B	1.23B	1.27B	1.33B	1.31B
	Total Debt
383.14M	515.45M	604.38M	610.55M	676.59M
	Net Debt
283.92M	404.95M	506.81M	513.30M	573.54M
	Total Liabilities
681.67M	804.15M	904.97M	966.66M	979.47M
	Stockholders Equity
489.15M	425.95M	361.54M	363.40M	326.54M
Cash Flow		Free Cash Flow
114.64M	115.93M	24.62M	58.62M	56.12M
	Operating Cash Flow
148.43M	142.03M	43.06M	86.69M	119.07M
	Investing Cash Flow
-30.37M	-19.51M	-18.44M	-28.07M	-61.69M
	Financing Cash Flow
-125.23M	-111.56M	-19.49M	-60.86M	-42.72M

Interface Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.23
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TILE, the sentiment is Positive. The current price of 19.23 is above the 20-day moving average (MA) of 18.63, above the 50-day MA of 19.18, and below the 200-day MA of 20.73, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 52.87 is Neutral, neither overbought nor oversold. The STOCH value of 71.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TILE.

Interface Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETD	73 Outperform	$748.91M	12.34	12.86%	5.30%	-11.10%	-23.77%
LZB	72 Outperform	$1.71B	14.16	12.40%	2.03%	1.81%	8.09%
TILE	72 Outperform	$1.13B	13.10	18.90%	0.21%	4.29%	95.04%
MBC	64 Neutral	$1.59B	12.97	10.12%	―	-0.95%	-30.42%
Sector *	64 Neutral	$4.28B	11.80	5.33%	250.46%	4.10%	-9.26%
LEG	54 Neutral	$1.29B	―	-50.33%	2.10%	-6.54%	-221.33%
MLKN	52 Neutral	$1.13B	39.37	2.28%	4.62%	-2.68%	-56.16%

Interface Corporate Events

Interface Reports Q1 2025 Results with Sales Growth

Interface, Inc. reported its first quarter 2025 results on May 2, 2025, showcasing a 2.6% year-over-year increase in net sales, reaching $297 million. The company’s ‘One Interface’ strategy continues to drive growth, with notable performance in the Americas and double-digit growth in the Healthcare and Education sectors. Despite a challenging macroeconomic environment, Interface’s strategic focus on product innovation and sustainability has helped maintain its market position and deliver long-term value to shareholders.

Spark’s Take on TILE Stock

According to Spark, TipRanks’ AI Analyst, TILE is a Neutral.

Interface demonstrates strong financial performance and positive earnings call sentiment, particularly in the Americas region. However, high leverage and bearish technical indicators present risks. The stock is reasonably valued, but the low dividend yield may not attract income-focused investors.

To see Spark’s full report on TILE stock, click here.

Interface to Present at Oppenheimer Conference

Interface, Inc. will present to investors at the Oppenheimer Industrial Growth Conference on May 6, 2025. The presentation will be webcast live and available for replay, providing stakeholders with insights into the company’s future operations and market strategies.

Spark’s Take on TILE Stock

According to Spark, TipRanks’ AI Analyst, TILE is a Neutral.

Interface’s solid financial performance and strategic initiatives are key strengths, reflected in strong revenue and cash flow growth. However, the stock faces challenges with high leverage and current technical weakness. Valuation is reasonable, supported by a high dividend yield. Earnings call insights are positive but tempered by regional challenges.

To see Spark’s full report on TILE stock, click here.

Interface Reports Strong Q4 2024 Financial Results

On February 25, 2025, Interface, Inc. reported its financial results for the fourth quarter and full fiscal year ending December 29, 2024. The company achieved a 4.3% increase in net sales year-over-year, reaching $1,316 million, and significantly improved its gross profit margin. The results reflect the success of the One Interface strategy, which has driven growth across all product categories, particularly in the Americas. Interface also made substantial progress in reducing debt and expanding its market share in key segments, despite a challenging macroeconomic environment.