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Floor & Decor Holdings (FND)
NYSE:FND
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Floor & Decor Holdings
(NYSE:FND)
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Rating:59Neutral
Price Target:
$69.00
▲(4.36% Upside)
The score is driven primarily by solid growth and improving leverage, tempered by recent margin compression and a sharp drop in free cash flow. Technicals add pressure with the stock trading below key moving averages, while valuation (P/E ~33 with no dividend) looks demanding given current profitability and cash-conversion headwinds. Earnings call guidance was prudent/neutral, with continued expansion plans but near-term comps and cost pressures.
Positive Factors
Sustained revenue growth and resilient gross margin
Multi-year top-line expansion and a modestly higher gross margin indicate durable demand and product/pricing economics. This combination supports scale advantages across purchasing, supplier terms and inventory turns, underpinning sustainable gross profit even amid nearer-term transactional softness.
Repeatable store expansion with lower new-store capex
A disciplined roll-out of warehouse-format stores at materially lower per-store capital costs increases incremental return on invested capital. Consistent store growth drives network density, supports distribution efficiency and expands Pro/customer reach over the medium term.
Strong liquidity and improving leverage
Large available liquidity plus an improving debt posture provides financial flexibility to fund continued store growth, DC investments and working capital needs. Better leverage reduces refinancing risk and supports strategic investments during cyclical demand swings.
Negative Factors
Sharp decline in free cash flow and weak cash conversion
Material FCF deterioration and poor conversion of earnings into cash limit internally generated funding for growth and elevate dependence on liquidity/credit. Persistent FCF volatility raises execution risk for expansion, dividends or buybacks and reduces margin of safety versus cyclical shocks.
Net margin compression and SG&A deleverage
Substantially lower net margins and SG&A deleverage indicate profit erosion from higher operating costs, distribution investments and ERP/one-time items. If structural, these pressures will reduce ROE, slow cash recovery and require sustained unit economics improvement to restore profitability.
Comparable-store sales and transaction declines
Weak comp trends and falling transactions point to softer end-market demand and smaller project sizes. Persistent traffic declines can impair store productivity, raise per-unit operating costs and increase reliance on promotional activity or elevated Pro penetration to sustain sales.
Floor & Decor Holdings (FND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.54B
Dividend YieldN/A
Average Volume (3M)2.48M
Price to Earnings (P/E)33.1
Beta (1Y)1.23
Revenue Growth6.04%
EPS Growth10.26%
CountryUS
Employees10,413
SectorConsumer Cyclical
Sector Strength84
IndustryHome Improvement
Share Statistics
EPS (TTM)0.36
Shares Outstanding107,756,130
10 Day Avg. Volume2,169,395
30 Day Avg. Volume2,478,990
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue2.00
Enterprise Value/Gross Profit4.72
Enterprise Value/Ebitda17.96
Forecast
1Y Price Target
$77.27Price Target Upside16.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Floor & Decor Holdings Business Overview & Revenue Model
Company DescriptionFloor & 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 MoneyFloor & Decor generates revenue primarily through the sale of hard surface flooring materials and related accessories. The company's key revenue streams include in-store sales, e-commerce sales, and installation services. In-store sales are bolstered by a large inventory that caters to both residential and commercial customers, while their online platform allows customers to browse and purchase products conveniently. Additionally, Floor & Decor offers installation services, which provide an additional revenue stream by leveraging partnerships with contractors and installers. The company's focus on providing value and a superior shopping experience, combined with a growing network of stores, contributes significantly to its earnings.
Floor & Decor Holdings Key Performance Indicators (KPIs)
Any
Comparable Store Sales Growth
Measures the sales performance of existing stores over a specific period, indicating the company's ability to grow sales without expanding its store base. A key indicator of consumer demand and operational effectiveness.
Measures the sales performance of existing stores over a specific period, indicating the company's ability to grow sales without expanding its store base. A key indicator of consumer demand and operational effectiveness.
Data provided by:
The Fly
The FlyFloor & Decor Holdings Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
Balanced/Neutral: The company delivered modest earnings growth, full-year revenue growth (+5.1%), gross margin expansion, record customer satisfaction and continued strategic investments (store expansion, Pro initiatives, Spartan growth, improved liquidity). However, meaningful comparable-store sales weakness, transaction declines, weather-related disruption, distribution center and tariff headwinds, SG&A deleverage and a pullback in operating cash flow temper the near-term outlook. Management provided prudent FY26 guidance that anticipates these headwinds while retaining flexibility to manage costs and invest in strategic priorities.Q4-2025 Updates
Positive Updates
Earnings Per Share In Line and FY EPS Growth
Q4 diluted EPS of $0.36 was in line with guidance midpoint; full fiscal year diluted EPS of $1.92 vs $1.90 prior year (prior year included a $0.05 benefit). Fiscal 2026 EPS guidance is $1.98 to $2.18.
Full-Year Revenue and Gross Margin Expansion
Fiscal 2025 sales grew 5.1% to $4.684 billion; full-year gross profit increased $115.7 million or 6.0% and gross margin improved ~30 basis points to 43.6% year-over-year.
Store Footprint Expansion and Lower New-Store CapEx
Opened 20 new warehouse-format stores in FY25 (8 in Q4), ending the year with 270 stores, an 8% increase from 251. Plan to open 20 stores in FY26. New-store capital spend per store for the 2026 class expected at $7M–$8M versus $10.2M for the 2025 class, reflecting ~11% lower construction costs versus earlier cohorts.
Commercial and Pro Momentum; Connected Customers
Pro customers represented ~50% of total sales (Q4 Pro sales grew slightly and +9% for the full year). Spartan Surfaces sales rose ~13% to $243 million. Connected customer sales increased ~2% and accounted for ~18.5% of total sales, with connected average ticket growing.
Operational Improvements and Customer Satisfaction
Company achieved record Net Promoter Scores in 2025, diversified sourcing (China receipts down to 3% from 12.5% prior year), and invested in distribution center capacity (Seattle and Baltimore) to support future growth and network responsiveness.
Strong Liquidity and Reduced CapEx
Year-end unrestricted liquidity of $909.8 million (cash $249.3M + $660.5M available ABL). Fiscal 2025 capital expenditures were $300.4M, down from $376.3M in 2024, and inventory remained stable at $1.1B.
Negative Updates
Comparable Store Sales Weakness
Q4 comparable store sales declined 4.8% and full-year comps declined 1.8% (at the low end of guidance). Monthly Q4 comps were -1.5% (Oct), -6.1% (Nov) and -6.7% (Dec).
Early FY26 Disruption from Severe Weather and Q1 Pressure
January comps improved (+0.4%), but severe winter storms in February affected ~55% of stores and the Baltimore DC, creating ~200–300 basis points of quarter-to-date pressure (estimated $12M–$18M) and contributing to a fiscal 2026 Q1-to-date comp decline of ~3.5%.
Transaction Declines and Category Pressure
Q4 transactions declined 4.2% and average ticket declined 0.6%; full-year transactions declined 3.5% (avg ticket +1.8%). Vinyl/laminate faced particular sensitivity as demand shifts to lower-specification, lower-price items and smaller project sizes pressured transactional activity.
Near-Term Gross Margin Headwinds from Distribution Investments and Tariffs
Distribution center expansion created gross margin pressure (~90 basis points in Q4 and ~70 basis points for the full year). Modest tariff-related cost increases are expected to impact margin in early 2026, prompting planned modest retail pricing actions.
SG&A Deleverage and One-Time Costs
Q4 SG&A increased 4.0% to $439.2M and SG&A as a percentage of sales deleveraged to 38.9% (≈+80 bps); full-year SG&A rose 6.1% to $1.7738B and SG&A % of sales deleveraged to 37.8% (≈+30 bps). SG&A included ERP expenses (~$9M for FY25).
Operating Cash Flow Decline and Higher Tax Rate
Net cash provided by operating activities declined to $381.8M in 2025 from $603.2M in 2024, primarily due to timing of trade accounts payable and inventory receipts. Effective tax rate increased to 21.8% for FY25 (from 18.8%), adversely impacting EPS by ~$0.08.
Company Guidance
Floor & Decor’s fiscal 2026 guidance targets sales of $4.88–$5.03 billion (up ~4%–7% YoY, including a ~53rd‑week contribution of ~$65M), comps down 2% to up 1% (comp average ticket +low single digits; comp transactions down mid‑single digits to low single digits), gross margin ~43.5%–43.8%, SG&A ~37.7%–37.8% of sales (Q1 and Q4 most pressured), adjusted EBITDA $560–$590M (53rd week ~$11M), diluted EPS $1.98–$2.18 (53rd week ~$0.08) on ~109M diluted shares, net interest expense ~ $5M, tax rate ~21.5%–22.0%, depreciation & amortization ~ $245M, and planned CapEx $250–$300M (including $160–$190M for ~20 new warehouse-format stores at ~$7–$8M new‑store CapEx, ~$60–$70M for existing stores/DCs and ~$30–$40M for IT/e‑commerce); management expects second‑half comps to be stronger with Q3 as the year’s high point.Floor & Decor Holdings Financial Statement Overview
Summary
Strong multi-year revenue growth and resilient/improving gross margin support the score, and leverage has improved. Offsetting this, net margin has compressed materially and FY2025 free cash flow fell sharply with weak cash conversion versus net income, raising near-term earnings quality risk.Income Statement
Revenue has expanded strongly over the period (from ~$2.43B in 2020 to ~$4.68B in 2025), including a notable acceleration in 2025. Gross margin has held up well and improved versus earlier years, signaling resilient pricing and product economics. However, profitability has compressed: net margin has trended down from ~8.0% (2020) to ~4.5% (2025), and operating profitability also appears lower versus 2021–2023 levels, indicating higher cost pressure and/or investment spending. Overall: strong top-line trajectory, but weaker earnings quality and margin durability in the most recent year.71
Positive
Balance Sheet
Leverage is moderate and improving: debt relative to equity has stepped down from above 1.0x in 2020–2022 to ~0.75x in 2025, supported by steady equity growth. Return on equity remains positive but has declined meaningfully (from ~18–21% in 2020–2022 to ~8.7% in 2025), consistent with the margin pressure seen in the income statement. Total assets increased overall, though they declined in 2025 versus 2024, suggesting some balance sheet tightening. Overall: healthier leverage trend, but reduced shareholder returns are a key watch item.66
Positive
Cash Flow
Cash generation has been volatile. Operating cash flow is positive in each year shown but declined in 2025 versus 2024, and free cash flow fell sharply to ~$64M in 2025 (down from ~$156M in 2024 and ~$256M in 2023). Free cash flow covers only a small portion of net income in 2025 (~17%), pointing to weaker cash conversion. The company has improved materially from the negative free-cash-flow period in 2021–2022, but the latest year still reflects pressure from working capital and/or higher investment needs. Overall: improving versus the trough, but not yet consistently strong or predictable.54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.66B | 4.68B | 4.46B | 4.41B | 4.26B | 3.43B |
| Gross Profit | 1.97B | 2.04B | 1.93B | 1.86B | 1.73B | 1.42B |
| EBITDA | 518.97M | 270.07M | 488.65M | 523.30M | 551.78M | 457.19M |
| Net Income | 216.80M | 208.65M | 205.87M | 245.98M | 298.19M | 283.23M |
Balance Sheet | ||||||
| Total Assets | 5.52B | 3.94B | 5.05B | 4.66B | 4.35B | 3.73B |
| Cash, Cash Equivalents and Short-Term Investments | 204.48M | 249.30M | 187.67M | 34.38M | 9.79M | 139.44M |
| Total Debt | 1.99B | 1.80B | 1.69B | 1.63B | 1.74B | 1.42B |
| Total Liabilities | 3.16B | 1.91B | 2.88B | 2.73B | 2.69B | 2.41B |
| Stockholders Equity | 2.36B | 2.41B | 2.17B | 1.93B | 1.66B | 1.32B |
Cash Flow | ||||||
| Free Cash Flow | 22.85M | 64.07M | 156.33M | 255.98M | -344.15M | -106.33M |
| Operating Cash Flow | 359.15M | 381.84M | 603.15M | 803.59M | 112.45M | 301.34M |
| Investing Cash Flow | -336.31M | -317.76M | -446.83M | -564.97M | -455.64M | -471.24M |
| Financing Cash Flow | 863.00K | -2.44M | -3.04M | -214.03M | 213.54M | 1.57M |
Floor & Decor Holdings Technical Analysis
Negative
66.12
Price Trends
67.32
Negative
66.86
Negative
73.20
Negative
Market Momentum
-0.03
Positive
43.83
Neutral
38.02
Neutral
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 66.12 is below the 20-day moving average (MA) of 69.44, below the 50-day MA of 67.32, and below the 200-day MA of 73.20, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.83 is Neutral, neither overbought nor oversold. The STOCH value of 38.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FND.
Floor & Decor Holdings Risk Analysis
Floor & Decor Holdings disclosed 34 risk factors in its most recent earnings report. Floor & Decor Holdings reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Floor & Decor Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.28B | 17.03 | 20.38% | ― | 7.36% | -6.85% | |
73 Outperform | $421.52M | 22.18 | 6.32% | 5.44% | -1.05% | -24.24% | |
69 Neutral | $158.26B | 23.39 | ― | 1.94% | 0.64% | 0.58% | |
62 Neutral | $421.52M | 22.67 | 6.32% | 5.36% | -1.05% | -24.24% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $7.54B | 33.06 | 9.69% | ― | 6.04% | 10.26% | |
42 Neutral | $158.29M | -95.03 | -1.37% | ― | -3.77% | -146.47% |
* Consumer Cyclical Sector Average
FND
Floor & Decor Holdings
66.12
-26.72
-28.78%
HVT.A
Haverty Furn Cl A SC
26.67
6.37
31.37%
HVT
Haverty
25.94
5.53
27.09%
LOW
Lowe's
278.18
36.63
15.16%
TTSH
Tile Shop
3.63
-3.94
-52.05%
ARHS
Arhaus
8.87
-3.31
-27.18%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.