Floor & Decor Holdings (FND) AI Stock Analysis

• Market Cap: $8.82B
• Dividend Yield: N/A
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 42.0
• Beta (1Y): 1.27
• Revenue Growth: 4.88%
• EPS Growth: 0.05%
• Country: US
• Employees: 10,413
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Home Improvement
• EPS (TTM): 0.58
• Shares Outstanding: 107,691,475
• 10 Day Avg. Volume: 2,315,263
• 30 Day Avg. Volume: 2,109,249
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 5.08
• Enterprise Value/Ebitda: 20.08
• 1Y Price Target: $87.62
• Price Target Upside: 6.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 72 Outperform
• Price Target: $98.00 ▲(19.63% Upside)

Floor & Decor Holdings demonstrates strong technical momentum and solid financial performance, though it faces valuation concerns due to a high P/E ratio. The earnings call provided a balanced outlook with growth in key areas, but challenges like tariffs and housing market pressures remain. The company's strategic expansion and operational efficiency are positive, but improving profitability and managing debt are essential for future stability.

Positive Factors

Market Position

FND's share of the total flooring market reached an all-time high of 16.7%, marking the fastest acceleration since 4Q22.

Strategic Growth Initiatives

The company is focusing on accelerating growth in the commercial sector, with potential mergers and acquisitions to expand its Spartan Surfaces business.

Negative Factors

Digital Platform Challenges

Digital enhancements are needed to improve the online experience to match the quality consumers receive in stores, indicating current digital platforms require significant investment.

Earnings Forecast

The company lowered its earnings forecast for 2025 due to a flat comp forecast and fewer new store openings.

Revenue Projections

There is downside risk to future estimates, with lower revenue and store growth projections impacting financial expectations.

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 efficient operations, but faces challenges with declining net income margins, reliance on debt, and inconsistent free cash flow growth. Improving profitability and managing debt levels are crucial for enhancing financial stability.

Income Statement

Floor & Decor Holdings shows strong revenue growth with a notable increase from 2020 to 2025 in TTM. The gross profit margin is healthy, signifying good cost management. However, the net profit margin has slightly decreased due to a drop in net income, pointing to potential cost or operational challenges. The EBIT and EBITDA margins reflect solid operational efficiency, although they have declined from previous years.

Balance Sheet

The company maintains a healthy equity ratio indicating a strong asset base backed by equity. The debt-to-equity ratio is moderately high, suggesting reliance on debt financing which poses some risk. Return on Equity has decreased over the years, reflecting a decline in profitability relative to shareholder investments.

Cash Flow

Floor & Decor exhibits fluctuating free cash flow, with a positive growth rate from 2024 to TTM 2025, but previous years showed inconsistencies. The operating cash flow to net income ratio indicates strong cash generation from operations, yet the free cash flow to net income ratio suggests challenges in converting earnings to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.52B	4.46B	4.41B	4.26B	3.43B	2.43B
Gross Profit	1.97B	1.93B	1.86B	1.73B	1.42B	1.03B
EBITDA	497.11M	488.65M	523.30M	551.78M	457.19M	306.22M
Net Income	204.72M	205.87M	245.98M	298.19M	283.23M	194.98M
Balance Sheet
Total Assets	5.37B	5.05B	4.66B	4.35B	3.73B	2.88B
Cash, Cash Equivalents and Short-Term Investments	186.93M	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	3.15B	2.88B	2.73B	2.69B	2.41B	1.88B
Stockholders Equity	2.22B	2.17B	1.93B	1.66B	1.32B	997.39M
Cash Flow
Free Cash Flow	124.94M	156.33M	255.98M	-344.15M	-106.33M	193.72M
Operating Cash Flow	526.81M	603.15M	803.59M	112.45M	301.34M	406.16M
Investing Cash Flow	-401.87M	-446.83M	-564.97M	-455.64M	-471.24M	-212.45M
Financing Cash Flow	4.56M	-3.04M	-214.03M	213.54M	1.57M	87.02M

Floor & Decor Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 81.92
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 81.92 is below the 20-day moving average (MA) of 82.25, above the 50-day MA of 80.62, and below the 200-day MA of 87.36, indicating a bearish trend. The MACD of 0.51 indicates Positive momentum. The RSI at 45.41 is Neutral, neither overbought nor oversold. The STOCH value of 24.65 is Neutral, 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
HVT.A	75 Outperform	$366.90M	19.23	6.40%	5.52%	-8.93%	-50.32%
ARHS	75 Outperform	$1.65B	23.23	20.48%	―	4.76%	-19.79%
FND	72 Outperform	$8.82B	42.03	9.73%	―	4.88%	0.05%
HVT	71 Outperform	$366.90M	19.17	6.40%	5.68%	-8.93%	-50.32%
LOW	69 Neutral	$144.73B	21.20	-51.07%	1.80%	-0.49%	0.83%
Sector *	61 Neutral	$17.67B	14.34	-5.25%	3.04%	1.27%	-14.70%
TTSH	48 Neutral	$277.97M	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.