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Floor & Decor Holdings (FND)
NYSE:FND
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Floor & Decor Holdings
(NYSE:FND)
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Select Model
Rating:68Neutral
Price Target:
$90.00
▲(16.96% Upside)
Floor & Decor Holdings shows a solid financial position with strong revenue growth and strategic expansion. However, the stock faces valuation concerns and technical indicators suggest potential bearish momentum. The earnings call provided a balanced outlook with growth opportunities, but also highlighted significant challenges such as tariffs and market pressures.
Positive Factors
Revenue Growth
The company's ability to achieve a 7.1% increase in sales reflects strong market demand and effective sales strategies, supporting long-term revenue growth.
New Store Expansion
Expanding the store network enhances market presence and accessibility, which can drive future sales growth and strengthen competitive positioning.
Gross Margin Improvement
Improved gross margins indicate better cost management and pricing power, contributing to sustained profitability and financial health.
Negative Factors
Tariff Challenges
Ongoing tariff challenges can increase costs and pressure margins, requiring strategic adjustments to maintain profitability.
Decline in Comparable Transactions
A decline in comparable transactions suggests potential demand issues, which could impact revenue growth if not addressed.
Existing Home Sales Impact
Falling existing home sales can reduce demand for home improvement products, affecting sales and growth prospects in the near term.
Floor & Decor Holdings (FND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.56B
Dividend YieldN/A
Average Volume (3M)2.21M
Price to Earnings (P/E)40.8
Beta (1Y)1.24
Revenue Growth4.88%
EPS Growth0.05%
CountryUS
Employees10,413
SectorConsumer Cyclical
Sector Strength84
IndustryHome Improvement
Share Statistics
EPS (TTM)0.58
Shares Outstanding107,691,475
10 Day Avg. Volume1,825,373
30 Day Avg. Volume2,214,413
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue2.21
Enterprise Value/Gross Profit5.08
Enterprise Value/Ebitda20.08
Forecast
1Y Price Target
$85.92Price Target Upside11.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
Floor & Decor Holdings Business Overview & Revenue Model
Company DescriptionFloor & Decor Holdings, Inc. is a leading specialty retailer of hard surface flooring and related accessories in the United States. The company operates a chain of retail stores that offer a wide selection of flooring products, including ceramic tile, natural stone, wood, laminate, and vinyl flooring, as well as various installation products and tools. Floor & Decor serves both professional contractors and DIY customers, providing a comprehensive shopping experience through its extensive inventory and expert advice.
How the Company Makes MoneyFloor & 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 Key Performance Indicators (KPIs)
Any
Comparable Average Ticket
Tracks the average transaction value in comparable stores, providing insights into customer spending habits and the effectiveness of upselling strategies.
Tracks the average transaction value in comparable stores, providing insights into customer spending habits and the effectiveness of upselling strategies.
Data provided by:
Main Street Data
Main Street DataFloor & Decor Holdings Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced outlook with several positive aspects such as earnings and sales growth, new store openings, and strong pro sales performance. However, challenges from tariffs, transaction declines, and impacts from existing home sales posed significant concerns.Q2-2025 Updates
Positive Updates
Earnings Per Share Increase
Diluted earnings per share increased by 11.5% to $0.58, reaching the high end of expectations.
Sales and Comparable Store Sales Growth
Sales rose by 7.1% to $1.214 billion. Comparable store sales increased by 0.4%, marking the first quarterly increase since Q4 of fiscal 2022.
New Store Openings
Opened 3 new warehouse format stores, with a total of 7 new stores year-to-date, ending Q2 with 257 locations, up approximately 12% from 230 stores last year.
Pro Sales Performance
Total and comparable store sales to pros accounted for approximately 50% of sales, showing strong performance with increases in both transactions and average ticket size.
Spartan Surfaces Success
Spartan Surfaces delivered stronger-than-expected sales with sales rising approximately 7% year-over-year.
Gross Margin Improvement
Gross profit rose by 8.5%, with a 60 basis points improvement in the gross margin rate to 43.9%.
Design Services Growth
Design services delivered strong sequential and year-over-year sales growth, highlighting its strategic importance.
Negative Updates
Challenges from Tariffs
Continued challenges in mitigating the impact of tariffs on products, requiring ongoing negotiations and strategies.
Decline in Comparable Transactions
Second quarter comparable transactions declined 3.3%, with comparable average ticket increasing by 3.8%.
Q3 Sales Decline
Fiscal 2025 third quarter-to-date comparable store sales have declined by 1%.
Pressure from Distribution Centers
The gross margin rate is expected to be adversely impacted by approximately 60 to 70 basis points from the new distribution centers.
Existing Home Sales Impact
Existing home sales fell 2.7% in June, marking the lowest level in 9 months, impacting consumer behavior and housing activity.
Company Guidance
During the Floor & Decor Holdings second quarter 2025 conference call, several key metrics were highlighted, reflecting the company's performance and guidance. The diluted earnings per share increased by 11.5% to $0.58, while sales rose by 7.1% to $1.214 billion. Comparable store sales saw a 0.4% increase, marking the first quarterly improvement since Q4 2022. The company expanded by opening 3 new warehouse format stores, bringing the total to 257 locations, and aims to open 20 new stores in fiscal 2025. Gross margin rate improved to 43.9%, attributed mainly to lower supply chain costs. For the remainder of fiscal 2025, total sales are expected to range between $4.660 billion to $4.750 billion, with comparable store sales projected to be down 2% to flat. The company continues to navigate the impact of tariffs, relying on strategic sourcing and pricing adjustments.Floor & Decor Holdings Financial Statement Overview
Summary
Floor & Decor Holdings shows strong revenue growth and efficient operations, but faces challenges such as declining net income margins, reliance on debt, and inconsistent free cash flow growth. The company should focus on improving profitability and managing debt levels to enhance 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.75
Positive
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.70
Positive
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.68
Positive
| 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
Negative
76.95
Price Trends
82.39
Negative
79.53
Negative
85.42
Negative
Market Momentum
-0.50
Positive
38.07
Neutral
3.50
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 76.95 is below the 20-day moving average (MA) of 84.45, below the 50-day MA of 82.39, and below the 200-day MA of 85.42, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 38.07 is Neutral, neither overbought nor oversold. The STOCH value of 3.50 is Positive, 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | 369.67M | 20.53 | 6.43% | 5.17% | -8.93% | -50.32% | |
71 Outperform | 369.67M | 19.22 | 6.43% | 5.74% | -8.93% | -50.32% | |
71 Outperform | 1.51B | 21.33 | 19.94% | ― | 4.76% | -19.79% | |
69 Neutral | 144.32B | 21.14 | -60.16% | 1.82% | -0.49% | 0.83% | |
68 Neutral | $8.56B | 40.78 | 9.73% | ― | 4.88% | 0.05% | |
49 Neutral | 299.01M | -10,916.67 | -0.02% | ― | -5.41% | -100.49% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
FND
Floor & Decor Holdings
76.95
-45.82
-37.32%
HVT.A
Haverty Furn Cl A SC
24.15
-1.39
-5.44%
HVT
Haverty
22.29
-3.41
-13.27%
LOW
Lowe's
255.53
-6.54
-2.50%
TTSH
Tile Shop
6.55
-0.06
-0.91%
ARHS
Arhaus
10.77
-1.96
-15.40%
Floor & Decor Holdings Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Floor & Decor Holdings Approves Key Governance Amendments
Neutral
May 12, 2025
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.
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.