Floor & Decor Holdings (FND) AI Stock Analysis

• Market Cap: $7.46B
• Dividend Yield: N/A
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): 35.0
• Beta (1Y): 1.23
• Revenue Growth: 6.04%
• EPS Growth: 10.26%
• Country: US
• Employees: 10,413
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): N/A
• Shares Outstanding: 107,756,130
• 10 Day Avg. Volume: 2,466,469
• 30 Day Avg. Volume: 2,569,990
• 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: 1.25
• Enterprise Value/Revenue: 2.00
• Enterprise Value/Gross Profit: 4.72
• Enterprise Value/Ebitda: 17.96
• 1Y Price Target: $79.00
• Price Target Upside: 12.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $74.00 ▲(5.79% Upside)

Floor & Decor Holdings' overall stock score reflects a mix of strengths and challenges. The company's solid revenue growth and strategic store expansion are significant positives. However, pressures on profitability, cash flow, and valuation concerns weigh on the score. The new CEO appointment is a positive development, but industry headwinds remain a key risk.

Positive Factors

Store Expansion / Network Growth

A growing warehouse-format store base increases market reach and scale advantages versus smaller competitors. Sustained store rollouts diversify geographic exposure, support higher purchasing leverage with suppliers, and create a multi-year revenue runway if new locations reach targeted unit economics.

Strong Product/Gross Margins

Elevated gross margins and recent product margin improvement indicate structural pricing power or favorable sourcing mix. High gross margins provide a durable buffer to absorb SG&A or logistics inflation and support investment in store growth and omnichannel capabilities over the medium term.

Improved Leverage Management

A lower debt-to-equity ratio and stable ROE suggest balanced capital structure and disciplined financing. This enhances financial flexibility to fund capex for new stores, weather cyclicality, and pursue strategic initiatives without materially increasing solvency risk over the next several quarters.

Negative Factors

Weak Cash Flow Conversion

Material deterioration in operating and free cash flow versus earnings reduces capacity to self-fund expansion and returns. Persistently weak cash conversion raises dependency on external financing for capex and inventory, increasing execution risk and constraining margin improvement initiatives over the medium term.

Same-Store & New-Store Productivity Pressure

Declining comps and below-target first-year sales for recent cohorts signal demand weakness and slower payback on new openings. If sustained, lower unit productivity hampers return on invested capital for store growth, delays breakeven for new locations, and raises strategic risk of overbuilding capacity.

Profitability & Margin Pressure

Falling net and operating margins point to rising operating costs or weaker leverage of fixed costs. Margin compression reduces retained earnings available for reinvestment and makes achieving targeted ROIC harder, increasing sensitivity to commodity, logistics, and labor cost cycles over the next several quarters.

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 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 Financial Statement Overview

Summary

Floor & Decor Holdings demonstrates solid revenue growth and stable leverage management. However, profitability margins have faced pressure, and cash flow generation has weakened. The company should focus on improving operational efficiency and cash flow conversion to enhance financial stability.

Income Statement

Floor & Decor Holdings has shown consistent revenue growth, with a TTM revenue growth rate of 1.34%. The gross profit margin has improved slightly to 43.63% in the TTM period. However, the net profit margin has decreased to 4.65%, indicating some pressure on profitability. The EBIT and EBITDA margins have also declined compared to previous years, suggesting increased operational costs or other expenses.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.76 in the TTM period, indicating better leverage management. Return on equity is stable at 9.58%, showing consistent returns to shareholders. However, the equity ratio remains moderate, suggesting a balanced approach between debt and equity financing.

Cash Flow

Operating cash flow has decreased significantly, with a TTM operating cash flow to net income ratio of 0.33. Free cash flow has also declined, with a negative growth rate of -34.55%. The free cash flow to net income ratio is low at 8.37%, indicating challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.66B	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	518.97M	488.65M	523.30M	551.78M	457.19M	306.22M
Net Income	216.80M	205.87M	245.98M	298.19M	283.23M	194.98M
Balance Sheet
Total Assets	5.52B	5.05B	4.66B	4.35B	3.73B	2.88B
Cash, Cash Equivalents and Short-Term Investments	204.48M	187.67M	34.38M	9.79M	139.44M	307.77M
Total Debt	1.99B	1.69B	1.63B	1.74B	1.42B	1.24B
Total Liabilities	3.16B	2.88B	2.73B	2.69B	2.41B	1.88B
Stockholders Equity	2.36B	2.17B	1.93B	1.66B	1.32B	997.39M
Cash Flow
Free Cash Flow	22.85M	156.33M	255.98M	-344.15M	-106.33M	193.72M
Operating Cash Flow	359.15M	603.15M	803.59M	112.45M	301.34M	406.16M
Investing Cash Flow	-336.31M	-446.83M	-564.97M	-455.64M	-471.24M	-212.45M
Financing Cash Flow	863.00K	-3.04M	-214.03M	213.54M	1.57M	87.02M

Floor & Decor Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.95
• 50DMA: Positive
• 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 Positive. The current price of 69.95 is above the 20-day moving average (MA) of 69.89, above the 50-day MA of 67.26, and below the 200-day MA of 73.24, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 51.95 is Neutral, neither overbought nor oversold. The STOCH value of 61.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FND.

Floor & Decor Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARHS	76 Outperform	$1.27B	17.46	20.38%	―	7.36%	-6.85%
HVT	73 Outperform	$428.21M	22.50	6.32%	5.44%	-1.05%	-24.24%
LOW	69 Neutral	$157.72B	23.31	―	1.94%	0.64%	0.58%
FND	63 Neutral	$7.46B	34.98	9.69%	―	6.04%	10.26%
HVT.A	62 Neutral	$428.21M	23.46	6.32%	5.36%	-1.05%	-24.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TTSH	42 Neutral	$152.03M	-92.67	-1.37%	―	-3.77%	-146.47%

Floor & Decor Holdings Corporate Events

Floor & Decor Announces New CEO Appointment

On October 29, 2025, Floor & Decor Holdings announced a leadership transition effective December 26, 2025, with Bradley S. Paulsen appointed as CEO and Thomas V. Taylor transitioning to Executive Chair of the Board. This strategic move aims to ensure continuity in leadership and support the company’s expansion goals, including reaching 500 warehouse stores. The transition is expected to leverage Taylor’s strategic vision and Paulsen’s expertise in home improvement and retail operations, positioning the company for future growth.

The most recent analyst rating on (FND) stock is a Hold with a $75.00 price target. To see the full list of analyst forecasts on Floor & Decor Holdings stock, see the FND Stock Forecast page.