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Floor & Decor Holdings (FND)
NYSE:FND
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Floor & Decor Holdings
(NYSE:FND)
Rating:68Neutral
Price Target:
$85.00
▲(8.57% Upside)
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.
Operational Efficiency
Gross margin increased due to lower supply chain costs, reflecting operational efficiencies.
Negative Factors
Earnings Forecast
The company lowered its earnings forecast for 2025 due to a flat comp forecast and fewer new store openings.
Sales and Revenue
Lower revenue and store growth projections are impacting financial expectations, indicating downside risk to future estimates.
Floor & Decor Holdings (FND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.57B
Dividend YieldN/A
Average Volume (3M)1.90M
Price to Earnings (P/E)40.8
Beta (1Y)1.27
Revenue Growth4.88%
EPS Growth0.05%
CountryUS
Employees10,413
SectorConsumer Cyclical
Sector Strength72
IndustryHome Improvement
Share Statistics
EPS (TTM)0.58
Shares Outstanding107,691,475
10 Day Avg. Volume2,045,704
30 Day Avg. Volume1,899,135
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue2.21
Enterprise Value/Gross Profit5.23
Enterprise Value/Ebitda20.08
Forecast
1Y Price Target
$86.07Price Target Upside9.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
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: 2.15%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. Highlights included increased earnings per share, strong sales growth, and successful store expansion efforts. Additionally, the company saw improved gross margins and robust performance in its commercial business and pro sales. However, challenges such as flat comparable store sales, the impact of tariffs, declining consumer demand, and inventory increases were noted. Despite these challenges, the company demonstrated resilience and strategic planning to navigate the uncertain economic environment.Q2-2025 Updates
Positive Updates
Earnings Per Share Increase
Diluted earnings per share increased by 11.5% to $0.58 compared to $0.52 in the same period last year.
Sales Growth
Sales for the quarter rose by 7.1% to $1.214 billion.
Store Expansion
Opened 3 new warehouse format stores in the second quarter and plan to open 20 new stores in fiscal 2025.
Gross Margin Improvement
Gross margin rate improved by approximately 60 basis points to 43.9%, primarily due to lower supply chain costs.
Commercial Business Performance
Spartan Surfaces delivered stronger-than-expected sales and EBIT results with sales rising approximately 7% year-over-year.
Pro Sales Growth
Total and comparable store sales to pros once again outpaced the company's overall growth, accounting for approximately 50% of sales.
Negative Updates
Comparable Store Sales
Comparable store sales increased by only 0.4%, marking the first quarterly increase since the fourth quarter of fiscal 2022.
Challenges from Tariffs
Continuing to face challenges in mitigating the impact of tariffs on products.
Lower Consumer Demand
Third quarter-to-date comparable store sales have declined by 1%.
Pressure on Fourth Quarter
Fourth quarter expected to be pressured from lapping Hurricanes Milton and Helene and existing home sales challenges.
Inventory Increase
Inventory was up 17% year-over-year, primarily driven by the timing of receipts and the need to support the opening of a new distribution center.
Company Guidance
During the second quarter of fiscal 2025, Floor & Decor Holdings reported a 7.1% increase in sales, reaching $1.214 billion, while diluted earnings per share rose by 11.5% to $0.58. Comparable store sales saw a modest increase of 0.4%, marking the first rise since the fourth quarter of fiscal 2022. The company opened three new warehouse format stores, bringing the total to 257 locations, a 12% increase from the previous year. Floor & Decor plans to open 20 new stores in fiscal 2025 and anticipates a similar number in fiscal 2026. The guidance reflects a cautious outlook due to continued economic uncertainty and housing market pressures, with a projected total sales range of $4.660 billion to $4.750 billion for fiscal 2025 and comparable store sales estimated to be down 2% to flat. The company is also actively mitigating tariff impacts, leveraging its global sourcing network and maintaining strategic pricing adjustments to preserve market position and profitability.Floor & Decor Holdings Financial Statement Overview
Summary
Floor & Decor Holdings shows strong revenue growth and efficient operations, with solid gross profit margins. However, challenges such as declining net income margins, a moderately high debt-to-equity ratio, and inconsistent free cash flow growth pose risks.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 | 1.91B | 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
78.29
Price Trends
77.82
Positive
76.82
Positive
88.88
Negative
Market Momentum
0.23
Positive
47.37
Neutral
57.35
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 78.29 is below the 20-day moving average (MA) of 79.36, above the 50-day MA of 77.82, and below the 200-day MA of 88.88, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 47.37 is Neutral, neither overbought nor oversold. The STOCH value of 57.35 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
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.58B | 22.22 | 20.48% | ― | 4.76% | -19.79% | |
74 Outperform | $385.88B | 26.31 | 299.52% | 2.35% | 7.33% | -1.19% | |
68 Neutral | $8.57B | 40.84 | 9.73% | ― | 4.88% | 0.05% | |
66 Neutral | $346.14M | 18.00 | 6.40% | 6.04% | -8.93% | -50.32% | |
63 Neutral | $135.15B | 19.98 | -51.07% | 1.94% | -2.52% | -2.98% | |
56 Neutral | HK$25.37B | 4.80 | -2.69% | 5.71% | -0.46% | -53.29% | |
54 Neutral | $268.57M | 346.20 | -0.02% | ― | -5.41% | -100.49% |
* Consumer Cyclical Sector Average
Performance Comparison
FND
Floor & Decor Holdings
78.29
-21.24
-21.34%
HVT
Haverty
21.07
-5.96
-22.05%
HD
Home Depot
387.53
49.86
14.77%
LOW
Lowe's
239.85
13.17
5.81%
TTSH
Tile Shop
6.00
0.05
0.84%
ARHS
Arhaus
11.16
-0.56
-4.78%
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.