Floor & Decor Holdings (FND) AI Stock Analysis

• Market Cap: $8.46B
• Dividend Yield: N/A
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 41.6
• Beta (1Y): 1.32
• Revenue Growth: 2.96%
• EPS Growth: -9.49%
• Country: US
• Employees: 10,413
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Home Improvement
• EPS (TTM): 0.45
• Shares Outstanding: 107,605,990
• 10 Day Avg. Volume: 1,871,688
• 30 Day Avg. Volume: 1,795,930
• PEG Ratio: -39.50
• Price to Book (P/B): 3.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 67.75
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 5.36
• Enterprise Value/Ebitda: 6.54
• 1Y Price Target: $86.64
• Price Target Upside: 10.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 66 Neutral
• Price Target: $85.00 ▲(8.10%Upside)

Floor & Decor Holdings' stock score is primarily driven by strong revenue growth and efficient operations. However, high valuation, mixed technical signals, and challenges highlighted in the earnings call, such as declining comparable store sales and economic uncertainties, present notable risks. Strategic initiatives and cost management efforts provide some offsetting strengths.

Positive Factors

Earnings and Margins

Meetings with management spark positive feedback from investors on earnings resilience and significant upside.

Operational Efficiency

The company has gone a long way to improving the efficiency of operations over the past few years, with four-wall EBITDA margins across its mature fleet consistently around 23%.

Strategic Initiatives

Strategic initiatives, including design centers and outdoor department expansion, are expected to support FND's long-term growth.

Negative Factors

Market Competition

LOW's acquisition of Artisan Design Group adds a new scale player to the industry, or a slight long-term headwind for FND.

Sales and Store Openings

Floor & Decor Holdings updated its guidance to reflect lower sales and fewer new stores.

Tariffs and Imports

Despite solid Q1 results, the company remains affected by tariffs as approximately 70% of its products are imported and subject to potential price increases.

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 Holdings generates revenue primarily through the sale of hard surface flooring products and related accessories. The company's warehouse-style stores serve as its primary sales channels, attracting a mix of professional contractors and individual consumers seeking quality flooring solutions. Additionally, Floor & Decor leverages its direct sourcing model, purchasing products directly from manufacturers around the world, which allows the company to offer competitive pricing and maintain healthy profit margins. The company also benefits from its private label offerings, which contribute to higher margins and brand differentiation. Floor & Decor's earnings are further supported by its investment in e-commerce, which complements its physical stores by providing customers with an integrated shopping experience. Key revenue streams include product sales, installation materials, and accessories, with significant contributions from both in-store and online sales.

Floor & Decor Holdings Financial Statement Overview

Summary

Floor & Decor Holdings exhibits strong revenue growth and efficient operations. However, challenges include declining net income margins, reliance on debt, and inconsistent free cash flow growth. Improving profitability and managing debt 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.46B	4.41B	4.26B	3.43B	2.43B
Gross Profit	1.93B	1.86B	1.73B	1.42B	1.03B
EBITDA	488.65M	523.30M	551.78M	457.19M	306.22M
Net Income	205.87M	245.98M	298.19M	283.23M	194.98M
Balance Sheet
Total Assets	5.05B	4.66B	4.35B	3.73B	2.88B
Cash, Cash Equivalents and Short-Term Investments	187.67M	34.38M	9.79M	139.44M	307.77M
Total Debt	1.69B	1.63B	1.74B	1.42B	1.24B
Total Liabilities	2.88B	2.73B	2.69B	2.41B	1.88B
Stockholders Equity	2.17B	1.93B	1.66B	1.32B	997.39M
Cash Flow
Free Cash Flow	156.33M	255.98M	-344.15M	-106.33M	193.72M
Operating Cash Flow	603.15M	803.59M	112.45M	301.34M	406.16M
Investing Cash Flow	-446.83M	-564.97M	-455.64M	-471.24M	-212.45M
Financing Cash Flow	-3.04M	-214.03M	213.54M	1.57M	87.02M

Floor & Decor Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 78.63
• 50DMA: Positive
• 100DMA: Negative
• 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 78.63 is below the 20-day moving average (MA) of 79.49, above the 50-day MA of 76.89, and below the 200-day MA of 91.65, indicating a neutral trend. The MACD of 1.21 indicates Positive momentum. The RSI at 49.57 is Neutral, neither overbought nor oversold. The STOCH value of 23.43 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	70 Outperform	$334.86M	16.20	6.97%	6.18%	-12.29%	-55.73%
ARHS	70 Outperform	$1.19B	20.44	18.39%	―	0.71%	-45.31%
HD	70 Outperform	$357.58B	24.38	299.52%	2.56%	7.33%	-1.19%
LOW	70 Outperform	$122.83B	18.15	-51.07%	2.10%	-2.52%	-2.98%
FND	66 Neutral	$8.46B	41.62	9.74%	―	2.96%	-9.49%
TTSH	65 Neutral	$308.19M	374.46	0.66%	―	-6.41%	-91.36%
Sector *	62 Neutral	$16.95B	10.84	-7.26%	3.05%	1.71%	-25.14%

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.