Interface Inc (TILE)
NASDAQ:TILE
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Interface
(NASDAQ:TILE)
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Rating:76Outperform
Price Target:
$33.00
▲(17.02% Upside)
Action:Reiterated
Date:06/05/26
The score is driven primarily by improved fundamentals (stronger margins and significantly reduced leverage) and a positive earnings call with raised guidance and healthy order/backlog trends. Valuation is supportive at a moderate P/E, while technicals are only moderately positive and cash conversion remains a key near-term watch item.
Positive Factors
Margin Improvement
Sustained gross- and net-margin expansion indicates stronger pricing, better product mix and manufacturing efficiency. Higher margins enhance cash generation capacity, support reinvestment and shareholder returns, and provide a cushion against cyclical revenue swings over the medium term.
Negative Factors
Weaker Cash Conversion
Lower cash conversion versus reported earnings suggests working-capital or timing pressures that can constrain free cash for debt paydown, dividends or acquisitions. Persistent conversion gaps could limit financial flexibility despite accounting profitability improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Improvement
Sustained gross- and net-margin expansion indicates stronger pricing, better product mix and manufacturing efficiency. Higher margins enhance cash generation capacity, support reinvestment and shareholder returns, and provide a cushion against cyclical revenue swings over the medium term.
Read all positive factors
Interface (TILE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.76B
Dividend Yield0.21%
Average Volume (3M)558.34K
Price to Earnings (P/E)14.0
Beta (1Y)0.82
Revenue Growth7.34%
EPS Growth48.24%
CountryUS
Employees3,636
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)2.17
Shares Outstanding58,056,190
10 Day Avg. Volume560,347
30 Day Avg. Volume558,341
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)1.39
Price to Sales (P/S)1.21
P/FCF Ratio13.75
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue1.36
Enterprise Value/Gross Profit3.49
Enterprise Value/Ebitda9.75
Forecast
1Y Price Target
$36.00Price Target Upside27.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.14
Revenue Forecast (FY)$1.47B
Interface Business Overview & Revenue Model
Company Description
Interface, Inc. is a prominent manufacturer and supplier specializing in modular flooring solutions. The company's core operations involve the design, production, and distribution of modular carpet products, primarily catering to markets across th...
How the Company Makes Money
Interface makes money primarily by selling commercial flooring products, with revenue recognized from product shipments and related service arrangements. Its key revenue streams include (1) modular carpet tile sales and (2) resilient flooring sale...
Interface Earnings Call Summary
Earnings Call Date:May 08, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial quarter with broad‑based revenue growth, margin expansion, substantial EPS improvement and healthy order/backlog momentum. Management raised full‑year guidance, highlighted successful strategic initiatives (One Interface, automation, new product launches) and emphasized sustainability leadership. Risks cited include regional macro weakness in EAAA, modest education billings in Q1, tariff volatility, and potential input cost pressure related to Middle East events—each acknowledged with mitigation plans (pricing, productivity, product mix). Overall the positive operating and financial results, guidance raise, and strategic progress outweigh the manageable headwinds noted.Positive Updates
Net Sales Growth and Reported Results
First quarter net sales of $331.0 million, up 11.3% as reported and 6.8% on a currency‑neutral basis (company commentary also referenced ~7% currency‑neutral growth).
Negative Updates
EAAA Region Growth and Macro Headwinds
EAAA currency‑neutral net sales increased only 4.3% in the quarter amid a continued challenging macro environment, indicating slower regional recovery compared with the Americas.
Read all updates
Q1-2026 Updates
Positive
Negative
Net Sales Growth and Reported Results
First quarter net sales of $331.0 million, up 11.3% as reported and 6.8% on a currency‑neutral basis (company commentary also referenced ~7% currency‑neutral growth).
Read all positive updates
Company Guidance
Interface raised its outlook, guiding Q2 net sales of $385–395M with an adjusted gross profit margin of ~39.9% of sales, adjusted SG&A of ~$100M, adjusted interest & other of ~$4M, an adjusted effective tax rate of ~28% and a fully diluted weighted average share count of ~59M; for fiscal 2026 the company now expects net sales of $1.45–1.48B, adjusted gross profit margin of ~38.8%–39.0%, adjusted SG&A of ~26.2%–26.4% of sales, adjusted interest & other of $14–16M, an adjusted effective tax rate of ~26% and capital expenditures of ~ $60M, while noting plans to offset a forecasted low‑single‑digit increase in input costs via pricing and productivity.Interface Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.42B | 1.39B | 1.32B | 1.26B | 1.30B | 1.20B |
| Gross Profit | 553.14M | 537.38M | 482.95M | 441.07M | 437.73M | 432.73M |
| EBITDA | 198.07M | 198.39M | 181.43M | 141.71M | 118.18M | 155.45M |
| Net Income | 126.71M | 116.10M | 86.95M | 44.52M | 19.56M | 55.23M |
Balance Sheet | ||||||
| Total Assets | 1.21B | 1.77B | 1.17B | 1.23B | 1.27B | 1.33B |
| Cash, Cash Equivalents and Short-Term Investments | 61.23M | 71.32M | 99.23M | 110.50M | 97.56M | 97.25M |
| Total Debt | 274.42M | 264.53M | 383.14M | 515.45M | 610.62M | 615.59M |
| Total Liabilities | 571.20M | 565.85M | 681.67M | 804.15M | 904.97M | 966.66M |
| Stockholders Equity | 634.59M | 1.21B | 489.15M | 425.95M | 361.54M | 363.40M |
Cash Flow | ||||||
| Free Cash Flow | 120.65M | 121.71M | 114.64M | 115.93M | 24.62M | 58.62M |
| Operating Cash Flow | 169.71M | 167.91M | 148.43M | 142.03M | 43.06M | 86.69M |
| Investing Cash Flow | -49.05M | -46.19M | -30.37M | -19.51M | -18.44M | -28.07M |
| Financing Cash Flow | -163.01M | -159.29M | -125.23M | -111.56M | -19.49M | -60.86M |
Interface Technical Analysis
Positive
28.20
Price Trends
27.92
Positive
29.04
Positive
28.33
Positive
Market Momentum
0.67
Negative
66.77
Neutral
86.71
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TILE, the sentiment is Positive. The current price of 28.2 is below the 20-day moving average (MA) of 29.10, above the 50-day MA of 27.92, and below the 200-day MA of 28.33, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 66.77 is Neutral, neither overbought nor oversold. The STOCH value of 86.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TILE.
Interface Risk Analysis
Interface disclosed 1 risk factors in its most recent earnings report. Interface reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Interface Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.76B | 14.02 | 16.69% | 0.21% | 7.34% | 48.24% | |
65 Neutral | $1.53B | 18.35 | 8.12% | 2.39% | 1.69% | -31.16% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.43B | 6.49 | 23.12% | 1.84% | -8.33% | ― | |
53 Neutral | $132.89M | -4.86 | -14.75% | 7.20% | -23.22% | -111.83% | |
50 Neutral | $1.01B | 94.28 | 0.83% | 4.16% | 5.62% | -65.76% | |
44 Neutral | $1.80B | -561.00 | -0.15% | ― | -1.11% | -101.88% |
* Consumer Cyclical Sector Average
TILE
Interface
30.40
9.32
44.20%
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Interface Corporate Events
Business Operations and StrategyExecutive/Board Changes
Interface boosts executive bonus plan, tightens clawback terms
Positive
Jun 4, 2026
On June 2, 2026, Interface, Inc.’s Compensation Talent Development Committee approved amendments to its Executive Bonus Plan, increasing the maximum annual bonus per participant from $1.85 million to $3.0 million, signaling a more aggressiv...
Executive/Board ChangesShareholder Meetings
Interface Shareholders Back Board, Pay and Auditor Slate
Positive
May 20, 2026
Interface held its annual meeting of shareholders on May 19, 2026, where investors voted on board elections, executive pay, and the appointment of the company’s independent auditor. All director nominees, including CEO Laurel M. Hurd and Cha...
Business Operations and StrategyFinancial Disclosures
Interface Raises Outlook After Strong First-Quarter Results
Positive
May 8, 2026
Interface reported a strong first quarter for the period ended April 5, 2026, with net sales rising 11.3% year over year to $331 million, or 6.8% on a currency-neutral basis, and GAAP earnings per diluted share climbing to $0.40. Adjusted earnings...
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.