Interface (TILE) AI Stock Analysis

• Market Cap: $1.67B
• Dividend Yield: 0.21%
• Average Volume (3M): 408.26K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.80
• Revenue Growth: 5.11%
• EPS Growth: 34.02%
• Country: US
• Employees: 3,636
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.61
• Shares Outstanding: 58,390,617
• 10 Day Avg. Volume: 324,304
• 30 Day Avg. Volume: 408,257
• PEG Ratio: 0.17
• Price to Book (P/B): 2.92
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 12.46
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.38
• Enterprise Value/Gross Profit: 3.60
• Enterprise Value/Ebitda: 9.53
• 1Y Price Target: $32.00
• Price Target Upside: 11.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.71
• Revenue Forecast (FY): $1.38B

• Rating: 72 Outperform
• Price Target: $30.00 ▲(4.97% Upside)

Interface's strong earnings call performance and solid financials are the primary drivers of its stock score. The company's strategic investments and raised guidance reflect confidence in sustained growth. However, modest revenue growth and cash flow challenges slightly temper the overall outlook.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, providing flexibility for future investments and growth opportunities.

Healthcare Segment Growth

Significant growth in the healthcare segment indicates successful market penetration and product adoption, supporting long-term revenue expansion.

Nora Rubber Division Growth

The strong performance of the Nora Rubber division highlights successful strategic investments and product demand, contributing to sustained growth.

Negative Factors

Declining Free Cash Flow

Declining free cash flow growth may constrain liquidity, affecting the company's ability to invest in growth initiatives and manage debt effectively.

Tariff Impact on Profitability

Tariff impacts on gross profit margins could pressure profitability, affecting long-term financial performance and competitive positioning.

Challenging Macroeconomic Environment

Macroeconomic challenges, especially in Europe, may hinder growth prospects and operational performance, impacting long-term strategic goals.

Interface Business Overview & Revenue Model

Company Description

Interface, Inc., a modular flooring company, designs, produces, and sells modular carpet products primarily in the Americas, Europe, and the Asia-Pacific. The company offers modular carpets under the Interface and FLOR brand names; carpet tiles under the GlasBacRE name for use in commercial interiors, including offices, healthcare facilities, airports, educational and other institutions, hospitality spaces, and retail facilities, as well as residential interiors; modular resilient flooring products; rubber flooring under the norament and noraplan brand names; and luxury vinyl tile products. It also produces and sells an adapted version of its carpet tile for the healthcare facilities market; and two-meter roll goods that are structure-backed for use in education, healthcare, and government markets, as well as carpet replacement, installation, and maintenance services. In addition, the company sells and licenses a proprietary antimicrobial chemical compound under the Intersept name for use in interior finishes; sells TacTiles, a carpet tile installation system, as well as various adhesives and products; and provides turnkey project management services for global accounts and other customers through its InterfaceSERVICES business. It sells its products directly to end-users, as well as indirectly through independent contractors or distributors, and FLOR line of products through Internet sales and commercial sales force. The company has product showrooms or design studios in the United States, Canada, Mexico, England, France, Germany, Spain, the Netherlands, India, Australia, Norway, the United Arab Emirates, Russia, Singapore, Hong Kong, Thailand, China, and others. Interface, Inc. was incorporated in 1973 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Interface generates revenue primarily through the sale of its modular carpet tiles and flooring products to commercial customers and retailers. The company operates through direct sales and distribution channels, often leveraging partnerships with design firms and contractors to reach end-users. Key revenue streams include the sale of flooring products, installation services, and maintenance solutions. Additionally, Interface benefits from its emphasis on sustainability, attracting environmentally conscious clients and fulfilling corporate sustainability goals. The company has also formed significant partnerships with organizations promoting green building practices, which further enhances its market position and revenue opportunities.

Interface Financial Statement Overview

Summary

Interface demonstrates strong profitability and operational efficiency, with a solid balance sheet characterized by low leverage. However, modest revenue growth and declining free cash flow growth may pose challenges. Overall, the company maintains a stable financial position with potential for improvement in cash flow generation.

Income Statement

Interface's income statement shows a stable gross profit margin of 38.24% TTM, indicating efficient cost management. The net profit margin improved to 8.27% TTM, reflecting enhanced profitability. However, revenue growth is modest at 1.99% TTM, suggesting limited expansion. EBIT and EBITDA margins are healthy at 7.46% and 12.14% TTM, respectively, demonstrating strong operational efficiency.

Balance Sheet

The balance sheet reveals a favorable debt-to-equity ratio of 0.29 TTM, indicating low leverage and financial stability. Return on equity is robust at 15.61% TTM, showcasing effective use of equity. The equity ratio is 100% TTM, suggesting a strong equity base. Overall, the balance sheet reflects a solid financial position with manageable debt levels.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -3.78% TTM, which could be a concern for future liquidity. The operating cash flow to net income ratio is 0.65 TTM, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.75 TTM, suggesting a reasonable conversion of earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.37B	1.32B	1.26B	1.30B	1.20B	1.10B
Gross Profit	524.88M	482.95M	441.07M	437.73M	432.73M	410.57M
EBITDA	198.39M	181.43M	141.71M	118.18M	155.45M	1.20M
Net Income	113.47M	86.95M	44.52M	19.56M	55.23M	-71.93M
Balance Sheet
Total Assets	1.33B	1.17B	1.23B	1.27B	1.33B	1.31B
Cash, Cash Equivalents and Short-Term Investments	187.35M	99.23M	110.50M	97.56M	97.25M	103.05M
Total Debt	390.04M	383.14M	515.45M	610.62M	615.59M	680.78M
Total Liabilities	709.57M	681.67M	804.15M	904.97M	966.66M	979.47M
Stockholders Equity	620.95M	489.15M	425.95M	361.54M	363.40M	326.54M
Cash Flow
Free Cash Flow	117.48M	114.64M	115.93M	24.62M	58.62M	56.12M
Operating Cash Flow	156.64M	148.43M	142.03M	43.06M	86.69M	119.07M
Investing Cash Flow	-39.16M	-30.37M	-19.51M	-18.44M	-28.07M	-61.69M
Financing Cash Flow	-49.68M	-125.23M	-111.56M	-19.49M	-60.86M	-42.72M

Interface Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 28.58 is above the 20-day moving average (MA) of 27.18, above the 50-day MA of 26.95, and above the 200-day MA of 23.34, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 64.81 is Neutral, neither overbought nor oversold. The STOCH value of 69.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TILE.

Interface Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LZB	77 Outperform	$1.64B	18.31	8.82%	2.27%	1.78%	-25.36%
TILE	72 Outperform	$1.67B	14.94	20.20%	0.21%	5.11%	34.02%
LEG	68 Neutral	$1.21B	5.55	26.20%	1.73%	-6.03%	―
MBC	63 Neutral	$1.48B	18.28	6.19%	―	1.77%	-44.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	60 Neutral	$1.13B	―	-1.18%	4.50%	5.37%	-127.27%
HOFT	49 Neutral	$113.31M	―	-11.25%	8.73%	-12.09%	-204.31%

Interface Corporate Events

Interface Amends Syndicated Facility Agreement

Interface, Inc. entered into a Third Amended and Restated Syndicated Facility Agreement on December 3, 2025, with its foreign subsidiaries as co-borrowers and domestic subsidiaries as guarantors, alongside Bank of America and other lenders. The agreement introduces changes such as amended interest rates, an extended maturity date to December 3, 2030, a new $170 million term loan facility, and a reduced revolving credit facility. Additionally, Interface redeemed its $300 million Senior Notes due 2028 using proceeds from the term loan and cash on hand, effectively terminating obligations under the previous Indenture.

Interface Plans Conditional Redemption of Senior Notes

On November 18, 2025, Interface, Inc. announced a conditional redemption of its $300 million 5.50% Senior Notes due 2028, with a redemption date set for December 3, 2025. The redemption is contingent upon the company securing sufficient financing or refinancing to cover the redemption price. Interface is currently arranging a term loan facility to partially fund the redemption, but there is no guarantee that this will be completed in time, potentially leading to an extension or cancellation of the redemption.

Interface Reports Strong Q3 2025 Financial Results

Interface, Inc. reported strong financial results for the third quarter of 2025, with net sales reaching $364.5 million, a 5.9% increase year-over-year. The company’s ‘One Interface’ strategy has been instrumental in driving growth and profitability, with significant gains in the Americas and EAAA regions. The strategy’s effectiveness is reflected in a 62.5% increase in GAAP earnings per diluted share and a 27.1% rise in adjusted earnings per diluted share. The company has also raised its full-year guidance, underscoring its robust competitive position and commitment to long-term growth.