Interface (TILE) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: 0.19%
• Average Volume (3M): 321.04K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.04
• Revenue Growth: 5.41%
• EPS Growth: 44.50%
• Country: US
• Employees: 3,636
• Sector: Industrials
• Sector Strength: 91
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.25
• Shares Outstanding: 58,610,657
• 10 Day Avg. Volume: 256,728
• 30 Day Avg. Volume: 321,039
• PEG Ratio: -11.23
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.76
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: 2.37
• 1Y Price Target: $30.00
• Price Target Upside: 40.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $23.00 ▲(7.73%Upside)

Interface's overall score reflects a strong financial performance and positive earnings call sentiment as key strengths. While technical analysis and valuation indicate fair market positioning, the company's strategic focus on growth and sustainability initiatives enhance its long-term outlook.

Positive Factors

Financial Performance

Interface is forecasting a strong second quarter exceeding consensus expectations and raised the low-end of net sales guidance for the full year.

Pricing Power

Management believes it can pass along tariff-related cost increases to its end markets, indicating strong pricing power.

Stock Valuation

Interface’s stock is trading at a discount to its peer group, with more than 50% upside from current levels.

Negative Factors

Currency Impact

Revenue was below expectations due primarily to adverse FX.

Stock Volatility

Interface’s stock is down 17% YTD after gaining 94% in 2024, indicating volatility.

Interface Business Overview & Revenue Model

Company Description

Interface, Inc. (traded as TILE) is a global leader in modular flooring solutions, specializing in the design and production of carpet tiles and resilient flooring. Operating primarily in the commercial sector, Interface is renowned for its innovative design, sustainability efforts, and commitment to reducing its carbon footprint.

How the Company Makes Money

Interface, Inc. generates revenue primarily through the sale of its modular carpet tiles and resilient flooring products. The company targets a variety of sectors, including corporate offices, education, healthcare, and hospitality. Interface leverages a global distribution network to reach its diverse customer base, enhancing its market presence. The company's focus on sustainability and eco-friendly products also attracts clients committed to environmental responsibility, further driving sales. Additionally, Interface may engage in strategic partnerships and collaborations that expand its product offerings and market reach.

Interface Financial Statement Overview

Summary

Interface demonstrates a strong financial position with effective cost management, stable profitability, and solid cash flow generation. While revenue growth is moderate, the company's profitability and cash flow metrics indicate stability and resilience.

Income Statement

Interface's income statement reflects a strong gross profit margin of 36.5% for TTM, indicating effective cost management. The net profit margin stands at 6.5%, showcasing reasonable profitability. Revenue growth is modest at 0.58%, while EBIT and EBITDA margins show healthy operational efficiency at 10.1% and 11.6%, respectively. Continued improvement in net income over recent years highlights a positive trajectory.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 0.32, suggesting a balanced capital structure with manageable leverage. Return on equity is robust at 7.2%, reflecting efficient use of shareholder funds. The equity ratio is 100%, indicating strong equity financing. Overall, Interface maintains a stable financial position with potential for further strengthening.

Cash Flow

Interface exhibits solid cash generation capabilities, with a free cash flow growth rate of -3.77% due to slightly higher capital expenditures. The operating cash flow to net income ratio is healthy at 1.72, and the free cash flow to net income ratio is 1.29, underscoring strong cash flow relative to profits. Despite a minor decline in free cash flow, the company demonstrates sound cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.32B	1.32B	1.26B	1.30B	1.20B	1.10B
Gross Profit	483.51M	482.95M	441.07M	437.73M	432.73M	410.57M
EBITDA	163.00M	134.41M	140.41M	114.41M	155.45M	-6.09M
Net Income	85.77M	86.95M	44.52M	19.56M	55.23M	-71.93M
Balance Sheet
Total Assets	1.19B	1.17B	1.23B	1.27B	1.33B	1.31B
Cash, Cash Equivalents and Short-Term Investments	97.76M	99.23M	110.50M	97.56M	97.25M	103.05M
Total Debt	384.75M	383.14M	515.45M	604.38M	610.55M	676.59M
Total Liabilities	678.73M	681.67M	804.15M	904.97M	966.66M	979.47M
Stockholders Equity	513.07M	489.15M	425.95M	361.54M	363.40M	326.54M
Cash Flow
Free Cash Flow	110.33M	114.64M	115.93M	24.62M	58.62M	56.12M
Operating Cash Flow	147.55M	148.43M	142.03M	43.06M	86.69M	119.07M
Investing Cash Flow	-35.85M	-30.37M	-19.51M	-18.44M	-28.07M	-61.69M
Financing Cash Flow	-104.13M	-125.23M	-111.56M	-19.49M	-60.86M	-42.72M

Interface Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 21.35 is above the 20-day moving average (MA) of 21.05, above the 50-day MA of 20.54, and below the 200-day MA of 21.44, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 53.25 is Neutral, neither overbought nor oversold. The STOCH value of 65.95 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
TILE	72 Outperform	$1.25B	14.73	18.15%	0.19%	5.41%	44.50%
ETD	71 Outperform	$758.07M	13.21	12.09%	5.23%	-6.32%	-18.35%
LZB	70 Outperform	$1.60B	16.68	9.84%	2.24%	3.04%	-16.49%
MBC	69 Neutral	$1.49B	15.16	8.02%	―	1.30%	-44.70%
Sector *	67 Neutral	$2.54B	12.76	9.94%	4.17%	-2.21%	31.02%
MLKN	63 Neutral	$1.41B	48.83	2.28%	3.62%	-2.68%	-56.16%
LEG	53 Neutral	$1.37B	―	-50.35%	1.97%	-6.50%	-221.33%

Interface Corporate Events

Interface Holds Annual Shareholders Meeting on May 15

Interface held its annual meeting of shareholders on May 15, 2025, where several key matters were addressed. The election of directors saw various candidates elected by plurality vote, approval of executive compensation was passed, and Ernst & Young LLP was ratified as the independent registered public accounting firm for 2025.

The most recent analyst rating on (TILE) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Interface stock, see the TILE Stock Forecast page.

Interface Reports Q1 2025 Results with Sales Growth

Interface, Inc. reported its first quarter 2025 results on May 2, 2025, showcasing a 2.6% year-over-year increase in net sales, reaching $297 million. The company’s ‘One Interface’ strategy continues to drive growth, with notable performance in the Americas and double-digit growth in the Healthcare and Education sectors. Despite a challenging macroeconomic environment, Interface’s strategic focus on product innovation and sustainability has helped maintain its market position and deliver long-term value to shareholders.