Interface (TILE) AI Stock Analysis

• Market Cap: $1.57B
• Dividend Yield: 0.15%
• Average Volume (3M): 404.42K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.94
• Revenue Growth: 6.26%
• EPS Growth: 44.74%
• Country: US
• Employees: 3,636
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.60
• Shares Outstanding: 58,361,515
• 10 Day Avg. Volume: 376,218
• 30 Day Avg. Volume: 404,420
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 2.99
• Enterprise Value/Ebitda: 8.06
• 1Y Price Target: $31.50
• Price Target Upside: 16.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 80 Outperform
• Price Target: $31.00 ▲(14.35% Upside)

Interface's strong financial performance and positive earnings call are the most significant factors driving the score. Technical analysis supports a bullish outlook, though caution is advised due to overbought signals. Valuation is fair, and recent corporate events further bolster confidence in the company's strategic direction.

Positive Factors

Earnings

Adjusted net income increased 50.0% to $35.4 million, above estimates and consensus.

Financial Performance

Interface, Inc. reported financial results of its second quarter that topped expectations and management provided strong third quarter guidance and raised guidance for the full year.

Valuation

The company's stock is trading at a discount to its peer group, implying an attractive valuation.

Negative Factors

Market Volatility

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

Revenue

Revenue was below expectations due primarily to adverse FX.

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 modular carpet tiles and resilient flooring products. The company's revenue model is driven by direct sales to commercial clients, as well as through partnerships with distributors and retailers. Key revenue streams include large-scale contracts with businesses and government entities for flooring installations, as well as smaller orders from individual consumers and interior designers. Additionally, Interface benefits from significant partnerships with architects and design firms, which help drive product adoption in various projects. The company's commitment to sustainability also appeals to a growing market segment that prioritizes environmentally friendly products, potentially increasing customer loyalty and repeat business.

Interface Financial Statement Overview

Summary

Interface demonstrates strong financial health with solid revenue growth, consistent profitability, and effective cash flow management. The balance sheet shows improved financial leverage, though debt levels remain significant.

Income Statement

Interface has demonstrated strong revenue growth with a stable gross profit margin over recent periods. The TTM revenue shows an increase from the previous annual figure, indicating positive growth momentum. Net profit margin and EBIT margin are stable, reflecting consistent profitability. However, there's room for improvement in EBITDA margin which remains moderate compared to industry standards.

Balance Sheet

The balance sheet reflects a solid equity position with a decreasing debt-to-equity ratio, signaling improved financial leverage. The return on equity is healthy, indicating effective use of shareholders' funds to generate profits. The equity ratio has improved, enhancing the company's financial stability. Nevertheless, the total debt remains significant, which could pose risks if not managed prudently.

Cash Flow

Interface shows strong cash flow health with consistent operating cash flow and free cash flow generation. The free cash flow growth rate is positive, supporting the company's ability to finance operations and investments internally. The operating cash flow to net income ratio is robust, indicating efficient cash conversion. Despite these strengths, monitoring cash flows in the face of potential economic fluctuations remains crucial.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.35B	1.32B	1.26B	1.30B	1.20B	1.10B
Gross Profit	508.87M	482.95M	441.07M	437.73M	432.73M	410.57M
EBITDA	188.76M	181.43M	141.71M	118.18M	149.43M	-6.09M
Net Income	95.77M	86.95M	44.52M	19.56M	55.23M	-71.93M
Balance Sheet
Total Assets	1.28B	1.17B	1.23B	1.27B	1.33B	1.31B
Cash, Cash Equivalents and Short-Term Investments	121.70M	99.23M	110.50M	97.56M	97.25M	103.05M
Total Debt	389.56M	383.14M	515.45M	610.62M	615.59M	676.59M
Total Liabilities	703.20M	681.67M	804.15M	904.97M	966.66M	979.47M
Stockholders Equity	1.28B	489.15M	425.95M	361.54M	363.40M	326.54M
Cash Flow
Free Cash Flow	121.14M	114.64M	115.93M	24.62M	58.62M	56.12M
Operating Cash Flow	156.14M	148.43M	142.03M	43.06M	86.69M	119.07M
Investing Cash Flow	-33.63M	-30.37M	-19.51M	-18.44M	-28.07M	-61.69M
Financing Cash Flow	-102.01M	-125.23M	-111.56M	-19.49M	-60.86M	-42.72M

Interface Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 27.11 is above the 20-day moving average (MA) of 25.86, above the 50-day MA of 22.97, and above the 200-day MA of 22.22, indicating a bullish trend. The MACD of 1.26 indicates Positive momentum. The RSI at 66.48 is Neutral, neither overbought nor oversold. The STOCH value of 74.43 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	80 Outperform	$1.57B	16.49	18.63%	0.15%	6.26%	44.74%
MBC	74 Outperform	$1.75B	18.45	7.15%	―	4.05%	-47.49%
ETD	74 Outperform	$760.97M	14.96	10.69%	6.40%	-4.89%	-19.26%
LZB	64 Neutral	$1.49B	16.77	9.09%	2.33%	2.18%	-22.35%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
MLKN	58 Neutral	$1.46B	45.68	-2.77%	3.49%	1.14%	-149.26%
LEG	55 Neutral	$1.33B	9.43	18.68%	2.06%	-6.15%	―

Interface Corporate Events

Interface Reports Strong Q2 2025 Financial Results

On August 1, 2025, Interface, Inc. reported its second quarter results, showcasing an 8% increase in net sales to $376 million and a 45% rise in GAAP earnings per diluted share. The company’s ‘One Interface’ strategy has driven significant growth and profitability, particularly in the Americas, with notable market share gains. The strategy has resulted in a 28% increase in billings in the healthcare sector and a 403 basis point expansion in gross profit margin, highlighting the company’s strong market position and effective execution despite economic uncertainties.