Interface (TILE) AI Stock Analysis

• Market Cap: $1.44B
• Dividend Yield: 0.16%
• Average Volume (3M): 335.19K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.93
• Revenue Growth: 6.26%
• EPS Growth: 44.74%
• Country: US
• Employees: 3,636
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.60
• Shares Outstanding: 58,610,657
• 10 Day Avg. Volume: 385,477
• 30 Day Avg. Volume: 335,187
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 2.97
• Enterprise Value/Ebitda: 9.06
• 1Y Price Target: $32.00
• Price Target Upside: 26.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: $28.00 ▲(10.89%Upside)

Interface's robust financial performance, driven by revenue growth and profitability, is the primary strength. The raised guidance and strong earnings call further bolster confidence. Technical indicators are positive but caution is warranted due to potential overbought conditions. Valuation metrics suggest a fair market valuation.

Positive Factors

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

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., 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, 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 strong financial metrics with a robust gross profit margin of 36.5% and healthy net profit margin of 6.5%. Operational efficiency is reflected in EBIT and EBITDA margins of 10.1% and 11.6%, respectively. The balance sheet shows balanced leverage with a debt-to-equity ratio of 0.32 and a return on equity of 7.2%. Cash flow remains solid despite a slight decline in free cash flow, underscoring effective cash management.

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	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	166.92M	181.43M	141.71M	118.18M	155.45M	-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: 25.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 25.25 is above the 20-day moving average (MA) of 21.46, above the 50-day MA of 20.93, and above the 200-day MA of 21.67, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 75.72 is Negative, neither overbought nor oversold. The STOCH value of 67.29 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	79 Outperform	$1.44B	15.22	18.63%	0.16%	6.26%	44.74%
ETD	74 Outperform	$726.28M	14.19	10.69%	6.86%	-4.89%	―
LZB	70 Outperform	$1.46B	15.06	9.84%	2.43%	3.04%	-16.49%
Sector *	63 Neutral	£1.75B	11.25	2.35%	3.21%	0.29%	-37.72%
MBC	63 Neutral	$1.40B	14.21	8.02%	―	1.30%	-44.70%
MLKN	56 Neutral	$1.23B	45.68	-2.77%	4.12%	1.14%	-149.26%
LEG	51 Neutral	$1.09B	7.88	18.67%	2.48%	-6.16%	―

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.

The most recent analyst rating on (TILE) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Interface stock, see the TILE Stock Forecast page.

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.