Interface (TILE) AI Stock Analysis

• Market Cap: $1.18B
• Dividend Yield: 0.2%
• Average Volume (3M): 345.94K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.04
• Revenue Growth: 5.41%
• EPS Growth: 44.50%
• Country: US
• Employees: 3,636
• Sector: Industrials
• Sector Strength: 87
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.25
• Shares Outstanding: 58,610,657
• 10 Day Avg. Volume: 349,018
• 30 Day Avg. Volume: 345,944
• PEG Ratio: -0.46
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.59
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 2.25
• Enterprise Value/Ebitda: 1.63
• 1Y Price Target: $30.00
• Price Target Upside: 49.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: $22.00 ▲(9.67%Upside)

Interface's overall stock score of 70 reflects a robust financial performance with efficient cost management and solid cash flow generation, alongside a balanced valuation. The slightly positive sentiment from the earnings call, highlighting growth in education and healthcare segments, further supports the score. Technical indicators show mixed trends, indicating moderate momentum without strong directional signals.

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.

Investment rating

Given expectations for continued growth and expanding margins, combined with an attractive valuation, the analyst reiterates an OUTPERFORM investment rating.

Stock valuation

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

Negative Factors

Revenue performance

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., 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 a strong financial position with solid profit margins and cash flow metrics. While revenue growth is moderate, the company maintains efficient cost management and balanced leverage, indicating resilience and stability.

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
	EBIT
133.19M	134.41M	104.52M	75.40M	104.80M	-39.29M
	EBITDA
163.00M	134.41M	140.41M	114.41M	155.45M	-6.09M
	Net Income Common Stockholders
85.77M	86.95M	44.52M	19.56M	55.23M	-71.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.76M	99.23M	110.50M	97.56M	97.25M	103.05M
	Total Assets
1.19B	1.17B	1.23B	1.27B	1.33B	1.31B
	Total Debt
384.75M	383.14M	515.45M	604.38M	610.55M	676.59M
	Net Debt
287.00M	283.92M	404.95M	506.81M	513.30M	573.54M
	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: Negative
• Last Price: 20.06
• 50DMA: Positive
• 100DMA: Negative
• 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 Negative. The current price of 20.06 is below the 20-day moving average (MA) of 20.35, above the 50-day MA of 19.63, and below the 200-day MA of 21.20, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 47.70 is Neutral, neither overbought nor oversold. The STOCH value of 55.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TILE.

Interface Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LZB	72 Outperform	$1.58B	13.12	12.40%	2.30%	1.81%	8.09%
ETD	72 Outperform	$668.05M	11.65	12.09%	5.94%	-6.32%	-18.35%
TILE	70 Outperform	$1.18B	13.84	18.15%	0.20%	5.41%	44.50%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
MLKN	58 Neutral	$1.15B	39.82	2.28%	4.43%	-2.68%	-56.16%
MBC	58 Neutral	$1.28B	12.95	8.02%	―	1.30%	-44.70%
LEG	52 Neutral	$1.25B	―	-50.35%	2.16%	-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.

Interface to Present at Oppenheimer Conference

Interface, Inc. will present to investors at the Oppenheimer Industrial Growth Conference on May 6, 2025. The presentation will be webcast live and available for replay, providing stakeholders with insights into the company’s future operations and market strategies.