DB:1FD

Stock Analysis Report

Floor & Decor Holdings

Executive Summary

Floor & Decor Holdings, Inc. operates as a multi-channel specialty retailer of hard surface flooring and related accessories.


Snowflake Analysis

Excellent balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Floor & Decor Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1FD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-17.2%

1FD

4.2%

DE Specialty Retail

2.1%

DE Market


1 Year Return

-35.4%

1FD

-19.8%

DE Specialty Retail

-16.6%

DE Market

Return vs Industry: 1FD underperformed the German Specialty Retail industry which returned -25.4% over the past year.

Return vs Market: 1FD underperformed the German Market which returned -20.9% over the past year.


Shareholder returns

1FDIndustryMarket
7 Day-17.2%4.2%2.1%
30 Day-45.2%-17.9%-12.6%
90 Day-43.7%-33.3%-22.9%
1 Year-35.4%-35.4%-18.0%-19.8%-14.2%-16.6%
3 Yearn/a-39.9%-65.3%-14.8%-21.9%
5 Yearn/a-38.5%-69.4%-16.6%-27.8%

Price Volatility Vs. Market

How volatile is Floor & Decor Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Floor & Decor Holdings undervalued compared to its fair value and its price relative to the market?

20.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1FD (€25) is trading above our estimate of fair value (€12.38)

Significantly Below Fair Value: 1FD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1FD is poor value based on its PE Ratio (20.4x) compared to the Specialty Retail industry average (7.3x).

PE vs Market: 1FD is poor value based on its PE Ratio (20.4x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: 1FD is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: 1FD is overvalued based on its PB Ratio (4.1x) compared to the DE Specialty Retail industry average (0.7x).


Next Steps

Future Growth

How is Floor & Decor Holdings forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1FD's forecast earnings growth (5.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: 1FD's earnings (5.7% per year) are forecast to grow slower than the German market (14.1% per year).

High Growth Earnings: 1FD's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1FD's revenue (14.7% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: 1FD's revenue (14.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1FD's Return on Equity is forecast to be low in 3 years time (15.1%).


Next Steps

Past Performance

How has Floor & Decor Holdings performed over the past 5 years?

35.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1FD has high quality earnings.

Growing Profit Margin: 1FD's current net profit margins (7.4%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: 1FD's earnings have grown significantly by 35.3% per year over the past 5 years.

Accelerating Growth: 1FD's earnings growth over the past year (29.3%) is below its 5-year average (35.3% per year).

Earnings vs Industry: 1FD earnings growth over the past year (29.3%) underperformed the Specialty Retail industry 36.2%.


Return on Equity

High ROE: 1FD's Return on Equity (19.7%) is considered low.


Next Steps

Financial Health

How is Floor & Decor Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1FD's short term assets ($701.5M) exceed its short term liabilities ($552.5M).

Long Term Liabilities: 1FD's short term assets ($701.5M) do not cover its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: 1FD's debt to equity ratio (18.7%) is considered satisfactory.

Reducing Debt: 1FD's debt to equity ratio has reduced from 54% to 18.7% over the past 5 years.

Debt Coverage: 1FD's debt is well covered by operating cash flow (143.5%).

Interest Coverage: 1FD's interest payments on its debt are well covered by EBIT (18.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Floor & Decor Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1FD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1FD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1FD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1FD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1FD's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average management tenure


CEO

Tom Taylor (53yo)

7.33s

Tenure

US$2,422,843

Compensation

Mr. Thomas V. Taylor, Jr., also known as Tom, has been the Chief Executive Officer of Floor & Decor Holdings, Inc (formerly FDO Holdings, Inc). since December 2012. He serves as Chief Executive Officer and ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD2.42M) is about average for companies of similar size in the German market ($USD3.30M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Taylor
CEO & Director7.33yrsUS$2.42mno data
Lisa Laube
President0.17yrUS$915.21k0.12% $3.6m
Trevor Lang
Executive VP & CFO9.25yrsUS$787.82k0.20% $5.8m
David Christopherson
Executive VP7.25yrsUS$1.68m0.053% $1.6m
Brian Robbins
Executive Vice President of Business Development Strategy7.25yrsUS$702.50k0.032% $944.1k
Matthew McConnell
Senior Manager of Investor Relationsno datano datano data
Wayne Hood
Vice President of Investor Relationsno datano datano data

7.3yrs

Average Tenure

53yo

Average Age

Experienced Management: 1FD's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Taylor
CEO & Director7.33yrsUS$2.42mno data
John Roth
Independent Director9.42yrsno datano data
Brad Brutocao
Independent Director9.42yrsno datano data
Peter Starrett
Independent Director9.42yrsUS$67.50k0.18% $5.4m
David Kaplan
Independent Director9.5yrsno datano data
Felicia Thornton
Independent Director3yrsUS$75.00k0.0092% $272.0k
Michael Fung
Independent Director3yrsUS$85.00k0.0067% $197.3k
Norman Axelrod
Independent Chairman of the Board8.33yrsUS$150.00k0.58% $17.0m
George West
Vice Chairman of the Board7.33yrsUS$100.00k0.72% $21.3m
Rachel Lee
Independent Director4.5yrsno datano data

7.8yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 1FD's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.8%.


Top Shareholders

Company Information

Floor & Decor Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Floor & Decor Holdings, Inc.
  • Ticker: 1FD
  • Exchange: DB
  • Founded: 2000
  • Industry: Home Improvement Retail
  • Sector: Retail
  • Market Cap: US$3.173b
  • Listing Market Cap: US$2.941b
  • Shares outstanding: 102.29m
  • Website: https://www.flooranddecor.com

Number of Employees


Location

  • Floor & Decor Holdings, Inc.
  • 2500 Windy Ridge Parkway SE
  • Atlanta
  • Georgia
  • 30339
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FNDNYSE (New York Stock Exchange)YesClass A Common StockUSUSDApr 2017
1FDDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2017

Biography

Floor & Decor Holdings, Inc. operates as a multi-channel specialty retailer of hard surface flooring and related accessories. The company’s stores offer tile, wood, laminate, vinyl, and natural stone flooring products, as well as decorative and installation accessories. It serves professional installers, commercial businesses, and do it yourself customers. As of December 26, 2019, the company operated 120 warehouse-format stores in 30 states in the United States. Floor & Decor Holdings, Inc. also sells products through its Website, FloorandDecor.com. The company was formerly known as FDO Holdings, Inc. and changed its name to Floor & Decor Holdings, Inc. in April 2017. Floor & Decor Holdings, Inc. was founded in 2000 and is headquartered in Atlanta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 00:36
End of Day Share Price2020/04/06 00:00
Earnings2019/12/26
Annual Earnings2019/12/26


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.