NasdaqGS:TILE

Stock Analysis Report

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Executive Summary

Interface, Inc., a modular flooring company, designs, produces, and sells modular carpet products primarily in the Americas, Europe, and the Asia-Pacific.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Interface's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.2%

TILE

1.5%

US Commercial Services

1.5%

US Market


1 Year Return

-52.2%

TILE

-5.4%

US Commercial Services

6.9%

US Market

Return vs Industry: TILE underperformed the US Commercial Services industry which returned -6.9% over the past year.

Return vs Market: TILE underperformed the US Market which returned 5.3% over the past year.


Shareholder returns

TILEIndustryMarket
7 Day-1.2%1.5%1.5%
30 Day-15.3%1.8%5.9%
90 Day-11.9%16.5%17.9%
1 Year-51.2%-52.2%-3.9%-5.4%9.2%6.9%
3 Year-60.3%-62.1%36.4%28.0%36.4%27.5%
5 Year-68.3%-70.4%76.8%58.8%64.9%47.0%

Price Volatility Vs. Market

How volatile is Interface's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Interface undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TILE ($7.2) is trading below our estimate of fair value ($16.84)

Significantly Below Fair Value: TILE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TILE is unprofitable, so we can't compare its PE Ratio to the US Commercial Services industry average.

PE vs Market: TILE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TILE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TILE is overvalued based on its PB Ratio (1.8x) compared to the US Commercial Services industry average (1.4x).


Next Steps

Future Growth

How is Interface forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

53.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TILE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: TILE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TILE's is expected to become profitable in the next 3 years.

Revenue vs Market: TILE's revenue (3.6% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: TILE's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TILE's Return on Equity is forecast to be high in 3 years time (21.4%)


Next Steps

Past Performance

How has Interface performed over the past 5 years?

-6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TILE is currently unprofitable.

Growing Profit Margin: TILE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TILE is unprofitable, and losses have increased over the past 5 years at a rate of -6.8% per year.

Accelerating Growth: Unable to compare TILE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TILE is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (4.7%).


Return on Equity

High ROE: TILE has a negative Return on Equity (-12.58%), as it is currently unprofitable.


Next Steps

Financial Health

How is Interface's financial position?


Financial Position Analysis

Short Term Liabilities: TILE's short term assets ($533.9M) exceed its short term liabilities ($230.3M).

Long Term Liabilities: TILE's short term assets ($533.9M) do not cover its long term liabilities ($818.1M).


Debt to Equity History and Analysis

Debt Level: TILE's debt to equity ratio (268.9%) is considered high.

Reducing Debt: TILE's debt to equity ratio has increased from 87.7% to 268.9% over the past 5 years.

Debt Coverage: TILE's debt is well covered by operating cash flow (21.5%).

Interest Coverage: TILE is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Interface current dividend yield, its reliability and sustainability?

0.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TILE's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: TILE's dividend (0.56%) is low compared to the top 25% of dividend payers in the US market (4.59%).


Stability and Growth of Payments

Stable Dividend: TILE is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: TILE is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: TILE is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

Dan Hendrix (65yo)

0.50

Tenure

US$2,459,838

Compensation

Mr. Daniel T. Hendrix, also known as Dan, serves as President and Chief Executive Officer at Interface, Inc. since January 20, 2020. He serves as the Chief Executive Officer and President of InterfaceFLOR  ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD2.46M) is about average for companies of similar size in the US market ($USD2.16M).

Compensation vs Earnings: Dan's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Hendrix
President0.50yrUS$2.46m0.34% $1.4m
Bruce Hausmann
VP, CFO & Treasurer3.25yrsUS$1.58m0.16% $688.8k
David Foshee
VP, General Counsel & Secretary3.5yrsUS$1.11m0.16% $672.6k
Nigel Stansfield
President of Interface Europe8.33yrsUS$1.24m0.13% $530.5k
Robert Pridgen
VP & Chief Accounting Officer0.17yrno datano data
John Bradford
VP & Chief Science and Technology Officer0.50yrno datano data
Jake Elson
VP & Chief Information Officer0.50yrno datano data
Christine Needles
Global Head of Corporate Communicationsno datano datano data
Lisa King
Vice President of Marketing & Innovation0.42yrno datano data
Greg Minano
VP & Chief Human Resources Officer0.42yrno datano data
Erin Meezan
Chief Sustainability Officer and Vice President3.5yrsno datano data
Chip DeGrace
Chief Design Officer3.83yrsno datano data

0.5yrs

Average Tenure

50yo

Average Age

Experienced Management: TILE's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Daniel Hendrix
President0.50yrUS$2.46m0.34% $1.4m
Christopher Kennedy
Lead Independent Directorno dataUS$211.88k0.26% $1.1m
K. Kohler
Independent Director13.75yrsUS$189.38k0.12% $493.2k
John Burke
Independent Director7yrsUS$189.38k0.073% $306.1k
Catherine Kilbane
Independent Director2yrsUS$189.21k0.039% $165.8k
Sheryl Palmer
Independent Director4.75yrsUS$204.38k0.057% $240.9k
Joseph Keough
Independent Director0.92yrUS$26.67k0.033% $140.2k
Dwight Audley Gibson
Independent Director0.92yrUS$26.67k0.033% $140.2k

4.8yrs

Average Tenure

56yo

Average Age

Experienced Board: TILE's board of directors are considered experienced (4.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Interface, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Interface, Inc.
  • Ticker: TILE
  • Exchange: NasdaqGS
  • Founded: 1973
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Market Cap: US$421.036m
  • Shares outstanding: 58.48m
  • Website: https://www.interface.com

Number of Employees


Location

  • Interface, Inc.
  • 1280 West Peachtree Street NW
  • Atlanta
  • Georgia
  • 30309
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TILENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1983
IF6NDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1983
TILE *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 1983

Biography

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 band 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, Brazil, Denmark, England, France, Germany, Spain, the Netherlands, India, Australia, Norway, the United Arab Emirates, Russia, Singapore, Hong Kong, Thailand, China, and others. Interface, Inc. was founded in 1973 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 Analysis2020/07/15 00:08
End of Day Share Price2020/07/14 00:00
Earnings2020/04/05
Annual Earnings2019/12/29


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.