NasdaqGS:TILE

Stock Analysis Report

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

Fundamentals

Established dividend payer 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


Market Performance


7 Day Return

7.9%

TILE

1.6%

US Commercial Services

0.07%

US Market


1 Year Return

-21.3%

TILE

21.0%

US Commercial Services

8.9%

US Market

Return vs Industry: TILE underperformed the US Commercial Services industry which returned 21% over the past year.

Return vs Market: TILE underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

TILEIndustryMarket
7 Day7.9%1.6%0.07%
30 Day15.4%2.5%-0.3%
90 Day-1.7%2.9%-1.6%
1 Year-19.9%-21.3%25.6%21.0%11.3%8.9%
3 Year1.5%-2.7%74.2%62.3%46.3%36.8%
5 Year2.8%-3.4%103.5%83.0%62.1%44.3%

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?

32.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TILE ($15.38) is trading below our estimate of fair value ($22.84)

Significantly Below Fair Value: TILE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TILE is good value based on its PE Ratio (17.9x) compared to the Commercial Services industry average (25.5x).

PE vs Market: TILE is poor value based on its PE Ratio (17.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: TILE is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: TILE is overvalued based on its PB Ratio (2.6x) compared to the US Commercial Services industry average (1.9x).


Next Steps

Future Growth

How is Interface forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TILE's forecast earnings growth (12.5% per year) is above the savings rate (2.7%).

Earnings vs Market: TILE's earnings (12.5% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: TILE's revenue (2.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: TILE's revenue (2.2% 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 (20.7%)


Next Steps

Past Performance

How has Interface performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TILE's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: TILE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TILE had negative earnings growth (-14%) over the past year, making it difficult to compare to the Commercial Services industry average (-2.4%).


Return on Equity

High ROE: TILE's Return on Equity (14.5%) is considered low.


Return on Assets

ROA vs Industry: TILE's Return on Assets is below or equal to the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: TILE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Interface's financial position?


Financial Position Analysis

Short Term Liabilities: TILE's short term assets ($582.9M) exceeds its short term liabilities ($234.3M)

Long Term Liabilities: TILE's short term assets (582.9M) do not cover its long term liabilities (867.9M)


Debt to Equity History and Analysis

Debt Level: TILE's debt to equity ratio (192.6%) is considered high

Reducing Debt: TILE's debt to equity ratio has increased from 78% to 192.6% over the past 5 years.

Debt Coverage: TILE's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: TILE's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

Inventory Level: TILE has a high level of physical assets or inventory.

Debt Coverage by Assets: TILE's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

1.69%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years1.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TILE's dividend (1.69%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TILE's dividend (1.69%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: TILE's dividends per share have been stable in the past 10 years.

Growing Dividend: TILE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.3%), TILE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TILE's dividends in 3 years are forecast to be thoroughly covered by earnings (13.8% payout ratio).


Next Steps

Management

What is the CEO of Interface's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Jay Gould (60yo)

2.6yrs

Tenure

US$5,101,666

Compensation

Mr. Jay D. Gould has been the Chief Executive Officer of Interface, Inc. since March 3, 2017 and its President since January 2016. Mr. Gould served as the Chief Operating Officer of Interface, Inc. from Ja ...


CEO Compensation Analysis

Compensation vs. Market: Jay's total compensation ($USD5.10M) is about average for companies of similar size in the US market ($USD2.67M).

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


Management Age and Tenure

2.8yrs

Average Tenure

50yo

Average Age

Experienced Management: TILE's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

56.5yo

Average Age

Experienced Board: TILE's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: TILE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$673,33727 Sep 19
Christopher Kennedy
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares49,000
Max PriceUS$13.84

Ownership Breakdown


Management Team

  • Jay Gould (60yo)

    President

    • Tenure: 2.6yrs
    • Compensation: US$5.10m
  • Chip DeGrace

    Chief Design Officer

    • Tenure: 3.1yrs
  • Erin Meezan

    Chief Sustainability Officer and Vice President

    • Tenure: 2.8yrs
  • Nigel Stansfield (51yo)

    President of Interface Europe

    • Tenure: 7.6yrs
    • Compensation: US$1.18m
  • Bruce Hausmann (49yo)

    VP & CFO

    • Tenure: 2.5yrs
    • Compensation: US$1.56m
  • Katy Owen (55yo)

    VP & Chief Human Resources Officer

    • Tenure: 4.3yrs
  • David Foshee (48yo)

    VP, General Counsel & Secretary

    • Tenure: 2.8yrs
  • Gregory Bauer (43yo)

    VP & Chief Accounting Officer (Leave of Absence)

    • Tenure: 2yrs
  • Christine Needles

    Global Head of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Daniel Hendrix (64yo)

    Non-Executive Chairman

    • Tenure: 8yrs
    • Compensation: US$746.47k
  • Jim Miller (79yo)

    Independent Director

    • Tenure: 19.4yrs
    • Compensation: US$166.39k
  • Chris Kennedy (55yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$182.64k
  • Andrew Cogan (56yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$171.39k
  • K. Kohler (52yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$166.39k
  • John Burke (57yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$166.39k
  • Cathy Kilbane (55yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$61.49k
  • Jay Gould (60yo)

    President

    • Tenure: 2.6yrs
    • Compensation: US$5.10m
  • Sheryl Palmer (57yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$173.89k
  • Dwight Audley Gibson (44yo)

    Director

    • Tenure: 0.2yrs

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$898.700m
  • Shares outstanding: 58.43m
  • Website: https://www.interface.com

Number of Employees


Location

  • Interface, Inc.
  • 1280 West Peachtree Street NW
  • Midtown
  • 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 Inter ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:36
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/30


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.