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

Average dividend payer and fair value.


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

16.4%

NasdaqGS:TILE

-1.2%

US Commercial Services

1.2%

US Market


1 Year Return

-43.3%

NasdaqGS:TILE

3.4%

US Commercial Services

1.7%

US Market

TILE underperformed the Commercial Services industry which returned 3.4% over the past year.

TILE underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

TILEIndustryMarket
7 Day16.4%-1.2%1.2%
30 Day22.6%0.7%4.9%
90 Day-12.8%-0.4%3.7%
1 Year-42.3%-43.3%7.3%3.4%3.9%1.7%
3 Year-18.3%-21.7%65.3%54.1%47.2%37.7%
5 Year-15.2%-20.3%97.7%77.8%60.0%42.4%

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 based on future cash flows and its price relative to the stock market?

39%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Interface's share price is below the future cash flow value, and at a moderate discount (> 20%).

Interface's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Interface is good value based on earnings compared to the US Commercial Services industry average.

Interface is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Interface is poor value based on expected growth next year.


Price Based on Value of Assets

Interface is overvalued based on assets compared to the US Commercial Services industry average.


Next Steps

Future Growth

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

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Interface's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).

Interface's earnings are expected to grow by 12.4% yearly, however this is not considered high growth (20% yearly).

Interface's revenue growth is positive but not above the United States of America market average.

Interface's earnings growth is positive but not above the United States of America market average.

Interface's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Interface is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Interface's year on year earnings growth rate has been positive over the past 5 years.

Interface's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Interface's 1-year earnings growth is negative, it can't be compared to the US Commercial Services industry average.


Return on Equity

Interface has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Interface used its assets less efficiently than the US Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

Interface's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Interface's financial position?


Financial Position Analysis

Interface is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Interface's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Interface's level of debt (192.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (78% vs 192.6% today).

Debt is not well covered by operating cash flow (15.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.95%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Interface's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Interface's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (7.3x coverage).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Jay Gould (60yo)

2.5yrs

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

Jay's remuneration is higher than average for companies of similar size in United States of America.

Jay's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.7yrs

Average Tenure

50yo

Average Age

The tenure for the Interface management team is about average.


Board Age and Tenure

6.2yrs

Average Tenure

56.5yo

Average Age

The tenure for the Interface board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jay Gould (60yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$5.10m
  • Chip DeGrace

    Chief Design Officer

    • Tenure: 3yrs
  • Erin Meezan

    Chief Sustainability Officer and Vice President

    • Tenure: 2.7yrs
  • Nigel Stansfield (51yo)

    President of Interface Europe

    • Tenure: 7.5yrs
    • Compensation: US$1.18m
  • Bruce Hausmann (49yo)

    VP & CFO

    • Tenure: 2.4yrs
    • Compensation: US$1.56m
  • Katy Owen (55yo)

    VP & Chief Human Resources Officer

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

    VP, General Counsel & Secretary

    • Tenure: 2.7yrs
  • Gregory Bauer (43yo)

    VP & Chief Accounting Officer (Leave of Absence)

    • Tenure: 1.9yrs
  • Christine Needles

    Global Head of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Daniel Hendrix (64yo)

    Non-Executive Chairman

    • Tenure: 7.9yrs
    • Compensation: US$746.47k
  • Jim Miller (79yo)

    Independent Director

    • Tenure: 19.3yrs
    • Compensation: US$166.39k
  • Chris Kennedy (55yo)

    Lead Independent Director

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

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$171.39k
  • K. Kohler (52yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$166.39k
  • John Burke (57yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$166.39k
  • Cathy Kilbane (55yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$61.49k
  • Jay Gould (60yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$5.10m
  • Sheryl Palmer (57yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$173.89k
  • Dwight Audley Gibson (44yo)

    Director

    • Tenure: 0.08yrs

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$777.159m
  • 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 Analysis2019/09/14 23:37
End of Day Share Price2019/09/13 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.