NYSE:FND

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

Excellent balance sheet with moderate growth potential.


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: FND has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

FND

1.2%

US Specialty Retail

0.9%

US Market


1 Year Return

33.7%

FND

19.5%

US Specialty Retail

16.8%

US Market

Return vs Industry: FND exceeded the US Specialty Retail industry which returned 19.5% over the past year.

Return vs Market: FND exceeded the US Market which returned 16.8% over the past year.


Shareholder returns

FNDIndustryMarket
7 Day-3.6%1.2%0.9%
30 Day-2.3%2.6%4.5%
90 Day-6.9%8.4%6.2%
1 Year33.7%33.7%21.5%19.5%19.4%16.8%
3 Yearn/a34.4%27.5%47.5%38.0%
5 Yearn/a47.2%34.6%62.0%44.1%

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

Valuation

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

32.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FND ($43.76) is trading above our estimate of fair value ($23.26)

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


Price To Earnings Ratio

PE vs Industry: FND is poor value based on its PE Ratio (32.4x) compared to the Specialty Retail industry average (15.8x).

PE vs Market: FND is poor value based on its PE Ratio (32.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: FND is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: FND is overvalued based on its PB Ratio (6.1x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

Future Growth

How is Floor & Decor Holdings forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FND's forecast earnings growth (14.5% per year) is above the savings rate (2.7%).

Earnings vs Market: FND's earnings (14.5% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: FND's revenue (17% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: FND's revenue (17% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FND's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

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

36.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FND has high quality earnings.

Growing Profit Margin: FND's current net profit margins (6.8%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: FND's earnings have grown significantly by 36.8% per year over the past 5 years.

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

Earnings vs Industry: FND had negative earnings growth (-8.9%) over the past year, making it difficult to compare to the Specialty Retail industry average (5.6%).


Return on Equity

High ROE: FND's Return on Equity (18.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Floor & Decor Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: FND's short term assets ($643.7M) exceeds its short term liabilities ($492.4M)

Long Term Liabilities: FND's short term assets ($643.7M) do not cover its long term liabilities (941.4M)


Debt to Equity History and Analysis

Debt Level: FND's debt to equity ratio (19.8%) is considered satisfactory.

Reducing Debt: FND's debt to equity ratio has reduced from 45.3% to 19.8% over the past 5 years.

Debt Coverage: FND's debt is well covered by operating cash flow (175.5%).

Interest Coverage: FND's interest payments on its debt are well covered by EBIT (14.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: FND's debt is covered by short term assets (assets are 4.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate FND'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 FND's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FND'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 FND's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Floor & Decor Holdings's salary, the management and board of directors tenure and is there insider trading?

6.9yrs

Average management tenure


CEO

Tom Taylor (53yo)

6.9yrs

Tenure

US$3,723,308

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 ($USD3.72M) is about average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

6.9yrs

Average Tenure

53yo

Average Age

Experienced Management: FND's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

7.4yrs

Average Tenure

57.5yo

Average Age

Experienced Board: FND's board of directors are considered experienced (7.4 years average tenure).


Insider Trading

Insider Buying: FND insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$311,230,88618 Nov 19
Ares Management LLC
EntityCompany
Shares7,105,728
Max PriceUS$43.80
SellUS$2,571,72006 Nov 19
American West Investment Corporation
EntityCompany
Shares58,000
Max PriceUS$44.34
SellUS$1,551,55006 Nov 19
George West
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares35,000
Max PriceUS$44.33
SellUS$2,447,00026 Aug 19
American West Investment Corporation
EntityCompany
Shares50,000
Max PriceUS$48.94
SellUS$150,500,00009 Aug 19
Freeman Spogli Management Co., L.P.
EntityCompany
Shares3,500,000
Max PriceUS$43.00
SellUS$121,372,46304 Mar 19
Freeman Spogli Management Co., L.P.
EntityCompany
Shares3,236,599
Max PriceUS$37.50
SellUS$250,252,53804 Mar 19
Ares Management LLC
EntityCompany
Shares6,673,401
Max PriceUS$37.50
BuyUS$98,33201 Mar 19
Felicia Thornton
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,600
Max PriceUS$37.82

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Management Team

  • Lisa Laube (56yo)

    Executive VP & Chief Merchandising Officer

    • Tenure: 7.8yrs
    • Compensation: US$1.39m
  • Trevor Lang (48yo)

    Executive VP & CFO

    • Tenure: 8.8yrs
    • Compensation: US$1.23m
  • Wayne Hood

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Brian Robbins (62yo)

    Executive Vice President of Business Development Strategy

    • Tenure: 6.8yrs
    • Compensation: US$944.74k
  • David Christopherson (44yo)

    Executive VP

    • Tenure: 6.8yrs
    • Compensation: US$1.18m
  • Tom Taylor (53yo)

    CEO & Director

    • Tenure: 6.9yrs
    • Compensation: US$3.72m
  • Matthew McConnell

    Senior Manager of Investor Relations

    • Tenure: 0yrs

Board Members

  • John Roth (60yo)

    Independent Director

    • Tenure: 9yrs
  • Brad Brutocao (45yo)

    Independent Director

    • Tenure: 9yrs
  • Peter Starrett (71yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$132.50k
  • David Kaplan (52yo)

    Independent Director

    • Tenure: 9.1yrs
  • Felicia Thornton (55yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$132.50k
  • Mike Fung (69yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$140.00k
  • Norman Axelrod (67yo)

    Independent Chairman of the Board

    • Tenure: 7.9yrs
    • Compensation: US$215.00k
  • Tom Taylor (53yo)

    CEO & Director

    • Tenure: 6.9yrs
    • Compensation: US$3.72m
  • George West (65yo)

    Vice Chairman of the Board

    • Tenure: 6.9yrs
    • Compensation: US$200.00k
  • Rachel Lee (35yo)

    Independent Director

    • Tenure: 4.1yrs

Company Information

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


Key Information

  • Name: Floor & Decor Holdings, Inc.
  • Ticker: FND
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Home Improvement Retail
  • Sector: Retail
  • Market Cap: US$4.422b
  • Shares outstanding: 101.06m
  • Website: https://www.flooranddecor.com

Number of Employees


Location

  • Floor & Decor Holdings, Inc.
  • 2233 Lake Park Drive
  • Smyrna
  • Georgia
  • 30080
  • 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 floor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 00:31
End of Day Share Price2019/11/20 00:00
Earnings2019/09/26
Annual Earnings2018/12/27


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.