Floor & Decor Holdings (NYSE:FND) - Share price, News & Analysis

Q: What is the Fair Price of FND when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

FND ($64.97) is trading below our estimate of [[fair value]] ($155.66)

FND fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	1/6
Financial Health	5/6
Dividends	0/6

FND Stock Overview

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

Rewards

Trading at 58.3% below our estimate of its fair value

Earnings are forecast to grow 20.21% per year

Earnings have grown 27.7% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Floor & Decor Holdings Competitors

Lowe's Companies

NYSE:LOW

US$113.4b

LL Flooring Holdings

NYSE:LL

US$290.3m

Five Below

NasdaqGS:FIVE

US$6.3b

Lithia Motors

NYSE:LAD

US$8.1b

Price History & Performance

Summary of all time highs, changes and price drops for Floor & Decor Holdings
Historical stock prices
Current Share Price	US$64.97
52 Week High	US$145.89
52 Week Low	US$59.91
Beta	1.76
1 Month Change	-17.24%
3 Month Change	-18.97%
1 Year Change	-38.53%
3 Year Change	54.87%
5 Year Change	64.07%
Change since IPO	102.72%

Recent News & Updates

Jul 03

Floor & Decor Holdings (NYSE:FND) Might Be Having Difficulty Using Its Capital Effectively

What are the early trends we should look for to identify a stock that could multiply in value over the long term? In a...

Jun 24

Floor & Decor: Targeting A Potential Double In The Next Year

FND has been decimated this year. However, the stock looks like it's bottoming. Fears of a recession have driven FND's valuation too low, and I see tremendous upside potential.

Jun 06

We Think Floor & Decor Holdings (NYSE:FND) Can Stay On Top Of Its Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

May 17

Floor & Decor: Recent Correction Is A Buying Opportunity

Floor & Decor’s growth initiatives look promising. With the economy reopening, the strong backlog of PRO business and commercial projects should come into play. The valuation seems to be attractive at the current levels and long-term investors can consider buying the stock.

May 11

Floor & Decor Holdings, Inc. (NYSE:FND) Shares Could Be 48% Below Their Intrinsic Value Estimate

Today we will run through one way of estimating the intrinsic value of Floor & Decor Holdings, Inc. ( NYSE:FND ) by...

Shareholder Returns

	FND	US Specialty Retail	US Market
7D	-10.9%	-7.9%	-2.5%
1Y	-38.5%	-32.6%	-21.2%

Return vs Industry: FND underperformed the US Specialty Retail industry which returned -32.6% over the past year.

Return vs Market: FND underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is FND's price volatile compared to industry and market?
FND volatility
FND Average Weekly Movement	8.8%
Specialty Retail Industry Average Movement	8.8%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.3%

Stable Share Price: FND is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: FND's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2000	7,593	Tom Taylor	https://www.flooranddecor.com

Floor & Decor Holdings, Inc. operates as a multi-channel specialty retailer and commercial flooring distributor 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.

Floor & Decor Holdings Fundamentals Summary

How do Floor & Decor Holdings's earnings and revenue compare to its market cap?
FND fundamental statistics
Market Cap	US$6.88b
Earnings (TTM)	US$278.39m
Revenue (TTM)	US$3.68b

24.7x

P/E Ratio

1.9x

P/S Ratio

Is FND overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FND income statement (TTM)
Revenue	US$3.68b
Cost of Revenue	US$2.16b
Gross Profit	US$1.52b
Other Expenses	US$1.24b
Earnings	US$278.39m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.63
Gross Margin	41.34%
Net Profit Margin	7.57%
Debt/Equity Ratio	14.1%

How did FND perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is FND undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FND?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for FND. This is calculated by dividing FND's market cap by their current preferred multiple.
What is FND's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$6.88b

FND key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.3x
Enterprise Value/EBITDA	17.8x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does FND's PE Ratio compare to its peers?

FND PE Ratio vs Peers

The above table shows the PE ratio for FND vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	13x
LOW Lowe's Companies	13.5x	4.3%	US$113.4b
LL LL Flooring Holdings	8.3x	12.7%	US$290.3m
FIVE Five Below	23.9x	19.0%	US$6.3b
LAD Lithia Motors	6.5x	7.9%	US$8.1b
FND Floor & Decor Holdings	24.7x	20.2%	US$6.9b

Forward PE

Price-To-Earnings vs Peers: FND is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the peer average (13x).

Price to Earnings Ratio vs Industry

How does FND's PE Ratio compare vs other companies in the US Specialty Retail Industry?

Price-To-Earnings vs Industry: FND is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the US Specialty Retail industry average (6x)

Price to Earnings Ratio vs Fair Ratio

What is FND's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FND PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.7x
Fair PE Ratio	18.3x

Price-To-Earnings vs Fair Ratio: FND is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).

Share Price vs Fair Value

What is the Fair Price of FND when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FND ($64.97) is trading below our estimate of fair value ($155.66)

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

Price to Earnings Growth Ratio

PEG Ratio: FND is poor value based on its PEG Ratio (1.2x)

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Future Growth

How is Floor & Decor Holdings forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

20.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FND's forecast earnings growth (20.2% per year) is above the savings rate (1.9%).

Earnings vs Market: FND's earnings (20.2% per year) are forecast to grow faster than the US market (13.6% per year).

High Growth Earnings: FND's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FND's revenue (17.3% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: FND's revenue (17.3% 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 (19.8%).

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Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

27.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FND has a high level of non-cash earnings.

Growing Profit Margin: FND's current net profit margins (7.6%) are lower than last year (8.8%).

Past Earnings Growth Analysis

Earnings Trend: FND's earnings have grown significantly by 27.7% per year over the past 5 years.

Accelerating Growth: FND's earnings growth over the past year (19.3%) is below its 5-year average (27.7% per year).

Earnings vs Industry: FND earnings growth over the past year (19.3%) underperformed the Specialty Retail industry 40.3%.

Return on Equity

High ROE: FND's Return on Equity (19.9%) is considered low.

Discover strong past performing companies

Financial Health

How is Floor & Decor Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: FND's short term assets ($1.3B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: FND's short term assets ($1.3B) do not cover its long term liabilities ($1.4B).

Debt to Equity History and Analysis

Debt Level: FND's net debt to equity ratio (11.8%) is considered satisfactory.

Reducing Debt: FND's debt to equity ratio has reduced from 232.6% to 14.1% over the past 5 years.

Debt Coverage: FND's debt is well covered by operating cash flow (99.9%).

Interest Coverage: FND's interest payments on its debt are well covered by EBIT (72.2x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FND has not reported any payouts.

Discover strong dividend paying companies

Management

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

9.5yrs

Average management tenure

CEO

Tom Taylor (56 yo)

9.58yrs

Tenure

US$5,143,661

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 ($USD5.14M) is below average for companies of similar size in the US market ($USD8.35M).

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

Leadership Team

Experienced Management: FND's management team is seasoned and experienced (9.5 years average tenure).

Board Members

Experienced Board: FND's board of directors are considered experienced (5.3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: FND 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.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/30