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FND

Floor & Decor Holdings NYSE:FND Stock Report

Last Price

US$94.03

Market Cap

US$10.0b

7D

1.2%

1Y

-19.2%

Updated

13 Aug, 2022

Data

Company Financials +
FND fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health5/6
Dividends0/6

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.

Floor & Decor Holdings, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Floor & Decor Holdings
Historical stock prices
Current Share PriceUS$94.03
52 Week HighUS$145.89
52 Week LowUS$59.91
Beta1.85
1 Month Change29.84%
3 Month Change31.57%
1 Year Change-19.23%
3 Year Change114.78%
5 Year Change182.46%
Change since IPO193.39%

Recent News & Updates

Aug 09

Floor & Decor: Buffett Isn't The Only Reason I Like It

Floor & Decor is down 29% in 2022 compared to the S&P 500's slide of 13%. Floor & Decor is a profitable growth company with a reasonable path to $15 billion in revenue and 500 stores by 2029. There's a lot to like about Floor & Decor aside from the fact Buffett owns a stake. Floor & Decor has a good chance of providing market-beating returns to patient investors over the next several years. Investment Thesis Floor & Decor (FND) has received a lot of press over the past couple years after Berkshire Hathaway (BRK.A) (BRK.B) disclosed a stake in the specialty retailer of hard surface flooring and accessories. Personally, I'm of the opinion it wasn't Warren Buffett himself who initiated the position in Floor & Decor but was most likely one of his portfolio managers. Regardless, the fact Berkshire thought enough of Floor & Decor to add it to the portfolio is definitely a vote of confidence. There's a lot to like about Floor & Decor aside from the fact Buffett has a stake. Over the past 10 years, the company has grown revenue at a 28.7% CAGR and EPS at a 42.4% CAGR. Floor & Decor continues to open additional warehouse stores with a target of 500 total (US) over the next 8-10 years. Currently, Floor & Decor operates 174 warehouse stores which leaves a long runway for growth. Shares are down 29% in 2022 compared to the S&P 500's slide of 13%. From a P/E perspective, Floor & Decor hasn't been this cheap since 2018, aside from the COVID-induced flash crash of 2020. Investors with a multi-year time horizon may consider Floor & Decor's 2022 slump an opportunity to pick up a profitable growth company at a reasonable price. FND data by YCharts The Differentiator Floor & Decor stands out from the competition by dedicating more floor space to its focused product - hard surface flooring. The company's warehouse stores average 78,000 square feet and are fully dedicated to tile, wood, laminate, vinyl, and natural stone flooring along with decorative and installation accessories. To put it in perspective, Lowe's (LOW) stores average around 115,000 square feet. So, imagine filling 70% of a Lowe's store with hard surface flooring and you'll get a good sense of what Floor & Decor looks like. For those who have shopped at Sam's Club or Costco (COST), what impact does buying in bulk have on your wallet? It saves you money. Sam's and Costco are able to offer products cheaper than the competition because 1) they operate a membership model and don't waste money on expensive advertising, etc... and 2) because they buy in bulk (and offer products in bulk). This is similar to Floor & Decor's model minus the membership fee. With each store averaging around 78,000 square feet dedicated to hard surface flooring, Floor & Decor has to order a lot of products. And with a lot of products comes improved pricing per item based on quantity ordered. The result - Floor & Decor is able to offer the widest selection (in stock) of products at competitive, if not cheaper, prices compared its competition. A Dedicated Focus on Pro Customers A key differentiator between Home Depot (HD) and Lowe's is Home Depot has done a better job acquiring the Pro customer. Floor & Decor is following in Home Depot's footsteps with a dedicated focus on Pros who shop more frequently and spend more per ticket. Indeed, continuing to invest in the Pro and Commercial customer is one of Floor & Decor's five pillars of growth. FND Pillars of Growth (FND IR Website) The company speaks in detail on their strategy and focus on acquiring and retaining the Pro customer. Here's an excerpt from Floor & Decor's IR website. We believe our differentiated focus on Pro customers has created a competitive advantage for us and will continue to drive our net sales growth. We will invest in gaining and retaining Pro customers due to their frequent and high-ticket purchases, loyalty, and propensity to refer other potential customers. We have made important investments in the Pro services regional team, including the additional Regional Pro Directors, to better recruit and train the Pro services team in each store. We have also invested in technology, such as an integrated CRM, to help us further penetrate and grow our Pro business, dedicated phone lines for our Pro customers to call and text, commercial credit and open account terms, jobsite delivery, a dedicated website for Pro customers, a growing and successful Pro loyalty program, training on technical flooring installation solutions, and tools to facilitate large commercial jobs sourced throughout the store. A Roadmap For Growth I appreciate a company that establishes long-term goals for itself and communicates those goals to shareholders. Floor & Decor has communicated the following long-term goals to shareholders: $17 billion in revenue and 500 warehouse stores in the US (174 stores currently) within 8-10 years 20% growth in store count annually At least 20% revenue CAGR 2022-2024 Doubling adjusted operating income between 2021 and 2024 (~25% CAGR) Adjusted EBITDA margin in the mid-teens CEO Tom Taylor made the following remark during the Q2 2022 earnings call. We are enthusiastic about continuing to partner with Trevor as we execute our long-term plan towards $17 billion in sales and 500 stores. Forecasting Revenue Growth Based on history and using a conservative estimate, I believe Floor & Decor has a good chance of hitting $15 billion in revenue by 2029 assuming they continue adding 15% to their total store count each year. Reminder, their goal is to add 20% to total store count annually. FND Revenue Past & Futures (Author's personal data)

Jul 29
Do Floor & Decor Holdings' (NYSE:FND) Earnings Warrant Your Attention?

Do Floor & Decor Holdings' (NYSE:FND) Earnings Warrant Your Attention?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

FNDUS Specialty RetailUS Market
7D1.2%5.6%3.2%
1Y-19.2%-28.4%-10.1%

Return vs Industry: FND exceeded the US Specialty Retail industry which returned -28.4% over the past year.

Return vs Market: FND underperformed the US Market which returned -10.1% over the past year.

Price Volatility

Is FND's price volatile compared to industry and market?
FND volatility
FND Average Weekly Movement9.4%
Specialty Retail Industry Average Movement9.0%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

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

FoundedEmployeesCEOWebsite
20007,593Tom Taylorhttps://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, Inc. Fundamentals Summary

How do Floor & Decor Holdings's earnings and revenue compare to its market cap?
FND fundamental statistics
Market CapUS$9.97b
Earnings (TTM)US$277.30m
Revenue (TTM)US$3.91b

36.0x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FND income statement (TTM)
RevenueUS$3.91b
Cost of RevenueUS$2.32b
Gross ProfitUS$1.59b
Other ExpensesUS$1.32b
EarningsUS$277.30m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.62
Gross Margin40.74%
Net Profit Margin7.09%
Debt/Equity Ratio17.8%

How did FND perform over the long term?

See historical performance and comparison