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

Fundamentals

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


Market Performance


7 Day Return

2.5%

FND

3.7%

US Specialty Retail

1.0%

US Market


1 Year Return

75.8%

FND

2.7%

US Specialty Retail

6.7%

US Market

Return vs Industry: FND exceeded the US Specialty Retail industry which returned 2.7% over the past year.

Return vs Market: FND exceeded the US Market which returned 6.7% over the past year.


Share holder returns

FNDIndustryMarket
7 Day2.5%3.7%1.0%
30 Day0.1%0.04%-1.8%
90 Day16.1%0.7%-1.8%
1 Year75.8%75.8%4.4%2.7%9.1%6.7%
3 Yearn/a40.0%32.8%46.1%36.6%
5 Yearn/a59.2%45.2%66.9%48.6%

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

40.27x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: FND ($48.92) is trading above our estimate of fair value ($23.95)

Significantly Undervalued: FND is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: FND is poor value based on its PE Ratio (40.3x) compared to the Specialty Retail industry average (15.3x).

PE vs Market: FND is poor value based on its PE Ratio (40.3x) compared to the US market (17.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: FND is overvalued based on its PB Ratio (7.2x) compared to the US Specialty Retail industry average (1.3x).


Next Steps

Future Growth

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

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: FND's forecast earnings growth (18.5% per year) is above the savings rate (2.7%).

Earnings vs Market: FND's earnings (18.5% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: FND's revenue (17.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: FND's revenue (17.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: FND's Return on Equity is forecast to be low in 3 years time (17.5%).


Next Steps

Past Performance

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

39.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FND's earnings have grown significantly by 39.2% 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 (-16.8%) over the past year, making it difficult to compare to the Specialty Retail industry average (8.3%).


Return on Equity

High ROE: FND's Return on Equity (17.7%) is considered low.


Return on Assets

ROA vs Industry: FND has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Floor & Decor Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: FND's short term assets ($564.0M) exceeds its short term liabilities ($424.6M)

Long Term Liabilities: FND's short term assets (564.0M) do not cover its long term liabilities (915.6M)


Debt to Equity History and Analysis

Debt Level: FND's debt to equity ratio (21.5%) is considered satisfactory

Reducing Debt: FND's debt to equity ratio has reduced from 43.8% to 21.5% over the past 5 years.

Debt Coverage: FND's debt is well covered by operating cash flow (155.5%).

Interest Coverage: FND's interest payments on its debt are well covered by EBIT (14.1x 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 3.917580x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage3.5%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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?

6.8yrs

Average management tenure


CEO

Tom Taylor (53yo)

6.8yrs

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: Insufficient data to establish whether Tom's total compensation is reasonable compared to companies of similar size in the US market.

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


Management Age and Tenure

6.8yrs

Average Tenure

53yo

Average Age

Experienced Management: FND's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: FND's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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 & Co. Incorporated
EntityCompany
Shares3,500,000
Max PriceUS$43.00
SellUS$121,372,46304 Mar 19
Freeman Spogli & Co. Incorporated
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


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: 6.8yrs
    • Compensation: US$3.72m
  • Matthew McConnell

    Senior Manager of Investor Relations

    • Tenure: 0yrs

Board Members

  • John Roth (60yo)

    Independent Director

    • Tenure: 8.9yrs
  • Brad Brutocao (45yo)

    Independent Director

    • Tenure: 8.9yrs
  • Peter Starrett (71yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$132.50k
  • David Kaplan (52yo)

    Independent Director

    • Tenure: 9yrs
  • Felicia Thornton (55yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$132.50k
  • Mike Fung (69yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$140.00k
  • Norman Axelrod (67yo)

    Independent Chairman of the Board

    • Tenure: 7.8yrs
    • Compensation: US$215.00k
  • Tom Taylor (53yo)

    CEO & Director

    • Tenure: 6.8yrs
    • Compensation: US$3.72m
  • George West (65yo)

    Vice Chairman of the Board

    • Tenure: 6.8yrs
    • Compensation: US$200.00k
  • Rachel Lee (35yo)

    Independent Director

    • Tenure: 4yrs

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$4.873b
  • Shares outstanding: 99.61m
  • 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 Analysis2019/10/14 03:09
End of Day Share Price2019/10/11 00:00
Earnings2019/06/27
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.

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