Last Updated: 16 Sep 2024
Executive Summary
Floor & Decor Holdings Inc. (FND) is a leading specialty retailer of hard surface flooring and related accessories. The company's strong financial performance, including consistent revenue growth, expanding margins, and solid profitability, has driven its stock price to $116.63. Despite recent headwinds, analysts remain optimistic about FND's long-term prospects, with a consensus target price of $98.8.
Company Overview
Floor & Decor is headquartered in Atlanta, Georgia, and operates over 170 stores in 33 states. The company offers a wide range of flooring products, including hardwood, laminate, tile, and vinyl, as well as installation services and accessories. FND's target market includes homeowners, contractors, and businesses.
Fundamental Analysis
Revenue: FND's revenue has grown steadily over the past several years, reaching $4.39 billion in the trailing twelve months (TTM).
Profitability: The company's gross profit margin has expanded to 40.0%, while its operating margin has improved to 6.2%.
Earnings: Diluted EPS for the TTM period was $1.94, representing a 58.72% increase over the previous year.
Valuation: FND's current P/E ratio of 58.72 is above the industry average, indicating that investors are willing to pay a premium for its growth potential.
Technical Analysis
Trend: The stock price has been trending higher over the past year, with a recent pullback.
Support and Resistance: Key support levels are at $100.92 (50-day moving average) and $109.63 (200-day moving average). Resistance levels are at $135.67 (52-week high) and $98.8 (analyst target price).
Indicators: The Relative Strength Index (RSI) is currently at 48.8, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, FND's stock price may face some volatility due to market conditions and the impact of the ongoing pandemic. However, the company's strong fundamentals and positive analyst sentiment suggest that the stock has the potential to recover and continue its upward trend.
Long Term Outlook
Analysts are generally optimistic about FND's long-term prospects. The company's growing market share, expanding product offerings, and focus on customer service are expected to drive continued growth. Additionally, the increasing demand for home renovations and the potential for international expansion provide significant upside potential.
Analyst Recommendations
Of the 26 analysts covering FND, 6 have a "Strong Buy" rating, 1 has a "Buy" rating, 16 have a "Hold" rating, 2 have a "Sell" rating, and 0 have a "Strong Sell" rating. The consensus target price is $98.8, representing a potential upside of 15.2% from the current price.
