Last Updated: 10 Nov 2024
Executive Summary
Floor & Decor Holdings Inc. (FND) is a leading multi-channel specialty retailer of hard surface flooring and related accessories. The company has a strong financial position with a market capitalization of $10.78 billion and an EBITDA of $473.37 million. FND's trailing price-to-earnings ratio of 55.83 is above the industry average, but its forward PE of 40.16 is more attractive. The stock price is currently trading at $100.49, below its 52-week high of $135.67 but above its 52-week low of $77.81.
Company Overview
Floor & Decor Holdings was founded in 2000 and is headquartered in Atlanta, Georgia. The company operates over 150 stores in 33 states and employs approximately 8,000 people. FND offers a wide range of flooring products, including hardwood, laminate, tile, and vinyl, as well as installation services and accessories.
Fundamental Analysis
FND's financial performance has been strong in recent years. Revenue has grown steadily, reaching $4.39 billion in the trailing twelve months. Gross profit margin is 40.1%, and operating margin is 5.93%. Net income was $202.4 million in the latest quarter, a decrease of 21.3% year-over-year. However, the company's earnings per share have remained relatively stable, at $1.80 in the latest quarter.
FND's balance sheet is also strong. The company has $1.08 billion in cash and equivalents and $1.12 billion in long-term debt. Return on assets is 3.21%, and return on equity is 9.78%.
Technical Analysis
The technical analysis of FND's stock price shows that the stock is currently in a downtrend. The 50-day moving average is above the 200-day moving average, indicating that the short-term trend is bearish. However, the stock is oversold, and a bounce could be possible in the near term.
Short Term Outlook
In the short term, FND's stock price is likely to remain volatile. The company's earnings growth has slowed in recent quarters, and the housing market is facing headwinds. However, FND's strong financial position and attractive valuation could support the stock price in the near term.
Long Term Outlook
In the long term, FND's prospects are positive. The company is a leader in the growing hard surface flooring market, and it has a strong track record of execution. FND's expansion plans and focus on customer service should drive continued growth in the years to come.
Analyst Recommendations
Analysts are generally positive on FND's stock. Six analysts have a "Strong Buy" rating on the stock, one has a "Buy" rating, 16 have a "Hold" rating, two have a "Sell" rating, and none have a "Strong Sell" rating. The average analyst target price is $105.17, which implies a potential upside of 4.6% from the current price.
