Floor & Decor Holdings, Inc. (FND) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Floor & Decor Holdings, Inc. (FND) Consumer Business Overview

Floor & Decor Holdings, Inc. is a leading multi-channel specialty retailer in the hard surface flooring market, offering a wide array of products to both professional and DIY customers. With a growing network of warehouse-format stores and a robust online presence, FND competes in the expanding home improvement sector.

What Is the Investment Thesis for FND?

Floor & Decor Holdings, Inc. presents a notable research candidate within the home improvement sector. The company's consistent growth in store count and comparable store sales, combined with its expanding online presence, suggests a strong growth trajectory. With a P/E ratio of 21.80 and a profit margin of 4.3%, the company demonstrates profitability and potential for further margin expansion. Key catalysts include continued expansion into new markets and increased penetration in existing markets. However, investors may want to evaluate the potential impact of economic cycles on consumer spending and the competitive pressures within the home improvement retail landscape. The company's beta of 1.82 indicates higher volatility compared to the market, which could present both opportunities and risks.

Based on FMP financials and quantitative analysis

FND Key Highlights

Operates 166 warehouse-format stores and five design studios as of May 5, 2022, providing a strong physical presence in 34 states.

• Multi-channel approach serving professional installers, commercial businesses, and DIY customers.
• Offers a wide range of hard surface flooring products, including tile, wood, laminate, vinyl, and natural stone.
• Gross margin of 41.2% indicates efficient cost management and strong pricing power.
• Market capitalization of $5.04B reflects investor confidence in the company's growth prospects.

Who Are FND's Competitors?

FND is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are FND's Key Strengths?

Wide selection of hard surface flooring products.

• Multi-channel distribution network (physical stores and online platform).
• Strong value proposition with competitive pricing.
• Focus on serving professional installers, commercial businesses, and DIY customers.

What Are FND's Weaknesses?

Dependence on the housing market and consumer spending.

• Exposure to economic cycles and fluctuations in interest rates.
• Potential for supply chain disruptions and cost increases.
• Competition from large national retailers and smaller regional players.

What Could Drive FND Stock Higher?

Continued expansion of store network into new geographic markets.

• Enhancement of e-commerce platform and online sales capabilities.
• Strengthening relationships with professional installers and commercial businesses.
• Introduction of new product offerings and services.
• Implementation of marketing campaigns to attract new customers.

What Are the Key Risks for FND?

Insider selling — insiders were net sellers of roughly $14.1M recently.

• Economic downturns and reduced consumer spending on home improvement projects.
• Increased competition from online retailers and other flooring providers.
• Changes in consumer preferences and trends in flooring styles.
• Supply chain disruptions and rising material costs affecting profitability.
• Fluctuations in the housing market impacting demand for flooring products.

What Are the Growth Opportunities for FND?

• Expansion into New Markets: Floor & Decor has the opportunity to expand its store network into new geographic markets, increasing its reach and customer base. The company's proven warehouse-format store model can be replicated in underserved markets, driving revenue growth. The market size for home improvement retail is substantial, with ongoing demand for flooring products and accessories. Timeline: Ongoing, with continued store openings planned in the coming years. Competitive advantage: Established brand and efficient store operations.
• Increased Penetration in Existing Markets: Floor & Decor can increase its market share in existing markets by attracting new customers and increasing sales to existing customers. This can be achieved through targeted marketing campaigns, enhanced customer service, and expanded product offerings. The market size for flooring in existing markets is significant, with potential for further growth. Timeline: Ongoing, with continuous efforts to improve market penetration. Competitive advantage: Strong customer relationships and brand recognition.
• E-commerce Growth: Floor & Decor can further develop its e-commerce platform to drive online sales and reach a broader customer base. Enhancements to the website, such as improved product search and online ordering capabilities, can attract more online shoppers. The market size for online home improvement retail is growing rapidly, presenting a significant opportunity for Floor & Decor. Timeline: Ongoing, with continued investment in e-commerce capabilities. Competitive advantage: Integrated online and offline experience.
• Expansion of Product Offerings: Floor & Decor can expand its product offerings to include complementary products and services, such as installation services and home decor items. This can increase sales per customer and attract new customers seeking comprehensive home improvement solutions. The market size for related products and services is substantial, providing opportunities for growth. Timeline: Ongoing, with continuous evaluation of new product and service offerings. Competitive advantage: Established customer base and distribution network.
• Focus on Professional Customers: Floor & Decor can strengthen its relationships with professional installers and commercial businesses by providing them with tailored products, services, and support. This can drive repeat business and increase sales volume. The market size for professional flooring services is significant, with ongoing demand from construction and renovation projects. Timeline: Ongoing, with dedicated programs and resources for professional customers. Competitive advantage: Specialized product offerings and customer service.

What Are FND's Competitive Advantages?

• Extensive product selection: Offers a wide variety of hard surface flooring and related accessories.
• Multi-channel distribution: Operates through physical stores and an online platform.
• Value proposition: Provides competitive prices and a focus on customer service.
• Brand recognition: Established brand with a strong reputation in the flooring market.

What Does FND Do?

Floor & Decor Holdings, Inc., founded in 2000 and headquartered in Atlanta, Georgia, has established itself as a prominent player in the hard surface flooring retail market. Originally known as FDO Holdings, Inc., the company rebranded to Floor & Decor Holdings, Inc. in April 2017, marking a significant step in its evolution. The company operates through a multi-channel approach, serving professional installers, commercial businesses, and do-it-yourself (DIY) customers. Its core business revolves around the sale of hard surface flooring, including tile, wood, laminate, vinyl, and natural stone. In addition to flooring, Floor & Decor offers a comprehensive range of decorative and installation accessories, providing customers with end-to-end solutions for their flooring projects. As of May 5, 2022, Floor & Decor operated 166 warehouse-format stores and five design studios across 34 states, expanding its physical footprint to cater to a broad customer base. The company also leverages its online platform, FloorandDecor.com, to extend its reach and provide customers with a convenient shopping experience. Floor & Decor's competitive positioning is built on its extensive product selection, value proposition, and focus on customer service.

What Products and Services Does FND Offer?

• Operates as a multi-channel specialty retailer of hard surface flooring.
• Distributes flooring and related accessories to commercial businesses.
• Offers tile, wood, laminate, vinyl, and natural stone flooring products.
• Provides decorative and installation accessories.
• Serves professional installers, commercial businesses, and do-it-yourself customers.
• Operates warehouse-format stores and design studios.
• Sells products through its website, FloorandDecor.com.

How Does FND Make Money?

• Sells hard surface flooring and related accessories through warehouse-format stores and design studios.
• Generates revenue from professional installers, commercial businesses, and do-it-yourself customers.
• Utilizes a multi-channel approach, including physical stores and an online platform.
• Focuses on providing a wide selection of products at competitive prices.

What Industry Does FND Operate In?

Floor & Decor operates within the home improvement industry, which is influenced by factors such as housing market trends, consumer spending, and interest rates. The industry is characterized by both large national players and smaller regional retailers. Floor & Decor's focus on hard surface flooring and its multi-channel approach differentiate it from some competitors. The home improvement market is expected to continue growing, driven by factors such as an aging housing stock and increasing home values. Floor & Decor is positioned to capitalize on these trends through its store expansion strategy and focus on customer service.

Who Are FND's Key Customers?

• Professional installers who require a wide selection of flooring products and accessories.
• Commercial businesses, such as contractors and property managers, needing flooring solutions for projects.
• Do-it-yourself (DIY) customers undertaking home improvement projects.
• Homeowners looking to renovate or upgrade their flooring.

Company Profile

Floor & Decor Holdings, Inc. operates in the Home Improvement industry within the Consumer Cyclical sector. It is headquartered in Atlanta, US. The company is led by CEO Bradley S. Paulsen. FND has traded publicly since 2017.

Floor & Decor Holdings, Inc. Financial Trajectory

Floor & Decor Holdings, Inc. (FND) reported $1.25B in revenue for Q2 FY2026, reflecting 8.5% growth compared to the prior quarter. The company recorded net income of $95.9M, with diluted EPS of $0.89. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Consumer Cyclical company. Across the four most recent quarters, FND averaged $0.54 in diluted EPS.

How Floor & Decor Holdings, Inc. Is Valued

Floor & Decor Holdings, Inc. carries a market capitalization of $5.04B, placing it in the mid-cap category. Analyst price targets span from $41.00 to $75.00, with a consensus of $60.83. At the current price of $47.35, that implies approximately 28% upside potential. Relative to its peer group, FND's quantitative score of 56/100 is roughly in line with the peer average of 56/100.

Return on equity for Floor & Decor Holdings, Inc. stands at 8.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 3.6%, showing how much profit it generates from its asset base. FND trades at a trailing price-to-earnings ratio of 21.80, below the Consumer Cyclical sector average of ~32.70x. Its free cash flow yield is 1.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.15 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.3%, the inverse of the P/E and a quick read on earnings relative to price.

Floor & Decor Holdings, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.51 places it in the grey zone, a middle ground that warrants monitoring.

Floor & Decor Holdings, Inc. has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 9.9% above estimates on average.

Over the past six months, Floor & Decor Holdings, Inc. insiders filed 14 SEC Form 4 transactions — 9 sales and 5 purchases. On net that is roughly 246K shares disposed (about $14.1M), a signal worth weighing alongside the fundamentals.

FND Financials

FND Latest News

FND Analyst Consensus

FND MoonshotScore

Common Questions About FND (Consumer Cyclical)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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