📊 FND Key Takeaways
Is Floor & Decor Holdings, Inc. (FND) a Good Investment?
Floor & Decor demonstrates solid operational performance with strong gross margins (43.6%) and excellent interest coverage (103.2x), supported by modest revenue growth of 5.1% YoY. However, the company faces significant operational efficiency challenges with declining profitability metrics (net income growth of only 1.3% YoY despite 5.1% revenue growth) and weak free cash flow generation (1.4% FCF margin) that limits capital flexibility despite low leverage.
Floor & Decor shows solid underlying business quality through healthy gross margins, steady revenue growth, and a very conservative balance sheet with minimal leverage. However, earnings growth is lagging revenue growth, operating margins remain thin for a cyclical retail business, and free cash flow generation is weak after heavy capital spending. The fundamentals support resilience, but not enough profitability expansion or cash conversion to justify a more aggressive rating.
Why Buy Floor & Decor Holdings, Inc. Stock? FND Key Strengths
- Strong gross margin of 43.6% indicates solid pricing power and cost management in core operations
- Excellent leverage metrics with 0.08x debt-to-equity ratio and 103.2x interest coverage providing financial stability
- Reasonable liquidity position with $249.3M in cash and manageable current ratio of 1.33x
- Modest but consistent revenue growth of 5.1% YoY demonstrates market demand stability
- Strong gross margin of 43.6% indicates solid merchandising economics and pricing discipline
- Very low leverage with 0.08x debt-to-equity and 103.2x interest coverage supports financial flexibility
- Positive revenue, net income, and EPS growth shows the business is still expanding despite margin pressure
FND Stock Risks: Floor & Decor Holdings, Inc. Investment Risks
- Profitability growth significantly lags revenue growth (1.3% net income growth vs 5.1% revenue growth) indicating margin compression and operational deleverage
- Critically weak free cash flow conversion at only 1.4% FCF margin limits dividend capacity and growth investments despite $381.8M operating cash flow
- Low quick ratio of 0.34x suggests potential liquidity stress if current assets cannot be quickly converted to cash
- Low returns on equity (8.7%) and assets (3.8%) indicate inefficient capital deployment relative to invested capital base
- Operating margin of 5.8% is thin for retail, leaving minimal buffer for unexpected cost increases or demand deterioration
- Operating margin of 5.8% and net margin of 4.5% leave limited cushion if demand weakens or costs rise
- Free cash flow is only $64.07M on $4.68B of revenue, showing weak cash conversion due to heavy capital expenditure
- Quick ratio of 0.34x suggests liquidity depends heavily on inventory turnover and steady retail demand
Key Metrics to Watch
- Operating margin trend - critical to monitor if cost pressures continue to compress profitability relative to revenue growth
- Free cash flow yield and working capital efficiency - need to see improvement in cash conversion relative to operating cash generation
- Gross margin sustainability - track whether the 43.6% level can be maintained amid competitive retail environment
- Capital expenditure efficiency - assess whether $317.8M in CapEx is generating adequate returns given low ROA and ROE
- Operating margin trend and SG&A leverage
- Free cash flow improvement relative to capital expenditures
Floor & Decor Holdings, Inc. (FND) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.4% FCF margin may limit capital allocation flexibility.
FND Profit Margin, ROE & Profitability Analysis
FND vs Consumer Sector: How Floor & Decor Holdings, Inc. Compares
How Floor & Decor Holdings, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Floor & Decor Holdings, Inc. Stock Overvalued? FND Valuation Analysis 2026
Based on fundamental analysis, Floor & Decor Holdings, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Floor & Decor Holdings, Inc. Balance Sheet: FND Debt, Cash & Liquidity
FND Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Floor & Decor Holdings, Inc.'s revenue has grown significantly by 36% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.28 reflects profitable operations.
FND Revenue Growth, EPS Growth & YoY Performance
FND Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.1B | $48.9M | $0.48 |
| Q2 2025 | $1.1B | $48.9M | $0.52 |
| Q1 2025 | $1.1B | $48.9M | $0.45 |
| Q3 2024 | $1.1B | $50.0M | $0.48 |
| Q2 2024 | $1.1B | $50.0M | $0.52 |
| Q1 2024 | $1.1B | $50.0M | $0.46 |
| Q3 2023 | $1.1B | $65.9M | $0.61 |
| Q2 2023 | $1.1B | $71.0M | $0.66 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Floor & Decor Holdings, Inc. Dividends, Buybacks & Capital Allocation
FND SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Floor & Decor Holdings, Inc. (CIK: 0001507079)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FND
What is the AI rating for FND?
Floor & Decor Holdings, Inc. (FND) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FND's key strengths?
Claude: Strong gross margin of 43.6% indicates solid pricing power and cost management in core operations. Excellent leverage metrics with 0.08x debt-to-equity ratio and 103.2x interest coverage providing financial stability. ChatGPT: Strong gross margin of 43.6% indicates solid merchandising economics and pricing discipline. Very low leverage with 0.08x debt-to-equity and 103.2x interest coverage supports financial flexibility.
What are the risks of investing in FND?
Claude: Profitability growth significantly lags revenue growth (1.3% net income growth vs 5.1% revenue growth) indicating margin compression and operational deleverage. Critically weak free cash flow conversion at only 1.4% FCF margin limits dividend capacity and growth investments despite $381.8M operating cash flow. ChatGPT: Operating margin of 5.8% and net margin of 4.5% leave limited cushion if demand weakens or costs rise. Free cash flow is only $64.07M on $4.68B of revenue, showing weak cash conversion due to heavy capital expenditure.
What is FND's revenue and growth?
Floor & Decor Holdings, Inc. reported revenue of $4.7B.
Does FND pay dividends?
Floor & Decor Holdings, Inc. pays dividends, with $225.0M distributed to shareholders in the trailing twelve months.
Where can I find FND SEC filings?
Official SEC filings for Floor & Decor Holdings, Inc. (CIK: 0001507079) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FND's EPS?
Floor & Decor Holdings, Inc. has a diluted EPS of $1.92.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FND a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Floor & Decor Holdings, Inc. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FND stock overvalued or undervalued?
Valuation metrics for FND: ROE of 8.7% (sector avg: 18%), net margin of 4.5% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy FND stock in 2026?
Our dual AI analysis gives Floor & Decor Holdings, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FND's free cash flow?
Floor & Decor Holdings, Inc.'s operating cash flow is $381.8M, with capital expenditures of $317.8M. FCF margin is 1.4%.
How does FND compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 4.5% (avg: 8%), ROE 8.7% (avg: 18%), current ratio 1.33 (avg: 1.5).