📊 FND Key Takeaways
Is Floor & Decor Holdings, Inc. (FND) a Good Investment?
Floor & Decor exhibits fundamental operational weakness despite revenue growth, with net income increasing only 1.3% against 5.1% revenue growth, signaling margin compression. Critically low returns on equity (1.6%) and assets (0.7%) indicate severe capital inefficiency, while the 0.33x quick ratio combined with 4.5% operating margins creates vulnerability to working capital stress.
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.
Floor & Decor Holdings, Inc. Key Strengths (FND)
- Low leverage with 0.08x debt-to-equity ratio providing financial flexibility for growth investment
- Positive free cash flow generation of $45.8M with 4.0% FCF margin offsetting thin net margins
- 44% gross margin demonstrates reasonable pricing power and product mix efficiency in building materials retail
- 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
- Severely depressed ROE of 1.6% and ROA of 0.7% indicate fundamental capital misallocation and poor operational returns
- Net income growth of 1.3% YoY significantly lags revenue growth of 5.1%, suggesting operational deleverage and uncontrolled cost structure
- Quick ratio of 0.33x combined with 1.15x current ratio and 4.5% operating margin creates acute vulnerability to inventory/working capital stress
- 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 expense ratio trend (SG&A as % of revenue) to diagnose margin compression source
- Return on Equity trajectory and quarterly profit growth acceleration
- Inventory turnover and days payable outstanding to assess working capital management
- 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 4.0% 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 |
|---|---|---|---|
| Q1 2026 | $1.2B | $39.7M | $0.37 |
| 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 |
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 Grade of C from Claude (C) and ChatGPT (B) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FND's key strengths?
Claude: Low leverage with 0.08x debt-to-equity ratio providing financial flexibility for growth investment. Positive free cash flow generation of $45.8M with 4.0% FCF margin offsetting thin net margins. 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: Severely depressed ROE of 1.6% and ROA of 0.7% indicate fundamental capital misallocation and poor operational returns. Net income growth of 1.3% YoY significantly lags revenue growth of 5.1%, suggesting operational deleverage and uncontrolled cost structure. 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 $1.2B.
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 $0.37.
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 grade reflects both perspectives for balanced insights.
What is FND's fundamental grade?
Based on our AI fundamental analysis in June 2026, Floor & Decor Holdings, Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FND stock overvalued or undervalued?
Valuation metrics for FND: ROE of 1.6% (sector avg: 18%), net margin of 3.4% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is FND's AI grade for 2026?
Our dual AI analysis gives Floor & Decor Holdings, Inc. a combined C grade 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 $109.2M, with capital expenditures of $63.4M. FCF margin is 4.0%.
How does FND compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 3.4% (avg: 8%), ROE 1.6% (avg: 18%), current ratio 1.15 (avg: 1.5).