📊 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.
Why Buy Floor & Decor Holdings, Inc. Stock? FND Key Strengths
- 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 Rating of SELL from Claude (SELL) and ChatGPT (HOLD) 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 rating reflects both perspectives for balanced insights.
Is FND a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Floor & Decor Holdings, Inc. has a SELL rating with 78% 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 1.6% (sector avg: 18%), net margin of 3.4% (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 SELL 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 $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).