Shares of Mid-cap consumer discretionary company Floor & Decor moved -7.7% this evening, and are now trading at $102.53 per share. The average analyst target price for the stock is $104.32.
Floor & Decor Holdings, Inc. together with its subsidiaries, operates as a multi-channel specialty retailer and commercial flooring distributor in Georgia.
Based on its trailing earning per share of 2.8, Floor & Decor has a trailing 12 month Price to Earnings (P/E) ratio of 36.6 FND has a forward P/E ratio of 31.3.
The company has a price to earnings growth (PEG) ratio of 3.11. A number between 0 and 1 could mean that the market is undervaluing Floor & Decor's estimated growth potential
Growing Revenues With Increasing Reinvestment in the Business
| 2020-02-20 | 2021-02-25 | 2022-02-24 | 2023-02-23 | |
|---|---|---|---|---|
| Revenue (MM) | $2,045 | $2,426 | $3,434 | $4,264 |
| Gross Margins | 42.2% | 42.7% | 41.4% | 40.5% |
| Operating Margins | 7.8% | 8.8% | 9.9% | 9.3% |
| Net Margins | 7.36% | 8.04% | 8.25% | 6.99% |
| Net Income (MM) | $151 | $195 | $283 | $298 |
| Net Interest Expense (MM) | -$9 | -$8 | -$5 | -$11 |
| Depreciation & Amort. (MM) | -$74 | -$92 | -$118 | -$155 |
| Earnings Per Share | $1.44 | $1.84 | $2.64 | $2.8 |
| EPS Growth | n/a | 27.78% | 43.48% | 6.06% |
| Diluted Shares (MM) | 105 | 106 | 107 | 106 |
| Free Cash Flow (MM) | $401 | $619 | $709 | $564 |
| Capital Expenditures (MM) | -$196 | -$212 | -$408 | -$452 |
| Net Current Assets (MM) | -$858 | -$843 | -$1,134 | -$1,237 |
| Current Ratio | 1.27 | 1.49 | 1.23 | 1.45 |
| Long Term Debt (MM) | $143 | $207 | $196 | $406 |
| Net Debt / EBITDA | n/a | -0.35 | 0.16 | 1.06 |
Floor & Decor benefits from growing revenues and increasing reinvestment in the business, wider gross margins than its peer group, and a strong EPS growth trend. The company's financial statements show consistent free cash flow and healthy leverage. Furthermore, Floor & Decor has weak operating margins with a stable trend and just enough current assets to cover current liabilities.
