Floor & Decor Holdings Inc. Common Stock (FND)

FairStock Score: 35/100 — MIXED

Key Financials

Strengths

• Generates $30 million in annual free cash flow (0.5% yield on market cap)
• Established organization with 10,469 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($31) with negative 66% margin of safety—limited downside protection
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

Floor & Decor Holdings Inc. Common Stock is a small-cap consumer cyclical company valued at $5.6 billion. The business generates $4.7 billion in annual revenue with a 0.8% net margin and $30 million in free cash flow. From a quality standpoint, Floor shows Altman Z-Score of 1.9 in the grey zone and modest 9% ROE. On valuation, the stock is trading at a premium 26.5x earnings, with trades above its Graham Number with a negative 66% margin. Growth dynamics show revenue growing at 2.0% and profit growth of -17.2%. Our composite FairStock Score of 35/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $30 million in annual free cash flow (0.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer