Stock Analysis · Floor & Decor Holdings Inc (FND)
Overview
Floor & Decor Holdings, Inc. is a specialty retailer focused on hard-surface flooring and related accessories. It sells products such as tile, wood, laminate, vinyl, natural stone, and installation materials. The company’s stores are designed to carry a wide assortment at warehouse-style scale, serving both retail customers and professional installers/contractors.
Operationally, the business is built around large-format stores, centralized purchasing, and distribution capabilities intended to support in-stock availability across many product types. Demand for the company’s products is closely tied to repair-and-remodel spending and housing-related activity, because flooring purchases often happen during renovations, home turnover, or new construction finishing.
From a revenue perspective, Floor & Decor primarily earns money from selling merchandise (flooring and accessories) through its stores and digital channels. Public filings typically emphasize total net sales and comparable store sales rather than breaking revenue into many separate reportable lines.
Looking across recent years in the financial flow summary, total revenue increased from about $3.43B (2021) to about $4.68B (2025), while net income moved from about $283M (2021) to about $209M (2025). That combination suggests growth in sales alongside a lower bottom-line level than earlier years, which can happen when costs and operating expenses rise faster than revenue in a tougher demand environment.
Key Figures
| Metric | Value | Industry ⓘ |
|---|---|---|
| Date | Feb 23, 2026 | |
| Context | ||
| Sector | Consumer Cyclical | |
| Industry | Home Improvement Retail | |
| Market Cap ⓘ | $7.43B | |
| Beta ⓘ | 1.74 | |
| Fundamental | ||
| P/E Ratio ⓘ | 34.49 | |
| Profit Margin ⓘ | 4.45% | |
| Revenue Growth ⓘ | 2.00% | |
| Debt to Equity ⓘ | 150.74% | |
| PEG ⓘ | 2.20 | |
| Free Cash Flow ⓘ | $64.07M | |
Floor & Decor’s market capitalization is about $7.43B. The stock’s beta of 1.74 indicates it has historically moved more than the overall market (higher volatility). Profit margin is about 4.45%, which is a relatively thin net margin typical of many retailers. Year-over-year revenue growth is about 2.0%, indicating a slower growth phase compared with the higher growth rates seen earlier in the period shown later in this article. Debt-to-equity is about 151%, and free cash flow over the trailing twelve months is about $64.1M. The P/E ratio is about 34.5, and the PEG ratio is about 2.2, both of which are commonly interpreted as “growth is being priced in,” though they are not decisive on their own.
Growth (Medium)
Floor & Decor operates in home improvement retail, which is supported over the long run by housing turnover, aging housing stock, remodeling activity, and consumer spending on home upgrades. That said, the category is cyclical: when interest rates are high or housing activity slows, big-ticket renovation projects can be delayed. In other words, the industry can grow over time, but results can vary significantly year to year depending on the housing and remodeling cycle.
The company’s strategy centers on expanding its store base, increasing awareness with both homeowners and professional customers, and using scale to improve product sourcing and availability. For a retailer, a straightforward long-term growth engine is store expansion plus productivity improvements at existing locations (often discussed as “comparable store sales” in filings). If store openings continue at a healthy pace and new stores mature well, total sales can still trend upward even in periods when same-store demand is softer.
The revenue growth pattern shows a clear slowdown from very high growth rates earlier in the period (for example, triple-digit growth at one point in 2021) toward low single-digit growth more recently (around 2% at the latest point shown). This shift is consistent with a maturing base of stores and a less favorable home-improvement demand backdrop, and it raises the importance of execution (store economics, customer mix, and cost control) to sustain longer-term growth.
Free cash flow has fluctuated materially across the period shown, including negative periods and then a return to positive territory (about $64M on a trailing twelve-month basis). For a store-expansion retailer, uneven free cash flow can reflect investment in new stores, inventory, and distribution capacity. Over time, consistently positive free cash flow can provide more flexibility for reinvestment and balance sheet strength, while prolonged negative free cash flow can increase reliance on financing.
Risks (High)
This article is for informational purposes only and does not constitute financial advice. Some content is AI-generated. See Disclaimer
