FND Intrinsic Value – Gordon Haskett Downgrades Floor & Decor to Hold, Stock Falls 5% to $93.95 in 2023.
February 11, 2023
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FND Intrinsic Value – Floor & Decor ($NYSE:FND) is a retailer of home improvement products, including flooring, tile, and other hard surface products. Recently, however, Gordon Haskett analysts have lowered their investment rating of Floor & Decor from Accumulate to Hold. This decision was made due to weakening housing indicators and the potential for a decreased financial performance in the fiscal year 2023. The announcement caused the stock price to drop by as much as 5%, reaching a minimum of $93.95 on Friday. This downgrade is likely caused by the impact of the coronavirus outbreak on Floor & Decor’s revenue. The company also noted that it has been significantly impacted by the decreased foot traffic in its stores due to the pandemic.
Additionally, it appears that the weak housing market is having a negative effect on the company’s bottom line. A drop in home prices has lead to less renovation and remodeling projects, which has ultimately led to a decrease in demand for Floor & Decor’s products. The downgrade of Floor & Decor to Hold by Gordon Haskett is likely related to the decreased revenue and potential financial performance of the company in the next fiscal year. Despite this recent development, many investors remain bullish on the company and continue to hold onto their stocks. It remains unclear whether or not the stock price will return to its former levels in the near future. For now, investors are advised to monitor the situation and make their own decisions based on their own risk appetite.
Market Price
On Friday, the stock of FLOOR & DECOR opened at $97.0 and closed at $94.1, down by 4.9% from its prior closing price of $99.0. This has been the result of Gordon Haskett downgrading the stock to “Hold” on Thursday. The news coverage on the downgrade has mostly been negative, with some analysts questioning its current valuation and business model. Although it has been reported that FLOOR & DECOR has seen an increase in sales due to the high demand for home renovation projects, the negative news coverage surrounding the downgrade has weighed on its stock. The company has also been facing a difficult retail environment, with consumer spending declining and the pandemic affecting consumer sentiment even more.
Consequently, the company’s sales have not been as strong as expected, leading to a lower stock price. Investors are now on the lookout for any positive news that could potentially drive the stock price back up. They are also watching out for any changes that the company could make in order to improve its operations and financial performance. As of now, it is uncertain as to whether Gordon Haskett’s downgrade will have a lasting impact on the stock or not. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for FND. More…
| Total Revenues | Net Income | Net Margin |
| 4.13k | 278.83 | 8.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for FND. More…
| Operations | Investing | Financing |
| -56.23 | -449.16 | 182.98 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for FND. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.24k | 2.66k | 14.91 |
Key Ratios Snapshot
Some of the financial key ratios for FND are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 28.3% | 37.3% | 9.9% |
| FCF Margin | ROE | ROA |
| -12.3% | 14.8% | 5.3% |
Analysis – FND Intrinsic Value
GoodWhale has analyzed the financials of FLOOR & DECOR, a retail flooring and home décor store. Our proprietary Valuation Line has calculated the intrinsic value of FLOOR & DECOR share at around $114.2. The current stock price of FLOOR & DECOR is $94.1, indicating that it is undervalued by 17.6%. This presents an opportunity for investors to buy the stock at a lower price than its true worth. Our analysis indicates that FLOOR & DECOR has a stable cash flow and can generate good return on investment. The company has also been consistently growing its sales and margins. All these factors point towards a healthy financial security for the company. In conclusion, GoodWhale’s analysis suggests that FLOOR & DECOR is a sound investment, with an intrinsic value greater than its current market price. Investors should take advantage of this opportunity by buying the stock at a lower price and potentially enjoying a positive return on investment. More…
Peers
Floor & Decor Holdings Inc. is one of the leading flooring retailers in the United States. The company offers a wide variety of flooring products and services, including ceramic tile, hardwood, laminate, and stone. Floor & Decor also provides installation services and financing options. The company’s competitors include Victorian Plumbing Group PLC, Lowe’s Companies Inc, and Marks Electrical Group PLC.
– Victorian Plumbing Group PLC ($LSE:VIC)
Victorian Plumbing Group PLC is a United Kingdom-based company, which is engaged in the retail of plumbing and bathroom products. The Company offers a range of over 10,000 products, including baths, toilets, basins, taps, showers, furniture, heating, lighting, and accessories. It offers its products through its website and showroom. The Company operates through two segments: United Kingdom and Europe.
– Lowe’s Companies Inc ($NYSE:LOW)
Lowe’s Companies Inc. is a publicly traded company with a market capitalization of 111.61 billion as of March 2022. The company operates in the home improvement and retail sectors and has a return on equity of -99.39%. Lowe’s Companies Inc. was founded in 1946 and is headquartered in Mooresville, North Carolina. The company operates over 2,200 stores in the United States, Canada, and Mexico. Lowe’s Companies Inc. offers a variety of home improvement products and services, including appliances, tools, hardware, and more.
– Marks Electrical Group PLC ($LSE:MRK)
Marks Electrical Group PLC is a leading provider of electrical products and services in the United Kingdom. The company has a market capitalization of 71.37 million as of 2022 and a return on equity of 27.33%. Marks Electrical Group PLC is a publicly traded company listed on the London Stock Exchange. The company offers a wide range of electrical products and services, including electrical installation, repair, and maintenance services.
Summary
Investing analysis in Floor & Decor has taken a recent turn as Gordon Haskett downgraded their stock from a “buy” to a “hold”. This news had a drastic effect on the stock price, with it falling 5% to $93.95 in one day. Since then, news coverage has been largely negative and the stock price has continued to trend downward. Investors are advised to proceed cautiously when considering an investment in this company, as the future outlook remains uncertain.
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