FND Intrinsic Value – Guggenheim Reduces Price Target for Floor & Decor to $95.00
October 26, 2023
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The Wall Street firm Guggenheim has recently revised its price target for Floor & Decor ($NYSE:FND), a home improvement retailer specializing in hard surface flooring and wall décor, to $95.00. It is known for offering a wide selection of high quality products at attractive prices. The company offers a large selection of flooring, tiles, countertops, and décor products to customers across the United States. Guggenheim’s decision to reduce the price target for Floor & Decor reflects what they perceive as an overall challenging environment for home improvement retailers. Despite the current market conditions, Floor & Decor has a solid balance sheet and a low debt-to-equity ratio. This is an indication that the company is well positioned to weather this economic downturn.
Additionally, the company has a strong online presence, allowing customers to shop from the comfort of their homes.
Market Price
The price target reduction came as a disappointment to investors who had been expecting a favorable opinion from Guggenheim. 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 |
| 4.4k | 288.39 | 6.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for FND. More…
| Operations | Investing | Financing |
| 581.24 | -541.34 | -41.91 |
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 |
| 4.48k | 2.67k | 17.01 |
Key Ratios Snapshot
Some of the financial key ratios for FND are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 28.7% | 39.9% | 8.8% |
| FCF Margin | ROE | ROA |
| 1.4% | 13.7% | 5.4% |
Analysis – FND Intrinsic Value
At GoodWhale, we recently conducted an analysis of FLOOR & DECOR’s fundamentals. Utilizing our proprietary Valuation Line, we determined that the intrinsic value of a FLOOR & DECOR share is around $118.1. Currently, FLOOR & DECOR stock is traded at $78.8, which means it is undervalued by 33.3%. This presents a great opportunity for investors to take advantage of this great deal and get a good return on their investment. More…
Peers
Floor & Decor Holdings Inc. is one of the leading flooring retailers in the United States. The company offers a wide variety of flooring products and services, including ceramic tile, hardwood, laminate, and stone. Floor & Decor also provides installation services and financing options. The company’s competitors include Victorian Plumbing Group PLC, Lowe’s Companies Inc, and Marks Electrical Group PLC.
– Victorian Plumbing Group PLC ($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
This revision is based on a decrease in expected earnings and the potential for the company’s growth to slow. They cite increased competition, higher costs, and lower consumer demand as factors that could affect the stock’s performance. As of now, Guggenheim has maintained its “Neutral” rating on FLOOR & DECOR but warns investors to be cautious until further details are known. Investors should keep an eye on the company’s quarterly earnings releases and other news stories for updates.
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