FND

Floor & Decor Holdings Inc - Ordinary Shares - Class A

Consumer, Industrial/Transportation


Presented:02/13/2023
Price:$98.13
Cap:$10.41B
Current Price:$113.15
Cap:$12.13B

Presented

Date02/13/2023
Price$98.13
Market Cap$10.41B
Ent Value$9.30B
P/E Ratio37.82x
Book Value$14.91
Div Yield0%
Shares O/S106.12M
Ave Daily Vol1,522,573
Short Int13.33%

Current

Price$113.15
Market Cap$12.13B
Floor & Decor Holdings, Inc. engages in the retail of hard surface flooring and related accessories. It provides wood, stone, and flooring products. Its products include vinyl, laminate, and tiles with materials installation for living rooms, kitchen, bathrooms, and walls. The company was founded by George Vincent West in 2000 and is headquartered in Atlanta, GA.

Publicly traded companies mentioned herein: Floor & Décor Holdings Inc (FND), Home Depot Inc/The (HD), Lowe’s Cos Inc (LOW), Mohawk Industries Inc (MHK)

Highlights

The presenter is short shares of Floor & Décor Holdings Inc (FND), a buildings product distributor that largely focuses on flooring. He considers FND a good company, believing it has done an effective job rolling out almost 200 stores in the US and has taken strong market share from a largely fragmented market plus HD and LOW. However, one of the biggest US floor suppliers, Mohawk, recently missed on earnings and provided bearish commentary regarding the industry. This doesn’t seem to have been digested by FND investors as it is mostly traded by consumer investors and covered by retail analysts. This mismatch leads to his assessment that he may be ahead of the market in assuming FND is overearning as pricing is starting to roll over. In addition, he doesn’t believe the store growth and TAM stories. At $100 per share, the stock trades at 34x 2023 consensus EPS of $2.93 but 56x his $1.80 EPS projection. Based on his analysis, he sees an asymmetric risk/reward setup with 50% downside in the next year and just 15% upside over a several year period.

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Idea Discussion

Commentor 1 - 2 weeks ago

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