Despite Its Growth, Floor & Decor Is A Sell

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About: Floor & Decor Holdings, Inc. (FND)
by: Josh Arnold
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Josh Arnold
Long/short equity
Summary

FND continues to grow revenue at very high rates.

However, with nearly-constant dilution and declining margins, the current valuation cannot be supported.

I think FND has a good chance of downward revisions in estimates, and it is a sell.

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Flooring retailer Floor & Decor (FND) has, in the past, been one of my favorite retail stocks. I was enamored with the company's projected growth thanks to a rapidly-expanding store count,