Floor & Decor: On The Way To Becoming The Next Home Improvement Retail Giant

Value Voyager
258 Followers

Summary

  • FND has a victorious business model led by a CEO who assisted in growing HD to over 2,000 stores.
  • The hard floor covering industry is highly fragmented, which provides FND an excellent opportunity to expand by increasing its market share.
  • The increased inventory level and the recessionary macro backdrop are concerning.
  • FND has a 12-month implied growth of 38% to 54%. I rate the stock a "Strong Buy".

Modern kitchen and dining room on retro tiled floor

Gladiathor/iStock via Getty Images

Investment Thesis

Floor & Decor (NYSE:FND) is a hard surface flooring retailer and commercial flooring distributor with 191 warehouse-format stores and six small design studios across 33 states. With an experienced management team, the company lays out

This article was written by

258 Followers
I am a finance enthusiast with a keen interest in value investing. Since 2022, I have been sharing my insights on Seeking Alpha, focusing on easy-to-understand businesses that present opportunities, especially those that are currently out of favour.Wishing everyone the best in their investing journey!

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in FND over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not a professional investment advisor. No information in this publication is intended as investment advice to buy/sell. The past performance data shown is not a guarantee of future results.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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