INTERFACE INC (TILE) Stock Fundamental Analysis
NASDAQ:TILE - Nasdaq - US4586653044 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to TILE. TILE was compared to 84 industry peers in the Commercial Services & Supplies industry. TILE scores excellent on profitability, but there are some minor concerns on its financial health. TILE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TILE had positive earnings in the past year.
In the past year TILE had a positive cash flow from operations.
TILE had positive earnings in 4 of the past 5 years.
TILE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TILE (8.39%) is better than 79.52% of its industry peers.
With an excellent Return On Equity value of 19.48%, TILE belongs to the best of the industry, outperforming 84.34% of the companies in the same industry.
With a decent Return On Invested Capital value of 11.84%, TILE is doing good in the industry, outperforming 79.52% of the companies in the same industry.
TILE had an Average Return On Invested Capital over the past 3 years of 8.61%. This is below the industry average of 11.67%.
The 3 year average ROIC (8.61%) for TILE is below the current ROIC(11.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | 19.48% | ||
| ROIC | 11.84% |
ROA(3y)4.19%
ROA(5y)2.24%
ROE(3y)11.18%
ROE(5y)5.34%
ROIC(3y)8.61%
ROIC(5y)8.11%
1.3 Margins
Looking at the Profit Margin, with a value of 6.20%, TILE is in the better half of the industry, outperforming 72.29% of the companies in the same industry.
TILE's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 9.83%, TILE is doing good in the industry, outperforming 69.88% of the companies in the same industry.
TILE's Operating Margin has been stable in the last couple of years.
TILE has a Gross Margin of 36.82%. This is in the better half of the industry: TILE outperforms 62.65% of its industry peers.
TILE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.83% | ||
| PM (TTM) | 6.2% | ||
| GM | 36.82% |
OM growth 3Y1.75%
OM growth 5Y-0.94%
PM growth 3Y12.85%
PM growth 5Y2.3%
GM growth 3Y0.61%
GM growth 5Y-1.55%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TILE is still creating some value.
The number of shares outstanding for TILE has been increased compared to 1 year ago.
Compared to 5 years ago, TILE has about the same amount of shares outstanding.
Compared to 1 year ago, TILE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.76 indicates that TILE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.76, TILE is in the better half of the industry, outperforming 73.49% of the companies in the same industry.
The Debt to FCF ratio of TILE is 2.82, which is a good value as it means it would take TILE, 2.82 years of fcf income to pay off all of its debts.
TILE has a Debt to FCF ratio of 2.82. This is in the better half of the industry: TILE outperforms 74.70% of its industry peers.
TILE has a Debt/Equity ratio of 0.60. This is a neutral value indicating TILE is somewhat dependend on debt financing.
The Debt to Equity ratio of TILE (0.60) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 2.82 | ||
| Altman-Z | 3.76 |
ROIC/WACC1.41
WACC8.39%
2.3 Liquidity
A Current Ratio of 2.76 indicates that TILE has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.76, TILE belongs to the top of the industry, outperforming 80.72% of the companies in the same industry.
TILE has a Quick Ratio of 1.42. This is a normal value and indicates that TILE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.42, TILE is in line with its industry, outperforming 54.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.76 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.58% over the past year.
The Earnings Per Share has been decreasing by -1.57% on average over the past years.
Looking at the last year, TILE shows a very strong growth in Revenue. The Revenue has grown by 28.48%.
Measured over the past years, TILE shows a decrease in Revenue. The Revenue has been decreasing by -0.41% on average per year.
EPS 1Y (TTM)24.58%
EPS 3Y5.88%
EPS 5Y-1.57%
EPS Q2Q%4.17%
Revenue 1Y (TTM)28.48%
Revenue growth 3Y3.1%
Revenue growth 5Y-0.41%
Sales Q2Q%2.65%
3.2 Future
TILE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.80% yearly.
The Revenue is expected to grow by 4.11% on average over the next years.
EPS Next Y11.31%
EPS Next 2Y11.83%
EPS Next 3Y11.8%
EPS Next 5YN/A
Revenue Next Year2.67%
Revenue Next 2Y3.79%
Revenue Next 3Y4.11%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.52, which indicates a correct valuation of TILE.
78.31% of the companies in the same industry are more expensive than TILE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TILE to the average of the S&P500 Index (27.30), we can say TILE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 11.69, the valuation of TILE can be described as reasonable.
TILE's Price/Forward Earnings ratio is rather cheap when compared to the industry. TILE is cheaper than 80.72% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TILE to the average of the S&P500 Index (21.76), we can say TILE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 11.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TILE is valued a bit cheaper than the industry average as 79.52% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TILE is valued cheaply inside the industry as 85.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.34 | ||
| EV/EBITDA | 7.22 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TILE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.28
PEG (5Y)N/A
EPS Next 2Y11.83%
EPS Next 3Y11.8%
5. Dividend
5.1 Amount
TILE has a yearly dividend return of 0.18%, which is pretty low.
Compared to an average industry Dividend Yield of 2.45, TILE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, TILE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
5.2 History
The dividend of TILE decreases each year by -28.83%.
TILE has been paying a dividend for at least 10 years, so it has a reliable track record.
TILE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-28.83%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
2.39% of the earnings are spent on dividend by TILE. This is a low number and sustainable payout ratio.
DP2.39%
EPS Next 2Y11.83%
EPS Next 3Y11.8%
21.35
-0.92 (-4.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners103.74%
Inst Owner Change-0.05%
Ins Owners2.36%
Ins Owner Change3.84%
Market Cap1.25B
Analysts85
Price Target31.96 (49.7%)
Short Float %4.24%
Short Ratio6.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
Yearly Dividend0.04
Dividend Growth(5Y)-28.83%
DP2.39%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.5%
Min EPS beat(2)16.28%
Max EPS beat(2)16.71%
EPS beat(4)4
Avg EPS beat(4)27.12%
Min EPS beat(4)16.28%
Max EPS beat(4)38.41%
EPS beat(8)8
Avg EPS beat(8)39.17%
EPS beat(12)11
Avg EPS beat(12)26.31%
EPS beat(16)15
Avg EPS beat(16)28.1%
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-3.51%
Max Revenue beat(2)-1.86%
Revenue beat(4)1
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-3.51%
Max Revenue beat(4)0.33%
Revenue beat(8)1
Avg Revenue beat(8)-1.98%
Revenue beat(12)1
Avg Revenue beat(12)-2.51%
Revenue beat(16)2
Avg Revenue beat(16)-1.99%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.44%
EPS NY rev (1m)0.84%
EPS NY rev (3m)1.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 11.69 | ||
| P/S | 0.78 | ||
| P/FCF | 11.34 | ||
| P/OCF | 8.48 | ||
| P/B | 2.44 | ||
| P/tB | 3.47 | ||
| EV/EBITDA | 7.22 |
EPS(TTM)1.47
EY6.89%
EPS(NY)1.83
Fwd EY8.55%
FCF(TTM)1.88
FCFY8.82%
OCF(TTM)2.52
OCFY11.79%
SpS27.52
BVpS8.75
TBVpS6.16
PEG (NY)1.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | 19.48% | ||
| ROCE | 16.16% | ||
| ROIC | 11.84% | ||
| ROICexc | 13.14% | ||
| ROICexgc | 15.88% | ||
| OM | 9.83% | ||
| PM (TTM) | 6.2% | ||
| GM | 36.82% | ||
| FCFM | 6.84% |
ROA(3y)4.19%
ROA(5y)2.24%
ROE(3y)11.18%
ROE(5y)5.34%
ROIC(3y)8.61%
ROIC(5y)8.11%
ROICexc(3y)9.59%
ROICexc(5y)9.19%
ROICexgc(3y)11.61%
ROICexgc(5y)11.57%
ROCE(3y)11.75%
ROCE(5y)11.07%
ROICexcg growth 3Y2.06%
ROICexcg growth 5Y-0.65%
ROICexc growth 3Y5.68%
ROICexc growth 5Y3.35%
OM growth 3Y1.75%
OM growth 5Y-0.94%
PM growth 3Y12.85%
PM growth 5Y2.3%
GM growth 3Y0.61%
GM growth 5Y-1.55%
F-Score8
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 2.82 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 84.12% | ||
| Cap/Sales | 2.31% | ||
| Interest Coverage | 5.9 | ||
| Cash Conversion | 72.74% | ||
| Profit Quality | 110.39% | ||
| Current Ratio | 2.76 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 3.76 |
F-Score8
WACC8.39%
ROIC/WACC1.41
Cap/Depr(3y)57.79%
Cap/Depr(5y)69.97%
Cap/Sales(3y)2.02%
Cap/Sales(5y)2.82%
Profit Quality(3y)173.64%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.58%
EPS 3Y5.88%
EPS 5Y-1.57%
EPS Q2Q%4.17%
EPS Next Y11.31%
EPS Next 2Y11.83%
EPS Next 3Y11.8%
EPS Next 5YN/A
Revenue 1Y (TTM)28.48%
Revenue growth 3Y3.1%
Revenue growth 5Y-0.41%
Sales Q2Q%2.65%
Revenue Next Year2.67%
Revenue Next 2Y3.79%
Revenue Next 3Y4.11%
Revenue Next 5YN/A
EBIT growth 1Y35.68%
EBIT growth 3Y4.91%
EBIT growth 5Y-1.34%
EBIT Next Year44.59%
EBIT Next 3Y19.91%
EBIT Next 5YN/A
FCF growth 1Y55.17%
FCF growth 3Y25.07%
FCF growth 5Y11.27%
OCF growth 1Y63.22%
OCF growth 3Y19.63%
OCF growth 5Y0.92%