INTERFACE INC (TILE)
US4586653044 - Common Stock
Taking everything into account, TILE scores 5 out of 10 in our fundamental rating. TILE was compared to 85 industry peers in the Commercial Services & Supplies industry. Both the profitability and the financial health of TILE get a neutral evaluation. Nothing too spectacular is happening here. TILE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TILE was profitable.
TILE had a positive operating cash flow in the past year.
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
TILE has a better Return On Assets (3.58%) than 69.05% of its industry peers.
TILE's Return On Equity of 10.33% is fine compared to the rest of the industry. TILE outperforms 71.43% of its industry peers.
TILE's Return On Invested Capital of 5.85% is in line compared to the rest of the industry. TILE outperforms 58.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TILE is below the industry average of 10.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 10.33% | ||
| ROIC | 5.85% |
ROA(3y)3.08%
ROA(5y)1.86%
ROE(3y)10.27%
ROE(5y)6.06%
ROIC(3y)6.23%
ROIC(5y)6.25%
1.3 Margins
TILE has a better Profit Margin (3.49%) than 65.48% of its industry peers.
In the last couple of years the Profit Margin of TILE has declined.
TILE's Operating Margin of 8.09% is fine compared to the rest of the industry. TILE outperforms 67.86% of its industry peers.
TILE's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 34.97%, TILE is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
TILE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.09% | ||
| PM (TTM) | 3.49% | ||
| GM | 34.97% |
OM growth 3Y-4.52%
OM growth 5Y-0.31%
PM growth 3YN/A
PM growth 5Y-3.96%
GM growth 3Y-2.15%
GM growth 5Y-0.83%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TILE is destroying value.
The number of shares outstanding for TILE remains at a similar level compared to 1 year ago.
TILE has less shares outstanding than it did 5 years ago.
TILE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.72 indicates that TILE is not a great score, but indicates only limited risk for bankruptcy at the moment.
TILE's Altman-Z score of 2.72 is fine compared to the rest of the industry. TILE outperforms 61.90% of its industry peers.
TILE has a debt to FCF ratio of 3.66. This is a good value and a sign of high solvency as TILE would need 3.66 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.66, TILE is doing good in the industry, outperforming 67.86% of the companies in the same industry.
TILE has a Debt/Equity ratio of 0.97. This is a neutral value indicating TILE is somewhat dependend on debt financing.
TILE's Debt to Equity ratio of 0.97 is on the low side compared to the rest of the industry. TILE is outperformed by 63.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.78
WACC7.52%
2.3 Liquidity
A Current Ratio of 2.72 indicates that TILE has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.72, TILE belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
A Quick Ratio of 1.42 indicates that TILE should not have too much problems paying its short term obligations.
The Quick ratio of TILE (1.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The earnings per share for TILE have decreased strongly by -19.20% in the last year.
The Earnings Per Share has been decreasing by -7.48% on average over the past years.
Looking at the last year, TILE shows a decrease in Revenue. The Revenue has decreased by -2.81% in the last year.
The Revenue has been growing slightly by 1.35% on average over the past years.
EPS 1Y (TTM)-19.2%
EPS 3Y-0.97%
EPS 5Y-7.48%
EPS growth Q2Q32.26%
Revenue 1Y (TTM)-2.81%
Revenue growth 3Y4.57%
Revenue growth 5Y1.35%
Revenue growth Q2Q-3.12%
3.2 Future
TILE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.59% yearly.
The Revenue is expected to grow by 3.56% on average over the next years.
EPS Next Y3.35%
EPS Next 2Y16.55%
EPS Next 3Y21.59%
EPS Next 5YN/A
Revenue Next Year1.09%
Revenue Next 2Y2.43%
Revenue Next 3Y3.56%
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
A Price/Earnings ratio of 16.00 indicates a correct valuation of TILE.
Based on the Price/Earnings ratio, TILE is valued a bit cheaper than the industry average as 77.38% of the companies are valued more expensively.
TILE is valuated rather cheaply when we compare the Price/Earnings ratio to 28.56, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.48, the valuation of TILE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TILE indicates a somewhat cheap valuation: TILE is cheaper than 75.00% of the companies listed in the same industry.
TILE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 15.48 |
4.2 Price Multiples
TILE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TILE is cheaper than 76.19% of the companies in the same industry.
TILE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TILE is cheaper than 88.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.14 | ||
| EV/EBITDA | 8.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TILE does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as TILE's earnings are expected to grow with 21.59% in the coming years.
PEG (NY)4.78
PEG (5Y)N/A
EPS Next 2Y16.55%
EPS Next 3Y21.59%
5. Dividend
5.1 Amount
With a yearly dividend of 0.25%, TILE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.31, TILE pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.25, TILE pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
5.2 History
The dividend of TILE decreases each year by -21.84%.
TILE has paid a dividend for at least 10 years, which is a reliable track record.
TILE has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-21.84%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
5.28% of the earnings are spent on dividend by TILE. This is a low number and sustainable payout ratio.
DP5.28%
EPS Next 2Y16.55%
EPS Next 3Y21.59%
INTERFACE INC
NASDAQ:TILE (5/14/2024, 7:04:25 PM)
After market: 16.16 0 (0%)16.16
+0.22 (+1.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap943.26M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
Dividend Growth(5Y)
DP
Div Incr Years
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Ex-Date
Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 15.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.78
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 10.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.09% | ||
| PM (TTM) | 3.49% | ||
| GM | 34.97% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-19.2%
EPS 3Y-0.97%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.81%
Revenue growth 3Y4.57%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
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