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. While TILE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TILE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TILE had positive earnings in the past year.
TILE had a positive operating cash flow in the past year.
Of the past 5 years TILE 4 years were profitable.
Each year in the past 5 years TILE had a positive operating cash flow.
1.2 Ratios
TILE's Return On Assets of 8.39% is fine compared to the rest of the industry. TILE outperforms 79.76% of its industry peers.
The Return On Equity of TILE (19.48%) is better than 84.52% of its industry peers.
TILE has a better Return On Invested Capital (11.84%) than 79.76% of its industry peers.
TILE had an Average Return On Invested Capital over the past 3 years of 8.61%. This is below the industry average of 11.76%.
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 72.62% of the companies in the same industry.
In the last couple of years the Profit Margin of TILE has grown nicely.
TILE has a Operating Margin of 9.83%. This is in the better half of the industry: TILE outperforms 70.24% of its industry peers.
TILE's Operating Margin has been stable in the last couple of years.
TILE's Gross Margin of 36.82% is fine compared to the rest of the industry. TILE outperforms 63.10% 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.
TILE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TILE remains at a similar level compared to 5 years ago.
The debt/assets ratio for TILE has been reduced compared to a year ago.
2.2 Solvency
TILE has an Altman-Z score of 3.97. This indicates that TILE is financially healthy and has little risk of bankruptcy at the moment.
TILE's Altman-Z score of 3.97 is fine compared to the rest of the industry. TILE outperforms 72.62% of its industry peers.
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 better Debt to FCF ratio (2.82) than 75.00% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that TILE is somewhat dependend on debt financing.
TILE has a Debt to Equity ratio (0.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 2.82 | ||
| Altman-Z | 3.97 |
ROIC/WACC1.43
WACC8.25%
2.3 Liquidity
TILE has a Current Ratio of 2.76. This indicates that TILE is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.76, TILE belongs to the best of the industry, outperforming 82.14% 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.
Looking at the Quick ratio, with a value of 1.42, TILE is in line with its industry, outperforming 54.76% 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 25.56% over the past year.
Measured over the past years, TILE shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.57% on average per year.
TILE shows a small growth in Revenue. In the last year, the Revenue has grown by 4.29%.
TILE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.41% yearly.
EPS 1Y (TTM)25.56%
EPS 3Y5.88%
EPS 5Y-1.57%
EPS Q2Q%50%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y3.1%
Revenue growth 5Y-0.41%
Sales Q2Q%8.33%
3.2 Future
Based on estimates for the next years, TILE will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.80% on average per year.
TILE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.11% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.40, which indicates a correct valuation of TILE.
76.19% 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 (26.99), we can say TILE is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.08, which indicates a correct valuation of TILE.
Based on the Price/Forward Earnings ratio, TILE is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.36. TILE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 14.08 |
4.2 Price Multiples
TILE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TILE is cheaper than 72.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TILE is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.66 | ||
| EV/EBITDA | 8.41 |
4.3 Compensation for Growth
TILE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of TILE may justify a higher PE ratio.
PEG (NY)1.36
PEG (5Y)N/A
EPS Next 2Y11.83%
EPS Next 3Y11.8%
5. Dividend
5.1 Amount
TILE has a yearly dividend return of 0.16%, which is pretty low.
TILE's Dividend Yield is a higher than the industry average which is at 2.50.
With a Dividend Yield of 0.16, TILE pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
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
TILE pays out 2.39% of its income as dividend. This is a sustainable payout ratio.
DP2.39%
EPS Next 2Y11.83%
EPS Next 3Y11.8%
25.71
+0.25 (+0.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners103.74%
Inst Owner Change-1.04%
Ins Owners2.36%
Ins Owner Change5.38%
Market Cap1.51B
Analysts85
Price Target33.32 (29.6%)
Short Float %3.95%
Short Ratio6.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.16% |
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%
EPS NY rev (3m)2.58%
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 | 15.4 | ||
| Fwd PE | 14.08 | ||
| P/S | 0.93 | ||
| P/FCF | 13.66 | ||
| P/OCF | 10.21 | ||
| P/B | 2.94 | ||
| P/tB | 4.18 | ||
| EV/EBITDA | 8.41 |
EPS(TTM)1.67
EY6.5%
EPS(NY)1.83
Fwd EY7.1%
FCF(TTM)1.88
FCFY7.32%
OCF(TTM)2.52
OCFY9.79%
SpS27.52
BVpS8.75
TBVpS6.16
PEG (NY)1.36
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 | 3.97 |
F-Score8
WACC8.25%
ROIC/WACC1.43
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)25.56%
EPS 3Y5.88%
EPS 5Y-1.57%
EPS Q2Q%50%
EPS Next Y11.31%
EPS Next 2Y11.83%
EPS Next 3Y11.8%
EPS Next 5YN/A
Revenue 1Y (TTM)4.29%
Revenue growth 3Y3.1%
Revenue growth 5Y-0.41%
Sales Q2Q%8.33%
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 Year47.89%
EBIT Next 3Y20.36%
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%