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 83 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.
TILE had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TILE had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 8.62%, TILE is doing good in the industry, outperforming 79.52% of the companies in the same industry.
TILE has a better Return On Equity (20.64%) than 85.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.20%, TILE belongs to the top of the industry, outperforming 80.72% 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 10.74%.
The 3 year average ROIC (8.61%) for TILE is below the current ROIC(12.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 20.64% | ||
| ROIC | 12.2% |
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
TILE's Profit Margin of 6.29% is fine compared to the rest of the industry. TILE outperforms 74.70% of its industry peers.
In the last couple of years the Profit Margin of TILE has grown nicely.
TILE has a better Operating Margin (9.89%) than 68.67% of its industry peers.
In the last couple of years the Operating Margin of TILE has remained more or less at the same level.
With a decent Gross Margin value of 36.96%, TILE is doing good in the industry, outperforming 60.24% of the companies in the same industry.
TILE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.89% | ||
| PM (TTM) | 6.29% | ||
| GM | 36.96% |
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.
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
An Altman-Z score of 3.62 indicates that TILE is not in any danger for bankruptcy at the moment.
TILE has a Altman-Z score of 3.62. This is in the better half of the industry: TILE outperforms 74.70% of its industry peers.
The Debt to FCF ratio of TILE is 2.71, which is a good value as it means it would take TILE, 2.71 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.71, TILE is in the better half of the industry, outperforming 74.70% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that TILE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.63, TILE is in line with its industry, outperforming 44.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.5
WACC8.14%
2.3 Liquidity
TILE has a Current Ratio of 2.60. This indicates that TILE is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TILE (2.60) is better than 78.31% of its industry peers.
A Quick Ratio of 1.40 indicates that TILE should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.40, TILE perfoms like the industry average, outperforming 51.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
TILE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.55%, which is quite impressive.
The Earnings Per Share has been decreasing by -1.57% on average over the past years.
TILE shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.26%.
The Revenue has been decreasing by -0.41% on average over the past years.
EPS 1Y (TTM)44.55%
EPS 3Y5.88%
EPS 5Y-1.57%
EPS Q2Q%-17.07%
Revenue 1Y (TTM)27.26%
Revenue growth 3Y3.1%
Revenue growth 5Y-0.41%
Sales Q2Q%3.04%
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.
Based on estimates for the next years, TILE will show a small growth in Revenue. The Revenue will grow by 3.97% on average per year.
EPS Next Y8.52%
EPS Next 2Y11.1%
EPS Next 3Y11.8%
EPS Next 5YN/A
Revenue Next Year1.71%
Revenue Next 2Y3.46%
Revenue Next 3Y3.97%
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 12.25 indicates a correct valuation of TILE.
81.93% of the companies in the same industry are more expensive than TILE, based on the Price/Earnings ratio.
TILE is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.29, which indicates a very decent valuation of TILE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TILE indicates a rather cheap valuation: TILE is cheaper than 83.13% of the companies listed in the same industry.
TILE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 11.29 |
4.2 Price Multiples
81.93% of the companies in the same industry are more expensive than TILE, based on the Enterprise Value to EBITDA ratio.
TILE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TILE is cheaper than 77.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.14 | ||
| EV/EBITDA | 6.4 |
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)1.44
PEG (5Y)N/A
EPS Next 2Y11.1%
EPS Next 3Y11.8%
5. Dividend
5.1 Amount
TILE has a yearly dividend return of 0.22%, which is pretty low.
The stock price of TILE dropped by -26.93% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
TILE's Dividend Yield is a higher than the industry average which is at 2.57.
Compared to an average S&P500 Dividend Yield of 2.51, TILE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
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 2.32% of its income as dividend. This is a sustainable payout ratio.
DP2.32%
EPS Next 2Y11.1%
EPS Next 3Y11.8%
17.88
-0.7 (-3.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners99.11%
Inst Owner Change0.08%
Ins Owners1.86%
Ins Owner Change-3.28%
Market Cap1.05B
Analysts85
Price Target31.96 (78.75%)
Short Float %5.18%
Short Ratio5.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Yearly Dividend0.04
Dividend Growth(5Y)-28.83%
DP2.32%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.67%
Min EPS beat(2)16.28%
Max EPS beat(2)37.07%
EPS beat(4)4
Avg EPS beat(4)45.96%
Min EPS beat(4)16.28%
Max EPS beat(4)92.08%
EPS beat(8)7
Avg EPS beat(8)32.38%
EPS beat(12)11
Avg EPS beat(12)31.11%
EPS beat(16)15
Avg EPS beat(16)45.32%
Revenue beat(2)1
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-3.51%
Max Revenue beat(2)0.33%
Revenue beat(4)1
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-3.51%
Max Revenue beat(4)0.33%
Revenue beat(8)1
Avg Revenue beat(8)-2.06%
Revenue beat(12)1
Avg Revenue beat(12)-2.4%
Revenue beat(16)2
Avg Revenue beat(16)-1.98%
PT rev (1m)0%
PT rev (3m)1.08%
EPS NQ rev (1m)-11.27%
EPS NQ rev (3m)-8.7%
EPS NY rev (1m)3.1%
EPS NY rev (3m)3.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.68%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 11.29 | ||
| P/S | 0.65 | ||
| P/FCF | 9.14 | ||
| P/OCF | 7.06 | ||
| P/B | 2.14 | ||
| P/tB | 3.07 | ||
| EV/EBITDA | 6.4 |
EPS(TTM)1.46
EY8.17%
EPS(NY)1.58
Fwd EY8.86%
FCF(TTM)1.96
FCFY10.94%
OCF(TTM)2.53
OCFY14.16%
SpS27.39
BVpS8.35
TBVpS5.82
PEG (NY)1.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 20.64% | ||
| ROCE | 16.65% | ||
| ROIC | 12.2% | ||
| ROICexc | 13.61% | ||
| ROICexgc | 16.47% | ||
| OM | 9.89% | ||
| PM (TTM) | 6.29% | ||
| GM | 36.96% | ||
| FCFM | 7.14% |
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-Score7
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.71 | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 75.92% | ||
| Cap/Sales | 2.1% | ||
| Interest Coverage | 5.52 | ||
| Cash Conversion | 72.99% | ||
| Profit Quality | 113.56% | ||
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 3.62 |
F-Score7
WACC8.14%
ROIC/WACC1.5
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)44.55%
EPS 3Y5.88%
EPS 5Y-1.57%
EPS Q2Q%-17.07%
EPS Next Y8.52%
EPS Next 2Y11.1%
EPS Next 3Y11.8%
EPS Next 5YN/A
Revenue 1Y (TTM)27.26%
Revenue growth 3Y3.1%
Revenue growth 5Y-0.41%
Sales Q2Q%3.04%
Revenue Next Year1.71%
Revenue Next 2Y3.46%
Revenue Next 3Y3.97%
Revenue Next 5YN/A
EBIT growth 1Y55.66%
EBIT growth 3Y4.91%
EBIT growth 5Y-1.34%
EBIT Next Year44.09%
EBIT Next 3Y19.81%
EBIT Next 5YN/A
FCF growth 1Y-1.11%
FCF growth 3Y25.07%
FCF growth 5Y11.27%
OCF growth 1Y4.5%
OCF growth 3Y19.63%
OCF growth 5Y0.92%