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FND, Floor & Decor

Floor & Decor is a high-growth, differentiated, multi-channel specialty retailer of hard surface flooring and related accessories and seller of commercial surfaces.

As of December 25, 2025, we operated 270 warehouse-format stores and five small-format design studios across 39 states.

We appeal to a variety of customers, including professional installers and commercial businesses ("Pro") and homeowners, which are comprised of do-it-yourself customers ("DIY") and buy-it-yourself customers, who buy our products for professional installation ("BIY").

Latest annual: FY2025 10-K

FND · Floor & Decor

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$4.7B

+5.1% YoY · 14% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $4.7B 5-yr avg $4.3B

Gross margin 44% 5-yr avg 42%

Operating margin 5.5% 5-yr avg 7.6%

ROIC 9% 5-yr avg 13%

Owner-earnings margin 4% 5-yr avg 6%

Free cash flow margin 2% 5-yr avg −0%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Retail (95%) and Other (5%).
What moves the needle: Gross margin has run about 41% and operating margin about 7.7% through the cycle, a solid spread between what it charges and what the product costs to make. Inventory runs near 28% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has run in the teens (median 16%, above 15% in 5 of 10 years). Owner earnings agree: roughly 6% of revenue reaches owners as cash, consistently. Returns like these are solid but short of clear franchise economics; whether they hold is what the 10-K settles, not the multiple.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

The biggest segment, Retail, is also where the profit is made: 95% of revenue and 95% of segment operating profit.

Revenue by reportable segment, FY2025

Operating profit same segments

Retail95%$4.4B95% of profit
Other5%$243M5% of profit

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$1.1B	$1.4B	$1.7B	$2.0B	$2.4B	$3.4B	$4.3B	$4.4B	$4.5B	$4.7B	$4.7B	RevenueRevenue
41%	41%	41%	42%	43%	41%	41%	42%	43%	44%	44%	Gross marginGross mgn
6%	6%	6%	6%	6%	6%	5%	35%	38%	38%	38%	SG&A / revenueSG&A/rev
$69M	$118M	$131M	$159M	$215M	$339M	$397M	$321M	$256M	$270M	$258M	Operating incomeOp. inc.
6.6%	8.5%	7.7%	7.8%	8.8%	9.9%	9.3%	7.3%	5.7%	5.8%	5.5%	Operating marginOp. mgn
$43M	$103M	$116M	$151M	$195M	$283M	$298M	$246M	$206M	$209M	$199M	Net incomeNet inc.
21%	-4%	5%	-0%	6%	15%	23%	21%	19%	22%	22%	Effective tax rateTax rate
											Cash flow & returns
$89M	$109M	$186M	$205M	$406M	$301M	$112M	$804M	$603M	$382M	$420M	Operating cash flowOp. cash
$29M	$38M	$52M	$74M	$92M	$118M	$155M	$202M	$232M	$241M	$243M	DepreciationDeprec.
$15M	($37M)	$11M	($29M)	$103M	($121M)	($363M)	$329M	$131M	($97M)	($53M)	Working capital & otherWC & other
$75M	$102M	$151M	$196M	$212M	$408M	$457M	$548M	$447M	$318M	$314M	CapexCapex
7.1%	7.4%	8.9%	9.6%	8.8%	11.9%	10.7%	12.4%	10.0%	6.8%	6.7%	Capex / revenueCapex/rev
$61M	$71M	$134M	$131M	$315M	$183M	($43M)	$602M	$371M	$141M	$177M	Owner earningsOwner earn.
5.8%	5.1%	7.8%	6.4%	13.0%	5.3%	−1.0%	13.6%	8.3%	3.0%	3.8%	Owner earnings marginOE mgn
$15M	$7M	$34M	$9M	$194M	($106M)	($344M)	$256M	$156M	$64M	$105M	Free cash flowFCF
1.4%	0.5%	2.0%	0.4%	8.0%	−3.1%	−8.1%	5.8%	3.5%	1.4%	2.3%	Free cash flow marginFCF mgn
—	—	—	$0	$0	$64M	$4M	$17M	$0	$0	$0	AcquisitionsAcquis.
12%	20%	17%	18%	22%	21%	15%	12%	10%	9%	9%	ROICROIC
32%	23%	20%	20%	20%	21%	18%	13%	9%	9%	8%	Return on equityROE
											Balance sheet
$451K	$556K	$644K	$27M	$308M	$139M	$10M	$34M	$188M	$249M	$294M	Cash & investmentsCash+inv
$35M	$54M	$68M	—	—	—	—	—	—	—	$45M	ReceivablesReceiv.
$294M	$428M	$471M	$582M	$654M	$1.0B	$1.3B	$1.1B	$1.1B	$1.1B	$1.1B	InventoryInvent.
$158M	$259M	$314M	$368M	$418M	$662M	$591M	$679M	$795M	$684M	$735M	Accounts payablePayables
$170M	$223M	$225M	$213M	$236M	$346M	$701M	$427M	$338M	$449M	$459M	Operating working capitalOper. WC
$336M	$503M	$559M	$701M	$1.0B	$1.3B	$1.5B	$1.3B	$1.5B	$1.5B	$1.6B	Current assetsCur. assets
$244M	$359M	$404M	$553M	$699M	$1.0B	$1.0B	$1.2B	$1.2B	$1.2B	$1.4B	Current liabilitiesCur. liab.
1.4×	1.4×	1.4×	1.3×	1.5×	1.2×	1.4×	1.1×	1.2×	1.3×	1.2×	Current ratioCurr. ratio
$227M	$227M	$227M	$227M	$227M	$255M	$255M	$258M	$258M	$258M	$258M	GoodwillGoodwill
$831M	$1.1B	$1.2B	$2.3B	$2.9B	$3.7B	$4.4B	$4.7B	$5.1B	$5.5B	$5.6B	Total assetsAssets
$341M	$148M	$145M	$143M	$209M	$198M	$408M	$197M	$197M	$196M	$203M	Total debtDebt
$340M	$148M	$145M	$116M	($99M)	$58M	$398M	$163M	$9M	($53M)	($91M)	Net debt / (cash)Net debt
5.4×	8.5×	14.7×	18.1×	25.6×	68.8×	35.6×	32.5×	92.4×	79.2×	86.3×	Interest coverageInt. cov.
$134M	$443M	$584M	$764M	$997M	$1.3B	$1.7B	$1.9B	$2.2B	$2.4B	$2.5B	Shareholders’ equityEquity
0.3%	0.4%	0.4%	0.4%	0.7%	0.6%	0.5%	0.6%	0.8%	0.6%	0.7%	Stock comp / revenueSBC/rev
											Per share
88.4M	99.7M	105M	105M	106M	107M	107M	108M	108M	108M	109M	Shares out (diluted)Shares
$11.88	$13.89	$16.35	$19.49	$22.85	$31.97	$39.69	$40.91	$41.14	$43.20	$43.09	Revenue / shareRev/sh
$0.49	$1.03	$1.11	$1.44	$1.84	$2.64	$2.78	$2.28	$1.90	$1.92	$1.84	EPS (diluted)EPS
$0.69	$0.71	$1.28	$1.24	$2.96	$1.71	$-0.40	$5.58	$3.42	$1.30	$1.63	Owner earnings / shareOE/sh
$0.17	$0.07	$0.33	$0.08	$1.83	$-0.99	$-3.20	$2.37	$1.44	$0.59	$0.97	Free cash flow / shareFCF/sh
$0.84	$1.03	$1.45	$1.87	$2.00	$3.80	$4.25	$5.08	$4.13	$2.93	$2.90	Cap. spending / shareCapex/sh
$1.52	$4.44	$5.59	$7.28	$9.40	$12.32	$15.42	$17.90	$20.03	$22.22	$22.64	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+15.4%/yr	+13.6%/yr
Owner earnings / share	+7.3%/yr	−15.2%/yr
EPS	+16.5%/yr	+0.9%/yr
Capital spending / share	+14.8%/yr	+7.9%/yr
Book value / share	+34.7%/yr	+18.8%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

108Mpeak FY2025

ROIC

9%low FY2025

Gross margin

44%low FY2022

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$141Mowner earningsvs.$209Mnet incomelow FY2022

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned $141M of owner earnings, the operating cash left after the $241M it takes just to hold its position. It put $77M more into growth; free cash flow, after that spending, was $64M.

Reported net income$209M

Owner earnings$141M · 3% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$209M	$206M	$246M	$298M	$283M
Depreciation & amortizationnon-cash charge added back	+$241M	+$232M	+$202M	+$155M	+$118M
Stock-based compensationreal costnon-cash, but a real cost	+$30M	+$34M	+$27M	+$22M	+$21M
Working capital & othertiming of cash in and out, other non-cash items	−$97M	+$131M	+$329M	−$363M	−$121M
Cash from operations	$382M	$603M	$804M	$112M	$301M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$241M	−$232M	−$202M	−$155M	−$118M
Owner earnings	$141M	$371M	$602M	($43M)	$183M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$77M	−$214M	−$346M	−$302M	−$289M
Free cash flow	$64M	$156M	$256M	($344M)	($106M)
Owner-earnings marginowner earnings ÷ revenue	3%	8%	14%	-1%	5%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $241M, roughly its depreciation, the rate its assets wear out). The other $77M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $30M), owner earnings is nearer $111M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 79.2×

Comfortable

Operating income $270M ÷ interest expense $3M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? +$53M

Net cash

Cash $249M − debt $196M

What this means
Cash and short-term investments exceed every dollar of debt by $53M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 67d

Long (60+ days)

DSO 5 + DIO 157 − DPO 95 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 15%

Solid through the cycle

10-yr median, range 9%–22%; 9% latest = NOPAT $211M ÷ invested capital $2.4B

Industry peers: median 30%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 9% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 6%

Solid through the cycle

10-yr median margin, range -1%–14%; latest $141M = operating cash $382M − maintenance capex $241M

Industry peers: median 9%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 3% of revenue this year, a 6% median across 10 years. It chose to put $77M more into growth, so free cash flow this year was $64M — the gap is investment, not weakness. Treating stock comp as the real expense it is (less $30M of SBC) leaves $111M.
Are earnings backed by cash? 1.83×

Cash-backed

Cash from ops $382M ÷ net income $209M

In the filing’s words The filing leans on adjusted, non-GAAP earnings, but the GAAP profit is itself cash-backed — the adjustments are not papering over a cash shortfall here.

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 160%

Returned more than it generated

Dividends + buybacks $225M ÷ Owner Earnings $141M

What this means
The company returned more than it generated: against $141M of Owner Earnings, $225M (160%) went back to shareholders, $225M dividends, $0 buybacks — the excess came from the balance sheet or borrowing, not the year's operations. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
Investing or harvesting? 1.32×

Expanding

Capex $318M ÷ depreciation $241M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 4 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $4.7B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 1.33×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $196M vs $377M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Pass

A profit every year (10-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · 1 of 10 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +152%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $2.04/share (latest year $1.93), the averaged base the calculator's gate runs on, and book value is $22.28/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 10 of 10

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Return on capital ≥ 15% 5 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 8% → 6% (3-yr avg ends)

What this means
Through the cycle the operating margin held roughly steady — about 8% early, 6% lately, median 8%.
Reinvestment, incremental ROIC 8%

What this means
Reinvested capital came back at only a modest incremental return — near the cost of capital, where extra growth adds little per dollar. The record shows whether it is a soft stretch or a thinning moat.
Owner earnings growth +16%/yr

What this means
Owner earnings grew about 16% a year over the record.
Worst year 2024 · 5.7% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count +2.3%/yr

What this means
The share count is rising, dilution works against you on a per-share basis.
Dividend record paid

What this means
Paid a dividend in 1 of the years on record.

Does AI threaten the moat?

Moderate contestability

AI is likely to reshape costs and some products here without clearly contesting or sparing the core moat; how the company itself frames it is the tell.

In its own filing Named as a competitive risk

Its FY2025 10-K names artificial intelligence as a competitive threat.

“We will be at a competitive disadvantage if, over time, our competitors are more effective than us in their utilization and integration of rapidly evolving technologies, including artificial intelligence.”

The question is whether a moat the record shows as durable outlasts a technology that lowers the cost of part of what the firm sells. The durability is read in the record above, the filing's own framing of AI beside it; the industry label decides nothing on its own.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 26, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$1.6B

Cash & short-term investments$294M
Receivables$45M
Inventory$1.1B
Other current assets$117M

Current liabilities$1.4B

Debt due within a year$196M
Accounts payable$735M
Other current liabilities$464M

Current ratio1.15×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.33×stricter: inventory excluded

Cash ratio0.21×strictest: cash alone against what's due

Working capital$210Mthe cushion left after near-term bills

Debt due this year vs. cash$196M due · $294M cash covered by cash on hand, no refinancing forced · both figures from the Mar 26, 2026 balance sheet

Revenue, latest quarter vs. a year ago−0.7%the freshest read on whether the business is still growing

Current ratio, recent quarters1.2× → 1.2×

Deeper floors

Tangible book value$2.1Bequity stripped of goodwill & intangibles

Net current asset value($1.5B)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$2.0B$1.8B of it operating leases; with finance leases, “total fixed claims” below reaches $2.0B (annual-report basis)

Deferred revenue$19Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Lease obligations

the lease note, SEC EDGAR →

Debt by another name. What the business owes on the property, aircraft, stores and equipment it rents rather than owns is a fixed claim due on a schedule; added back to the debt, it is the true leverage. That ladder, and what it adds to the debt on the page above.

'26$258M

'27$255M

'28$236M

'29$223M

'30$204M

later$1.4B

Lease payments by year, scaled to the largest; “later” is everything beyond year five, shown apart. These are the contractual cash payments, before the interest the filing imputes back out to the balance-sheet liability.

Due in the next 12 months$258Ma fixed cash payment, owed whether or not the business has a good year

Total lease payments$2.6Bevery year plus the tail, undiscounted: the full cash the leases will take

On the balance sheet$1.8Bthe present value of those payments, the recognised lease liability

True leverage: debt plus leases

On-balance-sheet debt$196M

Lease obligations (present value)$1.8B

Total fixed claims on the business$2.0B

Counting the leases the way Buffett does, the fixed claims on this business come to $2.0B, of which the leases are 90%, more than the debt itself. The lease wall above and the debt schedule together are the calendar of what must be paid, and when.

Lease ladder read from the ASC 842 tags in the company’s Dec 25, 2025 annual report and reconciled: the yearly buckets sum to the undiscounted total, which less the imputed interest equals the balance-sheet liability; a ladder that doesn’t tie out is withheld.

How the cash was used, 2016–2025

Over the record, the business generated $3.2B of operating cash; how management split it reads as a reinvestor, most operating cash is plowed back into the business.

Reinvested$2.9B · 91%
Dividends$225M · 7%
Retained (debt / cash)$59M · 2%

Returned to owners$225M
11% of the owner earnings the business produced over the span, $225M as dividends and $0 as buybacks.
Net change in share count22.7%
The diluted count rose from 88M to 109M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record$2.54/sh
Paid in 1 of the years on record. It was never cut over the span.
Return on what it retained17%
Of the earnings it kept rather than paid out ($1.6B over the span), annual owner earnings (first three years vs last three) grew $282M, so each retained $1 added about 0.17 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Thomas V. Taylor	$5.1M	$23.8M	$183M
2022	Thomas V. Taylor	$6.3M	−$14.9M	($43M)
2023	Thomas V. Taylor	$15.5M	$23.5M	$602M
2024	Thomas V. Taylor	$8.4M	−$1.6M	$371M
2025	Thomas V. Taylor	$10.7M	$2.0M	$141M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership1.8%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio300:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$30M
The slice of the business handed to employees in shares this year, 1% of revenue, equal to 11% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Floor & Decor is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

1 of the 5 tests turned up something to look into; the other 4 came back clean.

Look hereDid the share count rise anyway?22.7%
Diluted shares grew 22.7% over 2016–2025. Owners were diluted on net; each share owns less of the business than it did. Read the buyback line beside this one, not on its own.

And these came back clean

Is it less profitable than it was?
Did debt outgrow the business?
Did reported profit become cash?
Did receivables and inventory outpace sales?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Inventory as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Specialty Retail

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
HDHome Depot Inc.	$164.7B	34%	14.3%	41%	10%
LOWLowe's Cos Inc.	$86.3B	33%	10.6%	33%	7%
SHWSherwin-Williams Company (The)	$23.6B	46%	15.9%	23%	11%
TSCOTractor Supply Company	$15.5B	35%	9.5%	31%	7%
BLDRBuilders FirstSource	$15.2B	28%	5.9%	16%	5%
FASTFastenal Company	$8.2B	46%	20.2%	30%	12%
FNDFloor & Decor	$4.7B	42%	7.7%	16%	6%
Group median	—	35%	10.6%	30%	7%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Floor & Decor has delivered.

Today’s price $

Through the cycle, Floor & Decor earns about $285M on its 6.1% median owner-earnings margin. This year’s 3.0% margin runs below that; the reported figure may understate a lean year. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($285M) Net of stock comp (−$31M) Steady-state · maintenance capex ($179M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+38%/yr

Owner-earnings growth · ’16→’25+29%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $105M on 108M shares outstanding, per the 10-Q cover, as of 2026-04-27; net cash $91M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($314M) runs well above depreciation ($243M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $179M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh FND against another business →

The owners of FND: the meeting and the votes →

Cite: Owner Scorecard, "Floor & Decor (FND), the owner's record," https://ownerscorecard.com/c/FND, data as of 2026-07-09.

Manual order: ← FNB its page in the Manual FNF →

Industry order: ← FL the Specialty Retail chapter GAP →