Interface Inc (TILE) stock analysis

P/E below its 5-year median

Interface's P/E of 13.4 is below its own 5-year median of 15.5.

P/E below the industry

Interface's P/E of 13.4 is below the Consumer discretionary median of 19.6.

EV/EBITDA below its 5-year median

Interface's EV/EBITDA of 7.9 is below its 5-year median of 8.5.

P/B above the industry

Interface's price-to-book of 2.57 is above the Consumer discretionary median of 2.00.

Trading below fair value

The share price of $31.73 is below our fair value estimate of $35.00.

Margin of safety under 20%

The price is 9.4% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 2.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 81.1% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 5.1% over the last twelve months; the Consumer discretionary median is 4.8%.

Guidance lowered

Interface lowered its Q3 Fiscal Year 2026 Adjusted interest & other expenses outlook on Aug 7, 2026.

Gross margin improving

Gross margin was 40.8% over the last twelve months, against 38.2% a year earlier.

Return on equity under 15%

Return on equity was 20.8% over the last twelve months and averaged 14.5% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 20.4%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Interface's return on equity of 20.8% is above the Consumer discretionary median of 5.6%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 9.6% over the last twelve months, against a 5-year average of 4.9%.

Net margin above the industry

Interface's net margin of 9.6% is above the Consumer discretionary median of 1.4%.

Low debt

Debt is 18.2% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 177% five years ago to 18.2%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 144% of total debt.

Interest well covered

Operating income covers interest expense 14.5 times.

Short-term assets cover short-term debts

Current assets are 2.30 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.66; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Interface paid dividends worth 0.3% of the share price over the last twelve months.

Yield below Treasuries

The 0.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Interface yields 0.3%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 4.7% of net income.

Covered by free cash flow

Dividends take 4.8% of free cash flow.