FND: T&T pick touted by Fool

Floor and Decor (FND) is a Berkshire holding, though not a big one.
The fool has an article pumping it.

I usually steer clear of specialty retailers.
They are like puffball mushrooms: they tend to grow fast till they explode, looking tasty right up till the last minute.
But this was purchased by somebody in Omaha, so it might be worth a look.
The growth rate is spectacular and (so far) consistent, not just a pandemic pop, so the apparently high valuation level might be deserved.
It’s trading at around 22-23 times estimated for next year’s earnings, 31 times trailing earnings.

Five years 2017 through (estimated) 2022:
Sales per share from 14.50 to 40.75
Cash flow per share from 1.14 to 4.30
Earnings per share from 0.69 to 2.85
Book per share from 4.64 to 106.80

Low debt, they could pay it off with about 8 months of profits.

Currently trading at prices lower than Berkshire’s entry, according to the Fool article.

Does anybody follow these folks?
Currently trading at $80.57, down 45% from the 52 week high.



Floor and Decor (FND) is a Berkshire holding, though not a big one.
Does anybody follow these folks?

I don’t follow them, but I was a customer when shopping for a new floor in one of the rooms in our home recently. It was a great shopping experience. First, I hit their website to learn about different following materials, and then DW and I looked on-line at some of the plank vinyl-flooring that they offer. Then we went to the store to look at them in person. Tough to find a parking space. No one hassled us in the store.

We came home and thought about it for a day or so, and then we confirmed that we both liked color X and I placed the order on-line. The order included the underlayment, trim, etc.

I was alerted when the order was ready for pick-up, and the pick-up was seamless - even though the pick up area was quite busy. Got everything home and the installer needed 2 more pieces of trim. Went to the store and picked up the trim. Cashier was pleasant.

When it was all said and done, I could return 2 boxes of flooring and 1 piece of trim. Frictionless return.

I’d do it again. People seem to like the store. Parking lot seems to be always near full.



“Does anybody follow these folks? Currently trading at $80.57, down 45% from the 52 week high.“

No technical info here. I reached out to a close friend who knows a couple of FND execs and he does business with them. It’s HQ is only 3 miles away from my house.

He and his wife buy, fix up and sell a half dozen houses on average at any moment. They really like the company, products, stores and management and he says there are lots of ex-Home Depot folks there who “typically don’t play around.”

They use them for most of their recurrent flooring needs and report they have “way improved their customer service over the last couple years.”

He voiced his biggest concern would be with when the housing market will slow down materially. They are still selling houses on average within 4 weeks post listing in the Atlanta area but there are less interested number of buyers.

Thanks for the mention. My friend had also mentioned it months ago at a much higher price. Reasonable 22% ROE as well.


Nice call less than a month ago,
& riding on T&T’s shirttails.

this from Seeking Alpha & 20% rev growth est,