Taking Measurements for Floor & Decor Stock Ahead of Earnings

FND has doubled in value over the past year

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Specialty retailer Floor & Decor Holdings, Inc. (NYSE:FND) has more than doubled in value over the past 12 months. These good feelings have continued into 2021, with FND up 11.5% year-to-date already and a record high of $108.54 on Jan. 14. And even though the shares dipped shortly after, their 50-day moving average contained the pullback.

The company will step into the earnings confessional after the market closes on Thursday, Feb. 25. The stock scored only one positive post-earnings move in 2020, a 4.9% pop 12 months ago last February. Overall, FND averages a post-earnings move of 6.3%, regardless of direction.

FND Stock Chart

Despite earnings looming, FND premium is affordably priced.  The stock's Schaeffer's Volatility Index (SVI) of 41% stands higher than just 7% of all other readings in its annual range, implying that options players are pricing in low volatility expectations at the moment. 

From a fundamental point of view, Floor & Decor stock seems to have outpaced the company’s growth rate. This doesn’t necessarily mean FND stock is done accelerating, but it does mean Floor & Decor stock is trading at a premium price. FND’s price-earnings ratio currently stand at 63.15. Floor & Decor stock also has a forward price-earnings ratio of 56.50, which means it will take the company a few years to reach a reasonable value for its current price, taking its net income growth into consideration.

Over the past year, FND ha increased its net profits by $6 million and its revenue by almost $100 million. In addition, the company has increased its top line by more than $700 million in the past three years. FND has also increased its bottom-line by $54 million since the fiscal year 2017. Overall, Floor & Decor stock presents the most value as a long-term play. 

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