Quality Investor

Interface, Inc.

Rank #121Capital Return

TILE · Nasdaq · Consumer Cyclical

Interface, Inc. (TILE) — Rank #121 by gross profitability (GP/assets 0.42) · ROE 17.1% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0000715787 · all metrics point-in-time as of the filing date.

About

Interface, Inc. designs, produces, and sells modular carpet products in the United States, Canada, Latin America, Europe, Africa, Asia, and Australia.

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The company offers modular carpets; luxury vinyl tiles; modular resilient flooring products; rubber flooring; and carpet tiles used in commercial interiors, include offices, educational facilities, healthcare facilities, airports, hospitality spaces, retail spaces, and residential interiors. It also provides carpet replacement, installation, and maintenance services; and other products and services, including TacTiles carpet tile installation system and adhesives and products for carpet installation and maintenance, as well as project management services. The company sells its products under the Interface, FLOR, NORAPLAN, and NORAMENT brands through direct sales to end users and indirect sales through independent contractors, installers and distributors. Interface, Inc.

was incorporated in 1973 and is headquartered in Atlanta, Georgia.

Industry
Furnishings, Fixtures & Appliances
Sector
Consumer Cyclical
State
GA
Filer Category
Large accelerated filer
Fiscal Year End
January 3

Price History

TILE+135.7% · +18.7% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$1.98B

P/E (annual)

17.5

P/S (annual)

1.4

P/B

2.9

P/OCF (annual)

11.8

Shareholder Yield

-0.3%

Employees

3,570

Industry

Furnishings, Fixtures & Appliances

Exchange

Nasdaq

Signal Flags

3 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.42
Return on equity
17.1%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.87
Current ratio
2.53×
Net cash
-$122.83M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.0%

Growth

2/2 pass
Revenue growth
5.4%
Piotroski F-Score
7 / 9
Share dilution
0.5%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

5.2%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 0.5% — per-share value needs a total required return of 5.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 4.9%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

1.0%

r = 10% (base)

5.2%

r = 12%

8.8%

Net debt / market cap: 6.1%

Base FCF: $121.7M3Y mean FCF: $117.4M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

16.2xFair
12.1xmed 17.5x28.2x

P / S

Price / revenue per share

1.4xExpensive
0.4xmed 0.7x1.4x

P / B

Price / book value per share

2.9xExpensive
1.5xmed 2.4x3.0x

P / GP

Price / gross profit per share

3.5xExpensive
1.3xmed 2.0x3.5x

P / FCF

Price / free cash flow per share

15.5xExpensive
7.8xmed 14.2x26.1x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.42

Primary signal (Novy-Marx).

Return on equity

17.1%

Gross margin

38.7%

Revenue growth (YoY)

5.4%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

2.2%

Revenue CAGR (5Y)

4.7%

Earnings CAGR (3Y)

81.1%

FCF CAGR (3Y)

70.3%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.87

Current ratio

2.53×

Quick ratio

1.18×

Net cash

-$122.83M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$121.71M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.05

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.0%

Stock-based comp intensity.

Dividend safety

Composite score

3.5 / 5

Good
Payout ratio
3.1%5/5 Strong
FCF coverage
34.20×5/5 Strong
Dividend growth streak
0 yr0/5 Weak
Balance-sheet health
D/E 0.87 · IC 8.39×4/5 Strong

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20212025
Decline
Capital Return
Value