Why I am buying Floor & Decor

Since becoming a public company in 2017, Floor & Decor (FND) is currently going through its largest ever drawdown in its history. The stock is currently down ~65% from its peak in late 2021.

However, looking at NTM EV/EBIT multiple, it may appear the stock is still trading at not-so-cheap multiple and it may be tempting to attribute much of the drawdown just to lofty valuation multiples.

In fact, after three consecutive years of declining same store sales (SSS), the company guided for yet another tame SSS guide for 2026: -2% to +1%.

Despite the near-term meh outlook, I actually believe Floor & Decor may be the most attractive stock from risk-reward perspective in my coverage universe today. I will expand my rationales behind the paywall.

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