# Interface (TILE.US)

Canonical: https://gigainvestors.com/s/TILE

Analysis as of: 2026-10-16T07:32:23.929Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $35.95 per share; close as of 2026-10-15.

Estimated value: low $20.73 per share, central $25.53 per share, high $29.64 per share. Buy at or below the central value $25.53 per share. Valuation as of 2026-10-16T07:32:23.929Z; scenarios are not confidence intervals.

Expected annual return: 7.9% at the stated quote. About 7.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 1

- Operating margin variation: 0.55×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.11×

- FY2018: 0.06×

- FY2019: 0.10×

- FY2020: -0.04×

- FY2021: 0.09×

- FY2022: 0.06×

- FY2023: 0.08×

- FY2024: 0.10×

- FY2025: 0.12×

- LTM to Jun 2026: 0.14×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 10.8%

- ROIC, second-lowest year: 6.3%

- Typical minus recent gross margin: -1.8 pp

- Typical gross margin (annual median): 37.0%

- Recent gross margin (lower of latest and 3-year median): 38.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.2%

- ROIC including acquisitions, ten-year median: 8.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 17.9%

- FY2018: 10.8%

- FY2019: 13.9%

- FY2020: -4.2%

- FY2021: 10.8%

- FY2022: 6.3%

- FY2023: 10.1%

- FY2024: 15.3%

- FY2025: 10.8%

- LTM to Jun 2026: 21.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.26×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $406M

- Net income, five-year total: $322M

- Return on incremental invested capital: 55.9%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 0.7 pp

- Working capital / revenue, final three-year average: 28.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.45×

- FY2022: 2.43×

- FY2023: 1.45×

- FY2024: 1.13×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- ROIC first 3 years vs last 3 years: 15.5% vs 10.8%

- Per-share earnings: 0.86 to 1.48 (three-year endpoint medians)

- material buybacks concentrated at lower earnings yields (Spearman rho below threshold)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.1%

- Ordinary dilution, 5-year annual growth: 0.2%

- Market cap gain: $408M

- Cumulative retained earnings: $378M

- Diluted shares, 10-year annual growth: -1.1%

- Diluted shares, 5-year annual growth: 0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 7.0%

- Per-share value change: $0.62

- Per-share value, starting three-year median: $0.86

- Per-share value, ending three-year median: $1.48

- Buybacks concentrated in cheaper years (correlation): -0.52

- Average buyback yield: 2.0%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $416M

- Cumulative net income, 10 years: $487M

- ROIC, first three-year median: 15.5%

- ROIC, last three-year median: 10.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.83

- FY2017: $0.86

- FY2018: $0.84

- FY2019: $1.34

- FY2020: -$1.23

- FY2021: $0.94

- FY2022: $0.33

- FY2023: $0.76

- FY2024: $1.48

- FY2025: $1.96

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -2.9%

- Receivables to sales index (DSRI): 0.97×

- Restructuring years, last five: 3

- Stock compensation / operating cash flow: 8.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.45×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.14×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.2%

- FY2017: -6.3%

- FY2018: -3.2%

- FY2019: -4.4%

- FY2020: -14.6%

- FY2021: -2.4%

- FY2022: -1.9%

- FY2023: -7.9%

- FY2024: -5.3%

- FY2025: -2.9%

## Holders

## Price story

Price needs cash profits to grow 7.5% a year for ten years · sales +3.9%

Story as of 2026-10-16T09:59:41.835Z; price observation 2026-10-15.

Price needs cash profits to grow 7.5% a year for ten years

- 2025-08-01: Interface earnings beat by $0.13, revenue topped estimates ([investing.com](https://www.investing.com/news/earnings/interface-earnings-beat-by-013-revenue-topped-estimates-4165144))

### Sales · FY2025–2026

sales +3.9%; source https://www.sec.gov/Archives/edgar/data/715787/000071578726000006/tile-20251228.htm; observed 2026-02-25.

- FY2017: $996M 

- FY2018: $1.2B 

- FY2019: $1.3B 

- FY2020: $1.1B 

- FY2021: $1.2B 

- FY2022: $1.3B 

- FY2023: $1.3B 

- FY2024: $1.3B 

- FY2025: $1.4B 

- FY2026: $1.4B 

### Gross margin · FY2026

gross margin 40.5%; source https://www.sec.gov/Archives/edgar/data/715787/000071578726000006/tile-20251228.htm; observed 2026-02-25.

- FY2017: 38.7% 

- FY2018: 36.0% 

- FY2019: 39.7% 

- FY2020: 37.2% 

- FY2021: 36.0% 

- FY2022: 33.7% 

- FY2023: 35.0% 

- FY2024: 36.7% 

- FY2025: 38.7% 

- FY2026: 40.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in furnishings, fixtures & appliances; annual sales are USD 1.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2025: revenue 1386854000; grossProfit 537380000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); TILE.US: Interface, Inc. designs, produces, and sells modular carpet products in the United States, Canada, Latin America, Europe, Africa, Asia, and Australia. 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.

### Why customers stay

Margins ranged from 35% to 38.7% during 2023–25; it earns 10.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: grossProfit / revenue = 35%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: grossProfit / revenue = 36.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2025: grossProfit / revenue = 38.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); 10-year return on capital observations [[2017,0.17940654778986118],[2018,0.10797073187194357],[2019,0.13884008911512224],[2020,-0.04202756995741281],[2021,0.1084689441156965],[2022,0.06346871353625039],[2023,0.10076256600500398],[2024,0.15287434928754243],[2025,0.10805007011421125],[2026,0.21226525577272037]]; median 0.10825950711495388. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 3.6% of cash earnings on expansion; earns 55.9% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2016: growth capex 0; upkeep 28071000; cash acquisitions 0; owner earnings 56723000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2017: growth capex 213000; upkeep 30261000; cash acquisitions 0; owner earnings 53246000. Growth capex plus acquisitions / owner earnings = 0.004000300492055742.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2018: growth capex 10386000; upkeep 44471000; cash acquisitions 400697000; owner earnings 50253000. Growth capex plus acquisitions / owner earnings = 8.180267844705789.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2019: growth capex 23812000; upkeep 50835000; cash acquisitions 0; owner earnings 79200000. Growth capex plus acquisitions / owner earnings = 0.3006565656565657.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2021: growth capex 0; upkeep 28071000; owner earnings 80299000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2022: growth capex 0; upkeep 18437000; owner earnings 47461000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: growth capex 0; upkeep 26107000; owner earnings 64682000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: growth capex 0; upkeep 33788000; owner earnings 97830000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2025: growth capex 4203000; upkeep 41989000; owner earnings 116098000. Growth capex / owner earnings = 0.03620217402539234.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Incremental return on capital 0.5594892350647024, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Dividend observations: [[2016,14285000],[2017,15487000],[2018,15471000],[2019,15358000],[2020,5565000],[2021,2362000],[2022,2355000],[2023,2323000],[2024,2338000],[2025,3559000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2025: cash repurchases 18175000 USD.

### Are managers owners

Insiders own 2.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); TILE.US SharesStats.PercentInsiders = 2.25 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits grow 7.5% yearly over ten years; actual growth was 5.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Ten-year compound average after fade. Initial solved rate 0.09434412164961181. Price 35.95; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.1507075293227393 → FY2025 1.9623744971434367. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $15.85 per share

- 2016-11: $17.40 per share

- 2016-12: $18.55 per share

- 2017-01: $18.20 per share

- 2017-02: $18.90 per share

- 2017-03: $19.05 per share

- 2017-04: $19.90 per share

- 2017-05: $20.55 per share

- 2017-06: $19.65 per share

- 2017-07: $18.95 per share

- 2017-08: $19.00 per share

- 2017-09: $21.90 per share

- 2017-10: $22.80 per share

- 2017-11: $24.95 per share

- 2017-12: $25.15 per share

- 2018-01: $24.95 per share

- 2018-02: $24.20 per share

- 2018-03: $25.20 per share

- 2018-04: $22.00 per share

- 2018-05: $22.70 per share

- 2018-06: $22.95 per share

- 2018-07: $22.40 per share

- 2018-08: $23.55 per share

- 2018-09: $23.35 per share

- 2018-10: $16.29 per share

- 2018-11: $16.20 per share

- 2018-12: $14.25 per share

- 2019-01: $16.41 per share

- 2019-02: $17.75 per share

- 2019-03: $15.32 per share

- 2019-04: $16.04 per share

- 2019-05: $14.47 per share

- 2019-06: $15.33 per share

- 2019-07: $13.86 per share

- 2019-08: $11.05 per share

- 2019-09: $14.44 per share

- 2019-10: $16.63 per share

- 2019-11: $16.79 per share

- 2019-12: $16.59 per share

- 2020-01: $16.08 per share

- 2020-02: $14.59 per share

- 2020-03: $7.56 per share

- 2020-04: $9.24 per share

- 2020-05: $8.49 per share

- 2020-06: $8.14 per share

- 2020-07: $7.98 per share

- 2020-08: $7.56 per share

- 2020-09: $6.12 per share

- 2020-10: $6.13 per share

- 2020-11: $8.35 per share

- 2020-12: $10.50 per share

- 2021-01: $10.04 per share

- 2021-02: $12.42 per share

- 2021-03: $12.48 per share

- 2021-04: $12.84 per share

- 2021-05: $16.34 per share

- 2021-06: $15.30 per share

- 2021-07: $14.42 per share

- 2021-08: $14.38 per share

- 2021-09: $15.15 per share

- 2021-10: $14.36 per share

- 2021-11: $14.26 per share

- 2021-12: $15.95 per share

- 2022-01: $13.26 per share

- 2022-02: $13.05 per share

- 2022-03: $13.57 per share

- 2022-04: $12.69 per share

- 2022-05: $14.39 per share

- 2022-06: $12.54 per share

- 2022-07: $14.49 per share

- 2022-08: $11.17 per share

- 2022-09: $8.99 per share

- 2022-10: $11.31 per share

- 2022-11: $10.83 per share

- 2022-12: $9.87 per share

- 2023-01: $11.38 per share

- 2023-02: $8.82 per share

- 2023-03: $8.12 per share

- 2023-04: $7.84 per share

- 2023-05: $6.93 per share

- 2023-06: $8.79 per share

- 2023-07: $9.77 per share

- 2023-08: $10.33 per share

- 2023-09: $9.81 per share

- 2023-10: $8.89 per share

- 2023-11: $10.11 per share

- 2023-12: $12.62 per share

- 2024-01: $12.41 per share

- 2024-02: $15.72 per share

- 2024-03: $16.82 per share

- 2024-04: $15.29 per share

- 2024-05: $16.11 per share

- 2024-06: $14.68 per share

- 2024-07: $17.28 per share

- 2024-08: $18.88 per share

- 2024-09: $18.97 per share

- 2024-10: $17.47 per share

- 2024-11: $26.55 per share

- 2024-12: $24.35 per share

- 2025-01: $24.76 per share

- 2025-02: $20.23 per share

- 2025-03: $19.84 per share

- 2025-04: $18.80 per share

- 2025-05: $20.09 per share

- 2025-06: $20.93 per share

- 2025-07: $20.62 per share

- 2025-08: $26.72 per share

- 2025-09: $28.94 per share

- 2025-10: $24.90 per share

- 2025-11: $27.91 per share

- 2025-12: $27.92 per share

- 2026-01: $31.47 per share

- 2026-02: $31.49 per share

- 2026-03: $24.92 per share

- 2026-04: $27.88 per share

- 2026-05: $29.60 per share

- 2026-06: $35.84 per share

- 2026-07: $34.26 per share

- 2026-08: $37.92 per share

- 2026-09: $34.40 per share

- 2026-10: $35.95 per share

## Annual estimated value (USD per share)

- FY2016: low $6.22 per share, central $6.77 per share, high $7.50 per share

- FY2017: low $10.46 per share, central $11.76 per share, high $13.48 per share

- FY2018: low $12.67 per share, central $14.45 per share, high $16.64 per share

- FY2019: low $16.65 per share, central $20.15 per share, high $23.34 per share

- FY2020: low $12.39 per share, central $13.91 per share, high $15.93 per share

- FY2021: low $13.48 per share, central $15.61 per share, high $17.96 per share

- FY2022: low $11.48 per share, central $12.90 per share, high $14.78 per share

- FY2023: low $13.93 per share, central $16.08 per share, high $18.46 per share

- FY2024: low $14.39 per share, central $17.00 per share, high $19.60 per share

- FY2025: low $19.37 per share, central $23.89 per share, high $27.75 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/715787/000071578726000006/tile-20251228.htm); period 2025-12-28, filed 2026-02-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.