As of June 17, 2025, Interface Inc has a Discounted Cash Flow (DCF) derived fair value of $36.10 per share. With the current market price at $20.39, this represents a potential upside of 77.0%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $33.44 |
| DCF Fair Value (10-year) | $36.10 |
| Potential Upside (5-year) | 64.0% |
| Potential Upside (10-year) | 77.0% |
| Discount Rate (WACC) | 6.2% - 8.9% |
Revenue is projected to grow from $1316 million in 12-2024 to $2072 million by 12-2034, representing a compound annual growth rate of approximately 4.6%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 1316 | 4% |
| 12-2025 | 1384 | 5% |
| 12-2026 | 1455 | 5% |
| 12-2027 | 1527 | 5% |
| 12-2028 | 1610 | 5% |
| 12-2029 | 1642 | 2% |
| 12-2030 | 1776 | 8% |
| 12-2031 | 1812 | 2% |
| 12-2032 | 1934 | 7% |
| 12-2033 | 2032 | 5% |
| 12-2034 | 2072 | 2% |
Net profit margin is expected to improve from 7% in 12-2024 to 7% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 87 | 7% |
| 12-2025 | 91 | 7% |
| 12-2026 | 95 | 7% |
| 12-2027 | 100 | 7% |
| 12-2028 | 106 | 7% |
| 12-2029 | 108 | 7% |
| 12-2030 | 117 | 7% |
| 12-2031 | 119 | 7% |
| 12-2032 | 127 | 7% |
| 12-2033 | 133 | 7% |
| 12-2034 | 136 | 7% |
with a 5-year average of $34 million. Projected CapEx is expected to maintain at approximately 3% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 29 |
| 12-2026 | 32 |
| 12-2027 | 37 |
| 12-2028 | 40 |
| 12-2029 | 43 |
| 12-2030 | 45 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 49 |
| Days Inventory | 123 |
| Days Payables | 30 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2025 | 130 | 21 | 29 | 33 | 46 |
| 2026 | 183 | 30 | 41 | 14 | 98 |
| 2027 | 195 | 32 | 43 | 17 | 104 |
| 2028 | 208 | 33 | 45 | 29 | 100 |
| 2029 | 214 | 34 | 46 | 7 | 126 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 33.44 | 64.0% |
| 10-Year DCF (Growth) | 36.10 | 77.0% |
| 5-Year DCF (EBITDA) | 14.03 | -31.2% |
| 10-Year DCF (EBITDA) | 19.32 | -5.3% |
Is Interface Inc (TILE) a buy or a sell? Interface Inc is definitely a buy. Based on our DCF analysis, Interface Inc (TILE) appears to be significantly undervalued with upside potential of 77.0%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $20.39.