Floor & Decor HoldingsSTU:1FD +1.96%82 Gross Margin % is 44.04% as of Mar. 2026, which is 5% above its 10-year median of 41.76. GuruFocus rates STU:1FD with a GF Score™ of 82/100 and a GF Value™ of €87.09. The stock has 5 warning signs investors should review. Among 1,113 Retail - Cyclical companies, Floor & Decor Holdings ranks better than 63.97% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Floor & Decor Holdings had a gross margin of 44.04% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Floor & Decor Holdings Gross Margin % Related Terms
Floor & Decor Holdings Gross Margin % Historical Data
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The historical data trend for Floor & Decor Holdings's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:1FD vs HVT, TTSH, LIVE: Gross Margin % Comparison
For the Home Improvement Retail subindustry, Floor & Decor Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Floor & Decor Holdings Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Floor & Decor Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Floor & Decor Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Floor & Decor Holdings (STU:1FD) has a Gross Margin % of 44.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Floor & Decor Holdings and its competitors. This is near median its historical median of 41.76. Over the past decade, Floor & Decor Holdings' Gross Margin % has ranged from 40.51 to 43.70. According to the industry distribution chart, Floor & Decor Holdings ranks #401 out of 1113 companies in the Retail - Cyclical industry, placing it in the top 36%.
Is Floor & Decor Holdings' Gross Margin % too high?
Floor & Decor Holdings' current Gross Margin % of 44.04% is near median its 10-year median of 41.76. Over the past 10 years, this metric has ranged from a low of 40.51 to a high of 43.70. The Retail - Cyclical industry median Gross Margin % is 36.26. Floor & Decor Holdings' value of 44.04% is 21.5% above this industry median. Based on the distribution chart, Floor & Decor Holdings ranks #401 out of 1113 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Floor & Decor Holdings has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Floor & Decor Holdings' Gross Margin % compare to HVT and TTSH?
According to the Retail - Cyclical industry distribution chart, Floor & Decor Holdings ranks #401 out of 1113 companies for Gross Margin %. This puts Floor & Decor Holdings in the upper half of its industry. The industry median Gross Margin % is 36.26. Floor & Decor Holdings' value of 44.04% is 21.5% above this benchmark. Historically, Floor & Decor Holdings' own Gross Margin % has ranged from 40.51 to 43.70 over the past decade. While the company's 10-year median is 41.76 vs. the industry median of 36.26, Floor & Decor Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.26, based on 1,113 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Floor & Decor Holdings's current Gross Margin % of 44.04% is 21.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Floor & Decor Holdings and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Floor & Decor Holdings's current Gross Margin % is 44.04%, which is near median its own 10-year median of 41.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Floor & Decor Holdings stock overvalued right now?
Floor & Decor Holdings (STU:1FD) has a current Gross Margin % of 44.04%. The stock's GF Value™ is €87.09, compared to a current price of €52.00 — trading 40.3% below its estimated fair value. The current Gross Margin % is 44.04%, which is near median its 10-year median of 41.76 and 21.5% above the Retail - Cyclical industry median of 36.26. Floor & Decor Holdings' overall GF Score™ is 82/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Floor & Decor Holdings (STU:1FD), the current Gross Margin % is 44.04% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Floor & Decor Holdings (STU:1FD) Overvalued in 2026?
Based on GuruFocus' analysis, Floor & Decor Holdings stock appears to be undervalued.
The current stock price of €52.00 is trading 40.3% below its estimated GF Value™ of €87.09.
Key valuation signals for STU:1FD:
Gross Margin %: 44.04% (near median its 10-year median of 41.76)
GF Value™: €87.09 vs. price of €52.00 (40.3% below fair value)
Industry Position: 21.5% above the Retail - Cyclical median (#401 of 1113)
No single metric tells the full story. See the STU:1FD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Floor & Decor Holdings Inc operates as a specialty retailer in the hard surface flooring market. Its stores offer a range of tile, wood, laminate, and natural stone flooring products, as well as decorative and installation accessories at everyday low prices. It appeals to a variety of customers including professional installers, commercial businesses, Do It Yourself (DIY) customers, and customers who buy the products for professional installation. Geographically, the group has a presence in the United States region and also offers its product through an e-commerce site. The company segments include retail segment and others.
82GF Score
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