ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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.
For the Home Improvement Retail subindustry, Floor & Decor Holdings's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Floor & Decor Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Floor & Decor Holdings's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Floor & Decor Holdings (STU:1FD) has a ROE % of 6.57% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Floor & Decor Holdings and its competitors. This is 69% below median its historical median of 21.08. Over the past decade, Floor & Decor Holdings' ROE % has ranged from 8.49 to 35.62. According to the industry distribution chart, Floor & Decor Holdings ranks #465 out of 1097 companies in the Retail - Cyclical industry, placing it in the top 42.4%.
Is Floor & Decor Holdings' ROE % too high?
Floor & Decor Holdings' current ROE % of 6.57% is 69% below median its 10-year median of 21.08. Over the past 10 years, this metric has ranged from a low of 8.49 to a high of 35.62. The Retail - Cyclical industry median ROE % is 6.46. Floor & Decor Holdings' value of 6.57% is 1.7% above this industry median. Based on the distribution chart, Floor & Decor Holdings ranks #465 out of 1097 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' ROE % compare to HVT and TTSH?
According to the Retail - Cyclical industry distribution chart, Floor & Decor Holdings ranks #465 out of 1097 companies for ROE %. This puts Floor & Decor Holdings in the upper half of its industry. The industry median ROE % is 6.46. Floor & Decor Holdings' value of 6.57% is 1.7% above this benchmark. Historically, Floor & Decor Holdings' own ROE % has ranged from 8.49 to 35.62 over the past decade. While the company's 10-year median is 21.08 vs. the industry median of 6.46, 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 ROE % for a Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.46, based on 1,097 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Floor & Decor Holdings's current ROE % of 6.57% is 1.7% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Floor & Decor Holdings and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Floor & Decor Holdings's current ROE % is 6.57%, which is 69% below median its own 10-year median of 21.08. 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 ROE % of 6.57%. The stock's GF Value™ is €87.30, compared to a current price of €51.00 — trading 41.6% below its estimated fair value. The current ROE % is 6.57%, which is 69% below median its 10-year median of 21.08 and 1.7% above the Retail - Cyclical industry median of 6.46. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Floor & Decor Holdings (STU:1FD), the current ROE % is 6.57% 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 €51.00 is trading 41.6% below its estimated GF Value™ of €87.30.
Key valuation signals for STU:1FD:
ROE %: 6.57% (69% below median its 10-year median of 21.08)
GF Value™: €87.30 vs. price of €51.00 (41.6% below fair value)
Industry Position: 1.7% above the Retail - Cyclical median (#465 of 1097)
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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