MeritValue

INTERFACE INC

TILEdata completeness 100%17 fiscal years on file
The thesis, from the filings

INTERFACE INC earns about 8% on invested capital, below its ~9% cost of capital, with a roughly flat share count — no moat visible in the numbers. The estimate methods put fair value between $9.67 and $111.93 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2023FY 2024FY 2025
Revenue$1.2B1$1.3B2$1.26B3$1.32B3$1.39B3
Net income$55.2M4$19.6M5$44.5M6$86.9M6$116.1M6
Operating cash flow$86.7M7$43.1M8$142M9$148.4M9$167.9M9
Capital expenditure$28.1M10$18.4M11$26.1M12$33.8M12$46.2M12
Free cash flow (derived)$58.6M7$24.6M8$115.9M9$114.6M9$121.7M9
Total debt$1.04B13$1.04B14$834.4M15$605.5M16$363.2M16
Cash & equivalents$97.3M17$97.6M18$110.5M19$99.2M20$71.3M20
Diluted shares59.0M58.9M58.3M58.9M59.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$108.29
your share of equity
Profit it earned you last year
$19.62
Free cash flow it threw off
$20.57
Debt you’d be carrying
$61.38

10 shares is a claim on $108.29 of net worth that earned you $19.62 and generated $20.57 of cash last year, against $61.38 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
8% avg · 5y
FY22 6%FY23 3%FY23 6%FY24 11%FY25 14%

It earned about 8% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+0% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has fallen 65% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $9.67 and $111.93 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$111.93
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$115.9M
DCF · Growth Exit 5Y
$58.95
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$115.9M
Earnings Power Value
$9.67
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$55.2M
  • growthAssumed0.0%
Graham Number
$21.85
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $58.95
The three cases
Bear0.0%$23.06
Base20.0%$58.95
Bull20.0%$58.95

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-01-02 · accession 0000715787-24-000005 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-01-01 · accession 0000715787-25-000006 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000715787-26-000006 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-01-02 · accession 0000715787-24-000005 (NetIncomeLoss)
  5. 10-K · period ending 2023-01-01 · accession 0000715787-25-000006 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0000715787-26-000006 (NetIncomeLoss)
  7. 10-K · period ending 2022-01-02 · accession 0000715787-24-000005 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-01-01 · accession 0000715787-25-000006 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0000715787-26-000006 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-01-02 · accession 0000715787-24-000005 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-01-01 · accession 0000715787-25-000006 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0000715787-26-000006 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-01-02 · accession 0000715787-23-000010 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-01-01 · accession 0000715787-24-000005 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0000715787-25-000006 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-29 · accession 0000715787-26-000006 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2022-01-02 · accession 0000715787-23-000010 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-01-01 · accession 0000715787-24-000005 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0000715787-25-000006 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-29 · accession 0000715787-26-000006 (CashAndCashEquivalentsAtCarryingValue)