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American Woodmark (AMWD)
NASDAQ:AMWD
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American Woodmark
(NASDAQ:AMWD)
68Neutral
Positive Factors
Margin Improvement
Solid sequential margin improvement on a similar revenue base.
Market Share
New stock kitchen/bath wins support recent capacity investments and share gain targets.
Negative Factors
Revenue Performance
Sales undershot expectations, with weaker remodel demand more than offsetting new construction growth.
American Woodmark (AMWD) vs. S&P 500 (SPY)
Market Cap
$873.61M
Dividend YieldN/A
Average Volume (3M)171.05K
Price to Earnings (P/E)9.0
Beta (1Y)1.77
Revenue Growth-6.02%
EPS Growth-10.65%
CountryUS
Employees8,600
SectorConsumer Cyclical
Sector Strength50
IndustryHome and Homeware
Share Statistics
EPS (TTM)6.46
Shares Outstanding14,834,665
10 Day Avg. Volume216,238
30 Day Avg. Volume171,053
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.50
Price to Cash Flow (P/CF)19.90
P/FCF Ratio19.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$101.50Price Target Upside73.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
American Woodmark Business Overview & Revenue Model
Company DescriptionAmerican Woodmark Corporation (AMWD) is a leading manufacturer and distributor of kitchen cabinets and vanities for the remodeling and new home construction markets. The company operates in the home improvement and building products sector, providing a broad range of cabinetry solutions under several brand names. With a strong emphasis on quality and customer service, American Woodmark serves a diverse clientele, including homebuilders, dealers, and direct-to-consumer channels across the United States.
How the Company Makes MoneyAmerican Woodmark makes money primarily through the sale of cabinetry products. Its revenue streams are driven by sales in the remodeling and new home construction markets. The company offers a variety of cabinetry styles and finishes, catering to different customer preferences and price points. Key revenue streams include sales to homebuilders, home improvement retailers, and independent dealers. American Woodmark also leverages significant partnerships with major retail chains, enhancing its distribution network and market reach. Additionally, the company benefits from its direct-to-consumer sales channels, which allow it to capture a broader customer base and increase its market penetration.
American Woodmark Financial Statement Overview
Summary
American Woodmark demonstrates a mixed financial profile, with strengths in cash flow generation and improvements in net profitability over the trailing periods. However, revenue volatility and high leverage remain areas of concern. The company should focus on stabilizing revenue growth and further reducing debt to enhance financial health.Income Statement
American Woodmark has shown signs of revenue volatility, with fluctuations from $1.65 billion in 2020 to $2.06 billion in 2023, and a decrease to $1.76 billion in TTM. The gross profit margin has seen improvement from 2022 onwards, with a notable increase in net income to $100.7 million in TTM compared to previous periods. Despite these positive trends, the company experienced a downturn in revenue growth and profit margins over the last year, affecting overall performance.72
Positive
Balance Sheet
The balance sheet reflects moderate stability, with a debt-to-equity ratio improving from 2022 due to a reduction in total debt. Stockholders' equity has increased, offering a better equity ratio. However, the company still carries significant debt, which could pose risks if profitability does not improve consistently.68
Positive
Cash Flow
American Woodmark's cash flow generation is strong, with positive operating cash flow and free cash flow in the TTM period. The free cash flow to net income ratio is robust, indicating efficient cash generation relative to net income. Despite a decrease in free cash flow compared to previous periods, the company maintains a solid cash flow position.75
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.96B | 1.85B | 2.07B | 1.86B | 1.74B | 1.65B | Gross Profit |
| 259.99M | 377.81M | 357.52M | 226.44M | 319.27M | 329.19M | EBIT |
| 36.73M | 161.39M | 136.35M | -60.74M | 6.12M | 33.71M | EBITDA |
| 80.69M | 238.96M | 228.62M | 36.16M | 230.00M | 253.49M | Net Income Common Stockholders |
| -12.63M | 116.22M | 93.72M | -29.72M | 61.19M | 73.65M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 43.48M | 87.40M | 41.73M | 22.32M | 91.07M | 97.06M | Total Assets |
| 1.59B | 1.59B | 1.52B | 1.63B | 1.64B | 1.62B | Total Debt |
| 109.55M | 508.46M | 477.81M | 626.07M | 651.39M | 728.49M | Net Debt |
| 66.07M | 421.07M | 436.07M | 603.74M | 560.32M | 631.43M | Total Liabilities |
| 670.67M | 683.49M | 645.01M | 859.61M | 893.62M | 922.27M | Stockholders Equity |
| 919.56M | 910.38M | 873.79M | 772.88M | 742.90M | 700.54M |
| Cash Flow | Free Cash Flow | ||||
| 19.52M | 139.70M | 154.13M | -19.68M | 116.03M | 145.87M | Operating Cash Flow |
| 55.15M | 230.75M | 196.73M | 24.45M | 151.76M | 177.54M | Investing Cash Flow |
| -41.43M | -92.19M | -43.23M | -51.57M | -42.43M | -38.92M | Financing Cash Flow |
| -7.85M | -92.89M | -134.09M | -41.62M | -115.32M | -99.22M |
American Woodmark Technical Analysis
Negative
58.45
Price Trends
74.57
Negative
83.39
Negative
85.94
Negative
Market Momentum
-4.92
Positive
23.14
Positive
11.75
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMWD, the sentiment is Negative. The current price of 58.45 is below the 20-day moving average (MA) of 68.03, below the 50-day MA of 74.57, and below the 200-day MA of 85.94, indicating a bearish trend. The MACD of -4.92 indicates Positive momentum. The RSI at 23.14 is Positive, neither overbought nor oversold. The STOCH value of 11.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMWD.
American Woodmark Risk Analysis
American Woodmark disclosed 23 risk factors in its most recent earnings report. American Woodmark reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
American Woodmark Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $873.61M | 9.04 | 11.09% | ― | -6.02% | -10.65% | |
67 Neutral | $7.04B | 13.83 | 6.82% | ― | -2.68% | ― | |
62 Neutral | $4.19B | 21.79 | 5.13% | 2.39% | -8.45% | -25.41% | |
60 Neutral | $15.13B | 19.69 | -118.61% | 1.60% | -1.74% | -6.91% | |
59 Neutral | $12.41B | 10.34 | 1.32% | 3.61% | 1.65% | -18.04% | |
56 Neutral | $1.57B | 111.20 | 0.80% | 4.23% | -5.87% | -93.49% | |
44 Neutral | $510.80M | ― | -25.51% | ― | -15.09% | -358.01% |
* Consumer Cyclical Sector Average
Performance Comparison
AMWD
American Woodmark
58.45
-36.18
-38.23%
MAS
Masco
71.13
-2.79
-3.77%
MHK
Mohawk
113.41
-8.15
-6.70%
THO
Thor Industries
78.44
-22.30
-22.14%
CABO
Cable ONE
274.73
-165.00
-37.52%
JELD
JELD-WEN
5.84
-13.35
-69.57%
American Woodmark Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -17.85% | Next Earnings Date: May 22, 2025
Earnings Call Sentiment Negative
The earnings call highlighted strategic operational adjustments and product launches but was overshadowed by significant declines in net sales, reduced guidance, and challenges in the housing market. Margin pressures and potential tariff impacts also contribute to a cautious outlook.Highlights
Share Repurchase Program
The company repurchased 132,000 shares, approximately 1% of outstanding shares in the quarter, and has repurchased $156.8 million worth of shares since the start of fiscal year 2024.
Operational Adjustments and Strategy
The company has made significant operational adjustments, including the closure of the Orange, Virginia plant to improve efficiency, and continues to execute its growth strategy with 3 main pillars: growth, digital transformation, and platform design.
New Product Launches
The company is launching new finishes and styles in its kitchen and bath categories to maintain market relevance and drive share gains.
Lowlights
Decline in Net Sales
Net sales for the third quarter were $397.6 million, a decrease of 5.8% compared to the prior year, driven by declines in new construction and remodel markets.
Reduced Guidance for Fiscal Year 2025
The company expects a mid-single-digit decline in net sales for the full fiscal year and revised its projected EBITDA margin to a range of $210 million to $215 million due to softening sales volumes and increased manufacturing costs.
Margin Pressures and Increased Costs
Gross profit as a percent of net sales decreased by 420 basis points to 15% due to lower sales volumes and increased product input costs such as raw materials and labor.
Challenges in the Housing Market
The housing market faced challenges with reduced new construction activity and lower consumer confidence, impacting demand for higher ticket remodel projects.
Potential Tariff Impacts
There is uncertainty regarding tariffs, particularly with exposure in Mexico and China. The company is evaluating potential pricing actions to mitigate these impacts.
Company Guidance
During American Woodmark Corporation's third fiscal quarter 2025 conference call, the company provided detailed financial guidance and performance metrics. They reported net sales of $397.6 million, a decrease of 5.8% year-over-year, and an adjusted EBITDA of $38.4 million or 9.7% of net sales. The company noted challenging demand trends, particularly in the remodel market, and a 10.4% decline in new construction net sales. The adjusted earnings per share (EPS) were $1.09, and the cash balance stood at $43.5 million, with an additional $314.2 million available under a revolving credit facility. The company repurchased approximately 1% of outstanding shares during the quarter, with a leverage ratio of 1.53x adjusted EBITDA. Looking ahead, American Woodmark expects a mid-single-digit decline in net sales for the full fiscal year and anticipates an adjusted EBITDA range of $210 million to $215 million, amid macroeconomic challenges such as consumer sentiment declines, inflation risks, and potential tariff impacts.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.