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JELD-WEN Inc (JELD)
NYSE:JELD
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JELD-WEN
(NYSE:JELD)44Neutral
Positive Factors
Cost Management
Management highlighted their cost efforts which includes $115 million of savings in 2024 and another $100 million expected in 2025.
Negative Factors
Earnings
JELD's revenue and earnings fell significantly short of Street expectations, with a 13% revenue decline compared to the previous year.
Financial Guidance
Management gave 1Q25 revenue guidance of $750-$775 million, well below the Street consensus of $843 million.
JELD-WEN (JELD) vs. S&P 500 (SPY)
Market Cap
$463.28M
Dividend YieldN/A
Average Volume (3M)1.11M
Price to Earnings (P/E)―
Beta (1Y)1.88
Revenue Growth-15.09%
EPS Growth-358.01%
CountryUS
Employees17,700
SectorIndustrials
Sector Strength66
IndustryConstruction
Share Statistics
EPS (TTM)-2.21
Shares Outstanding84,849,976
10 Day Avg. Volume1,751,696
30 Day Avg. Volume1,112,371
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.13
Price to Cash Flow (P/CF)4.20
P/FCF Ratio2.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.93Price Target Upside22.87% Upside
Rating ConsensusHold
Number of Analyst Covering8
JELD-WEN Business Overview & Revenue Model
Company DescriptionJELD-WEN Holding, Inc. engages in the manufacture and sale of doors, windows, and related products. It designs, produces, and distributes interior and exterior doors, wood, vinyl, aluminum windows, and related products for construction, repair, and remodeling of residential homes and non-residential buildings. It operates through the following geographical segments: North America, Europe and Australasia. The company was founded by Richard L. Wendt on October 25, 1960 and is headquartered in Charlotte, NC.
How the Company Makes MoneyJELD-WEN generates revenue primarily through the sale of its diverse range of building products, which include doors, windows, and related components. The company's key revenue streams are segmented into three primary geographic regions: North America, Europe, and Australasia. Each region contributes to the overall financial performance through targeted sales strategies that address local market demands and regulatory requirements. JELD-WEN's earnings are bolstered by its commitment to innovation, quality, and sustainability, which enhance its competitive edge in the building products industry. Additionally, the company benefits from strategic partnerships with distributors, retailers, and contractors, enabling it to expand its market reach and maintain strong customer relationships. Fluctuations in construction activity, housing market trends, and economic conditions are significant factors that influence JELD-WEN's revenue generation.
JELD-WEN Financial Statement Overview
Summary
JELD-WEN's financial performance is struggling with declining revenues and profitability. The income statement reveals a drop in revenue and a negative net income. The balance sheet shows an improved debt-to-equity ratio but declining equity, and cash flow analysis indicates negative free cash flow, which poses significant challenges.Income Statement
The income statement shows a decline in revenue from $5.13 billion in 2022 to $3.78 billion in 2024, with a negative net income of $189 million in 2024. Gross profit margin deteriorated from 18.4% in 2022 to 18.3% in 2024, although net profit margin turned negative in 2024. EBIT and EBITDA margins also turned negative in 2024, indicating profitability challenges.40
Negative
Balance Sheet
The company's balance sheet reflects a decrease in total assets and stockholders' equity over the years. The debt-to-equity ratio improved from 2.65 in 2022 to 0.22 in 2024, largely due to reduced debt levels. However, equity ratio decreased from 20.7% in 2022 to 23.7% in 2024, indicating a lower proportion of equity financing.55
Neutral
Cash Flow
Cash flow analysis reveals a negative free cash flow of $55.7 million in 2024, down from positive $234.3 million in 2023. Operating cash flow to net income ratio improved to 0.56 in 2024, indicating better cash conversion, but the free cash flow position is concerning.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.78B | 4.30B | 5.13B | 4.77B | 4.24B | Gross Profit |
| 688.97M | 828.72M | 945.40M | 975.20M | 901.90M | EBIT |
| -126.45M | 141.60M | 106.20M | 147.75M | 67.38M | EBITDA |
| 22.20M | 302.74M | 250.32M | 418.07M | 326.10M | Net Income Common Stockholders |
| -189.02M | 62.45M | 45.73M | 168.82M | 91.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 150.34M | 288.31M | 219.40M | 395.60M | 735.80M | Total Assets |
| 2.62B | 2.98B | 3.50B | 3.74B | 3.96B | Total Debt |
| 136.43M | 1.38B | 1.93B | 1.92B | 1.99B | Net Debt |
| -13.91M | 1.09B | 1.71B | 1.52B | 1.25B | Total Liabilities |
| 2.00B | 2.13B | 2.78B | 2.90B | 2.96B | Stockholders Equity |
| 620.06M | 850.64M | 723.50M | 842.20M | 1.00B |
| Cash Flow | Free Cash Flow | |||
| -67.50M | 234.31M | -61.92M | 76.01M | 258.80M | Operating Cash Flow |
| 106.21M | 345.19M | 30.30M | 175.70M | 355.70M | Investing Cash Flow |
| -153.34M | 279.17M | -67.00M | -92.40M | -82.00M | Financing Cash Flow |
| -80.63M | -563.16M | -120.00M | -401.20M | 207.90M |
JELD-WEN Technical Analysis
Negative
5.64
Price Trends
8.04
Negative
10.10
Negative
12.39
Negative
Market Momentum
-0.91
Positive
28.86
Positive
12.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JELD, the sentiment is Negative. The current price of 5.64 is below the 20-day moving average (MA) of 7.02, below the 50-day MA of 8.04, and below the 200-day MA of 12.39, indicating a bearish trend. The MACD of -0.91 indicates Positive momentum. The RSI at 28.86 is Positive, neither overbought nor oversold. The STOCH value of 12.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JELD.
JELD-WEN Risk Analysis
JELD-WEN disclosed 40 risk factors in its most recent earnings report. JELD-WEN reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
JELD-WEN Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $6.48B | 24.78 | 34.99% | 0.77% | 11.62% | 20.76% | |
65 Neutral | $6.24B | 27.94 | 26.63% | ― | 5.17% | 10.39% | |
62 Neutral | $658.37M | 12.63 | 8.22% | ― | -5.86% | 16.49% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
60 Neutral | $15.37B | 19.32 | -118.61% | 1.63% | -1.74% | -6.91% | |
44 Neutral | $463.28M | ― | -30.48% | ― | -15.09% | -358.01% |
* Industrials Sector Average
Performance Comparison
JELD
JELD-WEN
5.64
-12.07
-68.15%
AWI
Armstrong World
152.57
31.81
26.34%
BXC
Bluelinx Holdings
76.74
-41.77
-35.25%
MAS
Masco
73.58
-1.65
-2.19%
TREX
Trex Company
58.69
-35.82
-37.90%
JELD-WEN Earnings Call Summary
Earnings Call Date: Feb 17, 2025 | % Change Since: -60.08% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Negative
The earnings call highlights some positive strides in transformation benefits and specific business stability, but these are overshadowed by significant revenue declines, challenges in North American segments, increased debt leverage, and a cautious market outlook for 2025. The company is implementing cost reduction initiatives, but the overall sentiment reflects more challenges than achievements.Highlights
Transformation Benefits Delivered
JELD-WEN delivered approximately $115 million in transformation benefits in 2024, aligning costs with market conditions.
Interior Door Business Stability
Despite market softness, JELD-WEN's interior door business remained stable as the company picked up market share.
European Segment Performance
Europe's adjusted EBITDA improved by $1 million with a margin of 6.5%, despite a 6% year-over-year core revenue decline.
Cost Reduction Initiatives
Approximately $50 million in annual savings expected from short-term cost reduction initiatives, including rightsizing factories and optimizing the supply chain.
Lowlights
Significant Revenue Decline
Fourth quarter revenue of $896 million, down 12% year-over-year, driven by lower core revenues and market-driven volume declines.
Adjusted EBITDA Decrease
Adjusted EBITDA was $40 million, a $47 million decline from the prior year, with a margin of 4.5%.
North America Segment Challenges
North America revenue fell by 14% year-over-year, with adjusted EBITDA dropping from $94 million to $42 million.
Increased Net Debt Leverage
Net debt leverage ratio increased to 3.8 times, exceeding the target range of 2 to 2.5 times.
Market Outlook for 2025
Continued volatility expected in North America with potential market declines, particularly in new construction and repair and remodel demand.
Company Guidance
During the JELD-WEN Holding, Inc. Fourth Quarter 2024 Earnings Conference Call, the company provided guidance for 2025, anticipating net revenues between $3.2 billion and $3.4 billion, reflecting a projected decline of 4% to 9% in core revenues. The adjusted EBITDA is expected to range from $215 million to $265 million, with a 30% decremental flow-through rate on lower volumes. Operating cash flow is projected to be approximately $15 million, with capital expenditures adjusted to $150 million, resulting in an anticipated free cash flow use of $135 million. The company also outlined its strategic priorities to achieve $100 million in annualized adjusted EBITDA improvements and additional near-term cost savings of $50 million. Despite the challenging market conditions, JELD-WEN remains committed to continuing its transformation efforts and optimizing its network for long-term success.JELD-WEN Corporate Events
Business Operations and StrategyFinancial Disclosures
JELD-WEN Reports Significant Revenue Decline in 2024
Negative
Feb 18, 2025
JELD-WEN has reported its financial results for the fourth quarter and full year ending December 31, 2024, showing a significant decrease in net revenues and an increased net loss from continuing operations compared to the previous year. The company faced a challenging year due to weak macro-economic conditions, resulting in a 12.3% decline in net revenues and a substantial net loss of $187.6 million for 2024. Despite the downturn, CEO William J. Christensen emphasized the company’s ongoing transformation efforts, which are aimed at improving productivity and positioning JELD-WEN for future success as market conditions improve.
Business Operations and Strategy
JELD-WEN Introduces 2025 Management Incentive Plan
Neutral
Feb 11, 2025
On February 5, 2025, JELD-WEN Holding, Inc.’s Board of Directors approved the 2025 Management Incentive Plan (MIP) to motivate superior performance among executive officers and key personnel. The plan is similar to previous incentive plans and offers annual cash bonuses based on performance. It allows for adjustments in awards due to extraordinary events, and the Board retains authority to amend the plan as needed.
M&A TransactionsBusiness Operations and Strategy
JELD-WEN Sells Towanda Business to Woodgrain Inc.
Neutral
Jan 21, 2025
On January 17, 2025, JELD-WEN completed the sale of its Towanda, Pennsylvania business to Woodgrain Inc. for $115 million, as part of a court-ordered divestiture process. The transaction, initially announced in October 2024, is part of JELD-WEN’s strategic transformation and could impact the company’s operations by altering their business portfolio and potentially affecting stakeholder interests.
Executive/Board Changes
JELD-WEN Announces EVP Kevin Lilly’s Retirement Agreement
Neutral
Jan 10, 2025
JELD-WEN Holding, Inc. announced a Separation and Release Agreement with Kevin Lilly, Executive Vice President, Global Transformation, following his retirement decision. As part of his retirement package, Mr. Lilly will receive separation benefits and continue to vest in stock awards as if still employed, with restrictions on competition and solicitation.
M&A TransactionsBusiness Operations and Strategy
JELD-WEN Sells Towanda Business to Woodgrain Inc.
Negative
Dec 19, 2024
JELD-WEN Holding, Inc. has entered an asset purchase agreement to sell its Towanda, Pennsylvania business to Woodgrain Inc. for approximately $115 million following a court-ordered divestiture. The transaction is expected to result in a significant annual revenue and EBITDA reduction for JELD-WEN, but the company remains focused on its transformation efforts and long-term growth by investing in self-driven improvements.
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.