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1. Company Snapshot

1.a. Company Description

American Woodmark Corporation manufactures and distributes kitchen, bath, office, home organization, and hardware products for the remodelling and new home construction markets in the United States.The company offers made-to-order and cash and carry products.It also provides turnkey installation services to its direct builder customers through a network of eight service centers.


The company sells its products under the American Woodmark, Timberlake, Shenandoah Cabinetry, Waypoint Living Spaces, Estate, Stor-It-All, and Professional Cabinet Solutions brands, as well as Hampton Bay, Glacier Bay, Style Selections, Allen + Roth, Home Decorators Collection, and Project Source.It markets its products directly to home centers and builders, as well as through independent dealers and distributors.The company was incorporated in 1980 and is based in Winchester, Virginia.

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1.b. Last Insights on AMWD

American Woodmark Corporation's recent performance was negatively impacted by a weaker-than-expected new construction and remodel market, resulting in lower volumes. Despite this, the company delivered Adjusted EBITDA margins of 10.5% in Q1 2026. Additionally, the company faces potential securities fraud allegations, with The Portnoy Law Firm initiating an investigation. The upcoming merger with MasterBrand, approved by shareholders, may bring operational synergies and digital transformation. However, the company's Q1 results and merger uncertainty may weigh on its short-term prospects.

1.c. Company Highlights

2. American Woodmark Corporation: Navigating Headwinds in a Challenging Housing Market

American Woodmark Corporation reported its fourth fiscal quarter 2025 results, with net sales of $400.4 million, marking an 11.7% decline from the prior year. The company faced significant headwinds, including weak demand in both new construction and remodel markets, driven by tariff uncertainties and declining consumer confidence. Adjusted EBITDA for the quarter came in at $47.1 million, or 11.8% of net sales, while reported EPS was $1.71 and adjusted EPS was $1.61. For the full fiscal year 2025, net sales totaled $1.7 billion, down 7.5%, with gross profit margin declining 250 basis points to 17.9%. Adjusted EBITDA for the year was $208.6 million, or 12.2% of net sales, compared to $252.8 million in the prior year. Free cash flow for the year was $65.7 million, and net leverage increased to 1.56x adjusted EBITDA.

Publication Date: May -29

📋 Highlights
  • Net Sales Decline:: Q4 net sales fell 11.7% to $400.4M, reflecting weak demand in construction and remodeling markets.
  • Margin Pressure:: Full-year gross profit margin dropped 250bps to 17.9%, driven by lower sales and cost challenges.
  • EBITDA Performance:: Adjusted EBITDA for Q4 was $47.1M (11.8% of sales), with FY EBITDA down to $208.6M (12.2% of sales).
  • Strong Cash Position:: The company held $48.2M in cash and had $314.2M available under its revolver, with net leverage at 1.56x.
  • FY26 Guidance:: Net sales expected to range from low single-digit declines to increases, with adjusted EBITDA projected between $175M and $200M.

Operational Challenges and Market Dynamics

The company's home center business experienced low single-digit negative comps, while the Pro business posted positive comps, reflecting the divergent trends in consumer and professional demand. Existing home sales fell 2% year-over-year, and both single-family housing starts and the NAHB housing market index declined, signaling broader weakness in the housing market. Management noted that while pricing has held, mix impacts and lower cabinet counts per home are evident as builders cut costs. The company also highlighted the ongoing impact of tariffs, which could affect results by up to $20 million, alongside expected commodity inflation in key materials like lumber and plywood.

Valuation and Capital Allocation

With a P/E ratio of 8.72 and a P/S ratio of 0.49, the stock appears to price in significant uncertainty around the housing market recovery. The company's free cash flow yield of 4.59% and ROIC of 8.28% suggest that while profitability is under pressure, the business continues to generate cash. American Woodmark repurchased $96.7 million in shares during the fiscal year, representing 7.5% of outstanding shares, and maintained net leverage at 1.56x adjusted EBITDA. This balanced approach to capital allocation reflects management's focus on both shareholder returns and debt management.

Management's Perspective and Fiscal 2026 Outlook

Management emphasized progress in growth initiatives, including digital transformation, platform design, and operational efficiency improvements. Investments in ERP systems and automation totaled over $10 million in fiscal 2025 and are expected to contribute meaningfully to 2026 results. The closure of a components facility is anticipated to yield $5 million to $6 million in annual EBITDA savings. For fiscal 2026, the company expects net sales to range from low single-digit declines to low single-digit increases, with adjusted EBITDA projected between $175 million and $200 million. The outlook assumes current tariff policies, with first-half sales expected to decline due to macroeconomic challenges, while second-half sales are anticipated to recover. Home center partners have reaffirmed their full-year outlook, expecting a recovery in the second half, particularly in higher-ticket discretionary items.

3. NewsRoom

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Ensign Peak Advisors Inc Sells 3,050 Shares of American Woodmark Corporation $AMWD

Dec -01

Source: defenseworld.net

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American Woodmark Corporation $AMWD Shares Sold by Geode Capital Management LLC

Dec -01

Source: defenseworld.net

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American Woodmark Corporation Announces Second Quarter Results

Nov -25

Source: businesswire.com

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Merger Between MasterBrand and American Woodmark Receives Shareholder Approval

Oct -30

Source: businesswire.com

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$HAREHOLDER ALERT: The M&A Class Action Firm Reminds $hareholders of Upcoming Merger Deadlines - MLNK, CCRD, AMWD, and PNFP

Oct -16

Source: globenewswire.com

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MasterBrand: Undervalued Play With Upside Potential Thanks To American Woodmark Deal

Oct -03

Source: seekingalpha.com

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American Woodmark Corporation Announces First Quarter Results

Aug -26

Source: businesswire.com

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American Woodmark Corporation Investors: Company Investigated by the Portnoy Law Firm

Aug -14

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.73%)

6. Segments

Home Center Retailers

Expected Growth: 4.65%

American Woodmark Corporation's 4.65% growth in Home Center Retailers is driven by increasing demand for home remodeling and renovation, fueled by rising housing prices and low interest rates. Additionally, the company's focus on product innovation, strategic partnerships, and efficient supply chain management contribute to its growth momentum.

Builders

Expected Growth: 4.77%

American Woodmark Corporation's 4.77% growth is driven by increasing demand for customized cabinetry, strong relationships with homebuilders, and a growing presence in the repair and remodel market. Additionally, the company's focus on operational efficiency and cost savings initiatives have contributed to its growth.

Independent Dealers and Distributors

Expected Growth: 4.85%

Independent Dealers and Distributors from American Woodmark Corporation achieved 4.85% growth driven by increasing demand for customized cabinetry, strategic partnerships, and expanded product offerings. Additionally, effective inventory management, competitive pricing, and strong relationships with builders and remodelers contributed to this growth.

7. Detailed Products

Cabinets

American Woodmark Corporation offers a wide range of cabinets for kitchens, bathrooms, and other rooms, providing ample storage and stylish designs.

Vanities

The company's vanities are designed to provide ample storage and style for bathrooms, offering a variety of styles and finishes to match any décor.

Countertops

American Woodmark Corporation offers a range of countertops, including laminate, solid surface, and granite, to provide durable and stylish surfaces for kitchens and bathrooms.

Mouldings

The company's mouldings are designed to add a touch of elegance and sophistication to any room, offering a variety of styles and finishes to match any décor.

Doors and Drawer Fronts

American Woodmark Corporation offers a range of doors and drawer fronts, providing a variety of styles and finishes to match any décor.

8. American Woodmark Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for American Woodmark Corporation is medium due to the availability of alternative materials and products in the market.

Bargaining Power Of Customers

The bargaining power of customers for American Woodmark Corporation is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for American Woodmark Corporation is medium due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants for American Woodmark Corporation is low due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for American Woodmark Corporation is high due to the competitive nature of the industry, with many established players vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 30.63%
Debt Cost 3.95%
Equity Weight 69.37%
Equity Cost 12.61%
WACC 9.96%
Leverage 44.15%

11. Quality Control: American Woodmark Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Bassett Furniture

A-Score: 5.4/10

Value: 5.9

Growth: 1.3

Quality: 4.4

Yield: 9.0

Momentum: 7.0

Volatility: 5.0

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Hooker Furnishings

A-Score: 4.9/10

Value: 9.8

Growth: 1.0

Quality: 5.0

Yield: 9.0

Momentum: 1.5

Volatility: 3.3

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Interface

A-Score: 4.9/10

Value: 5.5

Growth: 5.4

Quality: 5.7

Yield: 0.0

Momentum: 8.5

Volatility: 4.3

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Virco Mfg

A-Score: 4.2/10

Value: 6.7

Growth: 8.3

Quality: 5.5

Yield: 1.0

Momentum: 0.0

Volatility: 3.7

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American Woodmark

A-Score: 4.0/10

Value: 7.0

Growth: 6.0

Quality: 4.9

Yield: 0.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

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MasterBrand

A-Score: 3.6/10

Value: 6.8

Growth: 4.7

Quality: 4.4

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

55.36$

Current Price

55.36$

Potential

-0.00%

Expected Cash-Flows