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American Woodmark (AMWD)
NASDAQ:AMWD

American Woodmark (AMWD) AI Stock Analysis

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AMWD

American Woodmark

(NASDAQ:AMWD)

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Neutral 58 (OpenAI - 5.2)
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Neutral 58 (OpenAI - 5.2)
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Neutral 58 (OpenAI - 5.2)
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Neutral 58 (OpenAI - 5.2)
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Neutral 58 (OpenAI - 5.2)
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Neutral 58 (OpenAI - 5.2)
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Neutral 58 (OpenAI - 5.2)
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Neutral 58 (OpenAI - 5.2)
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Neutral 58 (OpenAI - 5.2)
Rating:58Neutral
Price Target:
$39.00
▲(4.70% Upside)
Action:ReiteratedDate:02/26/26
The score is driven primarily by mixed financial performance—profitability and margins have weakened in TTM, but leverage is manageable with reduced debt and cash flow remains positive. Technical indicators are the largest near-term negative, with price below key moving averages and weak momentum readings. Valuation provides some support given the ~12.3 P/E.
Positive Factors
Improved balance sheet / reduced debt
Leverage at roughly 0.53–0.56 with a sharp reduction in total debt materially improves financial flexibility. A stronger balance sheet and positive ROE provide capacity to fund operations, weather cyclical housing swings, and support strategic actions over the next several quarters.
Positive cash generation
Consistent positive operating and free cash flow, despite a recent decline, underpins capital expenditure, working-capital needs and shareholder actions. Sustained cash generation improves resilience through housing cycles and funds investment without heavy reliance on new borrowing.
Diversified go-to-market channels
A multi-channel model (new construction, big-box retail, dealer/distributor networks) reduces single-channel dependency and supports stable demand across both new-build and remodel markets. Channel diversity helps smooth revenue volatility and preserves market access.
Negative Factors
Revenue and margin deterioration
Trailing revenue decline and margin compression reflect pricing, mix or cost pressures that erode profitability. Lower margins constrain reinvestment and reduce downside buffer, making earnings more sensitive to input-cost or volume swings over the next several quarters.
Weaker cash conversion
A near-20% drop in FCF and modest OCF/EBITDA conversion point to working-capital timing and conversion issues. Reduced cash conversion limits flexibility for M&A, capex or shareholder returns and increases reliance on the balance sheet during prolonged softness.
Cyclicality from housing exposure
Business is structurally tied to housing starts and remodeling cycles, making revenue and margin outcomes vulnerable to macro and mortgage-rate driven demand shifts. This cyclical exposure can produce meaningful volatility across the 2–6 month horizon.

American Woodmark (AMWD) vs. SPDR S&P 500 ETF (SPY)

American Woodmark Business Overview & Revenue Model

Company DescriptionAmerican 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.
How the Company Makes MoneyAmerican Woodmark makes money primarily by selling manufactured cabinetry and related products to customers in the U.S. housing and remodeling ecosystem. Its core revenue streams generally come from: (1) sales to homebuilders for new residential construction, where the company supplies cabinetry packages at scale for housing developments; (2) sales to large home improvement retailers, where its cabinets are sold through retail programs to do-it-yourself and professional remodel customers; and (3) sales to independent dealers and distributors, including kitchen/bath dealers and other channel partners that specify and resell cabinetry for renovation projects. Revenue is recognized from product shipments under customer purchase orders and program agreements, with pricing and volumes influenced by housing starts, repair-and-remodel activity, product mix (e.g., value to more premium offerings), and the company’s ability to manage materials, labor, and logistics costs. Any additional revenue from services, warranties, or ancillary offerings is not available (null).

American Woodmark Earnings Call Summary

Earnings Call Date:May 29, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with several operational and strategic advancements despite significant declines in sales and margins. Challenges such as tariffs and macroeconomic conditions continue to impact performance, but progress in digital transformation and operational efficiencies provide some optimism.
Q4-2025 Updates
Positive Updates
Share Repurchase Program
The company repurchased 1.17 million shares or approximately 7.5% of shares outstanding for $96.7 million during fiscal 2025.
Expansion and Innovation Achievements
Facility expansions in Monterrey, Mexico, and Hamilton, North Carolina, enhanced made-to-stock capabilities. Over 30% of made-to-order sales came from products launched in the last three years.
Operational Efficiency Improvements
Achieved cost efficiency through automation and operational improvements, including a footprint optimization and closure of the Orange, Virginia facility.
Digital Transformation Progress
Advanced digital transformation efforts with ERP cloud strategy execution and enhanced cybersecurity readiness.
Negative Updates
Decline in Net Sales
Net sales decreased by 11.7% compared to the prior year, primarily due to weaker than expected demand and macroeconomic challenges.
Decreased Gross Profit Margin
Gross profit margin for the fourth quarter of fiscal year 2025 decreased 160 basis points to 17% of net sales.
Impact of Tariffs on Costs
Tariffs posed a $20 million cost, impacting the net sales outlook for fiscal year 2026.
New Construction Sales Decline
New construction net sales decreased 13.4% for the quarter compared to last year.
Company Guidance
During the American Woodmark Corporation's fourth fiscal quarter 2025 conference call, the company provided guidance indicating a challenging demand environment, with net sales for fiscal year 2026 expected to range from low single-digit declines to low single-digit increases. The company reported fourth-quarter net sales of $400.4 million, a decline of 11.7% year-over-year. Adjusted EBITDA was $47.1 million, or 11.8% of net sales, with adjusted EPS at $1.61. The company ended the quarter with a cash balance of $48.2 million and access to an additional $314.2 million under its revolving credit facility, while net leverage stood at 1.56x adjusted EBITDA. American Woodmark repurchased 1.17 million shares, representing about 7.5% of outstanding shares, for $96.7 million during fiscal 2025. Guidance for fiscal year 2026 includes adjusted EBITDA expectations ranging from $175 million to $200 million, factoring in current tariff policies and operational strategies focused on growth, digital transformation, and platform design.

American Woodmark Financial Statement Overview

Summary
Mixed fundamentals: Income statement trends weakened in TTM (revenue down ~4.6% with margin compression and lower net margin ~3.9% vs ~5.8% in FY2025), but the balance sheet is a relative strength with manageable leverage (debt-to-equity ~0.53–0.56) and sharply reduced total debt. Cash flow remains positive (TTM FCF ~$63.9M) but is down ~19.5% and shows weaker conversion versus EBITDA (OCF/EBITDA ~0.56x).
Income Statement
54
Neutral
Results have weakened meaningfully in TTM (Trailing-Twelve-Months): revenue is down ~4.6% and profitability is much lower than recent annual periods (net margin ~3.9% in TTM vs ~5.8% in FY2025 and ~6.3% in FY2024). Gross and EBITDA margins also compressed versus FY2024–FY2025, signaling cost pressure and/or price/mix headwinds. Positively, the company remains profitable in TTM and is well above the FY2022 loss year, but the near-term trajectory is clearly negative.
Balance Sheet
74
Positive
Leverage looks manageable with debt-to-equity around ~0.53–0.56 in the most recent periods, and equity is substantial relative to the asset base. Return on equity remains positive in TTM (~6.8%), though down notably from FY2024–FY2025 levels (~10.9%–12.8%), reflecting the earnings slowdown. A key strength is the sharp reduction in total debt in TTM versus FY2025, improving balance-sheet flexibility, but the lower profitability reduces the benefit of that stronger positioning.
Cash Flow
62
Positive
Cash generation remains positive in TTM with operating cash flow (~$75.9M) and free cash flow (~$63.9M), but free cash flow is down ~19.5% versus the prior comparable figure provided. Cash flow quality is mixed: free cash flow is solid relative to net income (~0.79x in TTM), yet operating cash flow is modest versus EBITDA (coverage ~0.56x in TTM), implying working-capital or timing headwinds. The company has improved materially from FY2022 (negative free cash flow), but the recent downtrend and weaker conversion keep the score mid-range.
BreakdownTTMApr 2025Apr 2024Apr 2023Apr 2022Apr 2021
Income Statement
Total Revenue1.52B1.71B1.85B2.07B1.86B1.74B
Gross Profit233.35M306.55M377.81M357.52M226.44M322.12M
EBITDA101.63M200.01M238.96M228.62M63.82M230.00M
Net Income17.54M99.46M116.22M93.72M-29.72M61.19M
Balance Sheet
Total Assets1.51B1.57B1.59B1.52B1.63B1.65B
Cash, Cash Equivalents and Short-Term Investments28.26M48.20M87.40M41.73M22.32M91.07M
Total Debt123.22M509.93M508.46M477.81M626.07M639.55M
Total Liabilities603.19M654.57M683.49M645.01M859.61M898.16M
Stockholders Equity901.90M916.00M910.38M873.79M772.88M756.24M
Cash Flow
Free Cash Flow55.12M65.68M139.70M154.13M-19.68M116.03M
Operating Cash Flow75.88M108.45M230.75M196.73M24.45M151.76M
Investing Cash Flow-39.44M-42.66M-92.19M-43.23M-51.57M-42.43M
Financing Cash Flow-51.67M-104.99M-92.89M-134.09M-41.62M-115.32M

American Woodmark Technical Analysis

Technical Analysis Sentiment
Negative
Last Price37.25
Price Trends
50DMA
54.58
Negative
100DMA
55.11
Negative
200DMA
57.92
Negative
Market Momentum
MACD
-5.19
Positive
RSI
20.87
Positive
STOCH
13.06
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 37.25 is below the 20-day moving average (MA) of 44.53, below the 50-day MA of 54.58, and below the 200-day MA of 57.92, indicating a bearish trend. The MACD of -5.19 indicates Positive momentum. The RSI at 20.87 is Positive, neither overbought nor oversold. The STOCH value of 13.06 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 25 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$557.27M12.459.20%7.86%-4.26%
65
Neutral
$1.29B18.088.12%2.39%1.78%-25.36%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
59
Neutral
$1.21B11.21-1.98%4.16%4.34%-141.36%
58
Neutral
$542.72M-7.531.91%-10.71%-37.03%
57
Neutral
$1.30B6.4726.15%1.84%-6.03%
47
Neutral
$980.76M53.131.98%1.77%-44.11%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMWD
American Woodmark
37.25
-23.83
-39.01%
ETD
Ethan Allen
21.90
-4.66
-17.54%
MLKN
MillerKnoll
17.80
-0.46
-2.52%
LZB
La-Z-Boy Incorporated
31.54
-7.56
-19.34%
LEG
Leggett & Platt
9.55
1.15
13.65%
MBC
MasterBrand Inc
7.69
-6.03
-43.95%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Feb 26, 2026