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American Woodmark (AMWD)
NASDAQ:AMWD
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American Woodmark (AMWD) AI Stock Analysis

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AMWD

American Woodmark

(NASDAQ:AMWD)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
$60.00
▲(8.83% Upside)
American Woodmark's overall stock score is primarily influenced by its stable financial performance and reasonable valuation. The technical analysis suggests a bearish trend, which slightly offsets the positive aspects. The absence of earnings call data and corporate events means these factors did not influence the score.
Positive Factors
Cash Flow Generation
Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth initiatives and debt reduction.
Merger with MasterBrand
The merger with MasterBrand is expected to expand product offerings and market reach, potentially driving long-term growth and innovation.
Distribution Network
Strong partnerships with major retailers enhance market penetration and sales volume, supporting sustained revenue streams.
Negative Factors
Revenue Decline
Declining revenue growth indicates challenges in maintaining sales momentum, which could impact long-term profitability and market position.
Profit Margin Pressure
Decreased profit margins suggest cost management issues, potentially affecting profitability and operational efficiency over time.
Regulatory Delays
Regulatory delays in the merger process could postpone strategic benefits and synergies, impacting growth plans and market expansion.

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

American Woodmark Business Overview & Revenue Model

Company DescriptionAmerican Woodmark Corporation is a leading manufacturer of kitchen and bath cabinetry in the United States. The company operates within the home improvement and construction sectors, providing a wide range of products that cater to both residential and commercial markets. American Woodmark offers a variety of cabinetry styles, finishes, and designs, and serves customers through a network of home centers, builders, and retailers, focusing on quality and innovative solutions for home improvement projects.
How the Company Makes MoneyAmerican Woodmark generates revenue primarily through the sale of its cabinetry products. The company has several key revenue streams, including direct sales to builders and contractors, retail sales through home improvement stores, and custom cabinetry orders for individual homeowners. Significant partnerships with major home improvement retailers, such as Home Depot and Lowe's, contribute to its sales volume. Additionally, American Woodmark benefits from a strong brand reputation and an established distribution network, allowing it to capture a substantial share of the cabinetry market. Seasonal trends in home renovation and new construction also influence its earnings, as demand for cabinetry typically rises during peak home-building seasons.

American Woodmark Earnings Call Summary

Earnings Call Date:May 29, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Mar 03, 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
American Woodmark is facing a challenging market with declining revenue growth and profitability metrics. The income statement shows a negative revenue growth rate and decreasing margins, indicating pressure on profitability. The balance sheet is stable with moderate leverage, but declining ROE is a concern. Cash flow analysis highlights liquidity challenges with decreasing free cash flow growth.
Income Statement
65
Positive
American Woodmark's income statement reflects a challenging environment with declining revenue growth, evidenced by a -3.28% revenue growth rate in the TTM. However, the company maintains a reasonable gross profit margin of 17.00% and a net profit margin of 5.11%. While these margins are stable, they have decreased compared to previous years, indicating pressure on profitability. The EBIT and EBITDA margins also show a downward trend, suggesting operational challenges.
Balance Sheet
70
Positive
The balance sheet shows a moderate debt-to-equity ratio of 0.55, indicating a balanced approach to leveraging. The return on equity (ROE) stands at 9.20%, which is decent but has declined from previous levels, reflecting reduced profitability. The equity ratio is healthy, suggesting a stable financial structure, but the declining ROE could be a concern if the trend continues.
Cash Flow
75
Positive
Cash flow analysis reveals a decrease in free cash flow growth by -6.46% in the TTM, highlighting potential liquidity challenges. The operating cash flow to net income ratio of 0.55 indicates that cash generation is not as strong as net income, which could impact future investments. The free cash flow to net income ratio is 0.61, suggesting that while cash flow is positive, it is not robust enough to fully support net income levels.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.71B1.85B2.07B1.86B1.74B
Gross Profit306.55M377.81M357.52M226.44M322.12M
EBITDA200.01M238.96M228.62M63.82M230.00M
Net Income99.46M116.22M93.72M-29.72M61.19M
Balance Sheet
Total Assets1.57B1.59B1.52B1.63B1.65B
Cash, Cash Equivalents and Short-Term Investments48.20M87.40M41.73M22.32M91.07M
Total Debt509.93M508.46M477.81M626.07M651.39M
Total Liabilities654.57M683.49M645.01M859.61M893.62M
Stockholders Equity916.00M910.38M873.79M772.88M742.90M
Cash Flow
Free Cash Flow65.68M139.70M154.13M-19.68M116.03M
Operating Cash Flow108.45M230.75M196.73M24.45M151.76M
Investing Cash Flow-42.66M-92.19M-43.23M-51.57M-42.43M
Financing Cash Flow-104.99M-92.89M-134.09M-41.62M-115.32M

American Woodmark Technical Analysis

Technical Analysis Sentiment
Negative
Last Price55.13
Price Trends
50DMA
61.20
Negative
100DMA
61.18
Negative
200DMA
60.01
Negative
Market Momentum
MACD
-2.52
Negative
RSI
47.57
Neutral
STOCH
89.30
Negative
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 55.13 is above the 20-day moving average (MA) of 54.12, below the 50-day MA of 61.20, and below the 200-day MA of 60.01, indicating a neutral trend. The MACD of -2.52 indicates Negative momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 89.30 is Negative, 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 32 risk factors in its most recent earnings report. American Woodmark 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 3 New Risks
1.
The Merger may be delayed or may not be completed, and the Merger Agreement may be terminated in accordance with its terms. Q2, 2025
2.
Failure to complete the Merger could negatively impact the Company. Q2, 2025
3.
The Merger Agreement contains provisions that limit the Company's ability to pursue alternatives to the Merger and that could discourage other parties from trying to acquire or merge with the Company. Q2, 2025

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
69
Neutral
$1.61B17.958.82%2.97%1.78%-25.36%
68
Neutral
$803.20M13.046.82%-10.71%-37.03%
66
Neutral
$614.02M13.079.96%7.66%-4.61%-25.66%
66
Neutral
$1.21B5.5526.20%2.29%-6.03%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
58
Neutral
$1.41B17.406.19%1.77%-44.11%
55
Neutral
$1.08B-1.18%4.74%5.37%-127.27%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMWD
American Woodmark
55.13
-35.51
-39.18%
ETD
Ethan Allen
23.64
-5.49
-18.85%
MLKN
MillerKnoll
15.83
-9.03
-36.32%
LZB
La-Z-Boy Incorporated
38.92
-5.85
-13.07%
LEG
Leggett & Platt
10.26
-2.22
-17.79%
MBC
MasterBrand Inc
11.09
-6.23
-35.97%

American Woodmark Corporate Events

Legal ProceedingsM&A Transactions
American Woodmark Faces FTC Delay in Merger Process
Neutral
Nov 7, 2025

On August 5, 2025, American Woodmark Corporation entered into a merger agreement with MasterBrand, Inc., involving a wholly owned subsidiary of MasterBrand. On November 7, 2025, both companies received a Second Request from the U.S. Federal Trade Commission, extending the waiting period for the merger under the Hart-Scott-Rodino Antitrust Improvements Act. The companies are working to obtain regulatory clearance and expect the merger to close in early 2026.

The most recent analyst rating on (AMWD) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on American Woodmark stock, see the AMWD Stock Forecast page.

M&A TransactionsShareholder Meetings
American Woodmark Approves Merger with MasterBrand
Positive
Oct 30, 2025

On October 30, 2025, American Woodmark Corporation held a special meeting of shareholders to approve a merger with MasterBrand, Inc. The merger agreement, initially dated August 5, 2025, was approved, allowing American Woodmark to become a wholly owned subsidiary of MasterBrand. This merger, which received shareholder approval from both companies, is seen as a transformative step that will enhance customer service and operational excellence. The transaction is pending regulatory clearance and other customary closing conditions.

The most recent analyst rating on (AMWD) stock is a Hold with a $69.00 price target. To see the full list of analyst forecasts on American Woodmark stock, see the AMWD Stock Forecast page.

Legal ProceedingsM&A Transactions
American Woodmark Faces Lawsuits Over Merger Disclosures
Negative
Oct 20, 2025

On August 5, 2025, American Woodmark Corporation entered into a merger agreement with MasterBrand, Inc., where American Woodmark will become a wholly owned subsidiary of MasterBrand. However, following the filing of the joint proxy statement/prospectus, both companies received demand letters and lawsuits from purported stockholders alleging that the document omitted material information, rendering it misleading. To address these claims and avoid potential business delays, American Woodmark and MasterBrand decided to voluntarily supplement certain disclosures, although they deny any legal merit to the allegations.

The most recent analyst rating on (AMWD) stock is a Hold with a $69.00 price target. To see the full list of analyst forecasts on American Woodmark stock, see the AMWD Stock Forecast page.

M&A Transactions
American Woodmark Merger Approved by Mexican Commission
Neutral
Oct 6, 2025

On August 5, 2025, American Woodmark Corporation entered into a merger agreement with MasterBrand, Inc. and its subsidiary. The merger received approval from the Federal Competition Commission of Mexico on October 3, 2025, and MasterBrand is working with the FTC to complete antitrust reviews, expecting to finalize the merger in early 2026.

The most recent analyst rating on (AMWD) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on American Woodmark stock, see the AMWD Stock Forecast page.

American Woodmark and MasterBrand Announce Merger Agreement
Sep 25, 2025

American Woodmark Corporation and MasterBrand, Inc. have announced a merger agreement, signed on August 5, 2025, to combine their companies in an all-stock transaction. Under the agreement, American Woodmark will become a wholly owned subsidiary of MasterBrand, with the new entity operating under the MasterBrand name. The merger will result in American Woodmark shareholders receiving 5.150 shares of MasterBrand common stock for each share of American Woodmark common stock they hold. This strategic move is expected to enhance the combined company’s market position and operational capabilities, with MasterBrand shareholders owning approximately 63% and American Woodmark shareholders owning about 37% of the new entity. Special meetings for stockholders of both companies are scheduled for October 30, 2025, to vote on the merger proposals.

The most recent analyst rating on (AMWD) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on American Woodmark stock, see the AMWD Stock Forecast page.

Potential Merger Failure Poses Significant Risks for American Woodmark Corporation
Aug 28, 2025

The potential failure to complete the Merger poses a significant risk to American Woodmark Corporation, as it could lead to adverse effects on its business and financial condition. The company may face negative reactions from financial markets, suppliers, and employees, alongside incurring substantial unrecoverable costs related to the Merger process. Additionally, the company risks expending valuable resources without achieving the anticipated benefits of the Merger, and it may encounter litigation or enforcement proceedings. If the Merger Agreement is terminated, the company might struggle to secure an alternative transaction on favorable terms, further exacerbating the risk.

American Woodmark Reports Decline in Q1 Earnings
Aug 27, 2025

American Woodmark Corporation is one of the nation’s largest cabinet manufacturers, known for its extensive range of brands and commitment to customer satisfaction, operating in the home improvement and construction sector.

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: Nov 27, 2025