American Woodmark (AMWD) AI Stock Analysis

• Market Cap: $728.63M
• Dividend Yield: N/A
• Average Volume (3M): 218.90K
• Price to Earnings (P/E): 43.0
• Beta (1Y): 1.38
• Revenue Growth: -10.71%
• EPS Growth: -37.03%
• Country: US
• Employees: 8,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.45
• Shares Outstanding: 14,569,595
• 10 Day Avg. Volume: 210,594
• 30 Day Avg. Volume: 218,897
• PEG Ratio: -1.01
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 13.74
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 8.10
• 1Y Price Target: $55.00
• Price Target Upside: 9.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.88
• Revenue Forecast (FY): $1.57B

• Rating: 58 Neutral
• Price Target: $54.00 ▲(7.98% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 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

Balance-sheet leverage

Material reduction in total debt and a moderate debt-to-equity ratio improve financial flexibility and lower refinancing risk. A stronger balance sheet supports capital allocation for operations, M&A or cost actions, and cushions cyclical housing volatility over the next several months.

Positive cash generation

Sustained positive operating and free cash flow, and recovery from FY2022 negative FCF, indicate the business generates internal funding for working capital and reinvestment. Even with a recent decline, consistent FCF supports durable operations and strategic responses to industry headwinds.

Strategic merger expansion

A merger with MasterBrand would expand product breadth and channel reach, strengthening competitive positioning and innovation capacity. This structural deal can diversify revenue streams across construction and remodel channels and enhance scale benefits over the medium term.

Negative Factors

Revenue decline

A persistent revenue decline signals weaker end-market demand and reduces fixed-cost absorption, pressuring margins. If new construction and remodel trends remain soft, top-line weakness may persist for multiple quarters and constrain earnings recovery despite cost actions.

Margin compression & lower profitability

Steeper margin compression reduces internal cash available for reinvestment and increases sensitivity to volume swings. Lower profitability weakens return metrics and limits ability to absorb higher input or tariff costs, raising vulnerability during protracted housing downturns.

Tariff exposure & soft demand

Structural demand softness in core end-markets combined with material tariff exposure materially raises cost and revenue risk. Tariff-driven cost increases and weaker volumes can persist for months, forcing higher prices, margin squeeze, or further restructuring to sustain profitability.

American Woodmark Business Overview & Revenue Model

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.

How the Company Makes Money

American 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 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

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

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

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.

Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	1.52B	1.71B	1.85B	2.07B	1.86B	1.74B
Gross Profit	233.35M	306.55M	377.81M	357.52M	226.44M	322.12M
EBITDA	101.63M	200.01M	238.96M	228.62M	63.82M	230.00M
Net Income	17.54M	99.46M	116.22M	93.72M	-29.72M	61.19M
Balance Sheet
Total Assets	1.51B	1.57B	1.59B	1.52B	1.63B	1.65B
Cash, Cash Equivalents and Short-Term Investments	28.26M	48.20M	87.40M	41.73M	22.32M	91.07M
Total Debt	123.22M	509.93M	508.46M	477.81M	626.07M	639.55M
Total Liabilities	603.19M	654.57M	683.49M	645.01M	859.61M	898.16M
Stockholders Equity	901.90M	916.00M	910.38M	873.79M	772.88M	756.24M
Cash Flow
Free Cash Flow	55.12M	65.68M	139.70M	154.13M	-19.68M	116.03M
Operating Cash Flow	75.88M	108.45M	230.75M	196.73M	24.45M	151.76M
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 Price: 50.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 50.01 is below the 20-day moving average (MA) of 59.50, below the 50-day MA of 58.52, and below the 200-day MA of 59.14, indicating a bearish trend. The MACD of -2.26 indicates Positive momentum. The RSI at 32.15 is Neutral, neither overbought nor oversold. The STOCH value of 14.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMWD.

American Woodmark Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETD	70 Outperform	$574.32M	13.25	9.21%	7.86%	-4.26%	―
LZB	65 Neutral	$1.46B	17.73	8.11%	2.39%	1.78%	-25.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	59 Neutral	$1.37B	-52.10	-1.95%	4.16%	4.34%	-141.36%
AMWD	58 Neutral	$728.63M	43.03	6.82%	―	-10.71%	-37.03%
LEG	57 Neutral	$1.56B	6.87	27.51%	1.84%	-6.03%	―
MBC	53 Neutral	$1.28B	50.20	6.19%	―	1.77%	-44.11%