American Woodmark (AMWD) AI Stock Analysis

• Market Cap: $899.79M
• Dividend Yield: N/A
• Average Volume (3M): 218.90K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 1.34
• 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): 0.76
• Shares Outstanding: 14,569,170
• 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: 1.53
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 5.40
• Enterprise Value/Ebitda: 8.87
• 1Y Price Target: $60.00
• Price Target Upside: -6.72% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $67.00 ▲(4.17% Upside)

American Woodmark's overall stock score reflects a stable financial position and reasonable valuation, but technical indicators suggest potential bearish momentum. The merger with MasterBrand could be transformative, yet legal challenges pose risks. The company must address operational efficiency and legal issues to improve its outlook.

Positive Factors

Strong free cash flow growth

A 29.1% TTM increase in free cash flow provides durable internal funding for capex, debt reduction and strategic initiatives. Reliable FCF enhances resilience through housing cycles, supports integration spending for the MasterBrand deal, and reduces reliance on external financing.

Moderate leverage, solid capital structure

A debt-to-equity of 0.53 and a stable equity ratio reflect a conservative leverage profile that preserves financial flexibility. This moderate leverage keeps interest burdens manageable and allows the company to fund integration, invest in efficiency, or absorb cyclical downturns without overextending capital structure.

Transformative merger potential

Shareholder-approved merger with MasterBrand, if cleared, creates scale, broader distribution and potential operational synergies. Over the medium term this structural change can improve procurement, manufacturing efficiency and customer reach, strengthening competitive position in cabinetry markets.

Negative Factors

Regulatory approval risk

The FTC Second Request materially increases execution risk around the MasterBrand merger. Prolonged regulatory review can force remedies, divestitures or deal abandonment, raise transaction costs, and delay realization of synergies, creating strategic uncertainty for months ahead.

Declining revenue and compressed margins

Negative revenue growth and lower gross (16%) and net (3.9%) margins indicate sustained cost or pricing pressure. Margin compression reduces reinvestment capacity and weakens return metrics, requiring structural operational improvements to restore profitability and cash generation over the medium term.

Customer concentration risk

Heavy dependence on large retailers and builders creates concentration risk: program changes, pricing negotiations or order variability by a few customers can materially affect revenues and margins. This bargaining asymmetry is a durable vulnerability to demand shifts or contract renegotiations.

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

American Woodmark demonstrates a stable financial position with a solid balance sheet and strong cash flow generation. However, the income statement reflects challenges in revenue growth and profitability margins. The company needs to focus on enhancing operational efficiency and cost management to improve profitability. Overall, the financial health is stable, but there are areas that require strategic attention to drive growth.

Income Statement

American Woodmark's income statement shows a decline in revenue growth with a negative growth rate of -3.5% TTM, reflecting challenges in maintaining sales momentum. The gross profit margin has decreased to 16% TTM, indicating pressure on cost management. Net profit margin stands at 3.9% TTM, which is modest but stable. The EBIT and EBITDA margins are 5.9% and 9.7% TTM, respectively, showing a decline from previous periods, suggesting reduced operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.53 TTM, indicating a balanced approach to leverage. Return on equity is 6.8% TTM, which is lower than previous years, reflecting decreased profitability. The equity ratio is stable, suggesting a solid capital structure. Overall, the balance sheet shows financial stability but with room for improvement in profitability.

Cash Flow

Cash flow analysis indicates a positive free cash flow growth rate of 29.1% TTM, highlighting improved cash generation. The operating cash flow to net income ratio is 0.56 TTM, suggesting efficient cash conversion. The free cash flow to net income ratio is 0.79 TTM, indicating strong cash flow relative to earnings. Despite past fluctuations, the current cash flow position is robust.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.71B	1.85B	2.07B	1.86B	1.74B
Gross Profit	306.55M	377.81M	357.52M	226.44M	322.12M
EBITDA	200.01M	238.96M	228.62M	63.82M	230.00M
Net Income	99.46M	116.22M	93.72M	-29.72M	61.19M
Balance Sheet
Total Assets	1.57B	1.59B	1.52B	1.63B	1.65B
Cash, Cash Equivalents and Short-Term Investments	48.20M	87.40M	41.73M	22.32M	91.07M
Total Debt	509.93M	508.46M	477.81M	626.07M	639.55M
Total Liabilities	654.57M	683.49M	645.01M	859.61M	898.16M
Stockholders Equity	916.00M	910.38M	873.79M	772.88M	756.24M
Cash Flow
Free Cash Flow	65.68M	139.70M	154.13M	-19.68M	116.03M
Operating Cash Flow	108.45M	230.75M	196.73M	24.45M	151.76M
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: Positive
• Last Price: 64.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMWD, the sentiment is Positive. The current price of 64.32 is above the 20-day moving average (MA) of 60.31, above the 50-day MA of 57.06, and above the 200-day MA of 59.05, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 64.01 is Neutral, neither overbought nor oversold. The STOCH value of 57.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMWD.

American Woodmark Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LZB	77 Outperform	$1.54B	17.18	8.82%	2.39%	1.78%	-25.36%
ETD	70 Outperform	$588.06M	13.44	9.21%	7.86%	-4.26%	―
AMWD	67 Neutral	$899.79M	15.22	6.82%	―	-10.71%	-37.03%
LEG	63 Neutral	$1.65B	7.59	26.20%	1.84%	-6.03%	―
MBC	63 Neutral	$1.58B	20.39	6.19%	―	1.77%	-44.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	61 Neutral	$1.40B	-54.03	-1.95%	4.16%	4.34%	-141.36%

American Woodmark Corporate Events

American Woodmark Faces FTC Delay in Merger Process

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.

American Woodmark Approves Merger with MasterBrand

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.