American Woodmark (AMWD) AI Stock Analysis

• Market Cap: $1.01B
• Dividend Yield: N/A
• Average Volume (3M): 209.58K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.39
• Revenue Growth: -8.56%
• EPS Growth: -17.10%
• Country: US
• Employees: 8,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 1.01
• Shares Outstanding: 14,568,987
• 10 Day Avg. Volume: 241,748
• 30 Day Avg. Volume: 209,577
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 4.32
• Enterprise Value/Ebitda: 6.87
• 1Y Price Target: $68.00
• Price Target Upside: 4.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: $72.00 ▲(10.14% Upside)

American Woodmark's overall stock score reflects a mix of challenges and opportunities. The most significant factor is the company's financial performance, which is under pressure due to declining revenue and profitability. However, the technical analysis indicates positive momentum, and the merger with MasterBrand offers potential for improved financial performance. Valuation is reasonable, but the lack of a dividend yield is a drawback. The earnings call highlighted operational improvements but also underscored ongoing challenges.

Positive Factors

Merger with MasterBrand

The merger with MasterBrand is a strategic move that will likely enhance American Woodmark's market position and operational efficiency, providing a stronger competitive edge and potential for improved financial performance.

Digital Transformation Progress

Progress in digital transformation, including ERP cloud strategy, enhances operational agility and data management, positioning the company for future growth and innovation.

Operational Efficiency Improvements

Improvements in operational efficiency through automation and facility optimization can lead to sustained cost reductions, enhancing profitability and competitiveness in the long term.

Negative Factors

Impact of Tariffs on Costs

Tariff-related costs can strain financial performance by increasing expenses, highlighting the need for strategic sourcing and pricing adjustments to mitigate impacts.

Decreased Gross Profit Margin

A decrease in gross profit margin suggests cost pressures that could impact profitability, necessitating strategic cost management to maintain financial health.

Decline in Net Sales

A significant decline in net sales indicates challenges in demand and market conditions, which could affect revenue growth and market share if not addressed.

American Woodmark Business Overview & Revenue Model

Company Description

American Woodmark Corporation (AMWD) is a leading manufacturer of kitchen and bathroom cabinets, primarily serving the residential marketplace. The company operates in the home improvement sector, providing a range of products that include framed and frameless cabinetry. American Woodmark is known for its commitment to quality, sustainability, and customer service, offering a wide selection of styles and finishes that cater to various consumer preferences and budgets.

How the Company Makes Money

American Woodmark generates revenue primarily through the sale of its cabinetry products to homebuilders, remodelers, and independent dealers. The company operates a distribution network that allows it to reach a broad customer base across the United States. Key revenue streams include direct sales to construction and remodeling companies, as well as retail partnerships with home improvement stores. The company also benefits from rising demand in the housing market, renovations, and an increase in consumer spending on home improvements. Additionally, American Woodmark's focus on operational efficiency and cost management contributes to its profitability by optimizing production processes and reducing overhead costs.

American Woodmark Financial Statement Overview

Summary

American Woodmark's financial performance is mixed, with declining revenues but improved profitability and a strong balance sheet. The company faces challenges in revenue growth and cash flow generation but maintains stability through solid equity and controlled debt levels.

Income Statement

American Woodmark's income statement shows a decline in revenue from $1.85 billion to $1.71 billion in TTM, with a negative revenue growth rate of -7.43%. However, the company improved its net profit margin from 6.29% to 5.82%, indicating improved profitability despite lower sales. The gross profit margin decreased from 20.45% to 17.93%, reflecting potential cost pressures. Overall, profitability metrics show stability despite declining revenues.

Balance Sheet

The balance sheet reflects a stable financial structure with a debt-to-equity ratio of 0.51, improving from 0.56, suggesting prudent leverage. The equity ratio increased to 58.32%, indicating strong equity backing. Return on equity stands at 10.86%, slightly lower than the previous year's 12.77%, showing solid but slightly declining returns on shareholder investments. Overall, the balance sheet is well-managed, with a focus on equity stability.

Cash Flow

The cash flow analysis reveals a significant decline in operating cash flow from $230.75 million to $108.45 million, impacting the free cash flow growth rate, which fell by 53%. The operating cash flow to net income ratio decreased to 1.09, indicating decreased cash generation efficiency. Free cash flow remains positive at $65.68 million, though significantly lower than previous periods. Despite reduced cash flow, the company's ability to generate cash is still adequate.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.65B	1.71B	1.85B	2.07B	1.86B	1.74B
Gross Profit	281.17M	306.55M	377.81M	357.52M	226.44M	322.12M
EBITDA	177.08M	200.01M	238.96M	228.62M	63.82M	230.00M
Net Income	84.42M	99.46M	116.22M	93.72M	-29.72M	61.19M
Balance Sheet
Total Assets	1.57B	1.57B	1.59B	1.52B	1.63B	1.65B
Cash, Cash Equivalents and Short-Term Investments	54.91M	48.20M	87.40M	41.73M	22.32M	91.07M
Total Debt	504.26M	509.93M	508.46M	477.81M	626.07M	651.39M
Total Liabilities	650.50M	654.57M	683.49M	645.01M	859.61M	893.62M
Stockholders Equity	920.30M	916.00M	910.38M	873.79M	772.88M	742.90M
Cash Flow
Free Cash Flow	61.44M	65.68M	139.70M	154.13M	-19.68M	116.03M
Operating Cash Flow	100.71M	108.45M	230.75M	196.73M	24.45M	151.76M
Investing Cash Flow	-39.39M	-42.66M	-92.19M	-43.23M	-51.57M	-42.43M
Financing Cash Flow	-95.68M	-104.99M	-92.89M	-134.09M	-41.62M	-115.32M

American Woodmark Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 65.37 is below the 20-day moving average (MA) of 66.74, above the 50-day MA of 62.52, and above the 200-day MA of 64.32, indicating a bullish trend. The MACD of 1.09 indicates Positive momentum. The RSI at 60.28 is Neutral, neither overbought nor oversold. The STOCH value of 34.59 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
ETD	74 Outperform	743.66M	14.23	10.70%	6.56%	-4.89%	-19.26%
AMWD	70 Outperform	$1.01B	12.39	9.21%	―	-8.56%	-17.10%
LZB	64 Neutral	1.43B	15.55	9.01%	2.53%	2.18%	-22.35%
BSET	55 Neutral	137.30M	54.66	1.48%	5.06%	-7.22%	―
LEG	54 Neutral	1.19B	8.56	-74.19%	2.28%	-6.15%	―
MLKN	45 Neutral	1.23B	-32.22	-2.89%	4.17%	1.14%	-149.26%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

American Woodmark Corporate Events

American Woodmark Announces Merger with MasterBrand

On August 5, 2025, American Woodmark Corporation announced its merger with MasterBrand, Inc., where American Woodmark will become a wholly-owned subsidiary of MasterBrand. The merger, approved by American Woodmark’s Board of Directors, aims to create a comprehensive portfolio of cabinet brands, enhance operational agility, and broaden market reach. The merger is expected to result in significant cost synergies and improved financial performance, benefiting shareholders and stakeholders. If completed, American Woodmark’s stock will be delisted from NASDAQ, and the combined company will operate under the MasterBrand name, with a strengthened financial profile and increased resources to drive growth and innovation.

American Woodmark Approves Retention Awards for Executives

On July 1, 2025, American Woodmark Corporation’s Board of Directors approved special retention awards for its executive officers to ensure leadership continuity following the CFO’s departure. These awards, consisting of time-based restricted stock units, aim to align executive interests with shareholder value amidst a challenging business environment.

American Woodmark CFO Resignation Announced

On June 11, 2025, American Woodmark Corporation announced the resignation of Paul Joachimczyk, its Senior Vice President and Chief Financial Officer, effective June 27, 2025, as he transitions to a financial officer role at another public company. In response, the company will initiate a nationwide search for his replacement, and in the interim, M. Scott Culbreth, the current President and CEO, will assume the roles of interim principal financial officer and interim principal accounting officer.