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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)

Rating:70Outperform
Price Target:
$72.00
▲(8.37% 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
Margin Improvement
Solid sequential margin improvement on a similar revenue base.
Market Share
New stock kitchen/bath wins support recent capacity investments and share gain targets.
Negative Factors
Revenue Performance
Sales undershot expectations, with weaker remodel demand more than offsetting new construction growth.

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 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 Earnings Call Summary

Earnings Call Date:Aug 26, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Dec 02, 2025
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'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
68
Positive
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
75
Positive
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
70
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.65B1.71B1.85B2.07B1.86B1.74B
Gross Profit281.17M306.55M377.81M357.52M226.44M322.12M
EBITDA177.08M200.01M238.96M228.62M63.82M230.00M
Net Income84.42M99.46M116.22M93.72M-29.72M61.19M
Balance Sheet
Total Assets1.57B1.57B1.59B1.52B1.63B1.65B
Cash, Cash Equivalents and Short-Term Investments54.91M48.20M87.40M41.73M22.32M91.07M
Total Debt504.26M509.93M508.46M477.81M626.07M651.39M
Total Liabilities650.50M654.57M683.49M645.01M859.61M893.62M
Stockholders Equity920.30M916.00M910.38M873.79M772.88M742.90M
Cash Flow
Free Cash Flow61.44M65.68M139.70M154.13M-19.68M116.03M
Operating Cash Flow100.71M108.45M230.75M196.73M24.45M151.76M
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
Neutral
Last Price66.44
Price Trends
50DMA
58.21
Positive
100DMA
57.53
Positive
200DMA
66.56
Negative
Market Momentum
MACD
2.02
Positive
RSI
53.45
Neutral
STOCH
43.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMWD, the sentiment is Neutral. The current price of 66.44 is above the 20-day moving average (MA) of 63.94, above the 50-day MA of 58.21, and below the 200-day MA of 66.56, indicating a neutral trend. The MACD of 2.02 indicates Positive momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 43.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMWD.

American Woodmark Risk Analysis

American Woodmark disclosed 23 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
74
Outperform
$741.88M14.4910.69%6.34%-4.89%-19.26%
70
Outperform
$935.18M11.309.21%-8.56%-17.10%
64
Neutral
$1.48B16.459.09%2.48%2.18%-22.35%
61
Neutral
$17.96B13.14-5.36%3.00%1.25%-13.95%
61
Neutral
$1.26B9.0818.68%2.12%-6.15%
58
Neutral
$141.90M57.421.46%4.98%-7.22%
58
Neutral
$1.41B45.68-2.77%3.54%1.14%-149.26%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMWD
American Woodmark
66.44
-19.24
-22.46%
BSET
Bassett Furniture
16.84
3.62
27.38%
ETD
Ethan Allen
28.95
0.65
2.30%
MLKN
MillerKnoll
21.17
-5.93
-21.88%
LZB
La-Z-Boy Incorporated
35.57
-4.01
-10.13%
LEG
Leggett & Platt
9.79
-1.70
-14.80%

American Woodmark Corporate Events

Delistings and Listing ChangesM&A Transactions
American Woodmark Announces Merger with MasterBrand
Positive
Aug 6, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
American Woodmark Approves Retention Awards for Executives
Neutral
Jul 8, 2025

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.

Executive/Board Changes
American Woodmark CFO Resignation Announced
Neutral
Jun 16, 2025

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.

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: Aug 29, 2025