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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:73Outperform
Price Target:
$69.00
▲(15.89% Upside)
American Woodmark's overall score reflects a strong valuation and positive corporate event impact from the merger announcement. Financial performance and earnings call insights indicate stability and strategic focus despite revenue challenges. Technical analysis suggests cautious optimism with short-term bullish momentum.
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:May 29, 2025
(Q4-2025)
|
% Change Since: 5.12%|
Next Earnings Date:Aug 26, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong strategic initiatives in digital transformation, platform design, and share repurchases, demonstrating operational resilience. However, the company faced significant challenges with declining net sales, reduced gross profit margins, and market pressures in key regions, compounded by tariff and inflation uncertainties.
Q4-2025 Updates
Positive Updates
Pro Business Positive Performance
The Pro business reported a positive comp for the quarter, with significant offsets in bath and storage, showcasing resilience despite the challenging market conditions.
Share Repurchase Program
The company repurchased 1.17 million shares, approximately 7.5% of shares outstanding, during fiscal 2025 for $96.7 million, demonstrating a solid capital allocation strategy.
Digital Transformation and Platform Design Progress
The company executed significant progress in digital transformation and platform design, including ERP cloud strategy implementation and manufacturing centers of excellence establishment, enhancing future operational efficiency.
Facility Expansions and Product Innovations
Facility expansions in Monterrey, Mexico, and Hamilton, North Carolina, along with over 30% of made-to-order sales coming from products launched in the last three years, highlight significant growth and innovation.
Negative Updates
Decline in Net Sales
Net sales for the quarter were $400.4 million, a decrease of 11.7% compared to the prior year, driven by weaker demand in the new construction and remodel markets.
Gross Profit Margin Decrease
Gross profit margin for the fourth quarter decreased by 160 basis points to 17%, primarily due to fixed cost deleverage and increased depreciation expense and product input costs.
Challenges in Key Markets
Double-digit declines were reported in key markets such as Florida, Texas, and the Southwest, negatively impacting the new construction direct business.
Tariff and Inflation Pressures
Tariffs and inflationary pressures on commodities and labor are expected to continue impacting costs, with significant uncertainty around tariff impacts on fiscal 2026 expectations.
Company Guidance
During the American Woodmark Corporation Fourth Fiscal Quarter 2025 Conference Call, the company provided guidance on several key metrics. Net sales for the quarter were $400.4 million, a decrease of 11.7% compared to the previous year, with adjusted EBITDA at $47.1 million or 11.8% of net sales. The company reported an adjusted EPS of $1.61, with a cash balance of $48.2 million and access to an additional $314.2 million under its revolving credit facility. Net leverage was reported at 1.56x adjusted EBITDA. The company repurchased 417,000 shares in the quarter, totaling 1.17 million shares for fiscal 2025. Looking ahead, the company expects fiscal year 2026 net sales to range from low single-digit declines to low single-digit increases, with adjusted EBITDA projected between $175 million and $200 million. The guidance considers the impact of tariffs, with approximately $20 million in costs factored into the projections. The company also highlighted ongoing efforts in growth, digital transformation, and platform design to navigate the challenging macroeconomic environment.

American Woodmark Financial Statement Overview

Summary
American Woodmark's financial performance shows a mixed outlook. Despite a decline in revenue, the company improved profitability and maintained a stable balance sheet with prudent leverage. However, significant challenges in revenue growth and cash flow generation persist, impacting overall financial stability.
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.
BreakdownJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue1.71B1.85B2.07B1.86B1.74B
Gross Profit306.55M377.81M357.52M226.44M319.27M
EBITDA200.01M238.96M228.62M63.82M230.00M
Net Income99.46M116.22M93.72M-29.72M61.19M
Balance Sheet
Total Assets1.57B1.59B1.52B1.63B1.64B
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 Flow108.45M139.70M154.13M-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
Positive
Last Price59.54
Price Trends
50DMA
54.73
Positive
100DMA
56.59
Positive
200DMA
69.03
Negative
Market Momentum
MACD
1.19
Negative
RSI
60.23
Neutral
STOCH
71.52
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 59.54 is above the 20-day moving average (MA) of 55.36, above the 50-day MA of 54.73, and below the 200-day MA of 69.03, indicating a neutral trend. The MACD of 1.19 indicates Negative momentum. The RSI at 60.23 is Neutral, neither overbought nor oversold. The STOCH value of 71.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
$749.42M14.6410.69%6.65%-4.89%
73
Outperform
$866.79M9.1710.89%-7.47%-9.07%
70
Outperform
$1.51B15.629.84%2.34%3.04%-16.49%
61
Neutral
$16.99B10.66-7.51%3.25%1.53%-15.49%
56
Neutral
$1.35B45.68-2.77%3.77%1.14%-149.26%
54
Neutral
$139.47M56.431.46%4.98%-7.22%
51
Neutral
$1.16B8.3918.68%2.36%-6.15%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMWD
American Woodmark
59.54
-30.74
-34.05%
BSET
Bassett Furniture
16.05
3.91
32.21%
ETD
Ethan Allen
29.47
0.72
2.50%
MLKN
MillerKnoll
20.05
-7.29
-26.66%
LZB
La-Z-Boy Incorporated
36.72
-3.78
-9.33%
LEG
Leggett & Platt
8.48
-3.72
-30.49%

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.

The most recent analyst rating on (AMWD) stock is a Buy with a $119.00 price target. To see the full list of analyst forecasts on American Woodmark stock, see the AMWD Stock Forecast page.

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.

The most recent analyst rating on (AMWD) stock is a Buy with a $119.00 price target. To see the full list of analyst forecasts on American Woodmark stock, see the AMWD Stock Forecast page.

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.

The most recent analyst rating on (AMWD) stock is a Buy with a $119.00 price target. To see the full list of analyst forecasts on American Woodmark stock, see the AMWD Stock Forecast page.

Executive/Board ChangesShareholder Meetings
American Woodmark Announces Board Member Departure
Neutral
May 28, 2025

On May 21, 2025, American Woodmark Corporation announced that James G. Davis, Jr. will not seek re-election to its Board of Directors at the next annual shareholders meeting. Davis, who has served on the board for 23 years and contributed significantly to the company’s growth and governance, leaves with no disagreements with the company, and his departure is seen as an opportunity to bring new perspectives to the board.

The most recent analyst rating on (AMWD) stock is a Buy with a $119.00 price target. To see the full list of analyst forecasts on American Woodmark stock, see the AMWD Stock Forecast page.

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 07, 2025