American Woodmark (AMWD) AI Stock Analysis

• Market Cap: $794.60M
• Dividend Yield: N/A
• Average Volume (3M): 225.10K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.35
• 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: 223,918
• 30 Day Avg. Volume: 225,096
• 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: 1.73
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 5.37
• Enterprise Value/Ebitda: 8.82
• 1Y Price Target: $57.00
• Price Target Upside: 4.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.34
• Revenue Forecast (FY): $1.62B

• Rating: 67 Neutral
• Price Target: $58.00 ▲(6.34% 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

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and debt reduction, supporting long-term stability.

Merger with MasterBrand

The merger is expected to improve operational efficiencies and customer service, potentially leading to a stronger market position and competitive advantage.

Established Distribution Network

An established distribution network supports consistent revenue streams and market reach, providing a durable competitive edge in the cabinetry industry.

Negative Factors

Revenue Growth Challenges

Declining revenue growth indicates challenges in maintaining sales momentum, which could hinder long-term business expansion and market share.

Profit Margin Pressure

Decreasing profit margins suggest cost management issues, which could impact profitability and financial health if not addressed.

Regulatory and Legal Risks

Regulatory delays and legal challenges related to the merger could disrupt strategic plans and introduce uncertainty, affecting long-term operations.

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: Negative
• Last Price: 54.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 54.54 is below the 20-day moving average (MA) of 55.38, below the 50-day MA of 57.97, and below the 200-day MA of 59.07, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 45.26 is Neutral, 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
LZB	77 Outperform	$1.62B	18.17	8.82%	2.29%	1.78%	-25.36%
LEG	68 Neutral	$1.51B	6.94	26.20%	1.80%	-6.03%	―
AMWD	67 Neutral	$794.60M	12.91	6.82%	―	-10.71%	-37.03%
ETD	66 Neutral	$600.28M	12.78	9.96%	7.67%	-4.61%	-25.66%
MBC	63 Neutral	$1.42B	17.59	6.19%	―	1.77%	-44.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	57 Neutral	$1.24B	-47.07	-1.95%	4.13%	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.

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.

American Woodmark Faces Lawsuits Over Merger Disclosures

On August 5, 2025, American Woodmark Corporation entered into a merger agreement with MasterBrand, Inc., where American Woodmark will become a wholly owned subsidiary of MasterBrand. However, following the filing of the joint proxy statement/prospectus, both companies received demand letters and lawsuits from purported stockholders alleging that the document omitted material information, rendering it misleading. To address these claims and avoid potential business delays, American Woodmark and MasterBrand decided to voluntarily supplement certain disclosures, although they deny any legal merit to the allegations.

American Woodmark Merger Approved by Mexican Commission

On August 5, 2025, American Woodmark Corporation entered into a merger agreement with MasterBrand, Inc. and its subsidiary. The merger received approval from the Federal Competition Commission of Mexico on October 3, 2025, and MasterBrand is working with the FTC to complete antitrust reviews, expecting to finalize the merger in early 2026.