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MasterBrand Inc (MBC)
NYSE:MBC
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MasterBrand Inc
(NYSE:MBC)
63Neutral
MasterBrand Inc (MBC) vs. S&P 500 (SPY)
Market Cap
$1.57B
Dividend YieldN/A
Average Volume (3M)1.18M
Price to Earnings (P/E)12.8
Beta (1Y)1.08
Revenue Growth-0.95%
EPS Growth-30.42%
CountryUS
Employees13,316
SectorConsumer Cyclical
Sector Strength46
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.96
Shares Outstanding127,649,030
10 Day Avg. Volume946,505
30 Day Avg. Volume1,181,420
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.63
Price to Cash Flow (P/CF)3.70
P/FCF Ratio6.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.00Price Target Upside54.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
MasterBrand Inc Business Overview & Revenue Model
Company DescriptionMasterBrand Inc (MBC) is a leading manufacturer and distributor of residential cabinets in North America. The company operates within the home improvement sector, providing a wide range of cabinetry products that cater to various styles and preferences. MBC's core products include semi-custom and custom cabinets, which are used in kitchens, bathrooms, and other areas of the home.
How the Company Makes MoneyMasterBrand Inc makes money primarily through the sale of its cabinetry products to a diverse customer base that includes builders, dealers, and home improvement retailers. The company leverages a broad distribution network, which allows it to reach both professional contractors and individual consumers. Key revenue streams come from its comprehensive portfolio of cabinet brands, each targeting different market segments and price points, enabling MBC to capture a wide range of customers. Additionally, the company may engage in strategic partnerships with large home improvement chains to increase its market penetration and sales volume. The combination of product diversity, strategic distribution, and partnerships contributes significantly to MBC's earnings.
MasterBrand Inc Financial Statement Overview
Summary
MasterBrand Inc's financial statements reveal a company navigating through a mix of strengths and challenges. Operational efficiency and cash flow management are commendable, but declining revenue and profit margins raise concerns. Increasing leverage on the balance sheet necessitates careful monitoring.Income Statement
MasterBrand Inc shows a mixed performance in its income statement. The gross profit margin remains stable, indicating effective cost management. However, a declining net profit margin over the years highlights potential pressure on earnings. The revenue growth rate is inconsistent, showing a decline in recent periods, which is a concern for future profitability. The EBIT and EBITDA margins reflect operational efficiency, but recent contractions suggest potential challenges.72
Positive
Balance Sheet
The balance sheet of MasterBrand Inc presents a moderate financial position. The debt-to-equity ratio is rising, indicating increasing leverage, which could pose a risk if not managed carefully. However, the company maintains a relatively strong equity ratio, suggesting a good cushion against liabilities. Return on Equity (ROE) has seen fluctuations, reflecting inconsistent profitability relative to shareholder investments.68
Positive
Cash Flow
Cash flow metrics demonstrate robust operational cash generation, with a high operating cash flow to net income ratio. Despite a decline in free cash flow growth in recent periods, the company retains a healthy free cash flow to net income ratio, indicating efficient cash utilization. However, the significant variations in free cash flow growth rates signal potential volatility in cash management.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.70B | 2.73B | 3.28B | 2.86B | 2.47B | Gross Profit |
| 877.00M | 875.90M | 940.50M | 783.90M | 703.00M | EBIT |
| 235.70M | 306.30M | 287.10M | 234.30M | 196.00M | EBITDA |
| 319.60M | 368.20M | 356.00M | 313.40M | 273.70M | Net Income Common Stockholders |
| 125.90M | 182.00M | 155.40M | 182.60M | 145.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 120.60M | 148.70M | 101.10M | 141.40M | 154.30M | Total Assets |
| 2.93B | 2.38B | 2.53B | 3.00B | 2.71B | Total Debt |
| 1.08B | 770.20M | 1.03B | 63.20M | 40.60M | Net Debt |
| 961.70M | 621.50M | 932.50M | -78.20M | -113.70M | Total Liabilities |
| 1.64B | 1.19B | 1.52B | 551.10M | 498.20M | Stockholders Equity |
| 1.29B | 1.19B | 1.01B | 2.45B | 2.21B |
| Cash Flow | Free Cash Flow | |||
| 211.10M | 348.30M | 179.70M | 96.60M | 177.30M | Operating Cash Flow |
| 292.00M | 405.60M | 235.60M | 148.20M | 204.60M | Investing Cash Flow |
| -580.80M | -56.90M | -55.90M | -51.50M | -26.70M | Financing Cash Flow |
| 269.60M | -299.90M | -215.30M | -109.70M | -179.20M |
MasterBrand Inc Technical Analysis
Negative
12.30
Price Trends
14.81
Negative
15.49
Negative
16.08
Negative
Market Momentum
-0.44
Negative
35.98
Neutral
17.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MBC, the sentiment is Negative. The current price of 12.3 is below the 20-day moving average (MA) of 13.35, below the 50-day MA of 14.81, and below the 200-day MA of 16.08, indicating a bearish trend. The MACD of -0.44 indicates Negative momentum. The RSI at 35.98 is Neutral, neither overbought nor oversold. The STOCH value of 17.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MBC.
MasterBrand Inc Risk Analysis
MasterBrand Inc disclosed 42 risk factors in its most recent earnings report. MasterBrand Inc reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MasterBrand Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.52B | 12.62 | 12.40% | 2.28% | 1.81% | 8.09% | |
67 Neutral | $1.74B | 16.31 | 4.91% | 2.68% | 2.56% | -91.05% | |
63 Neutral | $1.57B | 12.77 | 10.12% | ― | -0.95% | -30.42% | |
63 Neutral | $1.34B | 16.15 | -20.16% | 4.49% | -3.57% | 2.31% | |
60 Neutral | $1.90B | 9.11 | 22.11% | 2.31% | -1.03% | 24.64% | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% | |
58 Neutral | $1.18B | 40.92 | 2.28% | 4.32% | -2.68% | -56.16% |
* Consumer Cyclical Sector Average
Performance Comparison
MBC
MasterBrand Inc
12.51
-6.16
-32.99%
MLKN
MillerKnoll, Inc.
17.38
-8.59
-33.08%
LZB
La-Z-Boy Incorporated
37.33
2.27
6.47%
PZZA
Papa John's International
36.33
-24.86
-40.63%
SAH
Sonic Automotive
56.16
4.54
8.80%
SPB
Spectrum Brands Holdings
62.52
-20.19
-24.41%
MasterBrand Inc Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -24.21% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture, with strong cash flow and successful integration of Supreme Cabinetry as notable positives. However, challenges such as a decline in net sales, volume declines in the legacy business, and a negative price/cost relationship due to market choppiness overshadow these highlights. The sentiment leans towards cautious optimism for future growth, with investments in technology and strategic initiatives, but acknowledges significant current challenges.Highlights
Strong Free Cash Flow
MasterBrand delivered a strong free cash flow of $69 million in Q4, bringing the full year 2024 total to $211 million, aligning with their stated goal of free cash flow in excess of net income.
Successful Supreme Cabinetry Acquisition
The acquisition of Supreme Cabinetry Brands contributed a 9% year-over-year increase to net sales, performing well and in line with expectations.
Strategic Investments in Tech Enabled Initiatives
Continued investment in Tech Enabled initiatives, with plans to invest an additional $15 million in 2025, aiming for long-term financial growth and improved operations.
Positive Trends in Canadian Market
Year-over-year improvements in Canada's repair and remodel market during Q4, with expectations for flat demand in 2025.
Lowlights
Decline in Net Sales
Net sales decreased by 1% in Q4 compared to the same period last year, primarily due to increased choppiness in the repair and remodel business.
Volume Decline in Legacy Business
Year-over-year volume decline of 6% in the legacy business, impacting average selling price and contributing to a 4% decline in net ASP.
Negative Price/Cost Relationship
Continued headwinds from a negative price/cost relationship due to slower price realization amidst inflation pressures.
Market Uncertainty and Choppiness
Choppy market conditions in Q4, particularly in the repair and remodel market, with expectations of continued volatility into early 2025.
Adjusted EBITDA Margin Decline
Adjusted EBITDA margin declined by 150 basis points to 11.2% in Q4, compared to 12.7% in the prior year, due to volume challenges and mix impact on net ASP.
Company Guidance
During MasterBrand's Fourth Quarter and Full Year 2024 Earnings Conference Call, the company provided guidance for 2025, expecting overall market demand to decline by low single digits. However, they anticipate mid-single-digit growth in net sales, partly due to the addition of Supreme Cabinetry Brands, which contributed a 9% year-over-year increase in the fourth quarter of 2024. MasterBrand reported a decline in fourth-quarter net sales to $668 million, a 1% decrease from the previous year, driven by a 6% volume decline in the repair and remodel business. The company expects adjusted EBITDA for 2025 to range between $380 million and $410 million, with margins between 13.5% and 14.3%. They plan capital expenditures of $85 million to $95 million, excluding $27 million for the Supreme integration and footprint realignment. Additionally, MasterBrand aims to maintain a goal of free cash flow exceeding net income for the year, with expectations of adjusted diluted earnings per share between $1.40 and $1.57.MasterBrand Inc Corporate Events
Stock Buyback
MasterBrand Inc Announces New $50 Million Share Buyback
Positive
Mar 17, 2025
On March 17, 2025, MasterBrand, Inc. announced a new share repurchase program authorized by its Board of Directors, allowing the company to buy back up to $50 million of its outstanding common stock until March 13, 2028. This initiative is in addition to an existing repurchase authorization from April 2023, with $21 million remaining for repurchases as of December 29, 2024. The repurchase program aims to enhance shareholder value by leveraging MasterBrand’s strong cash flow to strengthen its balance sheet and invest in the business. The company can repurchase shares through various methods, and the program may be adjusted based on business and market conditions.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
MasterBrand Inc Reports Q4 2024 Financial Results
Negative
Feb 18, 2025
MasterBrand, Inc. announced its fourth quarter and full year 2024 financial results, revealing a 1% decrease in net sales and a significant drop in net income by 61% and 31% respectively for the quarter and full year. The company highlighted the challenges faced due to market volatility during the holiday season, which affected volumes and delayed price increase benefits. Despite these challenges, the integration of the Supreme acquisition and strategic initiatives are set to position the company for future growth. MasterBrand expects mid single-digit percentage increases in net sales for 2025, driven by acquisition-related gains and strategic investments, with a focus on outperforming market demands.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.