MasterBrand Inc (MBC) AI Stock Analysis

• Market Cap: $1.48B
• Dividend Yield: N/A
• Average Volume (3M): 2.03M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.19
• Revenue Growth: 1.77%
• EPS Growth: -44.11%
• Country: US
• Employees: 13,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.33
• Shares Outstanding: 126,779,370
• 10 Day Avg. Volume: 1,693,989
• 30 Day Avg. Volume: 2,033,247
• PEG Ratio: -0.48
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 8.68
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 3.25
• Enterprise Value/Ebitda: 9.76
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.12
• Revenue Forecast (FY): $2.68B

• Rating: 63 Neutral
• Price Target: $12.00 ▲(7.72% Upside)

MasterBrand Inc's overall stock score reflects significant challenges in financial performance and technical analysis, with declining revenue and bearish momentum. The valuation is moderate, and while the merger with American Woodmark presents potential long-term benefits, current market conditions and legal challenges pose risks. The company's ability to navigate these challenges and leverage strategic initiatives will be crucial for future performance.

Positive Factors

Merger with American Woodmark

The merger with American Woodmark is expected to enhance the product portfolio and achieve significant cost synergies, strengthening market position.

Supply Chain Coordination

Strong supply chain coordination and service execution have allowed MasterBrand to outperform in new construction sales, indicating operational resilience.

Mid-Tier Product Performance

The strong performance of mid-tier products suggests adaptability to consumer trends, supporting revenue stability amidst market shifts.

Negative Factors

Declining Revenue

Significant revenue decline indicates challenges in maintaining market share and demand, impacting long-term growth prospects.

Free Cash Flow Decrease

Decreasing free cash flow limits the company's ability to invest in growth opportunities and manage financial obligations effectively.

Impact of Section 232 Tariffs

Tariffs introduce additional costs, reducing profitability and potentially affecting competitive pricing strategies in the long term.

MasterBrand Inc Business Overview & Revenue Model

Company Description

MasterBrand Inc. (MBC) is a leading manufacturer and distributor of high-quality cabinetry and related products, serving the residential and commercial markets. With a diverse portfolio that includes kitchen cabinets, bathroom vanities, and storage solutions, MBC operates in the home improvement and construction sectors. The company is committed to innovation and sustainability, offering a wide range of customizable products designed to meet the needs and preferences of consumers and professionals alike.

How the Company Makes Money

MasterBrand Inc. generates revenue primarily through the sale of cabinetry and related products to various distribution channels, including home improvement retailers, kitchen and bath showrooms, and directly to builders and contractors. The company operates on a wholesale business model, supplying products to retailers who then sell them to end consumers. Key revenue streams include the sale of standard and custom cabinetry, accessories, and installation services. Additionally, MBC benefits from strategic partnerships with home improvement chains and builders, which enhance market reach and visibility. The growing trend of home renovations and new construction projects further supports the company's earnings potential.

MasterBrand Inc Financial Statement Overview

Summary

MasterBrand Inc demonstrates solid financial performance with stable revenue and profit margins, although there are signs of pressure on profitability. The balance sheet shows increased leverage, which could be a concern if not managed properly. Strong cash flow generation is a positive aspect, providing liquidity and financial flexibility. Overall, the company is in a stable position but should monitor debt levels and profitability closely.

Income Statement

MasterBrand Inc has shown a stable gross profit margin around 32% over recent periods, indicating consistent cost management. However, the net profit margin has decreased to 3.74% in the TTM, reflecting pressure on bottom-line profitability. Revenue growth is modest at 2% in the TTM, showing a recovery from previous declines. The EBIT and EBITDA margins have slightly decreased, suggesting some operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.86 in the TTM, indicating higher leverage compared to previous years. Return on equity has decreased to 7.14%, reflecting lower profitability on shareholders' equity. The equity ratio remains stable, suggesting a balanced asset structure. However, the increasing debt levels could pose a risk if not managed carefully.

Cash Flow

MasterBrand Inc's free cash flow has grown by 37.9% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.67, and the free cash flow to net income ratio is robust at 0.65, showing efficient cash conversion. These metrics suggest good liquidity and cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.76B	2.70B	2.73B	3.28B	2.86B	2.47B
Gross Profit	840.40M	859.70M	875.90M	918.80M	763.20M	687.50M
EBITDA	279.80M	319.60M	368.20M	277.90M	300.50M	262.00M
Net Income	82.70M	125.90M	182.00M	155.40M	182.60M	145.70M
Balance Sheet
Total Assets	3.00B	2.93B	2.38B	2.53B	3.00B	2.71B
Cash, Cash Equivalents and Short-Term Investments	114.80M	120.60M	148.70M	101.10M	141.40M	154.30M
Total Debt	1.08B	1.08B	770.20M	1.03B	63.20M	40.60M
Total Liabilities	1.62B	1.64B	1.19B	1.52B	551.10M	498.20M
Stockholders Equity	1.38B	1.29B	1.19B	1.01B	2.45B	2.21B
Cash Flow
Free Cash Flow	133.80M	211.10M	348.30M	179.70M	96.60M	177.30M
Operating Cash Flow	223.90M	292.00M	405.60M	235.60M	148.20M	204.60M
Investing Cash Flow	-79.00M	-580.80M	-56.90M	-55.90M	-51.50M	-26.70M
Financing Cash Flow	-141.50M	269.60M	-299.90M	-215.30M	-109.70M	-179.20M

MasterBrand Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MBC, the sentiment is Neutral. The current price of 11.14 is above the 20-day moving average (MA) of 10.80, below the 50-day MA of 11.75, and below the 200-day MA of 11.94, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 84.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MBC.

MasterBrand Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LZB	77 Outperform	$1.64B	18.31	8.82%	2.27%	1.78%	-25.36%
TILE	72 Outperform	$1.67B	14.94	20.20%	0.21%	5.11%	34.02%
LEG	68 Neutral	$1.21B	5.55	26.20%	1.73%	-6.03%	―
AMWD	67 Neutral	$853.32M	13.54	6.82%	―	-10.71%	-37.03%
MBC	63 Neutral	$1.48B	18.28	6.19%	―	1.77%	-44.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	60 Neutral	$1.13B	―	-1.18%	4.50%	5.37%	-127.27%

MasterBrand Inc Corporate Events

FTC Extends Waiting Period for MasterBrand Merger

On August 5, 2025, MasterBrand, Inc. entered into a Merger Agreement with American Woodmark Corporation and its subsidiary, Maple Merger Sub, Inc. The U.S. Federal Trade Commission issued a Second Request for additional information on November 7, 2025, extending the waiting period for the merger under the Hart-Scott-Rodino Antitrust Improvements Act. MasterBrand and American Woodmark are working with the FTC to obtain regulatory clearance, expecting the merger to close in early 2026.

MasterBrand Inc Reports Q3 2025 Financial Results

On November 4, 2025, MasterBrand announced its third quarter 2025 financial results, reporting a 2.7% decrease in net sales to $698.9 million compared to the previous year. The company faced a decline in net income margin and adjusted EBITDA margin due to lower volume and tariffs, but remained focused on strategic initiatives and the upcoming merger with American Woodmark to drive long-term growth and value for shareholders.

MasterBrand Inc and American Woodmark Merger Approved

On October 30, 2025, MasterBrand, Inc. and American Woodmark Corporation announced that their shareholders approved the merger of the two companies during special meetings held on the same day. This approval marks a significant milestone in the merger process, which aims to combine the complementary strengths and customer-centric cultures of both companies. The merger is still subject to regulatory clearance and other customary closing conditions. The merger is expected to enhance the companies’ ability to serve customers and build on their commitment to quality, innovation, and operational excellence.

MasterBrand Inc Faces Legal Challenges Post-Merger

On August 5, 2025, MasterBrand, Inc. entered into a merger agreement with American Woodmark Corporation, aiming to merge American Woodmark as a wholly owned subsidiary. This merger has led to several legal challenges, with stockholders alleging that the joint proxy statement/prospectus omitted material information. Despite denying these allegations, MasterBrand and American Woodmark have chosen to supplement the disclosures to avoid potential legal and business disruptions.

MasterBrand Inc Gains Mexican Approval for Merger

On October 3, 2025, MasterBrand, Inc. received approval from the Federal Competition Commission of Mexico for its merger with American Woodmark Corporation, a necessary regulatory step for the merger’s completion. Subsequently, MasterBrand voluntarily withdrew its pre-merger notification to the FTC to allow more time for antitrust review, with plans to resubmit by October 8, 2025, starting a new 30-day waiting period. The merger is expected to be finalized in early 2026, pending further approvals and conditions.