MasterBrand Inc (MBC)
NYSE:MBC
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MasterBrand Inc
(NYSE:MBC)
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Rating:44Neutral
Price Target:
$8.00
▼(-28.19% Downside)
Action:Reiterated
Date:06/05/26
The score is primarily held down by deteriorating financial performance—compressed margins, slightly negative TTM earnings, and notably weaker free cash flow—combined with loss-driven valuation (negative P/E). Technicals are only neutral with the stock still below longer-term moving averages, while the earnings call and recent merger provide some offset via cost/tariff mitigation plans and expected sequential improvement, but leverage and demand uncertainty remain key risks.
Positive Factors
Scale and Portfolio Expansion
The American Woodmark combination creates a broader, deeper brand and product portfolio and expands operational footprint and scale. This structural expansion improves resilience to regional demand variability, enhances cross‑sell and distribution leverage, and supports multi-year synergy targets.
Negative Factors
Deteriorating Profitability and Cash Generation
Profitability and cash conversion have declined materially: TTM net income turned slightly negative and FCF fell substantially versus prior periods. This erosion reduces reinvestment capacity, limits debt reduction options, and constrains capital allocation flexibility over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale and Portfolio Expansion
The American Woodmark combination creates a broader, deeper brand and product portfolio and expands operational footprint and scale. This structural expansion improves resilience to regional demand variability, enhances cross‑sell and distribution leverage, and supports multi-year synergy targets.
Read all positive factors
MasterBrand Inc Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks revenue into regional buckets to show where the company is strongest and where it is most exposed to local market cycles. Geographic trends highlight dependence on particular housing markets or economies, currency and supply-chain risks, and opportunities for expansion if certain regions grow faster than others.
Breaks revenue into regional buckets to show where the company is strongest and where it is most exposed to local market cycles. Geographic trends highlight dependence on particular housing markets or economies, currency and supply-chain risks, and opportunities for expansion if certain regions grow faster than others.
Data provided by:
The Fly
The FlyMasterBrand Inc (MBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.82B
Dividend YieldN/A
Average Volume (3M)1.74M
Price to Earnings (P/E)―
Beta (1Y)1.23
Revenue Growth-1.11%
EPS Growth-101.88%
CountryUS
Employees13,000
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.02
Shares Outstanding205,015,980
10 Day Avg. Volume1,478,456
30 Day Avg. Volume1,743,670
Financial Highlights & Ratios
PEG Ratio-0.67
Price to Book (P/B)1.06
Price to Sales (P/S)0.52
P/FCF Ratio12.07
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit3.01
Enterprise Value/Ebitda14.13
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.32
Revenue Forecast (FY)$2.60B
MasterBrand Inc Business Overview & Revenue Model
Company Description
Based in Jasper, Indiana, MasterBrand, Inc. is a North American provider of residential cabinetry. The company produces and markets cabinets specifically designed for kitchens, bathrooms, and other areas throughout the home....
How the Company Makes Money
MasterBrand makes money primarily by selling residential cabinetry and related storage/accessory products to customers in the homebuilding and home improvement ecosystem. Its core revenue stream is product sales of kitchen and bath cabinets (and a...
MasterBrand Inc Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Negative
The call presented a mixed but challenged picture: management executed well on cost actions, tariff mitigation and integration planning (positive operational execution and preserved liquidity), but financial results showed material declines in revenue, margins, adjusted EBITDA and GAAP profitability alongside large operating cash outflows and elevated leverage. Near-term market demand remains weak and the trade environment volatile, though management expects sequential improvement in Q2 and longer-term recovery by 2027.Positive Updates
Disciplined execution of cost and mitigation plans
Completed previously announced $30 million cost savings initiative in Q1 and executed tariff mitigation actions ahead of schedule; on track for $28 million Supreme integration run-rate synergies by year three and expecting approximately $90 million in annual run-rate synergies from the pending American Woodmark merger by year three post-close.
Negative Updates
Decline in net sales
Net sales were $618.0 million in Q1, down 6.4% year over year (from $660.3 million), reflecting mid-single-digit market declines and a slower pace of housing completions.
Read all updates
Q1-2026 Updates
Positive
Negative
Disciplined execution of cost and mitigation plans
Completed previously announced $30 million cost savings initiative in Q1 and executed tariff mitigation actions ahead of schedule; on track for $28 million Supreme integration run-rate synergies by year three and expecting approximately $90 million in annual run-rate synergies from the pending American Woodmark merger by year three post-close.
Read all positive updates
Company Guidance
The company guided that second-quarter 2026 end markets and net sales are expected to be down mid- to high-single digits year over year with a meaningful sequential improvement versus Q1, and provided specific Q2 financial targets of adjusted EBITDA of $51 million to $61 million (adjusted EBITDA margin of 7.8%–8.8%) and adjusted diluted EPS of $0.03 to $0.13; the outlook incorporates tariffs currently in effect but excludes any anticipated financial benefits or transaction/integration costs from the pending American Woodmark merger and does not reflect potential future trade policy changes. For the full year, MasterBrand expects its addressable market down mid-single digits, elevated decremental margins that should improve in the second half as tariff mitigation and $30 million of cost savings (fully executed in Q1 and phasing in through the year) take effect, interest expense flat to down, an elevated and variable effective tax rate due to deal-related items, and free cash flow to exceed net income. Management reiterated an estimated unmitigated gross tariff exposure of ~5%–6% of 2026 net sales and said it expects to offset 100% of tariff dollar costs on a run-rate basis exiting 2026; they also noted pro forma leverage remains elevated (net debt $946.5M, net debt/adjusted EBITDA ~3.7x) with cash of $138.4M and $332.3M of revolver liquidity, and continue to target $28M (Supreme) and ~ $90M (American Woodmark) of run-rate annual cost synergies by year three post-close.MasterBrand Inc Financial Statement Overview
Summary
Income Statement
41
Neutral
Balance Sheet
52
Neutral
Cash Flow
36
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.69B | 2.73B | 2.70B | 2.73B | 3.28B | 2.86B |
| Gross Profit | 747.60M | 827.60M | 859.70M | 875.90M | 918.80M | 763.20M |
| EBITDA | 159.40M | 213.90M | 319.60M | 368.20M | 277.90M | 300.50M |
| Net Income | -2.00M | 26.70M | 125.90M | 182.00M | 155.40M | 182.60M |
Balance Sheet | ||||||
| Total Assets | 3.12B | 3.10B | 2.93B | 2.38B | 2.53B | 3.00B |
| Cash, Cash Equivalents and Short-Term Investments | 138.40M | 183.30M | 120.60M | 148.70M | 101.10M | 141.40M |
| Total Debt | 1.28B | 1.35B | 1.08B | 770.20M | 1.03B | 113.20M |
| Total Liabilities | 1.80B | 1.76B | 1.64B | 1.19B | 1.52B | 551.10M |
| Stockholders Equity | 1.32B | 1.34B | 1.29B | 1.19B | 1.01B | 2.45B |
Cash Flow | ||||||
| Free Cash Flow | 12.50M | 117.50M | 211.10M | 348.30M | 179.70M | 96.60M |
| Operating Cash Flow | 94.10M | 195.70M | 292.00M | 405.60M | 235.60M | 148.20M |
| Investing Cash Flow | -77.60M | -74.40M | -580.80M | -56.90M | -55.90M | -51.50M |
| Financing Cash Flow | 2.40M | -65.70M | 269.60M | -299.90M | -215.30M | -109.70M |
MasterBrand Inc Technical Analysis
Positive
11.14
Price Trends
8.38
Positive
9.42
Negative
10.76
Negative
Market Momentum
0.20
Negative
57.13
Neutral
78.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MBC, the sentiment is Positive. The current price of 11.14 is above the 20-day moving average (MA) of 8.26, above the 50-day MA of 8.38, and above the 200-day MA of 10.76, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 78.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MBC.
MasterBrand Inc Risk Analysis
MasterBrand Inc disclosed 41 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.85B | 14.70 | 16.69% | 0.21% | 7.34% | 48.24% | |
65 Neutral | $1.58B | 18.91 | 8.12% | 2.39% | 1.69% | -31.16% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.46B | 6.57 | 23.12% | 1.84% | -8.33% | ― | |
50 Neutral | $1.11B | 103.17 | 0.83% | 4.16% | 5.62% | -65.76% | |
44 Neutral | $1.82B | -566.10 | -0.15% | ― | -1.11% | -101.88% |
* Consumer Cyclical Sector Average
MBC
MasterBrand Inc
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MasterBrand Inc Corporate Events
Executive/Board ChangesShareholder Meetings
MasterBrand Shareholders Back Board, Pay and Auditor at Meeting
Positive
Jun 4, 2026
MasterBrand, Inc. held its Annual Meeting of Shareholders on June 4, 2026, with approximately 88.4% of the 127,982,461 outstanding common shares present or represented by proxy, constituting a quorum. Shareholders elected Ann Fritz Hackett, R. Dav...
Business Operations and StrategyExecutive/Board ChangesDelistings and Listing ChangesM&A TransactionsPrivate Placements and Financing
MasterBrand Completes Transformative All-Stock Merger With American Woodmark
Positive
May 28, 2026
On May 28, 2026, MasterBrand and American Woodmark completed their previously announced all‑stock merger, creating what the companies describe as the most comprehensive portfolio of cabinetry brands and products in North America. Following t...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
MasterBrand Clears FTC Hurdle for American Woodmark Merger
Positive
May 26, 2026
On August 5, 2025, MasterBrand, Inc. entered into a merger agreement with American Woodmark Corporation, under which American Woodmark will merge with a wholly owned MasterBrand subsidiary to combine two major cabinetry manufacturers. On May 22, 2...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
MasterBrand Posts Q1 Loss, Launches Cost-Cutting Measures
Negative
May 5, 2026
MasterBrand reported first-quarter 2026 results on May 5, 2026, with net sales falling 6.4% year over year to $618 million amid a mid-single-digit market decline and slower housing completions. Gross margin compressed to 25.3% on lower volume, unf...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsRegulatory Filings and Compliance
MasterBrand Expands Board Ahead of American Woodmark Merger
Positive
Apr 22, 2026
On August 5, 2025, MasterBrand, Inc. entered into a merger agreement with American Woodmark Corporation, under which American Woodmark will merge with a wholly owned MasterBrand subsidiary, with closing expected in the second quarter of 2026 subje...
Financial DisclosuresRegulatory Filings and Compliance
MasterBrand Files Disclosure on Amended Financial Obligation Agreement
Neutral
Mar 26, 2026
MasterBrand Inc. filed a brief disclosure indicating that the descriptions of a Second Amendment to a previously referenced agreement are incorporated into another reporting item by reference. The release offers no additional operational details, ...
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.