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MasterBrand Inc (MBC)
NYSE:MBC
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MasterBrand Inc
(NYSE:MBC)
Select Model
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Rating:74Outperform
Price Target:
$14.50
▲(9.27% Upside)
MasterBrand Inc's overall stock score is driven by solid financial performance and strong cash flow generation, despite some profitability pressures and increased leverage. The technical analysis shows a positive short-term trend, while the valuation is fair. The strategic merger with American Woodmark is a significant positive, expected to enhance financial metrics and provide growth opportunities. However, challenges such as declining net income and market uncertainties remain.
MasterBrand Inc (MBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.75B
Dividend YieldN/A
Average Volume (3M)1.97M
Price to Earnings (P/E)18.4
Beta (1Y)1.13
Revenue Growth4.05%
EPS Growth-47.49%
CountryUS
Employees13,000
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.40
Shares Outstanding131,829,970
10 Day Avg. Volume1,770,624
30 Day Avg. Volume1,969,377
Financial Highlights & Ratios
PEG Ratio-0.48
Price to Book (P/B)1.42
Price to Sales (P/S)0.68
P/FCF Ratio8.68
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit2.66
Enterprise Value/Ebitda7.97
Forecast
1Y Price Target
$15.00Price Target Upside13.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
MasterBrand Inc Business Overview & Revenue Model
Company DescriptionMasterBrand, Inc. manufactures and sells residential cabinets for the kitchen, bathroom, and other parts of the home in North America. The company is based in Jasper, Indiana.
How the Company Makes MoneyMasterBrand 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 Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a significant merger that promises synergies and a strong combined financial position. Despite this positive development, MasterBrand faced challenges such as a decline in net income and uncertain market conditions. The overall sentiment is balanced between the positive strategic merger and current economic challenges.Q2-2025 Updates
Positive Updates
Proposed Merger Between MasterBrand and American Woodmark
MasterBrand and American Woodmark announced a definitive agreement to combine in an all-stock transaction, creating a comprehensive portfolio of cabinet brands and products. The merger is expected to deliver significant value with $90 million in run rate cost synergies by year 3.
Strong Financial Position
The combined company's pro forma net debt to adjusted EBITDA ratio at close is expected to be below MasterBrand's target leverage ratio of 2x, providing flexibility to invest in customers and the business.
MasterBrand's Second Quarter Performance
MasterBrand reported an 8% increase in net sales for the second quarter of 2025, reaching $730.9 million. Adjusted EBITDA was relatively flat at $105.4 million, and the company reaffirmed its full-year guidance.
Integration of Supreme
MasterBrand is progressing well with the integration of Supreme, with significant cost synergies expected to ramp up in the second half of 2025.
Negative Updates
Decline in Net Income
Net income for MasterBrand in the second quarter of 2025 was $37.3 million, down from $45.3 million in the same period last year, due to higher SG&A expenses and increased amortization and restructuring costs.
Challenging Market Conditions
The broader single-family new construction market declined, and the repair and remodel market saw continued choppiness in demand due to higher housing costs and low consumer sentiment.
Tariff and Economic Uncertainty
The potential reinstatement of tariffs on steel, aluminum, and lumber could impact costs and demand. MasterBrand is preparing mitigation strategies but acknowledges the uncertainty.
Company Guidance
In the recent joint conference call, MasterBrand, Inc. and American Woodmark Corporation announced their proposed merger, highlighting several key metrics and strategic benefits. The merger, structured as an all-stock transaction, aims to create a comprehensive portfolio of trusted cabinet brands and products. The combined entity is expected to achieve approximately $90 million in run rate cost synergies by the end of year three, and the transaction is anticipated to be accretive to adjusted diluted earnings per share in year two. The merger will result in MasterBrand shareholders owning about 63% and American Woodmark shareholders owning approximately 37% of the combined company. Additionally, the pro forma net debt to adjusted EBITDA ratio at close is expected to be below MasterBrand's target of 2x, with approximately $639 million in pro forma adjusted EBITDA, inclusive of synergies. The merger is expected to close in early 2026, subject to shareholder and regulatory approvals.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.75
Positive
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.70
Positive
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.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.78B | 2.70B | 2.73B | 3.28B | 2.86B | 2.47B |
| Gross Profit | 883.20M | 877.00M | 875.90M | 940.50M | 783.90M | 703.00M |
| EBITDA | 294.30M | 319.60M | 368.20M | 277.90M | 313.40M | 273.70M |
| Net Income | 93.70M | 125.90M | 182.00M | 155.40M | 182.60M | 145.70M |
Balance Sheet | ||||||
| Total Assets | 2.96B | 2.93B | 2.38B | 2.53B | 3.00B | 2.71B |
| Cash, Cash Equivalents and Short-Term Investments | 120.10M | 120.60M | 148.70M | 101.10M | 141.40M | 154.30M |
| Total Debt | 1.07B | 1.08B | 770.20M | 1.03B | 63.20M | 40.60M |
| Total Liabilities | 1.60B | 1.64B | 1.19B | 1.52B | 551.10M | 498.20M |
| Stockholders Equity | 1.36B | 1.29B | 1.19B | 1.01B | 2.45B | 2.21B |
Cash Flow | ||||||
| Free Cash Flow | 158.80M | 211.10M | 348.30M | 179.70M | 96.60M | 177.30M |
| Operating Cash Flow | 249.30M | 292.00M | 405.60M | 235.60M | 148.20M | 204.60M |
| Investing Cash Flow | -593.20M | -580.80M | -56.90M | -55.90M | -51.50M | -26.70M |
| Financing Cash Flow | 275.90M | 269.60M | -299.90M | -215.30M | -109.70M | -179.20M |
MasterBrand Inc Technical Analysis
Positive
13.27
Price Trends
12.30
Positive
11.56
Positive
13.18
Positive
Market Momentum
0.34
Negative
55.27
Neutral
70.91
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 13.27 is above the 20-day moving average (MA) of 13.06, above the 50-day MA of 12.30, and above the 200-day MA of 13.18, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 55.27 is Neutral, neither overbought nor oversold. The STOCH value of 70.91 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 43 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | 1.70B | 18.03 | 16.66% | 0.17% | 6.26% | 44.74% | |
74 Outperform | $1.75B | 18.43 | 7.15% | ― | 4.05% | -47.49% | |
70 Outperform | 985.01M | 12.16 | 9.17% | ― | -8.56% | -17.10% | |
64 Neutral | 1.39B | 15.47 | 9.01% | 2.58% | 2.18% | -22.35% | |
58 Neutral | 1.36B | -36.62 | -2.89% | 3.67% | 1.14% | -149.26% | |
57 Neutral | 1.26B | 9.06 | -74.19% | 2.07% | -6.15% | 0.00% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
MBC
MasterBrand Inc
13.27
-5.56
-29.53%
AMWD
American Woodmark
67.61
-27.97
-29.26%
MLKN
MillerKnoll
20.04
-6.46
-24.38%
TILE
Interface
29.18
10.22
53.90%
LZB
La-Z-Boy Incorporated
34.18
-8.81
-20.49%
LEG
Leggett & Platt
9.29
-3.98
-29.99%
MasterBrand Inc Corporate Events
M&A TransactionsBusiness Operations and Strategy
MasterBrand Inc Announces Merger with American Woodmark
Positive
Aug 6, 2025
On August 5, 2025, MasterBrand Inc. announced a merger agreement with American Woodmark Corporation, where American Woodmark will become a wholly owned subsidiary of MasterBrand. This all-stock transaction aims to create a stronger combined entity with enhanced operational agility, expanded geographic reach, and significant cost synergies expected to reach $90 million by the third year post-merger. The merger is anticipated to strengthen MasterBrand’s financial profile, improve free cash flow generation, and position the company for further growth and investment opportunities.
Business Operations and Strategy
MasterBrand Inc Releases 2024 Sustainability Report
Positive
Jun 18, 2025
On June 17, 2025, MasterBrand, Inc. released its 2024 Corporate Sustainability and Responsibility Report, highlighting significant achievements in sustainability and corporate governance. The report details improvements in health and safety, human capital management, and environmental stewardship, including a partnership with the Arbor Day Foundation for reforestation efforts. MasterBrand’s initiatives, such as ‘Lead through Lean’ and ‘Tech Enabled,’ focus on reducing complexity, enhancing efficiency, and leveraging technology to transform business operations, positioning the company for future growth while maintaining a strong commitment to community engagement and environmental responsibility.
Executive/Board ChangesShareholder Meetings
MasterBrand Inc Approves Bylaw Amendments and Holds Shareholder Meeting
Neutral
Jun 9, 2025
On June 4, 2025, MasterBrand Inc.’s Board of Directors approved amendments to the company’s bylaws, focusing on corporate governance and disclosure obligations. The following day, on June 5, 2025, the company held its Annual Meeting of Shareholders, where three key proposals were voted on. Shareholders elected three director nominees, approved the 2024 executive compensation plan, and ratified PricewaterhouseCoopers LLP as the independent auditor for 2025.
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.