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MasterBrand Inc (MBC)
NYSE:MBC
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MasterBrand Inc
(NYSE:MBC)
Rating:58Neutral
Price Target:
$11.50
▲(14.20%Upside)
MasterBrand Inc (MBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.33B
Dividend YieldN/A
Average Volume (3M)1.07M
Price to Earnings (P/E)12.9
Beta (1Y)1.09
Revenue Growth1.30%
EPS Growth-44.70%
CountryUS
Employees13,000
SectorConsumer Cyclical
Sector Strength58
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.18
Shares Outstanding126,737,520
10 Day Avg. Volume733,611
30 Day Avg. Volume1,066,832
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)0.96
Price to Sales (P/S)0.00
P/FCF Ratio5.40
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit2.19
Enterprise Value/Ebitda1.44
Forecast
1Y Price Target
$15.00Price Target Upside48.96% Upside
Rating ConsensusHold
Number of Analyst Covering2
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 manufacturing and sale of cabinetry products. The company's key revenue streams include direct sales to homebuilders, remodelers, and contractors, as well as retail sales through home improvement stores and specialty dealers. MasterBrand's earnings are bolstered by strategic partnerships with major retailers and a strong distribution network that enhances market reach. Additionally, the company benefits from economies of scale and operational efficiencies in its production processes, contributing to profitability.
MasterBrand Inc Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -15.94%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Negative
The earnings call highlighted some positive developments such as revenue growth from acquisitions and strategic initiatives, but these were overshadowed by significant challenges including market volume declines, reduced EBITDA margins, negative free cash flow, and increased SG&A expenses. The overall economic uncertainty and weaker market demand expectations further contribute to a negative outlook.Q1-2025 Updates
Positive Updates
Revenue Growth
Net sales increased by 3% to $660 million in the first quarter compared to the same period last year, driven by a 10% growth from the Supreme acquisition and a 2% growth from net ASP increases in the legacy business.
Builder Direct Sales Increase
Despite year-over-year declines in the new construction market, builder direct sales increased by over 4% compared to the prior year.
Strategic Initiatives Progress
The company's strategic initiatives, such as Align to Grow, Lead Through Lean, and Tech Enabled, are progressing well, with 97% of frontline supervisors completing the True Leader program.
New Facility Consolidations
Facility consolidations in North Carolina and Nevada are underway, expected to reduce costs and improve service, with financial benefits anticipated in the third quarter.
Negative Updates
Market Volume Declines
Market volume declined by 9% in the base business, particularly affecting customers servicing the repair and remodel market.
Adjusted EBITDA Margin Decline
Adjusted EBITDA margin decreased by 220 basis points to 10.2%, from 12.4% in the same period last year.
Negative Free Cash Flow
The company reported negative free cash flow of $41 million in the first quarter, compared to positive $12 million in the same period last year.
Weaker Market Demand Expectations
Market demand is expected to be down high to mid-single digits for 2025, with specific challenges in the US single-family new construction market and the repair and remodel market.
Net Income Decline
Net income was $13.3 million in the first quarter, a significant decline from $37.5 million in the same period last year.
Increased SG&A Expenses
Selling, general, and administrative expenses were up 11.8% compared to the same period last year, driven by Supreme-related items and increased spending on digital and technology initiatives.
Interest Expense Increase
Interest expense increased to $19.4 million in the first quarter, compared to $14.1 million in the same period last year due to debt for the Supreme acquisition.
Company Guidance
During the recent earnings call, MasterBrand provided guidance for the fiscal year 2025, highlighting several key metrics and expectations. The company reported first-quarter net sales of $660 million, marking a 3% increase year-over-year, driven by a 10% growth from the Supreme acquisition and a 2% increase from net ASP in the legacy business. Despite this, a 9% decline in market volume within the base business was noted. Adjusted EBITDA was $67 million with a margin of 10.2%, reflecting a contraction due to lower volumes and fixed cost leverage challenges. The company experienced a negative free cash flow of $41 million in Q1, contrasting with a positive $12 million in the prior year, influenced by lower net income and higher inventory levels. For the full year 2025, MasterBrand adjusted its market demand expectations to be down high to mid-single-digits, with an anticipated low single-digit decline in annual net sales. The company also adjusted its EBITDA guidance to a range of $315 million to $365 million with margins between 12% and 13.5%, citing the impact of tariffs and general economic uncertainty as influencing factors.MasterBrand Inc Financial Statement Overview
Summary
MasterBrand Inc’s financials reflect moderate stability and profitability with some areas of concern in revenue growth and cash flow sustainability. The company has a balanced capital structure and manages its leverage well, but needs to focus on improving revenue growth and free cash flow generation to enhance overall financial health.Income Statement
MasterBrand Inc has shown stability in revenue with a slight decline in recent periods. The Gross Profit Margin and Net Profit Margin indicate moderate profitability, with the TTM Gross Profit Margin at 31.96% and Net Profit Margin at 3.74%. EBIT and EBITDA margins also reflect moderate operational efficiency, though slightly declined from previous periods.65
Positive
Balance Sheet
The company maintains a solid equity base, with a Debt-to-Equity Ratio of 0.86 indicating a manageable level of leverage. The Return on Equity for the TTM stands at 7.78%, showing reasonable returns on shareholders' equity. The Equity Ratio of 44.20% reflects a balanced capital structure.70
Positive
Cash Flow
Operating cash flow is strong, but free cash flow has decreased over the TTM period. The Operating Cash Flow to Net Income Ratio is healthy at 2.38, suggesting efficient cash conversion. However, the Free Cash Flow Growth Rate shows a declining trend, indicating potential concerns in sustaining cash flow generation.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.72B | 2.70B | 2.73B | 3.28B | 2.86B | 2.47B | Gross Profit |
| 870.00M | 877.00M | 875.90M | 940.50M | 783.90M | 703.00M | EBIT |
| 212.00M | 235.70M | 306.30M | 287.10M | 234.30M | 196.00M | EBITDA |
| 304.00M | 319.60M | 368.20M | 356.00M | 313.40M | 273.70M | Net Income Common Stockholders |
| 101.70M | 125.90M | 182.00M | 155.40M | 182.60M | 145.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 113.50M | 120.60M | 148.70M | 101.10M | 141.40M | 154.30M | Total Assets |
| 2.96B | 2.93B | 2.38B | 2.53B | 3.00B | 2.71B | Total Debt |
| 1.13B | 1.08B | 770.20M | 1.03B | 63.20M | 40.60M | Net Debt |
| 1.02B | 961.70M | 621.50M | 932.50M | -78.20M | -113.70M | Total Liabilities |
| 1.65B | 1.64B | 1.19B | 1.52B | 551.10M | 498.20M | Stockholders Equity |
| 1.31B | 1.29B | 1.19B | 1.01B | 2.45B | 2.21B |
| Cash Flow | Free Cash Flow | ||||
| 158.20M | 211.10M | 348.30M | 179.70M | 96.60M | 177.30M | Operating Cash Flow |
| 241.90M | 292.00M | 405.60M | 235.60M | 148.20M | 204.60M | Investing Cash Flow |
| -583.60M | -580.80M | -56.90M | -55.90M | -51.50M | -26.70M | Financing Cash Flow |
| 310.20M | 269.60M | -299.90M | -215.30M | -109.70M | -179.20M |
MasterBrand Inc Technical Analysis
Negative
10.07
Price Trends
11.09
Negative
13.05
Negative
14.94
Negative
Market Momentum
-0.22
Negative
41.57
Neutral
48.68
Neutral
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 10.07 is below the 20-day moving average (MA) of 10.37, below the 50-day MA of 11.09, and below the 200-day MA of 14.94, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 41.57 is Neutral, neither overbought nor oversold. The STOCH value of 48.68 is Neutral, 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.58B | 13.12 | 12.40% | 2.30% | 1.81% | 8.09% | |
72 Outperform | $2.55B | 10.71 | 24.52% | 1.86% | 1.59% | 43.91% | |
65 Neutral | $1.65B | 21.36 | -20.16% | 3.65% | -2.77% | 4.01% | |
62 Neutral | $6.82B | 11.05 | 2.80% | 4.32% | 2.67% | -24.92% | |
58 Neutral | $1.33B | 12.95 | 8.02% | ― | 1.30% | -44.70% | |
58 Neutral | $1.17B | 39.82 | 2.28% | 4.43% | -2.68% | -56.16% | |
58 Neutral | $1.29B | 24.74 | 2.79% | 3.63% | 1.46% | -95.70% |
* Consumer Cyclical Sector Average
Performance Comparison
MBC
MasterBrand Inc
10.07
-5.36
-34.74%
MLKN
MillerKnoll
16.91
-7.35
-30.30%
LZB
La-Z-Boy Incorporated
38.28
4.87
14.58%
PZZA
Papa John's International
50.42
3.70
7.92%
SAH
Sonic Automotive
75.09
18.75
33.28%
SPB
Spectrum Brands Holdings
51.73
-35.83
-40.92%
MasterBrand Inc Corporate Events
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.
The most recent analyst rating on (MBC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on MasterBrand Inc stock, see the MBC Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
MasterBrand Inc Reports Q1 2025 Financial Results
Negative
May 6, 2025
On May 6, 2025, MasterBrand, Inc. announced its first quarter financial results, revealing a 3% increase in net sales to $660.3 million, but a significant 65% decline in net income to $13.3 million compared to the previous year. The company attributed the weaker-than-expected demand to a slow start in the Spring selling season, impacting margins and necessitating adjustments in production and facility consolidations. Despite these challenges, MasterBrand remains optimistic about maintaining competitive EBITDA margins through cost reductions and strategic investments. The company also updated its 2025 financial outlook, anticipating a slight decrease in net sales but expecting to outperform the market with new products and channel-specific offerings.
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.
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.