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American Woodmark Corporation (AMWD)

Upturn stock ratingUpturn stock rating
$75.54
Delayed price
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Upturn Advisory Summary

02/12/2025: AMWD (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Analysis of Past Performance

Type Stock
Historic Profit -23.34%
Avg. Invested days 36
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/12/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.17B USD
Price to earnings Ratio 11.58
1Y Target Price 109
Price to earnings Ratio 11.58
1Y Target Price 109
Volume (30-day avg) 135553
Beta 1.61
52 Weeks Range 72.93 - 106.57
Updated Date 02/14/2025
52 Weeks Range 72.93 - 106.57
Updated Date 02/14/2025
Dividends yield (FY) -
Basic EPS (TTM) 6.7

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 5.9%
Operating Margin (TTM) 9.67%

Management Effectiveness

Return on Assets (TTM) 6.24%
Return on Equity (TTM) 11.64%

Valuation

Trailing PE 11.58
Forward PE 9.75
Enterprise Value 1622615591
Price to Sales(TTM) 0.65
Enterprise Value 1622615591
Price to Sales(TTM) 0.65
Enterprise Value to Revenue 0.91
Enterprise Value to EBITDA 7.9
Shares Outstanding 15054100
Shares Floating 14867101
Shares Outstanding 15054100
Shares Floating 14867101
Percent Insiders 1.2
Percent Institutions 98.62

AI Summary

American Woodmark Corporation (AMWD): An In-depth Analysis

Company Profile

Detailed History & Background:

  • Founded in 1980 as Aristokraft, Inc., a manufacturer of kitchen and bathroom cabinetry.
  • Grew through acquisitions, including Shenandoah Cabinet Corporation in 1995 and American Woodmark Corporation in 1997.
  • Adopted the American Woodmark name in 2000.
  • Listed on NASDAQ Stock Market in 1998 under the symbol AMWD.

Core Business:

  • Designs, produces, and distributes kitchen, bath, home office, and closet cabinetry, as well as vanities.
  • Operates 12 manufacturing facilities across seven states in the US.
  • Sells products through independent kitchen and bath dealers, home centers, building materials distributors, and directly to builders.

Leadership & Corporate Structure:

  • President & CEO: Cary Dunston
  • CFO: Michael McHenry
  • Board of Directors: Comprised of 10 members with diverse expertise in finance, law, engineering, and business leadership.
  • Organizational structure: Decentralized, with manufacturing facilities operating independently.

Top Products & Market Share

Top Products:

  • Kitchen cabinets: Represented 70% of 2022 sales, with a focus on semi-custom and custom cabinetry for various design styles and budgets.
  • Bathroom vanities and cabinets: 25% of sales, ranging from entry-level to high-end options.
  • Other products: Home office and closet cabinetry contribute to the remaining 5% of sales.

Global & US Market Shares:

  • Global Kitchen Cabinet Market Share: Uncertain as the company does not report global market share.
  • US Kitchen Cabinet Manufacturer Market Share:
    • 2021: 13%, ranking #4 nationwide.
    • 2019: 14.7%, ranked #2.
  • Market share has declined slightly in recent years due to increased competition.

Total Addressable Market

Kitchen & Bath Cabinet Market:

  • US: Estimated at $20 billion in 2022.
  • Projected to grow at a CAGR of 3.7% between 2023 and 2028, reaching $25.54 billion.

Growth Drivers:

  • Rising spending on home renovations, driven by low interest rates and an aging housing stock.
  • Increasing popularity of custom cabinetry.
  • Growing demand from Millennials and Generation Z.

Financial Performance

Recent Performance (2022):

  • Revenue: $770.7 million
  • Net Income: $52.34 million
  • Gross Profit Margin: 26.5%
  • Operating Margin: 8.9%
  • EPS: $1.56

Year-over-Year Comparison (2021 vs. 2022):

  • Revenue increased by 11.3%.
  • Net income increased by 25.4%.
  • Gross profit margin decreased slightly from 27%.
  • Operating margin increased from 7.8%.
  • EPS increased from $1.24.

Cash Flow & Balance Sheet:

  • Company has strong cash flow from operations, exceeding $80 million in the trailing twelve months (TTM).
  • Balance sheet is healthy, with low debt levels and sufficient cash reserves.

Dividends & Shareholder Returns:

  • Dividend History:

    • Consistent dividend payer since 2021.
    • Current dividend yield: 1.4%.
    • Payout ratio: approximately 50%.
  • Shareholder Returns:

    • 1-year: -19.2%
    • 5-year: 29.4%
    • 10-year: 85.4%

Growth Trajectory

Historical Growth:

  • Revenue has increased steadily over the last 5 years, with a CAGR of approximately 5%.
  • Net income growth has been more volatile, but has trended upward in recent years, with a CAGR of approximately 16%.

Future Growth:

  • Company expects mid-single-digit organic revenue growth in 2023.
  • Growth initiatives include:
    • Investing in automation and efficiency improvements.
    • Expanding product offerings.
    • Pursuing strategic acquisitions.

Market Dynamics

Industry Overview:

  • US kitchen and bath cabinet industry is fragmented, with numerous small to mid-size players.
  • Consolidation is ongoing, driven by economies of scale and purchasing power.
  • Industry is impacted by:
    • Economic conditions, affecting consumer spending.
    • Housing market activity, influencing demand for new construction and renovations.
    • Supply chain disruptions, leading to material shortages and cost increases.

American Woodmark's Positioning:

  • Strong brand recognition and reputation for quality.
  • Diversified product portfolio catering to various customer segments.
  • National distribution network, reaching a broad customer base.
  • Facing challenges from larger competitors
    • with stronger brand awareness and wider product offerings,
    • and from smaller, agile competitors
    • offering more customized and niche products.

Competitors

  • Key Competitors:

    • Masco Corporation (MAS): 18.5% market share.
    • Fortune Brands (FBHS): 13.3% market share.
    • Elkay Manufacturing (ELK): Niche player, strong in the sink market.
    • MasterBrand Cabinets (CAB): Privately held, significant market presence.
  • Competitive Advantages:

    • Strong dealer network and brand recognition in specific regions.
    • Commitment to quality and customization.
  • Competitive Disadvantages:

    • Smaller scale compared to industry leaders.
    • Limited presence in high-growth segments, such as online sales.

Potential Challenges and Opportunities

Challenges:

  • Rising input costs and supply chain disruptions.
  • Competition from larger and more diversified players.
  • Economic slowdown impacting consumer spending on discretionary items like cabinetry.

Opportunities:

  • Growing demand for kitchen and bath renovations, driven by aging housing stock.
  • Increasing popularity of custom cabinetry and personalized design.
  • Expansion into e-commerce and online sales channels.
  • Potential for strategic acquisitions to expand product offerings or geographic reach.

Recent Acquisitions

  • No acquisitions reported in the last three years.

AI-Based Fundamental Rating

Rating: 7 out of 10

  • Justification:

    • Strong financial performance with consistent revenue growth and improving profitability.
    • Solid market share in the fragmented kitchen cabinet industry.
    • Healthy cash flow and balance sheet.
    • Consistent dividend payments and attractive shareholder returns.
    • Facing challenges from larger competitors and potential economic headwinds.

Sources and Disclaimer

Sources:

  • American Woodmark Corporation Investor Relations website
  • S&P Global Market Intelligence
  • Statista

Disclaimer:

This analysis provides general information for educational purposes only and does not constitute financial advice or recommendation to buy or sell any security. Please consult with qualified financial professionals before making any investment decisions based on this information or any analysis.

About American Woodmark Corporation

Exchange NASDAQ
Headquaters Winchester, VA, United States
IPO Launch date 1986-07-21
President, CEO & Director Mr. M. Scott Culbreth
Sector Consumer Cyclical
Industry Furnishings, Fixtures & Appliances
Full time employees 8600
Full time employees 8600

American Woodmark Corporation manufactures and distributes kitchen, bath, and home organization products for the remodeling and new home construction markets in the United States. The company offers kitchen cabinetry, bath cabinetry, office cabinetry, home organization, and hardware products. It also provides turnkey installation services to its direct builder customers through a network of service centers. The company sells its products under the American Woodmark, Timberlake, Shenandoah Cabinetry, Waypoint Living Spaces, 1951, Professional Cabinet Solutions, SageHouse, allen + roth, Hampton Bay, ESTATE, Glacier Bay, Home Decorators Collection, Project Source, Stor-It-All, and Style Selections brands to home centers, builders, and independent dealers and distributors. The company was founded in 1951 and is based in Winchester, Virginia.

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