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American Woodmark Corporation (AMWD)



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Upturn Advisory Summary
02/12/2025: AMWD (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -23.34% | Avg. Invested days 36 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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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 | Website https://www.americanwoodmark.com |
Full time employees 8600 | Website https://www.americanwoodmark.com |
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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