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American Woodmark (AMWD)
NASDAQ:AMWD
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American Woodmark
(NASDAQ:AMWD)
Rating:68Neutral
Price Target:
$64.00
▲(13.54%Upside)
Positive Factors
Margin Improvement
Solid sequential margin improvement on a similar revenue base.
Market Share
New stock kitchen/bath wins support recent capacity investments and share gain targets.
Negative Factors
Revenue Performance
Sales undershot expectations, with weaker remodel demand more than offsetting new construction growth.
American Woodmark (AMWD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$865.01M
Dividend YieldN/A
Average Volume (3M)140.92K
Price to Earnings (P/E)8.7
Beta (1Y)1.36
Revenue Growth-7.47%
EPS GrowthN/A
CountryUS
Employees8,600
SectorConsumer Cyclical
Sector Strength76
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)1.61
Shares Outstanding14,834,665
10 Day Avg. Volume132,842
30 Day Avg. Volume140,917
Financial Highlights & Ratios
PEG Ratio-2.65
Price to Book (P/B)0.99
Price to Sales (P/S)0.00
P/FCF Ratio22.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$70.00Price Target Upside24.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
American Woodmark Business Overview & Revenue Model
Company DescriptionAmerican Woodmark Corporation manufactures and distributes kitchen, bath, office, home organization, and hardware products for the remodelling and new home construction markets in the United States. The company offers made-to-order and cash and carry products. It also provides turnkey installation services to its direct builder customers through a network of eight service centers. The company sells its products under the American Woodmark, Timberlake, Shenandoah Cabinetry, Waypoint Living Spaces, Estate, Stor-It-All, and Professional Cabinet Solutions brands, as well as Hampton Bay, Glacier Bay, Style Selections, Allen + Roth, Home Decorators Collection, and Project Source. It markets its products directly to home centers and builders, as well as through independent dealers and distributors. The company was incorporated in 1980 and is based in Winchester, Virginia.
How the Company Makes MoneyAmerican Woodmark makes money primarily through the sale of its cabinetry and home organization products. The company's revenue model is based on two main distribution channels: home centers and independent dealers. Home centers include large retail chains such as Home Depot and Lowe's, where consumers and contractors can purchase cabinetry products directly. Independent dealers and distributors target builders and remodelers who require custom or semi-custom cabinetry solutions. Additionally, American Woodmark engages in direct sales to residential builders for large-scale construction projects. The company's earnings are influenced by factors such as housing market trends, consumer spending on home improvement, and its ability to manage production costs efficiently. Strategic partnerships with large retailers and maintaining a diverse product portfolio are significant contributors to its revenue generation.
American Woodmark Earnings Call Summary
Earnings Call Date:May 29, 2025
(Q4-2025)
| % Change Since: -0.48%|
Next Earnings Date:Sep 02, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong strategic initiatives in digital transformation, platform design, and share repurchases, demonstrating operational resilience. However, the company faced significant challenges with declining net sales, reduced gross profit margins, and market pressures in key regions, compounded by tariff and inflation uncertainties.Q4-2025 Updates
Positive Updates
Pro Business Positive Performance
The Pro business reported a positive comp for the quarter, with significant offsets in bath and storage, showcasing resilience despite the challenging market conditions.
Share Repurchase Program
The company repurchased 1.17 million shares, approximately 7.5% of shares outstanding, during fiscal 2025 for $96.7 million, demonstrating a solid capital allocation strategy.
Digital Transformation and Platform Design Progress
The company executed significant progress in digital transformation and platform design, including ERP cloud strategy implementation and manufacturing centers of excellence establishment, enhancing future operational efficiency.
Facility Expansions and Product Innovations
Facility expansions in Monterrey, Mexico, and Hamilton, North Carolina, along with over 30% of made-to-order sales coming from products launched in the last three years, highlight significant growth and innovation.
Negative Updates
Decline in Net Sales
Net sales for the quarter were $400.4 million, a decrease of 11.7% compared to the prior year, driven by weaker demand in the new construction and remodel markets.
Gross Profit Margin Decrease
Gross profit margin for the fourth quarter decreased by 160 basis points to 17%, primarily due to fixed cost deleverage and increased depreciation expense and product input costs.
Challenges in Key Markets
Double-digit declines were reported in key markets such as Florida, Texas, and the Southwest, negatively impacting the new construction direct business.
Tariff and Inflation Pressures
Tariffs and inflationary pressures on commodities and labor are expected to continue impacting costs, with significant uncertainty around tariff impacts on fiscal 2026 expectations.
Company Guidance
During the American Woodmark Corporation Fourth Fiscal Quarter 2025 Conference Call, the company provided guidance on several key metrics. Net sales for the quarter were $400.4 million, a decrease of 11.7% compared to the previous year, with adjusted EBITDA at $47.1 million or 11.8% of net sales. The company reported an adjusted EPS of $1.61, with a cash balance of $48.2 million and access to an additional $314.2 million under its revolving credit facility. Net leverage was reported at 1.56x adjusted EBITDA. The company repurchased 417,000 shares in the quarter, totaling 1.17 million shares for fiscal 2025. Looking ahead, the company expects fiscal year 2026 net sales to range from low single-digit declines to low single-digit increases, with adjusted EBITDA projected between $175 million and $200 million. The guidance considers the impact of tariffs, with approximately $20 million in costs factored into the projections. The company also highlighted ongoing efforts in growth, digital transformation, and platform design to navigate the challenging macroeconomic environment.American Woodmark Financial Statement Overview
Summary
American Woodmark demonstrates a mixed financial profile, with strengths in cash flow generation and improvements in net profitability over the trailing periods. However, revenue volatility and high leverage remain areas of concern. The company should focus on stabilizing revenue growth and further reducing debt to enhance financial health.Income Statement
American Woodmark has shown signs of revenue volatility, with fluctuations from $1.65 billion in 2020 to $2.06 billion in 2023, and a decrease to $1.76 billion in TTM. The gross profit margin has seen improvement from 2022 onwards, with a notable increase in net income to $100.7 million in TTM compared to previous periods. Despite these positive trends, the company experienced a downturn in revenue growth and profit margins over the last year, affecting overall performance.72
Positive
Balance Sheet
The balance sheet reflects moderate stability, with a debt-to-equity ratio improving from 2022 due to a reduction in total debt. Stockholders' equity has increased, offering a better equity ratio. However, the company still carries significant debt, which could pose risks if profitability does not improve consistently.68
Positive
Cash Flow
American Woodmark's cash flow generation is strong, with positive operating cash flow and free cash flow in the TTM period. The free cash flow to net income ratio is robust, indicating efficient cash generation relative to net income. Despite a decrease in free cash flow compared to previous periods, the company maintains a solid cash flow position.75
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.76B | 1.85B | 2.07B | 1.86B | 1.74B | 1.65B | Gross Profit |
| 322.44M | 377.81M | 357.52M | 226.44M | 319.27M | 329.19M | EBIT |
| 148.93M | 161.39M | 136.35M | -60.74M | 6.12M | 33.71M | EBITDA |
| 113.37M | 238.96M | 228.62M | 36.16M | 230.00M | 253.49M | Net Income Common Stockholders |
| 100.69M | 116.22M | 93.72M | -29.72M | 61.19M | 73.65M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 43.48M | 87.40M | 41.73M | 22.32M | 91.07M | 97.06M | Total Assets |
| 1.59B | 1.59B | 1.52B | 1.63B | 1.64B | 1.62B | Total Debt |
| 518.70M | 508.46M | 477.81M | 626.07M | 651.39M | 728.49M | Net Debt |
| 475.21M | 421.07M | 436.07M | 603.74M | 560.32M | 631.43M | Total Liabilities |
| 670.67M | 683.49M | 645.01M | 859.61M | 893.62M | 922.27M | Stockholders Equity |
| 919.56M | 910.38M | 873.79M | 772.88M | 742.90M | 700.54M |
| Cash Flow | Free Cash Flow | ||||
| 39.74M | 139.70M | 154.13M | -19.68M | 116.03M | 145.87M | Operating Cash Flow |
| 107.00M | 230.75M | 196.73M | 24.45M | 151.76M | 177.54M | Investing Cash Flow |
| -68.67M | -92.19M | -43.23M | -51.57M | -42.43M | -38.92M | Financing Cash Flow |
| -92.68M | -92.89M | -134.09M | -41.62M | -115.32M | -99.22M |
American Woodmark Technical Analysis
Negative
56.37
Price Trends
58.45
Negative
65.45
Negative
78.26
Negative
Market Momentum
-0.32
Positive
48.51
Neutral
32.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMWD, the sentiment is Negative. The current price of 56.37 is below the 20-day moving average (MA) of 59.15, below the 50-day MA of 58.45, and below the 200-day MA of 78.26, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 48.51 is Neutral, neither overbought nor oversold. The STOCH value of 32.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMWD.
American Woodmark Risk Analysis
American Woodmark disclosed 23 risk factors in its most recent earnings report. American Woodmark reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
American Woodmark 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 | $1.73B | 14.36 | 12.40% | 2.00% | 1.81% | 8.09% | |
70 Outperform | $664.48M | 11.58 | 12.09% | 5.97% | -6.32% | -18.35% | |
68 Neutral | $865.01M | 8.68 | 10.89% | ― | -7.47% | ― | |
62 Neutral | $6.90B | 11.20 | 2.94% | 3.91% | 2.68% | -25.01% | |
58 Neutral | $1.14B | 39.72 | 2.28% | 4.45% | -2.68% | -56.16% | |
56 Neutral | $145.10M | ― | -3.83% | 4.68% | -11.78% | -13.89% | |
51 Neutral | $1.23B | ― | -50.35% | 2.21% | -6.50% | -221.33% |
* Consumer Cyclical Sector Average
Performance Comparison
AMWD
American Woodmark
56.37
-29.33
-34.22%
BSET
Bassett Furniture
16.67
2.83
20.45%
ETD
Ethan Allen
26.13
-0.89
-3.29%
MLKN
MillerKnoll
16.87
-10.02
-37.26%
LZB
La-Z-Boy Incorporated
41.89
5.25
14.33%
LEG
Leggett & Platt
9.06
-2.83
-23.80%
American Woodmark Corporate Events
Executive/Board ChangesShareholder Meetings
American Woodmark Announces Board Member Departure
Neutral
May 28, 2025
On May 21, 2025, American Woodmark Corporation announced that James G. Davis, Jr. will not seek re-election to its Board of Directors at the next annual shareholders meeting. Davis, who has served on the board for 23 years and contributed significantly to the company’s growth and governance, leaves with no disagreements with the company, and his departure is seen as an opportunity to bring new perspectives to the board.
The most recent analyst rating on (AMWD) stock is a Buy with a $119.00 price target. To see the full list of analyst forecasts on American Woodmark stock, see the AMWD Stock Forecast page.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.