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MasterBrand Inc
(NYSE:MBC)
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Rating:51Neutral
Price Target:
$9.50
▲(11.76% Upside)
Action:Reiterated
Date:08/05/26
The score is held back primarily by deteriorated profitability and margin compression despite modest revenue growth, with leverage limiting flexibility if weakness persists. Offsetting this, free cash flow has improved and management’s merger/synergy roadmap provides a plausible path to recovery, while technicals are only moderately supportive and valuation metrics remain weak due to losses.
Positive Factors
Strong free cash flow recovery
Sustained positive free cash flow is a durable financial cushion that supports integration spend, debt reduction and working-capital swings. A near‑term trend of materially higher FCF versus prior year reduces refinancing risk and gives management flexibility to fund synergies and capex without relying on equity markets.
Negative Factors
Significant margin deterioration
A multi-hundred basis point gross margin decline signals persistent structural pressure from mix shifts, pricing dynamics and rising input/logistics costs. Sustained margin compression undermines profit conversion and requires either consistent pricing power or material cost cuts to restore durable earnings quality.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow recovery
Sustained positive free cash flow is a durable financial cushion that supports integration spend, debt reduction and working-capital swings. A near‑term trend of materially higher FCF versus prior year reduces refinancing risk and gives management flexibility to fund synergies and capex without relying on equity markets.
Read all positive factors
MasterBrand Inc Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks revenue into regional buckets to show where the company is strongest and where it is most exposed to local market cycles. Geographic trends highlight dependence on particular housing markets or economies, currency and supply-chain risks, and opportunities for expansion if certain regions grow faster than others.
Breaks revenue into regional buckets to show where the company is strongest and where it is most exposed to local market cycles. Geographic trends highlight dependence on particular housing markets or economies, currency and supply-chain risks, and opportunities for expansion if certain regions grow faster than others.
Data provided by:
The Fly
The FlyMasterBrand Inc (MBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.80B
Dividend YieldN/A
Average Volume (3M)2.44M
Price to Earnings (P/E)―
Beta (1Y)1.28
Revenue Growth-0.01%
EPS Growth-192.77%
CountryUS
Employees12,633
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.69
Shares Outstanding203,490,500
10 Day Avg. Volume1,749,909
30 Day Avg. Volume2,435,708
Financial Highlights & Ratios
PEG Ratio-0.68
Price to Book (P/B)1.06
Price to Sales (P/S)0.52
P/FCF Ratio12.07
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.24
Revenue Forecast (FY)$3.48B
MasterBrand Inc Business Overview & Revenue Model
Company Description
Based in Jasper, Indiana, MasterBrand, Inc. is a North American provider of residential cabinetry. The company produces and markets cabinets specifically designed for kitchens, bathrooms, and other areas throughout the home....
How the Company Makes Money
MasterBrand primarily makes money by manufacturing and selling residential cabinetry and related products to customers in the U.S. Its core revenue model is product sales (recognized when control of the cabinetry products transfers to the customer...
MasterBrand Inc Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call balanced meaningful strategic and financial positives from the completed merger — including strong early cash generation, initial synergy capture (~$30M annualized), a clear integration plan, tariff-mitigation progress and solid liquidity — against material near-term operating and profitability challenges: legacy revenue and margin deterioration, a substantial YoY drop in adjusted EBITDA and net loss, American Woodmark underperformance and elevated near-term leverage. Management presented actionable steps (plant consolidations, cost discipline, quantified synergy uplift and an H2 outlook) that support a credible path to structural margin improvement, but the near-term results and market softness remain significant headwinds.Positive Updates
Merger Completion and Strategic Scale
Completed merger with American Woodmark on May 28, 2026, creating a combined North American cabinet platform and enabling scale, cross-sell opportunities and supply‑chain/footprint optimization.
Negative Updates
Legacy Revenue and Market Softness
Legacy MasterBrand net sales declined 5.6% year-over-year (Q2 legacy $689.7M vs $730.9M prior-year), reflecting mid- to high-single-digit market declines in single-family new construction and repair & remodel weakness.
Read all updates
Q2-2026 Updates
Positive
Negative
Merger Completion and Strategic Scale
Completed merger with American Woodmark on May 28, 2026, creating a combined North American cabinet platform and enabling scale, cross-sell opportunities and supply‑chain/footprint optimization.
Read all positive updates
Company Guidance
MasterBrand's second‑half 2026 guidance calls for net sales of $2.05–$2.11 billion (American Woodmark ~ $730 million, ~35% at the midpoint), adjusted EBITDA of $129–$149 million (6.3%–7.1% margin) and adjusted diluted EPS of −$0.05 to $0.03; the outlook embeds roughly $20 million of legacy American Woodmark contribution, about $15 million of synergy capture already flowing, and approximately $11 million of IEEPA tariff refunds (≈$9 million received in July). They expect H2 capex of $71 million (~3% of net sales) including ~$4 million of CapEx synergies, H2 interest expense of ≈$50 million, ~ $30 million of one‑time integration costs in H2, full‑year tariff exposure of ~5%–6% of net sales to be offset dollar‑for‑dollar by year‑end, free cash flow for 2026 to exceed net income, a >$100 million annual run‑rate synergy target by year‑3, and a net‑leverage target below 2.0x by end‑2028 (quarter‑end net debt $1.15 billion; trailing 12‑month leverage 3.9x; covenant leverage 3.4x).MasterBrand Inc Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
56
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.78B | 2.73B | 2.70B | 2.73B | 3.28B | 2.86B |
| Gross Profit | 720.00M | 827.60M | 859.70M | 875.90M | 918.80M | 763.20M |
| EBITDA | 81.20M | 213.90M | 319.60M | 368.20M | 277.90M | 300.50M |
| Net Income | -96.90M | 26.70M | 125.90M | 182.00M | 155.40M | 182.60M |
Balance Sheet | ||||||
| Total Assets | 4.48B | 3.10B | 2.93B | 2.38B | 2.53B | 3.00B |
| Cash, Cash Equivalents and Short-Term Investments | 241.60M | 183.30M | 120.60M | 148.70M | 101.10M | 141.40M |
| Total Debt | 1.69B | 1.35B | 1.08B | 770.20M | 1.03B | 113.20M |
| Total Liabilities | 2.51B | 1.76B | 1.64B | 1.19B | 1.52B | 551.10M |
| Stockholders Equity | 1.97B | 1.34B | 1.29B | 1.19B | 1.01B | 2.45B |
Cash Flow | ||||||
| Free Cash Flow | 74.40M | 117.50M | 211.10M | 348.30M | 179.70M | 96.60M |
| Operating Cash Flow | 148.10M | 195.70M | 292.00M | 405.60M | 235.60M | 148.20M |
| Investing Cash Flow | -403.50M | -74.40M | -580.80M | -56.90M | -55.90M | -51.50M |
| Financing Cash Flow | 372.90M | -65.70M | 269.60M | -299.90M | -215.30M | -109.70M |
MasterBrand Inc Technical Analysis
Positive
8.50
Price Trends
9.02
Positive
8.68
Positive
9.81
Negative
Market Momentum
0.08
Negative
52.09
Neutral
47.26
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 8.5 is below the 20-day moving average (MA) of 8.97, below the 50-day MA of 9.02, and below the 200-day MA of 9.81, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 52.09 is Neutral, neither overbought nor oversold. The STOCH value of 47.26 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 40 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $3.43B | 439.91 | 0.28% | 3.29% | 70.13% | -95.94% | |
69 Neutral | $569.23M | 14.51 | 8.40% | 7.93% | -5.72% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $1.63B | 17.04 | 7.86% | 2.38% | 0.20% | -10.08% | |
56 Neutral | $164.94M | 29.81 | 3.32% | 4.10% | 1.96% | 122.75% | |
51 Neutral | $1.80B | -13.59 | -6.44% | ― | -0.01% | -192.77% | |
49 Neutral | $1.58B | 17.60 | 6.94% | 3.40% | 4.68% | ― |
* Consumer Cyclical Sector Average
MBC
MasterBrand Inc
9.14
-3.13
-25.51%
BSET
Bassett Furniture
18.62
3.78
25.44%
ETD
Ethan Allen
22.93
-3.65
-13.73%
MLKN
MillerKnoll
22.76
2.76
13.81%
HNI
HNI
47.80
5.84
13.91%
LZB
La-Z-Boy Incorporated
33.65
-0.27
-0.80%
MasterBrand Inc Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
MasterBrand Updates Outlook Following American Woodmark Merger
Neutral
Aug 4, 2026
MasterBrand reported its second-quarter 2026 results on August 4, highlighting the completion of a transformative all-stock merger with American Woodmark on May 28 that created what it calls the most comprehensive cabinetry brand portfolio in Nort...
Executive/Board ChangesShareholder Meetings
MasterBrand Shareholders Back Board, Pay and Auditor at Meeting
Positive
Jun 4, 2026
MasterBrand, Inc. held its Annual Meeting of Shareholders on June 4, 2026, with approximately 88.4% of the 127,982,461 outstanding common shares present or represented by proxy, constituting a quorum. Shareholders elected Ann Fritz Hackett, R. Dav...
Business Operations and StrategyExecutive/Board ChangesDelistings and Listing ChangesM&A TransactionsPrivate Placements and Financing
MasterBrand Completes Transformative All-Stock Merger With American Woodmark
Positive
May 28, 2026
On May 28, 2026, MasterBrand and American Woodmark completed their previously announced all‑stock merger, creating what the companies describe as the most comprehensive portfolio of cabinetry brands and products in North America. Following t...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
MasterBrand Clears FTC Hurdle for American Woodmark Merger
Positive
May 26, 2026
On August 5, 2025, MasterBrand, Inc. entered into a merger agreement with American Woodmark Corporation, under which American Woodmark will merge with a wholly owned MasterBrand subsidiary to combine two major cabinetry manufacturers. On May 22, 2...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
MasterBrand Posts Q1 Loss, Launches Cost-Cutting Measures
Negative
May 5, 2026
MasterBrand reported first-quarter 2026 results on May 5, 2026, with net sales falling 6.4% year over year to $618 million amid a mid-single-digit market decline and slower housing completions. Gross margin compressed to 25.3% on lower volume, unf...
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.