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MasterBrand Inc
(NYSE:MBC)
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Rating:51Neutral
Price Target:
$6.50
▼(-26.47% Downside)
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
Merger Scale and Synergies
The completed American Woodmark merger materially expands MasterBrand’s North American platform and creates opportunities for cross-selling, scale benefits and footprint optimization. Early synergy capture and a target above $100 million of annual run-rate savings provide a durable path to better operating efficiency.
Negative Factors
Profitability and Margin Compression
Severe gross-profit and adjusted-EBITDA margin compression shows that MasterBrand is not converting relatively resilient sales into earnings effectively. Volume declines, unfavorable mix, fixed-cost deleverage and inflation could keep profitability weak until operating improvements are proven.
Read all positive and negative factors
Positive Factors
Negative Factors
Merger Scale and Synergies
The completed American Woodmark merger materially expands MasterBrand’s North American platform and creates opportunities for cross-selling, scale benefits and footprint optimization. Early synergy capture and a target above $100 million of annual run-rate savings provide a durable path to better operating efficiency.
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
$1.35B
Dividend YieldN/A
Average Volume (3M)1.92M
Price to Earnings (P/E)―
Beta (1Y)1.34
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. Volume2,422,355
30 Day Avg. Volume1,917,312
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 Target
$10.00Price Target Upside13.12% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.06
Revenue Forecast (FY)$3.50B
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
Negative
8.84
Price Trends
8.52
Negative
8.54
Negative
9.54
Negative
Market Momentum
-0.58
Positive
26.63
Positive
7.79
Positive
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 8.84 is above the 20-day moving average (MA) of 7.97, above the 50-day MA of 8.52, and below the 200-day MA of 9.54, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 26.63 is Positive, neither overbought nor oversold. The STOCH value of 7.79 is Positive, 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 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $539.59M | 13.72 | 8.40% | 22.47% | -5.72% | -22.50% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $3.33B | 419.18 | 0.28% | 2.99% | 70.13% | -95.94% | |
56 Neutral | $154.03M | 28.12 | 3.32% | 4.50% | 1.96% | 122.75% | |
56 Neutral | $1.42B | 15.65 | 6.94% | 3.63% | 4.68% | ― | |
56 Neutral | $1.20B | 14.97 | 7.86% | 3.24% | 0.20% | -10.08% | |
51 Neutral | $1.35B | -9.59 | -6.44% | ― | -0.01% | -192.77% |
* Consumer Cyclical Sector Average
MBC
MasterBrand Inc
6.62
-6.29
-48.72%
BSET
Bassett Furniture
17.79
2.51
16.42%
ETD
Ethan Allen
21.41
-2.10
-8.94%
MLKN
MillerKnoll
20.66
1.55
8.09%
HNI
HNI
46.11
2.10
4.77%
LZB
La-Z-Boy Incorporated
29.84
-3.08
-9.35%
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...
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.