NasdaqGS:AMWD

Stock Analysis Report

Executive Summary

American Woodmark Corporation manufactures and distributes kitchen, bath, and home organization products for the remodelling and new home construction markets in the United States.


Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

How has American Woodmark's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMWD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

AMWD

-1.5%

US Building

-4.2%

US Market


1 Year Return

33.9%

AMWD

21.4%

US Building

14.0%

US Market

Return vs Industry: AMWD exceeded the US Building industry which returned 21.4% over the past year.

Return vs Market: AMWD exceeded the US Market which returned 14% over the past year.


Shareholder returns

AMWDIndustryMarket
7 Day0.6%-1.5%-4.2%
30 Day2.3%0.004%-1.8%
90 Day12.8%1.8%2.6%
1 Year33.9%33.9%23.2%21.4%16.3%14.0%
3 Year36.3%36.3%24.0%18.4%43.2%34.0%
5 Year122.5%122.5%46.9%27.7%65.9%47.6%

Price Volatility Vs. Market

How volatile is American Woodmark's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American Woodmark undervalued compared to its fair value and its price relative to the market?

21.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMWD ($116.23) is trading below our estimate of fair value ($147.3)

Significantly Below Fair Value: AMWD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AMWD is good value based on its PE Ratio (22x) compared to the Building industry average (22.8x).

PE vs Market: AMWD is poor value based on its PE Ratio (22x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: AMWD is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: AMWD is overvalued based on its PB Ratio (2.9x) compared to the US Building industry average (2.6x).


Next Steps

Future Growth

How is American Woodmark forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

22.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMWD's forecast earnings growth (22.2% per year) is above the savings rate (1.7%).

Earnings vs Market: AMWD's earnings (22.2% per year) are forecast to grow faster than the US market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AMWD's revenue (4.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: AMWD's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMWD's Return on Equity is forecast to be low in 3 years time (18.3%).


Next Steps

Past Performance

How has American Woodmark performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMWD has high quality earnings.

Growing Profit Margin: AMWD's current net profit margins (5.4%) are higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: AMWD's earnings have grown by 16.3% per year over the past 5 years.

Accelerating Growth: AMWD's earnings growth over the past year (39%) exceeds its 5-year average (16.3% per year).

Earnings vs Industry: AMWD earnings growth over the past year (39%) exceeded the Building industry -15.5%.


Return on Equity

High ROE: AMWD's Return on Equity (13.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is American Woodmark's financial position?


Financial Position Analysis

Short Term Liabilities: AMWD's short term assets ($309.0M) exceed its short term liabilities ($169.4M).

Long Term Liabilities: AMWD's short term assets ($309.0M) do not cover its long term liabilities ($754.3M).


Debt to Equity History and Analysis

Debt Level: AMWD's debt to equity ratio (91%) is considered high.

Reducing Debt: AMWD's debt to equity ratio has increased from 9.5% to 91% over the past 5 years.

Debt Coverage: AMWD's debt is well covered by operating cash flow (27.6%).

Interest Coverage: AMWD's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet

Inventory Level: AMWD has a high level of physical assets or inventory.

Debt Coverage by Assets: AMWD's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is American Woodmark's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AMWD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AMWD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AMWD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AMWD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AMWD is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMWD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

S. Dunston (54yo)

4.5yrs

Tenure

US$3,019,389

Compensation

Mr. S. Cary Dunston has been the Chief Executive Officer of American Woodmark Corp. since August 26, 2015 and has been its President since August 22, 2014. Mr. Dunston served as the Chief Operating Officer ...


CEO Compensation Analysis

Compensation vs Market: S.'s total compensation ($USD3.02M) is about average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: S.'s compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
S. Dunston
Chairman4.5yrsUS$3.02m0.36% $7.0m
M. Culbreth
CFO, Senior VP & Corporate Secretary6yrsUS$1.27m0.043% $853.8k
Roger Campbell
Senior Vice President of Sales & Marketing3.9yrsUS$1.04m0.076% $1.5m
Robert Adams
Senior Vice President of Value Stream Operations4.5yrsUS$992.37k0.026% $503.9k
Glenn Eanes
VP & Treasurer0yrsno datano data

4.5yrs

Average Tenure

53.5yo

Average Age

Experienced Management: AMWD's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
S. Dunston
Chairman4.5yrsUS$3.02m0.36% $7.0m
Daniel Hendrix
Independent Director14.8yrsUS$137.20k0.042% $831.6k
Carol Moerdyk
Lead Independent Director1.1yrsUS$137.20k0.093% $1.8m
Martha Hayes
Independent Director25.1yrsUS$137.20k0.24% $4.8m
Andrew Cogan
Independent Director10.9yrsUS$152.20k0.029% $577.6k
James Davis
Independent Director18.1yrsUS$147.20k0.12% $2.3m
Vance Tang
Lead Independent Director1.1yrsUS$147.20k0.073% $1.4m
Teresa May
Independent Director1.3yrsUS$35.00kno data

6.7yrs

Average Tenure

59yo

Average Age

Experienced Board: AMWD's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

American Woodmark Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Woodmark Corporation
  • Ticker: AMWD
  • Exchange: NasdaqGS
  • Founded: 1980
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$1.967b
  • Shares outstanding: 16.92m
  • Website: https://www.americanwoodmark.com

Number of Employees


Location

  • American Woodmark Corporation
  • 561 Shady Elm Road
  • Winchester
  • Virginia
  • 22602
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMWDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1986
AHQDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1986

Biography

American Woodmark Corporation manufactures and distributes kitchen, bath, and home organization products for the remodelling and new home construction markets in the United States. The company offers made-to-order cabinetry in approximately 550 cabinet lines, which include 100 door designs in a range of painted or stained finishes, or engineered finishes under the Duraform name; and fronts made in various wood species, including maple, cherry, and oak, as well as engineered materials. It also provides value-based assembled cabinet products for stock kitchen and bath; ready-to-assemble cabinetry for home organization; and countertops and accessories. In addition, the company offers turnkey installation services to its direct builder customers through a network of eight service centres. It sells its products under the American Woodmark, Timberlake, Shenandoah Cabinetry, Waypoint Living Spaces, Estate by RSI, Continental Cabinets, VillaBath by RSI, Stor-It-All, and Professional Cabinet Solutions brands, as well as private label brands, such as Hampton Bay, Glacier Bay, Style Selections, Allen + Roth, Home Decorators Collection, and Project Source. The company markets its products, primarily through home centers, builders, and a network of independent dealers and distributors. American Woodmark Corporation was founded in 1980 and is headquartered in Winchester, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 23:56
End of Day Share Price2020/02/24 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.