NYSE:DOOR

Stock Analysis Report

Executive Summary

Masonite International Corporation designs, manufactures, and distributes interior and exterior doors for the new construction and repair, renovation, and remodeling sectors of the residential and non-residential building construction markets worldwide.

Rewards

Earnings are forecast to grow 34.76% per year

Risk Analysis

Has a high level of debt

Large one-off items impacting financial results

Profit margins (2.5%) are lower than last year (7.1%)



Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Masonite International's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.8%

DOOR

-1.3%

US Building

-1.5%

US Market


1 Year Return

40.5%

DOOR

31.7%

US Building

21.7%

US Market

Return vs Industry: DOOR exceeded the US Building industry which returned 35.5% over the past year.

Return vs Market: DOOR exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

DOORIndustryMarket
7 Day-1.8%-1.3%-1.5%
30 Day8.1%3.1%1.4%
90 Day26.2%4.5%7.9%
1 Year40.5%40.5%33.7%31.7%24.3%21.7%
3 Year14.5%14.5%27.9%22.0%49.5%39.9%
5 Year22.8%22.8%54.5%34.7%72.6%53.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Masonite International undervalued compared to its fair value and its price relative to the market?

35.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DOOR ($77.81) is trading above our estimate of fair value ($76.21)

Significantly Below Fair Value: DOOR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DOOR is poor value based on its PE Ratio (34.4x) compared to the Building industry average (23.1x).

PE vs Market: DOOR is poor value based on its PE Ratio (34.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: DOOR is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: DOOR is overvalued based on its PB Ratio (3.1x) compared to the US Building industry average (2.4x).


Next Steps

Future Growth

How is Masonite International forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

34.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DOOR's forecast earnings growth (34.8% per year) is above the savings rate (1.7%).

Earnings vs Market: DOOR's earnings (34.8% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: DOOR's revenue (3.9% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: DOOR's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DOOR's Return on Equity is forecast to be low in 3 years time (16.3%).


Next Steps

Past Performance

How has Masonite International performed over the past 5 years?

46.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DOOR has a large one-off loss of $46.9M impacting its September 29 2019 financial results.

Growing Profit Margin: DOOR's current net profit margins (2.5%) are lower than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: DOOR has become profitable over the past 5 years, growing earnings by 46.1% per year.

Accelerating Growth: DOOR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DOOR had negative earnings growth (-63.5%) over the past year, making it difficult to compare to the Building industry average (-5.5%).


Return on Equity

High ROE: DOOR's Return on Equity (9.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Masonite International's financial position?


Financial Position Analysis

Short Term Liabilities: DOOR's short term assets ($723.3M) exceed its short term liabilities ($272.7M).

Long Term Liabilities: DOOR's short term assets ($723.3M) do not cover its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: DOOR's debt to equity ratio (129.3%) is considered high.

Reducing Debt: DOOR's debt to equity ratio has increased from 65.3% to 129.3% over the past 5 years.

Debt Coverage: DOOR's debt is well covered by operating cash flow (25.4%).

Interest Coverage: DOOR's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: DOOR's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Masonite International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate DOOR'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 DOOR's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Masonite International's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Howard Heckes (54yo)

0.6yrs

Tenure

0

Mr. Howard Carl Heckes has been President and Chief Executive Officer of Masonite International Corporation since June 3, 2019. Mr. Heckes serves as Chief Executive Officer of Energy Management Collaborati ...


Management Age and Tenure

2.6yrs

Average Tenure

51yo

Average Age

Experienced Management: DOOR's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

58yo

Average Age

Experienced Board: DOOR's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$714,86525 Apr 19
Praesidium Investment Management Company, LLC
EntityCompany
Shares14,101
Max PriceUS$50.84
BuyUS$621,22625 Apr 19
Praesidium Investment Management Company, LLC
EntityCompany
Shares12,170
Max PriceUS$51.14
SellUS$55,28001 Mar 19
Robert Lewis
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,000
Max PriceUS$55.28

Ownership Breakdown

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


Management Team

  • Robert Lewis (58yo)

    Senior VP

    • Tenure: 7.8yrs
    • Compensation: US$928.30k
  • Howard Heckes (54yo)

    President

    • Tenure: 0.6yrs
  • Bob Paxton (45yo)

    Senior Vice President of Human Resources

    • Tenure: 1.8yrs
    • Compensation: US$1.55m
  • Tony Hair (52yo)

    President of Global Residential Business

    • Tenure: 2.8yrs
    • Compensation: US$1.24m
  • Russ Tiejema (50yo)

    Executive VP & CFO

    • Tenure: 4.2yrs
    • Compensation: US$1.13m
  • Graham Thayer

    Business Leader of Architectural & Senior VP

    • Tenure: 4.3yrs
  • Test Doyle

    Senior VP & GM of UK Business

    • Tenure: 3.3yrs
  • Randy White (47yo)

    Senior Vice President of Global Operations & Supply Chain

    • Tenure: 2.3yrs
    • Compensation: US$1.15m
  • Farand Pawlak

    Director of Investor Relations

    • Tenure: 2yrs
  • Dan Shirk

    Senior VP & Chief Information Officer

    • Tenure: 1yrs

Board Members

  • George Lorch (77yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: US$202.50k
  • Francis Scricco (69yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: US$207.50k
  • Peter Dachowski (70yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$190.00k
  • Jon Foster (58yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: US$210.00k
  • Jody Bilney (58yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$190.00k
  • Bob Byrne (57yo)

    Independent Chairman of the Board

    • Tenure: 9.5yrs
    • Compensation: US$320.00k
  • Bill Oesterle (53yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$174.44k
  • Howard Heckes (54yo)

    President

    • Tenure: 0.6yrs
  • Tom Greene (52yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$174.44k
  • Daphne Jones (62yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$174.44k

Company Information

Masonite International Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Masonite International Corporation
  • Ticker: DOOR
  • Exchange: NYSE
  • Founded: 1925
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$1.928b
  • Shares outstanding: 24.88m
  • Website: https://www.masonite.com

Number of Employees


Location

  • Masonite International Corporation
  • One Tampa City Center
  • Suite 300
  • Tampa
  • Florida
  • 33602
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DOORNYSE (New York Stock Exchange)YesCommon SharesUSUSDJun 2009
MIIDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2009

Biography

Masonite International Corporation designs, manufactures, and distributes interior and exterior doors for the new construction and repair, renovation, and remodeling sectors of the residential and non-residential building construction markets worldwide. The company offers molded panel, flush, stile and rail, routed medium-density fiberboard (MDF), steel, and fiberglass residential doors, as well as architectural interior doors. It also provides various door components, including interior door facings, agri-fiber and particleboard door cores, MDF and wood cut-stock components, critical door components, wood veneer door skins, and mineral and particleboard door cores. The company offers its products under the Masonite, Premdor, Masonite Architectural, Marshfield-Algoma, Mohawk, Megantic, Solidor, Residor, Nicedor, Door-Stop International, Harring Doors, National Hickman, and Graham-Maiman brands to remodeling contractors, builders, homeowners, retailers, dealers, lumberyards, commercial and general contractors, and architects through wholesale and retail distribution channels. Masonite International Corporation was founded in 1925 and is headquartered in Tampa, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/29 00:34
End of Day Share Price2020/01/28 00:00
Earnings2019/09/29
Annual Earnings2018/12/30


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.