American Woodmark Corporation
American Woodmark Corporation Fundamental Analysis
American Woodmark Corporation (AMWD) shows weak financial fundamentals with a PE ratio of 41.28, profit margin of 1.15%, and ROE of 1.91%. The company generates $1.5B in annual revenue with weak year-over-year growth of -10.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AMWD's fundamental strength across five key dimensions:
Efficiency Score
WeakAMWD struggles to generate sufficient returns from assets.
Valuation Score
ModerateAMWD shows balanced valuation metrics.
Growth Score
ModerateAMWD shows steady but slowing expansion.
Financial Health Score
ExcellentAMWD maintains a strong and stable balance sheet.
Profitability Score
ModerateAMWD maintains healthy but balanced margins.
Key Financial Metrics
Is AMWD Expensive or Cheap?
P/E Ratio
AMWD trades at 41.28 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AMWD's PEG of -0.69 indicates potential undervaluation.
Price to Book
The market values American Woodmark Corporation at 0.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.59 times EBITDA. This is generally considered low.
How Well Does AMWD Make Money?
Net Profit Margin
For every $100 in sales, American Woodmark Corporation keeps $1.15 as profit after all expenses.
Operating Margin
Core operations generate 1.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.91 in profit for every $100 of shareholder equity.
ROA
American Woodmark Corporation generates $1.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
American Woodmark Corporation generates limited operating cash flow of $75.88M, signaling weaker underlying cash strength.
Free Cash Flow
American Woodmark Corporation produces free cash flow of $63.87M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.38 in free cash annually.
FCF Yield
AMWD converts 8.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How AMWD Stacks Against Its Sector Peers
| Metric | AMWD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.28 | 24.84 | Worse (Expensive) |
| ROE | 1.91% | 1142.00% | Weak |
| Net Margin | 1.15% | 647.00% | Weak |
| Debt/Equity | 0.09 | 0.70 | Strong (Low Leverage) |
| Current Ratio | 2.37 | 3.93 | Strong Liquidity |
| ROA | 1.17% | -8853.00% (disorted) | Weak |
AMWD outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews American Woodmark Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
19.39%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
47.66%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
28.56%
Industry Style: Cyclical, Growth, Discretionary
High Growth