MasterBrand, Inc.
MasterBrand, Inc. Fundamental Analysis
MasterBrand, Inc. (MBC) shows weak financial fundamentals with a PE ratio of 47.94, profit margin of 0.98%, and ROE of 1.98%. The company generates $2.8B in annual revenue with weak year-over-year growth of -0.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MBC's fundamental strength across five key dimensions:
Efficiency Score
WeakMBC struggles to generate sufficient returns from assets.
Valuation Score
ModerateMBC shows balanced valuation metrics.
Growth Score
WeakMBC faces weak or negative growth trends.
Financial Health Score
ModerateMBC shows balanced financial health with some risks.
Profitability Score
ModerateMBC maintains healthy but balanced margins.
Key Financial Metrics
Is MBC Expensive or Cheap?
P/E Ratio
MBC trades at 47.94 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MBC's PEG of -0.70 indicates potential undervaluation.
Price to Book
The market values MasterBrand, Inc. at 0.95 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.58 times EBITDA. This is generally considered low.
How Well Does MBC Make Money?
Net Profit Margin
For every $100 in sales, MasterBrand, Inc. keeps $0.98 as profit after all expenses.
Operating Margin
Core operations generate 4.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.98 in profit for every $100 of shareholder equity.
ROA
MasterBrand, Inc. generates $0.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MasterBrand, Inc. generates limited operating cash flow of $196.84M, signaling weaker underlying cash strength.
Free Cash Flow
MasterBrand, Inc. produces free cash flow of $118.18M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.93 in free cash annually.
FCF Yield
MBC converts 9.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
47.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.70
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.003
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How MBC Stacks Against Its Sector Peers
| Metric | MBC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 47.94 | 24.84 | Worse (Expensive) |
| ROE | 1.98% | 1142.00% | Weak |
| Net Margin | 0.98% | 647.00% | Weak |
| Debt/Equity | 1.00 | 0.70 | Weak (High Leverage) |
| Current Ratio | 1.67 | 3.93 | Neutral |
| ROA | 0.86% | -8853.00% (disorted) | Weak |
MBC outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MasterBrand, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.87%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
25.93%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
97.92%
Industry Style: Cyclical, Growth, Discretionary
High Growth