Start here if you're new
what it is
Amer. Woodmark makes kitchen cabinets and bath vanities for new homes, remodels, and big-box stores like Home Depot and Lowe’s.
how it gets paid
Last year Amer. Woodmark made $1.7B in revenue. home center cabinets was the main engine at $0.68B, or 40% of sales.
why growth slowed
Revenue fell 7.5% last year. The key number was the $0.76 EPS result because the company fell short of the $0.80 estimate (−5.0% miss) even with revenue surging to $1.1 billion.
what just happened
Latest quarter EPS came in at $0.76, falling short of the $0.80 estimate (−5.0% miss).
At a glance
B+ balance sheet — decent shape, but not bulletproof
55/100 earnings predictability — expect surprises
19.6x trailing p/e — priced about right
8.0% return on capital — nothing to write home about
$2.65 fy2027 eps est
xvary composite: 56/100 — below average
What they do
Amer. Woodmark makes kitchen cabinets and bath vanities for new homes, remodels, and big-box stores like Home Depot and Lowe’s.
This is a scale-and-shelf-space business. Amer. Woodmark sells 550 cabinet lines, and Home Depot plus Lowe’s drive about 40% of sales, which keeps its products where your contractor already shops. That reach matters because cabinets are heavy, customized, and annoying to replace fast, so reliable delivery beats fancy slideshows.
How they make money
$1.7B
annual revenue · their business grew -7.5% last year
home center cabinets
$0.68B
builder cabinets
$0.43B
remodel dealer cabinets
$0.34B
bath vanities
$0.17B
other cabinetry lines
$0.09B
The products that matter
manufactures and sells cabinets
Kitchen Cabinets & Bath Vanities
$1.7B revenue · entire company
this is the whole business: $1.7B in sales, +4.2% compared to last year, and only a 2.6% net profit margin. when this category wobbles, your entire thesis wobbles with it.
100% of revenue
Key numbers
19.6x
trailing p/e
P/E ratio → how many dollars you pay for one dollar of past earnings → you are paying 19.6 times earnings for a company whose EPS fell 63% from $6.90 to $2.55.
$360M
long-term debt
Long-term debt → money owed for years → it already equals 33% of capital before the merger adds another $370 million of assumed debt.
12.5%
operating margin
Operating margin → profit left after running the business → 12.5% is decent for cabinets, but the net margin falls to 5.7%, so interest and other costs eat a lot.
8.0%
return on capital
Return on capital → profit earned on the money tied up in the business → 8.0% is okay, not elite, and far from enough to make a messy merger painless.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt $360M (33% of capital)
- net profit margin 5.7% — keeps 6 cents of every dollar in revenue
- return on equity 10% — $0.10 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in AMWD 3 years ago → it's now worth $8,980.
The index would have given you $14,540.
source: institutional data · total return
What just happened
missed estimates
Latest quarter EPS came in at $0.76, falling short of the $0.80 estimate (−5.0% miss).
Revenue hit $1.1 billion, up 246% vs. prior year, but that top-line jump did not stop the earnings miss. Gross margin was 14.7%, which shows this is still a margin-sensitive manufacturing business.
$1.1B
revenue
$0.76
eps
14.7%
gross margin
the number that mattered
The key number was the $0.76 EPS result because the company fell short of the $0.80 estimate (−5.0% miss) even with revenue surging to $1.1 billion.
-
american woodmark and masterbrand (mbc) are striving to complete their merger.last august, amwd’s board of directors approved mbc’s purchase offer, whereby the virginia-based company’s stockholders would receive 5.15 shares in the ohio enterprise for each share held.
-
stockholders gave the goahead in october.
-
considering mbc’s recent quotation, the deal has a stock value of $750 million.
-
mbc will assume $370 million in debt.the share prices of amwd and mbc have been under pressure over the past few weeks, given end-market stresses.
-
too, the companies are working to assuage federal antitrust concerns.the transaction, if completed, would create the largest kitchen-and-bath cabinet maker in the united states.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is federal antitrust action blocking the MasterBrand merger.
med
the merger fails and the stand-alone case gets exposed
the board approved the offer, shareholders approved it in october, and the exchange ratio is 5.15 MasterBrand shares for each AMWD share. none of that closes the deal if federal review blocks the combination.
you are then back to underwriting a $1.7B cabinet maker with a 2.6% net margin, 4% return on equity, and an 18% quarterly revenue drop from a year ago.
med
cabinet demand stays soft because housing stays soft
this company sells into new construction and remodeling spend. quarterly revenue was $324M, down 18% from a year ago, which tells you demand sensitivity is not theoretical.
with only 2.6 cents of net profit per revenue dollar, even a modest volume slowdown can do outsized damage to earnings.
med
the deal closes, but the economics still look mediocre
bigger is not automatically better. AMWD earns just 3.5% on capital and carries $360M of long-term debt, while the buyer would assume $370M in debt if the transaction closes.
if the combined company cannot move meaningfully above today's 2.6% net margin, you own a larger cabinet maker, not a better one.
if the deal breaks, or if it closes and leaves margins near 2.6%, you are still looking at the same weak earnings engine — just with a different headline.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
antitrust review timing
the biggest catalyst is simple: does federal review let the MasterBrand deal close, or not.
metric
margin repair, not just revenue
AMWD already does $1.7B in revenue. what matters next is whether 8.5% operating margin and 2.6% net margin can move higher.
trend
housing and remodel demand
quarterly revenue already fell 18% from a year ago. if builders and homeowners stay cautious, cabinet demand probably does too.
risk
institutional conviction
institutions have been net sellers for 3 straight quarters. with 60 buyers versus 63 sellers in 4q2025, big money wants more proof.
Analyst rankings
risk profile
average
stability score 3. in human-speak, this is a normal-risk stock with very uneven earnings.
earnings predictability
55 / 100
the next quarter is harder to handicap than the average stock. housing exposure and thin margins do that.
valuation
19.6x
the multiple says the market sees a business that can recover, but not one that deserves much benefit of the doubt.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 60 buyers vs. 63 sellers in 4q2025. total institutional holdings: 14.0M shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$24
$65
$50
current price
$45
target midpoint · 10% from current · 3-5yr high: $105 (+110% · 20% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive