Masterbrand, Inc.

MasterBrand trades at 50x earnings for an 8.3% operating margin business with $1.1B of debt.

If you own MBC, you own a cabinet company priced like it forgot housing is cyclical.

mbc

consumer small cap updated mar 13, 2026
$10.00
market cap ~$1B · 52-week range $8–$14
xvary composite: 50 / 100 · below average
our overall rating — combines growth, value, risk, and momentum
Start here if you're new
what it is
MasterBrand makes kitchen and bathroom cabinets, then sells them through dealers, retailers, and homebuilders across North America.
how it gets paid
Last year Masterbrand made $2.7B in revenue. stock cabinetry was the main engine at $0.95B, or 35% of sales.
why it's growing
Revenue grew 1.3% last year. EDGAR shows revenue up 199% vs. prior year with 31.6% gross margin.
what just happened
The latest quarter showed $2.1B of revenue and $0.53 EPS in EDGAR-backed data, but the EPS read conflicts with Yahoo's $0.14 figure.
At a glance
B balance sheet — gets the job done, barely
50.0x trailing p/e — you're paying up for this one
2.7% return on capital — nothing to write home about
$0.21 fy2025 eps est
$2B fy2026 rev est
xvary composite: 50/100 — below average
What they do
MasterBrand makes kitchen and bathroom cabinets, then sells them through dealers, retailers, and homebuilders across North America.
MasterBrand says it is the largest residential cabinet maker in North America, and scale matters when you buy hardwoods, plywood, and particleboard by the truckload. You get reach across stock, semi-custom, and premium cabinets, so one company can serve a budget flip or a high-end remodel. That breadth helps keep shelf space and builder relationships sticky while a smaller rival fights for scraps.
consumer small-cap manufacturer housing remodeling
How they make money
$2.7B annual revenue · their business grew +1.3% last year
stock cabinetry
$0.95B
semi-custom cabinetry
$0.83B
premium cabinetry
$0.38B
kitchen cabinetry
$0.30B
bath cabinetry
$0.16B
other home storage
$0.08B
The products that matter
manufactures residential cabinets
Kitchen & Bath Cabinets
24% market share · $2.7B revenue base
This is the whole story: a cabinet business with 24% North American share serving a market management says should shrink mid-single digits in 2026.
share leader
serves repair and remodel demand
Remodel & Retail
$1.755B · 65% of revenue
This segment is the stabilizer. It is also the reason revenue still grew 1.3% last year while New Construction fell 3.5%.
bigger segment
builder and housing-cycle exposure
New Construction
$945M · 35% of revenue
This is the more cyclical piece. At $945M and down 3.5%, it tells you why housing pressure shows up quickly in the income statement.
cycle risk
Key numbers
50.0x
trailing p/e
Price-to-earnings ratio → how much you pay for each dollar of profit → you are paying growth-stock pricing for a cabinet maker.
$1.1B
long-term debt
Debt → money the company owes → with debt equal to 53% of capital, you need operations to stay clean.
8.3%
operating margin
Operating margin → profit after running the business → 8.3% leaves little room for raw material or freight mistakes.
2.7%
return on capital
Return on capital → profit earned on money invested → 2.7% is weak, especially next to a 50x multiple.
Financial health
B
strength
  • balance sheet grade B — adequate — nothing special
  • risk rank 3 — safer than 50% of stocks
  • price stability 35 / 100
  • long-term debt $1.1B (53% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market

Return history isn't available for MBC right now.

same standard. no invented return math.

source: institutional data · return history unavailable
What just happened
beat estimates
The latest quarter showed $2.1B of revenue and $0.53 EPS in EDGAR-backed data, but the EPS read conflicts with Yahoo's $0.14 figure.
EDGAR shows revenue up 199% vs. prior year with 31.6% gross margin. The clean takeaway is that sales improved sharply, while per-share data across sources needs caution before you treat it as a straight trend.
$675M
revenue
$0.53
eps
31.6%
gross margin
the number that mattered
31.6% gross margin matters most because margin is the difference between a tough cycle and a balance-sheet problem.
source: company earnings report, 2026

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What could go wrong

the #1 risk is cabinet demand staying soft while gross margin stays stuck near 26%.

!
high
shrinking addressable market
Management expects the 2026 addressable market to be down mid-single digits. That is bad timing for a company that only grew 1.3% last year and is already guiding investors toward a smaller $2B revenue business next.
Management expects the 2026 addressable market to be down mid-single digits. That is bad timing for a company that only grew 1.3% last year and is already guiding investors toward a smaller $2B revenue business next.
!
high
gross margin compression
Gross margin fell 440 basis points to 26% in Q4 because of volume mix, fixed-cost leverage, and tariffs. In human-speak: fewer cabinets and worse mix made every factory dollar work harder for less profit.
Gross margin fell 440 basis points to 26% in Q4 because of volume mix, fixed-cost leverage, and tariffs. In human-speak: fewer cabinets and worse mix made every factory dollar work harder for less profit.
∘
med
american woodmark integration risk
The all-stock merger is expected to close in early 2026, with $30M in cost savings attached to the deal story. If integration drags or the savings miss, investors are left with the complexity and not the payoff.
The all-stock merger is expected to close in early 2026, with $30M in cost savings attached to the deal story. If integration drags or the savings miss, investors are left with the complexity and not the payoff.
~
low
capital return is off the table for now
The merger agreement restricts repurchases. MBC bought back 226,914 shares earlier, but that support is paused while the business is trying to reset earnings power.
The merger agreement restricts repurchases. MBC bought back 226,914 shares earlier, but that support is paused while the business is trying to reset earnings power.
A 26% gross margin on a business facing a mid-single-digit market decline does not leave much room for operational mistakes.
source: institutional data · regulatory filings · risk analysis
Pay attention to
margin
does gross margin recover from 26%
This is the first number to watch. If the next few quarters stay near 26% instead of the 31.6% full-year level, the earnings reset is not temporary.
calendar
american woodmark deal close
The merger is expected in early 2026. Closing is step one. Clean integration is the actual test.
costs
the $30M savings plan
Management has pointed to $30M in cost reductions for 2026. In a shrinking market, cost discipline is not optional. It is the plan.
guidance
whether fy2026 EPS stays near break-even
Guidance of -$0.06 to $0.00 for FY2026 says the recovery case is not on autopilot. If that range moves lower, the multiple debate gets uglier fast.
Analyst rankings
risk profile
average
risk rank 3 — typical risk profile — neither especially safe nor risky.
source: institutional data
Institutional activity

institutional ownership data for MBC is being compiled.

source: institutional data
source: institutional data
Price targets
3-5 year target range
n/a n/a
$10 current price
n/a target midpoint · n/a from current
target data not available

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