Fact based stock research
American Woodmark (NasdaqGS:AMWD)
US0305061097
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
American Woodmark stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% compared with investment alternatives), American Woodmark (Building Products, USA) shares have much better financial characteristics than comparable stocks. Shares of American Woodmark are a good value (attractively priced) with a consolidated Value Rank of 83 (better than 83% of alternatives), show above-average growth (Growth Rank of 53) but are riskily financed (Safety Rank of 45), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 78, is a strong buy recommendation based on American Woodmark's financial characteristics. As the company American Woodmark's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 83) and above-average growth (Obermatt Growth Rank of 53), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 45) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
Latest Obermatt Ranks
Log in or sign up to see the new 360° View and Sentiment ranks.
360° Viewnew| Country | USA |
| Industry | Building Products |
| Index | Sound Pay USA, NASDAQ |
| Size class | Large |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.
Review the performance ranks of the individual metrics that form each investment strategy.
Research History: American Woodmark
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 58 |
|
87 |
|
87 |
|
83 |
|
| GROWTH | ||||||||
| GROWTH | 9 |
|
23 |
|
57 |
|
53 |
|
| SAFETY | ||||||||
| SAFETY | 7 |
|
23 |
|
45 |
|
45 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
79 |
|
49 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
55 |
|
67 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% compared with investment alternatives), American Woodmark (Building Products, USA) shares have much better financial characteristics than comparable stocks. Shares of American Woodmark are a good value (attractively priced) with a consolidated Value Rank of 83 (better than 83% of alternatives), show above-average growth (Growth Rank of 53) but are riskily financed (Safety Rank of 45), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 78, is a strong buy recommendation based on American Woodmark's financial characteristics. As the company American Woodmark's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 83) and above-average growth (Obermatt Growth Rank of 53), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 45) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 58 |
|
87 |
|
87 |
|
83 |
|
| GROWTH | ||||||||
| GROWTH | 9 |
|
23 |
|
57 |
|
53 |
|
| SAFETY | ||||||||
| SAFETY | 7 |
|
23 |
|
45 |
|
45 |
|
| COMBINED | ||||||||
| COMBINED | 9 |
|
40 |
|
81 |
|
78 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 83 (better than 83% compared with alternatives) for 2024, American Woodmark shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for American Woodmark. Price-to-Sales (P/S) is 78, which means that the stock price compared with what market professionals expect for future sales is lower than for 78% of comparable companies, indicating a good value regarding American Woodmark's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 90% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 76. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 1% of all competitors have even lower dividend yields than American Woodmark (a Dividend Yield Rank of 1). 99% alternative investments in the same business provide a higher dividend yield. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 83, is a buy recommendation based on American Woodmark's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 92 |
|
92 |
|
79 |
|
78 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 46 |
|
91 |
|
91 |
|
90 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 76 |
|
86 |
|
78 |
|
76 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 58 |
|
87 |
|
87 |
|
83 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 53 (better than 53% compared with alternatives), American Woodmark shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for American Woodmark. Sales Growth has a rank of 70 which means that currently professionals expect the company to grow more than 70% of its competitors. Stock Returns are also above average with a rank of 69. But Capital Growth has only a rank of 18, which means that currently professionals expect the company to grow its invested capital less than 82% of its competitors. Profit Growth is also low, with a rank of only 33, which means that, currently, professionals expect the company to grow its profits below average. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 53, is a buy recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 69% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 31 |
|
43 |
|
34 |
|
70 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 31 |
|
6 |
|
60 |
|
33 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
93 |
|
32 |
|
18 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 18 |
|
13 |
|
87 |
|
69 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 9 |
|
23 |
|
57 |
|
53 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 45 (better than 45% compared with alternatives), the company American Woodmark has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of American Woodmark is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for American Woodmark. Leverage is at a rank of 50, meaning the company has a below-average debt-to-equity ratio. It has less debt than 50% of its competitors. Liquidity is also good at a rank of 62, meaning the company generates more profit to service its debt than 62% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 49, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 51% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 45 (worse than 55% compared with alternatives), American Woodmark has a financing structure that is riskier than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for American Woodmark. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with American Woodmark and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 4 |
|
38 |
|
44 |
|
50 |
|
| REFINANCING | ||||||||
| REFINANCING | 62 |
|
56 |
|
57 |
|
49 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 24 |
|
17 |
|
61 |
|
62 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 7 |
|
23 |
|
45 |
|
45 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
39 |
|
13 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
79 |
|
94 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
69 |
|
75 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
50 |
|
36 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
79 |
|
49 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for American Woodmark from November 14, 2024.
Obermatt Portfolio Performance
We’re so convinced about our free research, that we buy our stock tips.
See the performance of the Obermatt portfolio.