American Woodmark Corporation (NASDAQ:AMWD) reported earnings per share (EPS) of $1.05, missing the estimated $1.72.
The company’s revenue was $397.58 million, below the expected $440.61 million, due to reduced demand in the remodel market and a decline in new construction activity.
Despite the financial shortfall, AMWD maintains a strong financial position with a price-to-earnings (P/E) ratio of 9.01 and a price-to-sales ratio of 0.52, indicating potential investment opportunities.
American Woodmark Corporation (NASDAQ:AMWD) is a prominent player in the cabinetry industry, providing a wide range of kitchen and bath cabinets for the remodeling and new home construction markets. The company faces competition from other major manufacturers like Masco Corporation and Fortune Brands Home & Security. Despite its strong market presence, AMWD’s recent financial performance has been under scrutiny.
On February 27, 2025, AMWD reported its earnings for the third fiscal quarter, revealing an earnings per share (EPS) of $1.05, which was below the estimated $1.72. The company’s revenue also fell short, coming in at $397.58 million against an expected $440.61 million. This shortfall is attributed to reduced demand in the remodel market and a decline in new construction single-family activity, as highlighted during the earnings call.
The earnings call featured key executives, including CFO Paul Joachimczyk and CEO Scott Culbreth, who addressed analysts from Wolfe Research, Thompson Research Group, and Baird. Despite the disappointing results, the company remains optimistic about future growth, focusing on strategies to achieve profitability once macroeconomic conditions improve. The full transcript of the call is available on Seeking Alpha for those interested in more details.
Financially, AMWD maintains a relatively low valuation with a price-to-earnings (P/E) ratio of 9.01 and a price-to-sales ratio of 0.52. These figures suggest that the stock is trading at a low price relative to its earnings and sales. The enterprise value to sales ratio of 0.56 further reflects the company’s valuation in relation to its revenue, indicating potential investment opportunities.
AMWD’s financial health is underscored by its enterprise value to operating cash flow ratio of 9.33, which highlights its cash flow generation capabilities. The company also boasts an earnings yield of 11.10%, offering a substantial return on investment. With a debt-to-equity ratio of 0.12 and a current ratio of 2.01, AMWD demonstrates a strong financial position, capable of covering short-term liabilities with its assets.
