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Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Software - Infrastructure

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/06/26

Business Summary

American Woodmark manufactures and distributes cabinetry and related products, primarily serving the remodeling and new home construction markets. Cash generation is driven by volume throughput and tight cost control, with margins highly sensitive to raw material input costs and housing demand cycles. The company’s moat is scale-based: distribution relationships with large builders and retailers create recurring order flow that smaller competitors struggle to match. However, its competitive advantage is operational rather than technological, meaning sustained cash flow depends on execution efficiency and maintaining purchasing leverage rather than proprietary differentiation.

VALUATION

P/E

-

Market Cap ($M USD)

$506

Forward P/E

8.6

PEG

0.2

PRICE TO SALES

0.6

PRICE TO BOOK

1.3

EV / EBITDA

22.3

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

-$0.43

Next Year EPS Growth Estimate

$1.87

Next Year Revenue Growth Estimate

4.40%

Return on Equity (ROE)

-3.20%

Operating Margin

-1.90%

Debt-to-Equity

1.2

Piotroski F-Score

5

Altman Z-Score

1.1

Return on Invested Capital (ROIC)

-1.30%%

Current Ratio

1.4

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 36x earnings with a Forward P/E of 23.2 and a PEG of 0.9, the market is clearly pricing in a sharp earnings reset while still assigning some growth optionality. A Price/Sales of 0.4 and Price/Book of 0.7 scream deep value, yet the underlying profitability profile—2.00% operating margin, -2.00% ROE, and 2.40% ROIC—justifies skepticism. The Altman Z-Score of 2.4 places the company in a grey zone where balance sheet risk is not trivial, especially with 4.40% Debt/Equity. This is not a pristine compounder mispriced by the market; it is a cyclical asset with compressed profitability where the valuation reflects both distress risk and potential normalization.

AI Exposure / Tech Reliance

As a company in Furnishings, Fixtures & Appliances within Consumer Cyclical, AMWD operates in a traditionally low-tech, manufacturing-heavy segment where AI adoption is incremental rather than transformative. Efficiency gains would likely come from supply chain optimization and production automation rather than disruptive digital platforms. Its resilience to AI disruption is moderate—demand is tied more to housing and remodeling cycles than to technological obsolescence.

The Bull Case

A value-oriented investor will immediately notice the disconnect between asset valuation and earnings power: a 0.7 Price/Book and 0.4 Price/Sales ratio suggest the market is discounting assets heavily relative to revenue generation. The Piotroski F-Score of 6 indicates middling but stable financial quality rather than distress, and a Current Ratio of 2.4 signals adequate short-term liquidity. While ROIC is only 2.40%, the Forward P/E of 23.2 versus a PEG of 0.9 implies the market expects earnings recovery relative to the growth profile. Institutional ownership at 59.00% suggests serious capital is involved, which often provides downside support in cyclical turnarounds. If margins revert even modestly above the current 2.00% operating level, the embedded operating leverage could materially re-rate the equity from these depressed valuation multiples.

The Bear Case

The bear case is blunt: -2.00% ROE combined with a razor-thin 2.00% operating margin indicates structurally weak profitability. Debt/Equity at 4.40% adds balance sheet sensitivity at a time when earnings visibility appears poor, reinforced by the drastic shift from EPS of 10.4 to an estimated 1.17 next year. The Altman Z-Score of 2.4 does not offer comfort; it implies the company is not far from financial stress territory if macro conditions worsen. A 36 P/E on declining earnings is not cheap in absolute terms, and without dividend support (Dividend Per Share: -, Payout Ratio: -), shareholders are fully exposed to cyclical volatility with minimal income cushion.

Market Sentiment & Smart Money

Short Interest %

4.60%

Analyst Consensus

1.83

Average Analyst Price Target

$22.75

Institutional Ownership %

77.20%

1-Year Beta

1.33

Insider Buying % (6 Mo)

4.30%%

Distance to 52-Week High

86.50%%

Distance to 52-Week Low

142.50%%