American Woodmark Corporation
American Woodmark Corporation (NASDAQ: AMWD) creates and sells kitchen cabinets and vanities for the remodeling and new home construction markets. The company provides framed stock cabinets in over 400 different cabinet lines. Its products are sold nationally in the remodeling and new home construction markets throughout the United States.
Why should Investors make an Exit?
Valuation Methodology: EV/EBITDA Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
AMWD's stock price has been on a bearish trend throughout the year, fallen 52.57% in the past twelve months and is currently leaning towards the lower end of its 52-week range of USD 44.01 to USD 105.90. We have valued the stock using the EV/EBITDA-based relative valuation methodology and arrived at a target price of USD 44.02.
Considering the decline in operating income, bottom-line pressure, associated risk, bearish technical indicators, and current valuation, we recommend a "Sell" rating on the stock at the current price of USD 47.61, up 0.76% as of April 08, 2022, at 9:07 AM PDT.
Three-Year Technical Price Chart (April 08, 2022, at 9:07 AM PDT). Source: REFINITIV, Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.