MASTERBRAND INC (MBC) Stock Fundamental Analysis
NYSE:MBC - New York Stock Exchange, Inc. - US57638P1049 - Common Stock - Currency: USD
MBC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. There are concerns on the financial health of MBC while its profitability can be described as average. MBC may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
MBC had positive earnings in the past year.
In the past year MBC had a positive cash flow from operations.
MBC had positive earnings in each of the past 5 years.
In the past 5 years MBC always reported a positive cash flow from operatings.
1.2 Ratios
MBC's Return On Assets of 3.44% is on the low side compared to the rest of the industry. MBC is outperformed by 68.29% of its industry peers.
Looking at the Return On Equity, with a value of 7.78%, MBC is doing worse than 60.98% of the companies in the same industry.
MBC has a Return On Invested Capital of 7.55%. This is in the lower half of the industry: MBC underperforms 63.41% of its industry peers.
MBC had an Average Return On Invested Capital over the past 3 years of 9.96%. This is below the industry average of 12.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 7.78% | ||
| ROIC | 7.55% |
ROA(3y)6.03%
ROA(5y)5.91%
ROE(3y)13.46%
ROE(5y)10.88%
ROIC(3y)9.96%
ROIC(5y)8.67%
1.3 Margins
With a Profit Margin value of 3.74%, MBC is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
MBC's Profit Margin has improved in the last couple of years.
MBC has a Operating Margin (9.52%) which is in line with its industry peers.
In the last couple of years the Operating Margin of MBC has grown nicely.
With a Gross Margin value of 32.12%, MBC perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
MBC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.52% | ||
| PM (TTM) | 3.74% | ||
| GM | 32.12% |
OM growth 3Y7.36%
OM growth 5Y4.7%
PM growth 3Y-10%
PM growth 5Y2.03%
GM growth 3Y5.76%
GM growth 5Y2.32%
2. Health
2.1 Basic Checks
MBC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, MBC has more shares outstanding
Compared to 1 year ago, MBC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.44 indicates that MBC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of MBC (2.44) is worse than 73.17% of its industry peers.
MBC has a debt to FCF ratio of 6.69. This is a slightly negative value and a sign of low solvency as MBC would need 6.69 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.69, MBC is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.81 indicates that MBC is somewhat dependend on debt financing.
MBC has a worse Debt to Equity ratio (0.81) than 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.69 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.81
WACC9.3%
2.3 Liquidity
A Current Ratio of 1.90 indicates that MBC should not have too much problems paying its short term obligations.
MBC has a Current ratio (1.90) which is in line with its industry peers.
MBC has a Quick Ratio of 1.10. This is a normal value and indicates that MBC is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.10, MBC is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for MBC have decreased strongly by -17.88% in the last year.
The Earnings Per Share has been growing slightly by 4.01% on average over the past years.
Looking at the last year, MBC shows a small growth in Revenue. The Revenue has grown by 1.30% in the last year.
The Revenue has been growing slightly by 2.48% on average over the past years.
EPS 1Y (TTM)-17.88%
EPS 3Y-12.38%
EPS 5Y4.01%
EPS Q2Q%-37.93%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y-1.84%
Revenue growth 5Y2.48%
Sales Q2Q%3.48%
3.2 Future
The Earnings Per Share is expected to grow by 9.40% on average over the next years. This is quite good.
Based on estimates for the next years, MBC will show a small growth in Revenue. The Revenue will grow by 2.63% on average per year.
EPS Next Y-4.61%
EPS Next 2Y3.97%
EPS Next 3Y9.4%
EPS Next 5YN/A
Revenue Next Year-3.37%
Revenue Next 2Y0.43%
Revenue Next 3Y2.63%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.12, the valuation of MBC can be described as very reasonable.
95.12% of the companies in the same industry are more expensive than MBC, based on the Price/Earnings ratio.
MBC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.32.
MBC is valuated cheaply with a Price/Forward Earnings ratio of 6.90.
Based on the Price/Forward Earnings ratio, MBC is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
MBC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | 6.9 |
4.2 Price Multiples
MBC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MBC is cheaper than 90.24% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MBC indicates a rather cheap valuation: MBC is cheaper than 97.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.07 | ||
| EV/EBITDA | 6.47 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.02
EPS Next 2Y3.97%
EPS Next 3Y9.4%
5. Dividend
5.1 Amount
No dividends for MBC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.07
-0.45 (-4.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.19%
Inst Owner Change3.65%
Ins Owners1.24%
Ins Owner Change4.76%
Market Cap1.28B
Analysts76.67
Price Target15.3 (51.94%)
Short Float %3.1%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-28.09%
Min EPS beat(2)-45.28%
Max EPS beat(2)-10.89%
EPS beat(4)2
Avg EPS beat(4)-7.76%
Min EPS beat(4)-45.28%
Max EPS beat(4)16.48%
EPS beat(8)6
Avg EPS beat(8)10.07%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-4.16%
Min Revenue beat(2)-8.75%
Max Revenue beat(2)0.44%
Revenue beat(4)1
Avg Revenue beat(4)-2.71%
Min Revenue beat(4)-8.75%
Max Revenue beat(4)0.44%
Revenue beat(8)3
Avg Revenue beat(8)-1.91%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-21.05%
PT rev (3m)-21.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-22.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-10.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | 6.9 | ||
| P/S | 0.47 | ||
| P/FCF | 8.07 | ||
| P/OCF | 5.28 | ||
| P/B | 0.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.47 |
EPS(TTM)1.24
EY12.31%
EPS(NY)1.46
Fwd EY14.49%
FCF(TTM)1.25
FCFY12.4%
OCF(TTM)1.91
OCFY18.95%
SpS21.48
BVpS10.31
TBVpS-3.04
PEG (NY)N/A
PEG (5Y)2.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 7.78% | ||
| ROCE | 10% | ||
| ROIC | 7.55% | ||
| ROICexc | 7.9% | ||
| ROICexgc | 24.84% | ||
| OM | 9.52% | ||
| PM (TTM) | 3.74% | ||
| GM | 32.12% | ||
| FCFM | 5.81% |
ROA(3y)6.03%
ROA(5y)5.91%
ROE(3y)13.46%
ROE(5y)10.88%
ROIC(3y)9.96%
ROIC(5y)8.67%
ROICexc(3y)10.57%
ROICexc(5y)9.21%
ROICexgc(3y)31.9%
ROICexgc(5y)25.86%
ROCE(3y)13.18%
ROCE(5y)11.48%
ROICexcg growth 3Y23.64%
ROICexcg growth 5YN/A
ROICexc growth 3Y6.61%
ROICexc growth 5YN/A
OM growth 3Y7.36%
OM growth 5Y4.7%
PM growth 3Y-10%
PM growth 5Y2.03%
GM growth 3Y5.76%
GM growth 5Y2.32%
F-Score4
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.69 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 99.41% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.42% | ||
| Profit Quality | 155.56% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.44 |
F-Score4
WACC9.3%
ROIC/WACC0.81
Cap/Depr(3y)93.48%
Cap/Depr(5y)80.98%
Cap/Sales(3y)2.27%
Cap/Sales(5y)1.94%
Profit Quality(3y)158.23%
Profit Quality(5y)129.85%
High Growth Momentum
Growth
EPS 1Y (TTM)-17.88%
EPS 3Y-12.38%
EPS 5Y4.01%
EPS Q2Q%-37.93%
EPS Next Y-4.61%
EPS Next 2Y3.97%
EPS Next 3Y9.4%
EPS Next 5YN/A
Revenue 1Y (TTM)1.3%
Revenue growth 3Y-1.84%
Revenue growth 5Y2.48%
Sales Q2Q%3.48%
Revenue Next Year-3.37%
Revenue Next 2Y0.43%
Revenue Next 3Y2.63%
Revenue Next 5YN/A
EBIT growth 1Y-17.5%
EBIT growth 3Y5.38%
EBIT growth 5Y7.3%
EBIT Next Year3.5%
EBIT Next 3Y11.31%
EBIT Next 5YN/A
FCF growth 1Y-39.39%
FCF growth 3Y29.77%
FCF growth 5Y12.39%
OCF growth 1Y-28.01%
OCF growth 3Y25.37%
OCF growth 5Y14.47%