MASTERBRAND INC (MBC) Stock Fundamental Analysis
NYSE:MBC - New York Stock Exchange, Inc. - US57638P1049 - Common Stock - Currency: USD
Taking everything into account, MBC scores 4 out of 10 in our fundamental rating. MBC was compared to 41 industry peers in the Building Products industry. MBC has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on MBC.
1. Profitability
1.1 Basic Checks
MBC had positive earnings in the past year.
MBC had a positive operating cash flow in the past year.
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
With a Return On Assets value of 3.44%, MBC is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
The Return On Equity of MBC (7.78%) is worse than 65.85% of its industry peers.
MBC's Return On Invested Capital of 7.55% is on the low side compared to the rest of the industry. MBC is outperformed by 63.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MBC is below the industry average of 13.12%.
| 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
MBC's Profit Margin of 3.74% is on the low side compared to the rest of the industry. MBC is outperformed by 65.85% of its industry peers.
In the last couple of years the Profit Margin of MBC has grown nicely.
Looking at the Operating Margin, with a value of 9.52%, MBC is in line with its industry, outperforming 41.46% of the companies in the same industry.
MBC's Operating Margin has improved in the last couple of years.
MBC has a Gross Margin (32.12%) which is in line with its industry peers.
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.
The number of shares outstanding for MBC has been increased compared to 1 year ago.
Compared to 1 year ago, MBC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.55 indicates that MBC is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.55, MBC is doing worse than 70.73% of the companies in the same industry.
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.
MBC's Debt to FCF ratio of 6.69 is on the low side compared to the rest of the industry. MBC is outperformed by 63.41% of its industry peers.
MBC has a Debt/Equity ratio of 0.81. This is a neutral value indicating MBC is somewhat dependend on debt financing.
MBC has a worse Debt to Equity ratio (0.81) than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.69 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.78
WACC9.69%
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 of 1.90. This is comparable to the rest of the industry: MBC outperforms 48.78% of 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.
MBC has a Quick ratio of 1.10. This is comparable to the rest of the industry: MBC outperforms 43.90% of its industry peers.
| 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 -22.73% in the last year.
The Earnings Per Share has been growing slightly by 4.01% on average over the past years.
MBC shows a decrease in Revenue. In the last year, the revenue decreased by -0.95%.
Measured over the past years, MBC shows a small growth in Revenue. The Revenue has been growing by 2.48% on average per year.
EPS 1Y (TTM)-22.73%
EPS 3Y-12.38%
EPS 5Y4.01%
EPS Q2Q%-11.11%
Revenue 1Y (TTM)-0.95%
Revenue growth 3Y-1.84%
Revenue growth 5Y2.48%
Sales Q2Q%8.04%
3.2 Future
Based on estimates for the next years, MBC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.40% on average per year.
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-17.7%
EPS Next 2Y-1.76%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 11.16, the valuation of MBC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MBC indicates a rather cheap valuation: MBC is cheaper than 92.68% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MBC to the average of the S&P500 Index (27.11), we can say MBC is valued rather cheaply.
A Price/Forward Earnings ratio of 10.19 indicates a reasonable valuation of MBC.
Based on the Price/Forward Earnings ratio, MBC is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.78, MBC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 10.19 |
4.2 Price Multiples
92.68% of the companies in the same industry are more expensive than MBC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MBC indicates a rather cheap valuation: MBC is cheaper than 95.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.64 | ||
| EV/EBITDA | 7.35 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.78
EPS Next 2Y-1.76%
EPS Next 3Y9.4%
5. Dividend
5.1 Amount
MBC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.28
+0.81 (+6.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.69%
Inst Owner Change1.15%
Ins Owners1.31%
Ins Owner Change14.57%
Market Cap1.68B
Analysts80
Price Target15.3 (15.21%)
Short Float %3.4%
Short Ratio4.97
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)0%
PT rev (3m)-21.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15%
EPS NY rev (1m)0%
EPS NY rev (3m)-24.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 10.19 | ||
| P/S | 0.62 | ||
| P/FCF | 10.64 | ||
| P/OCF | 6.96 | ||
| P/B | 1.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.35 |
EPS(TTM)1.19
EY8.96%
EPS(NY)1.3
Fwd EY9.81%
FCF(TTM)1.25
FCFY9.4%
OCF(TTM)1.91
OCFY14.37%
SpS21.48
BVpS10.31
TBVpS-3.04
PEG (NY)N/A
PEG (5Y)2.78
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 | 2.55 |
F-Score4
WACC9.69%
ROIC/WACC0.78
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)-22.73%
EPS 3Y-12.38%
EPS 5Y4.01%
EPS Q2Q%-11.11%
EPS Next Y-17.7%
EPS Next 2Y-1.76%
EPS Next 3Y9.4%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.95%
Revenue growth 3Y-1.84%
Revenue growth 5Y2.48%
Sales Q2Q%8.04%
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%