One-glance verdict
Within fair range
$5.15 our estimate vs market $7.43
Wall Street consensus: $10.36 (101.0% higher than our fair-value estimate)
44% above our estimate
Fundamentals snapshot
MasterBrand, Inc.
MBC · NYQ · Consumer Cyclical · Furnishings, Fixtures & Appliances
Current price
$7.43
52-week range
$6.61 - $14.22
Market cap
$1.51B
Balance sheet
Stretched
1.81x Concerning
Net debt $1.45B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 1.5% last year.
- Reward Free cash flow was positive in 5/10 years.
- Risk Net debt grew 6.2% over 3 years.
- Risk Operating margin compressed from 8.4% to 2.3% over 3 years.
What this company does
MasterBrand, Inc.
MasterBrand is one of North America's largest makers of cabinets for kitchens, bathrooms, and other parts of the home. The company makes money by selling its products, which range from affordable to premium, to dealers, retailers, and builders for both new home construction and remodeling projects. This means its business success is often linked to the health of the housing market and home renovation spending.
How the company got here
Founded in 1954 as United Cabinet Company, the business has grown significantly through buying other companies. A major turning point came in December 2022, when it was spun off (separated) from its parent company, Fortune Brands, to become its own publicly traded company called MasterBrand, Inc. This move allowed MasterBrand to focus entirely on its main business of making and selling cabinets. More recently, in May 2026, MasterBrand completed a large merger (the combining of two companies into one) with American Woodmark, another major cabinet manufacturer, to expand its product offerings and reach.
What it actually does
MasterBrand is the largest manufacturer of residential cabinets in North America. It makes and sells a wide variety of cabinets for kitchens, bathrooms, and other rooms in the house. These products are sold to customers who are remodeling their homes as well as to builders constructing new homes. The company sells its cabinets through a large network of dealers, big retail stores like Lowe's, and directly to builders.
Stock Cabinetry
This part of the business focuses on producing affordable, ready-to-install cabinets that come in standard sizes and popular styles. These are the types of cabinets you might find in-stock at a large home improvement store, designed for homeowners and builders who need a quick and budget-friendly solution. Because they are mass-produced with fewer customization options, they can be delivered to customers much faster. This segment caters to the value-focused part of the market and represents a significant portion of the company's sales.
Semi-Custom Cabinetry
This segment offers a middle ground between basic stock cabinets and fully custom ones, providing more choices in style, finish, and storage features. Customers, often working with kitchen designers or dealers, can select from a wider range of options to better fit their specific tastes and needs without the higher cost of completely custom work. This is a core part of MasterBrand's business, appealing to a large number of homeowners undertaking remodeling projects. Many of the company's well-known brands, like Diamond, fall into this popular category.
Premium & Custom Cabinetry
This business line caters to the high-end market, offering highly customizable cabinets for customers who want very specific designs, materials, and features. Homeowners work with designers to create unique cabinetry tailored exactly to their space and preferences, with brands like Omega specializing in these made-to-order products. This segment is a smaller but important part of the business, often involving more detailed craftsmanship. The company has been growing this area through acquisitions (buying other companies), such as the purchase of Supreme Cabinetry Brands.
What management is betting on now
MasterBrand's current strategy focuses on successfully integrating its recent merger with American Woodmark to create a more efficient and comprehensive cabinet company. A key goal is to achieve significant cost synergies (savings that come from combining operations), with a target of over $100 million annually by reducing overlapping expenses and optimizing their manufacturing network. The company is also focused on managing its debt and improving its financial health following the merger. By offering a wider range of products across all price points, from basic to premium, management aims to gain a larger share of the market for both new home construction and remodeling projects.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$64.50M
FY2024 Q4
$68.80M
FY2025 Q1
$-41.20M
FY2025 Q2
$66.70M
FY2025 Q3
$39.50M
FY2025 Q4
$52.50M
FY2026 Q1
$-146.20M
FY2026 Q2
$128.60M
Revenue
$815.20M
Net income
$-57.60M
Diluted EPS
-0.38
Operating cash flow
$138.80M
Free cash flow
$128.60M
Fetching…
Sources
Revenue
$618.00M
Net income
$-15.40M
Diluted EPS
-0.12
Operating cash flow
$-133.00M
Free cash flow
$-146.20M
Fetching…
Sources
Revenue
$644.60M
Net income
$-42.00M
Diluted EPS
-0.32
Operating cash flow
$86.90M
Free cash flow
$52.50M
Fetching…
Sources
Revenue
$698.90M
Net income
$18.10M
Diluted EPS
0.14
Operating cash flow
$55.40M
Free cash flow
$39.50M
Fetching…
Sources
Revenue
$730.90M
Net income
$37.30M
Diluted EPS
0.29
Operating cash flow
$84.80M
Free cash flow
$66.70M
Fetching…
Sources
Revenue
$660.30M
Net income
$13.30M
Diluted EPS
0.10
Operating cash flow
$-31.40M
Free cash flow
$-41.20M
Fetching…
Sources
Revenue
$667.70M
Net income
$14.00M
Diluted EPS
0.10
Operating cash flow
$115.10M
Free cash flow
$68.80M
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Sources
Revenue
$718.10M
Net income
$29.10M
Diluted EPS
0.22
Operating cash flow
$80.80M
Free cash flow
$64.50M
Fetching…
Sources
Is it cheap or expensive?
Fair value $5.15 vs current price $7.43
Wall Street consensus is the average analyst price target: $10.36 (101.0% higher than our fair-value estimate).
Our most-likely fair value is $5.15 a share — about 30.6% away from today's price of $7.43, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $1.4B. Interest coverage 1.8x.
Net debt
$1.45B
Interest coverage
1.81x
MasterBrand, Inc.'s profit covers its interest bill about 1.8 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
MBC
BASELINE
MasterBrand, Inc.
Total debt $1.69B Interest coverage 1.81x This is the baseline the peer rows are being compared against.
Total debt $2.80B Interest coverage 5.39x +198% vs MBC Carries about 3.0x more debt cushion than MBC.
Total debt $3.49B Interest coverage 12.41x +585% vs MBC Carries about 6.9x more debt cushion than MBC.
Total debt $1.65B Interest coverage 3.70x +105% vs MBC Carries about 2.0x more debt cushion than MBC.
Total debt $23.95M Interest coverage -1.16x -100% vs MBC This peer has almost no interest-payment cushion compared with MBC.
Total debt $120.69M Interest coverage 203.19x +11,120% vs MBC Carries about 112.2x more debt cushion than MBC.
What you should know
The case for and against MBC
2 Rewards
3 Risks
Rewards
-
Revenue grew 1.5% last year.
-
Free cash flow was positive in 5/10 years.
Risks
-
Net debt grew 6.2% over 3 years.
-
Operating margin compressed from 8.4% to 2.3% over 3 years.
-
Return on equity was -5.8% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
30.96x
P/B
0.77x
P/S
0.54x
EV/EBITDA
17.89x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
26.9%
Operating margin
2.3%
Net margin
-3.5%
ROE
-5.8%
ROA
1.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.86x
Current ratio
1.76x
Quick ratio
0.81x
Total debt
$1.69B
Total cash
$241.60M
Growth
How the business has been compounding
Revenue TTM
$2.78B
Revenue 5Y CAGR
-1.1%
EPS TTM
-0.71
EPS 5Y CAGR
-44.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$148.10M
Free CF TTM
$117.50M
FCF margin
4.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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