# MasterBrand (MBC.US)

Canonical: https://gigainvestors.com/s/MBC

Analysis as of: 2026-10-16T07:30:05.094Z. Financial observations: FY2019–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $6.84 per share; close as of 2026-10-15.

Estimated value: low $8.38 per share, central $9.41 per share, high $10.78 per share. Buy at or below the central value $9.41 per share. Valuation as of 2026-10-16T07:30:05.094Z; scenarios are not confidence intervals.

Expected annual return: 13.2% at the stated quote. About 13.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 7 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.21×

Chart: Operating margin; fiscal year observations.

- FY2019: 0.08×

- FY2020: 0.09×

- FY2021: 0.08×

- FY2022: 0.08×

- FY2023: 0.11×

- FY2024: 0.10×

- FY2025: 0.05×

### moat: pass

- ROIC, median of available years: 15.3%

- ROIC, second-lowest year: 12.0%

- Typical minus recent gross margin: -2.1 pp

- Typical gross margin (annual median): 28.1%

- Recent gross margin (lower of latest and 3-year median): 30.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.8%

- ROIC including acquisitions, ten-year median: 8.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2020: 13.5%

- FY2021: 12.0%

- FY2022: 19.3%

- FY2023: 26.4%

- FY2024: 17.0%

- FY2025: 6.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.06×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $711M

- Net income, five-year total: $673M

- Working capital / revenue, annual change: -1.1 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.06×

- FY2022: 1.06×

- FY2023: 1.04×

- FY2024: 0.97×

- FY2025: 1.57×

### management: fail

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- Per-share earnings: 1.14 to 0.96 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.2%

- Diluted shares, 5-year annual growth: 0.2%

- Per-share value growth: -4.1%

- Per-share value change: -$0.18

- Per-share value, starting three-year median: $1.14

- Per-share value, ending three-year median: $0.96

- Buybacks concentrated in cheaper years (correlation): 0.40

- Average buyback yield: 7.2%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- ROIC, last three-year median: 17.0%

Chart: Earnings per share; fiscal year observations.

- FY2019: $0.79

- FY2020: $1.14

- FY2021: $1.43

- FY2022: $1.20

- FY2023: $1.40

- FY2024: $0.96

- FY2025: $0.21

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -5.5%

- Receivables to sales index (DSRI): 0.78×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 8.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 7.33×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.25×

Chart: Sloan accruals; fiscal year observations.

- FY2020: -2.2%

- FY2021: 1.1%

- FY2022: -3.2%

- FY2023: -9.4%

- FY2024: -5.7%

- FY2025: -5.5%

## Holders

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 64% since Mar 2024 · "MasterBrand signals $30M 2026 cost reductions as tariff and demand headwinds persist" (seekingalpha.com, Feb 2026) · sales +1.3%

Story as of 2026-10-16T09:59:07.929Z; price observation 2026-10-15.

Price needs cash profits to shrink 3.6% a year for ten years

- 2025-08-12: MasterBrand outlook revised to positive on American Woodmark merger ([investing.com](https://www.investing.com/news/stock-market-news/masterbrand-outlook-revised-to-positive-on-american-woodmark-merger-93CH-4186209))

- 2025-11-05: MasterBrand updates 2025 EBITDA guidance to $315M–$335M amid evolving tariff landscape and merger preparations ([seekingalpha.com](https://seekingalpha.com/news/4515341-masterbrand-updates-2025-ebitda-guidance-to-315m-335m-amid-evolving-tariff-landscape-and?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-11: MasterBrand signals $30M 2026 cost reductions as tariff and demand headwinds persist ([seekingalpha.com](https://seekingalpha.com/news/4549912-masterbrand-signals-30m-2026-cost-reductions-as-tariff-and-demand-headwinds-persist?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-05-09: MasterBrand (MBC) Valuation Check After Softer Q1 Results And Weaker Sales Outlook ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/masterbrand-mbc-valuation-check-softer-201338558.html))

### Sales · FY2024–2025

sales +1.3%; source https://www.sec.gov/Archives/edgar/data/1941365/000194136526000006/mbc-20251228.htm; observed 2026-02-13.

- FY2019: $2.4B 

- FY2020: $2.5B 

- FY2021: $2.9B 

- FY2022: $3.3B 

- FY2023: $2.7B 

- FY2024: $2.7B 

- FY2025: $2.7B 

### Gross margin · FY2025

gross margin 30.3%; source https://www.sec.gov/Archives/edgar/data/1941365/000194136526000006/mbc-20251228.htm; observed 2026-02-13.

- FY2019: 28.1% 

- FY2020: 27.8% 

- FY2021: 26.7% 

- FY2022: 28.1% 

- FY2023: 32.1% 

- FY2024: 31.8% 

- FY2025: 30.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in furnishings, fixtures & appliances; annual sales are USD 2.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1941365/000194136526000006/mbc-20251228.htm (filed 2026-02-13); FY2025: revenue 2734700000; grossProfit 827600000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); MBC.US: MasterBrand, Inc. engages in the manufacture and sale of residential cabinets in the United States, Canada, and Mexico. The company offers a range of residential cabinetry products, such as stock, semi-custom, and premium cabinetry for the kitchen, bathroom, and other parts of the home. It sells its products to remodeling and new construction markets through dealers, retailers, and builders. MasterBrand, Inc. was founded in 1954 and is headquartered in Beachwood, Ohio.

### Why customers stay

Margins ranged from 30.3% to 32.1% during 2023–25; it earns 15.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: grossProfit / revenue = 32.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: grossProfit / revenue = 31.8%.

- Source: https://www.sec.gov/Archives/edgar/data/1941365/000194136526000006/mbc-20251228.htm (filed 2026-02-13); FY2025: grossProfit / revenue = 30.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); 7-year return on capital observations [[2020,0.13523258096581517],[2021,0.12040222439514342],[2022,0.19344977421828405],[2023,0.26431834158985],[2024,0.1697810773366699],[2025,0.06307302964569776]]; median 0.15250682915124253. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 4 of 7 years; bought back USD 18.1 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2019: growth capex 0; upkeep 30900000; owner earnings 144800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2020: growth capex 0; upkeep 27300000; owner earnings 184200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2021: growth capex 0; upkeep 51600000; owner earnings 193200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2022: growth capex 0; upkeep 55900000; cash acquisitions 0; owner earnings 164000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: growth capex 0; upkeep 57300000; cash acquisitions 0; owner earnings 189000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: growth capex 0; upkeep 80900000; cash acquisitions 514500000; owner earnings 122300000. Growth capex plus acquisitions / owner earnings = 4.206868356500409.

- Source: https://www.sec.gov/Archives/edgar/data/1941365/000194136526000006/mbc-20251228.htm (filed 2026-02-13); FY2025: growth capex 0; upkeep 78200000; cash acquisitions 0; owner earnings 42000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Dividend observations: [[2019,940000000],[2020,940000000],[2021,940000000],[2022,940000000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1941365/000194136526000006/mbc-20251228.htm (filed 2026-02-13); FY2025: cash repurchases 18100000 USD.

### Are managers owners

Insiders own 1.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); MBC.US SharesStats.PercentInsiders = 1.551 percentage points; cache date 2026-10-15.

### What could break it

We may face challenges in: (1) maintaining, developing or expanding our customer relationships.

- Source: https://www.sec.gov/Archives/edgar/data/1941365/000194136526000006/mbc-20251228.htm (filed 2026-02-13); Furthermore, we compete with numerous large national and regional companies for, among other things, customers, raw materials, skilled management and labor resources. We may face challenges in: (1) maintaining, developing or expanding our customer relationships; (2) sourcing raw materials on a timely basis or for a cost-effective price due to ongoing global supply chain issues, tariffs and elevated inflation; and (3) attracting and retaining qualified personnel at all levels, including our senior management team and other key associates. 9 Table of Contents We face competition with respect to some of our products from competitors who operate in countries with lower labor and compliance costs.

### What the price says

The price assumes cash profits shrink 3.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Ten-year compound average after fade. Initial solved rate -0.06386915296059134. Price 6.84; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2022-12: $7.55 per share

- 2023-01: $9.20 per share

- 2023-02: $9.74 per share

- 2023-03: $8.04 per share

- 2023-04: $8.07 per share

- 2023-05: $10.38 per share

- 2023-06: $11.63 per share

- 2023-07: $12.35 per share

- 2023-08: $12.81 per share

- 2023-09: $12.15 per share

- 2023-10: $11.11 per share

- 2023-11: $13.42 per share

- 2023-12: $14.85 per share

- 2024-01: $14.07 per share

- 2024-02: $17.31 per share

- 2024-03: $18.74 per share

- 2024-04: $16.67 per share

- 2024-05: $16.71 per share

- 2024-06: $14.68 per share

- 2024-07: $18.05 per share

- 2024-08: $16.04 per share

- 2024-09: $18.54 per share

- 2024-10: $17.96 per share

- 2024-11: $17.30 per share

- 2024-12: $14.61 per share

- 2025-01: $17.32 per share

- 2025-02: $13.99 per share

- 2025-03: $13.06 per share

- 2025-04: $12.15 per share

- 2025-05: $10.20 per share

- 2025-06: $10.93 per share

- 2025-07: $11.03 per share

- 2025-08: $12.71 per share

- 2025-09: $13.17 per share

- 2025-10: $12.63 per share

- 2025-11: $11.09 per share

- 2025-12: $11.04 per share

- 2026-01: $12.12 per share

- 2026-02: $10.12 per share

- 2026-03: $8.31 per share

- 2026-04: $8.98 per share

- 2026-05: $8.68 per share

- 2026-06: $10.29 per share

- 2026-07: $8.25 per share

- 2026-08: $8.25 per share

- 2026-09: $7.00 per share

- 2026-10: $6.84 per share

## Annual estimated value (USD per share)

- FY2023: low $16.25 per share, central $18.39 per share, high $21.24 per share

- FY2024: low $15.77 per share, central $17.87 per share, high $20.67 per share

- FY2025: low $12.58 per share, central $14.18 per share, high $16.30 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1941365/000194136526000006/mbc-20251228.htm); period 2025-12-28, filed 2026-02-13.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.