Masonite International Corporation is a global manufacturer of interior and exterior doors for residential and commercial markets. The company was founded in 1925 and is headquartered in Tampa, Florida, USA. Masonite operates in North America, Europe, Asia, and Latin America. In this post, I will evaluate if Masonite International Corporation is a good stock to buy.
- Masonite International Corporation at a glance
- Masonite International Corporation stock price
- Masonite International Corporation’s financial analyze
- Is Masonite International Corporation a good company?
- Building Products & Equipment industry overview
- Interior and exterior doors market overview
- Masonite International Corporation Summary
Masonite International Corporation at a glance
Masonite’s product offerings include a variety of interior and exterior doors for residential and commercial use, as well as related products such as door components and door systems. The company’s products are sold through a variety of channels, including retail stores, wholesale distributors, and directly to builders and contractors.
Masonite has been recognized for its innovation and commitment to sustainability, with a focus on using environmentally friendly materials and reducing waste in its manufacturing processes. The company also expanded its product offerings through strategic acquisitions, including the acquisition of DW3 Products Holding Ltd. in 2021.
- Sector: Industrials
- Industry: Building Products & Equipment
Company website: https://www.masonite.com
Masonite International Corporation stock price
Here is the historical price of Masonite International Corporation (DOOR):
The Masonite International Corporation stock price has been globally bullish since 2009 year.
Masonite International Corporation’s financial analyze
Masonite Key Statistics and Financials
Here are the main key statistics of Masonite International Corporation for the first 2023 quarter:
|9.63 $||0%||9.43||2.75||1.75||2.02B $|
Here is an interpretation of the main Masonite International Corporation financial keys. I will give you my point of view about the PER, the P/B, and the Beta.
What about a stock having a 9.43 PER?
A stock with a P/E ratio (PER) of 9.43 is considered relatively cheap compared to the overall market, as the average P/E ratio of the market can vary depending on the sector and market conditions.
The P/E ratio is a valuation metric calculated by dividing a stock’s current market price by its earnings per share (EPS) over the last 12 months. A low P/E ratio can indicate that the stock is undervalued and potentially a good investment opportunity. However, it’s important to note that a low P/E ratio can also mean that there are underlying issues with the company or industry that are causing investors to be cautious.
Investors should conduct further research into the company, its financials, and the industry before making investment decisions. It’s also important to consider other factors, such as the company’s growth prospects, management team, and competitive position in the market, in addition to the P/E ratio.
What about a stock having a 2.75 P/B?
A stock with a P/B (price-to-book) ratio of 2.75 implies that the market value of the company’s equity is 2.75 times the value of its total assets minus liabilities (book value). Generally, a P/B ratio of less than 1 suggests that the stock may be undervalued, while a P/B ratio of greater than 1 indicates that the stock may be overvalued.
However, it is essential to note that the interpretation of a company’s P/B ratio should be considered in the context of its industry and specific circumstances. A company operating in a capital-intensive industry may have a higher P/B ratio than a company operating in a less capital-intensive industry. Additionally, a company with a high level of intangible assets, such as intellectual property, may have a higher P/B ratio than a company with a lower level of intangible assets.
Therefore, it is important to thoroughly analyze the company’s financial statements, business model, industry, and macroeconomic factors before making any investment decisions based on a single metric, such as the P/B ratio.
What about a stock having a 1.75 beta?
A stock with a beta of 1.75 is more volatile than the overall market. This means that if the market goes up or down by 1%, the stock could potentially go up or down by 1.75%.
Investors who are willing to take on more risk may choose to invest in stocks with higher betas in order to potentially earn higher returns. However, it’s important to remember that higher volatility also means there is a greater chance of losing money.
Before investing in a stock with a high beta, it’s essential to do your research and consider your overall investment strategy and risk tolerance. Diversifying your portfolio with a mix of stocks with different betas and risk profiles is also a good idea.
Masonite Financial Ratios
Here are the seven main financial ratios of Masonite International Corporation:
|Quick Ratio||Working Capital||Return On Equity||Debt To Equity||Fixed Asset Ratio||Fixed Interest Cover|
Here is an interpretation of the main Masonite International Corporation financial keys. I will give you my point of view about the financial health of Masonite International.
What about a stock having a 2.17 Quick Ratio?
A quick ratio of 2.17 indicates that a company has sufficient liquid assets to cover its short-term liabilities. A quick ratio, also known as the acid-test ratio, measures a company’s ability to meet its short-term obligations with its most liquid assets. A quick ratio of 2.17 means that the company has 2.17 times more liquid assets than short-term liabilities, which is generally considered a good indicator of a company’s financial health. However, it’s important to consider other factors when evaluating a stock, such as its industry, competitors, management team, and overall market conditions.
What about a stock having a 0.26 Working Capital?
A working capital of 0.26 typically means that the company may have a liquidity issue and may struggle to meet its short-term financial obligations. It indicates that the company’s current liabilities exceed its current assets by a significant margin. This may be a cause for concern for investors, as it may signal that the company may face difficulties in paying its bills or expanding its operations. Therefore, looking at other financial metrics and factors before making any investment decisions based solely on the working capital ratio is essential.
What about a stock having a 0.29 Return-On-Equity?
Return on equity (ROE) is a measure of a company’s profitability, indicating how much profit a company generates with the money shareholders have invested. A stock with an ROE of 0.29 means that the company generates a profit of 29 cents for every dollar of shareholder equity.
A 0.29 ROE is relatively low, and investors typically look for stocks with ROEs that are higher than the industry average or the stock’s historical average. However, it is important to consider other factors as well, such as the company’s industry, growth prospects, financial health, and management team.
In general, a low ROE could indicate that a company is not generating enough profits from its investments or that it has high levels of debt that are eating into its profits. It could also mean that the company has a lot of assets but is not using them efficiently to generate profits. Investors should conduct further research and analysis to understand the reasons behind a low ROE before making any investment decisions.
What about a stock having a 1.18 Debt-To-Equity?
A stock with a debt-to-equity ratio of 1.18 indicates that the company has higher debt levels than equity. It means that the company has financed a larger portion of its operations through borrowing than through the sale of its own stock. While a higher debt-to-equity ratio may indicate a higher financial risk, it can also signify that the company is able to take advantage of financial leverage to generate higher returns on equity. Investors may want to consider the company’s financial health, industry trends, and growth potential before making any investment decisions.
What about a stock having a 0.07 Fixed Asset Ratio?
A fixed asset ratio of 0.07 indicates that the company has a relatively low proportion of fixed assets compared to its total assets. This means that the company may have a lower level of investment in long-term assets such as property, plant, and equipment, which can be a sign of a more asset-light business model.
However, it’s important to consider this ratio in the context of the company’s industry and business model. Some industries, such as technology and software, may have lower fixed asset ratios due to their focus on intellectual property and intangible assets rather than physical assets. On the other hand, industries such as manufacturing or construction may have higher fixed asset ratios due to their heavy reliance on physical assets.
What about a stock having a 7.14 Fixed Interest Cover?
The Fixed Interest Cover (FIC) is a financial metric that measures a company’s ability to pay the interest on its outstanding debt. A FIC of 7.14 means that a company’s operating income is 7.14 times larger than its interest expense.
A high FIC is generally seen as a positive sign, suggesting that a company can meet its interest obligations. However, it’s important to note that the optimal FIC may vary depending on the industry and the company’s financial structure.
Generally, a FIC of 7.14 is considered relatively high and may indicate that the company has a solid financial position. However, it’s important to conduct further research and analysis to determine whether the stock is a good investment opportunity.
Is Masonite International Corporation a good company?
Masonite is a well-established company with a long history of manufacturing interior and exterior doors for residential and commercial use. The company has a global presence and has demonstrated a commitment to sustainability and innovation.
Like any company, Masonite is subject to risks and uncertainties, including changes in the economy, shifts in consumer preferences, and fluctuations in raw materials prices. It’s important for investors to conduct their own research and analysis before making any investment decisions and to consult with a financial advisor to determine whether Masonite is a suitable investment for their individual needs and goals.
Building Products & Equipment industry overview
The Building Products & Equipment industry is a sector that includes companies involved in the manufacturing and distribution of products and equipment used in the construction industry. This includes a wide range of products such as lumber, doors and windows, roofing and siding, insulation, plumbing fixtures, HVAC systems, electrical wiring, and more.
The industry is closely tied to the health of the housing market and construction activity, as demand for building products and equipment typically increases during periods of economic growth and housing market expansion. However, the industry can also be impacted by factors such as changes in building codes and regulations, advancements in technology, and shifts in consumer preferences.
Building Products and Equipment companies
Here is a list of some Building Products and Equipment listed stocks:
- Armstrong World Industries Inc. (AWI)
- Builders FirstSource Inc. (BLDR)
- Fastenal Company (FAST)
- Fortune Brands Home & Security Inc. (FBHS)
- Gibraltar Industries Inc. (ROCK)
- Interface Inc. (TILE)
- Lennox International Inc. (LII)
- Masco Corporation (MAS)
- Owens Corning Inc. (OC)
- Simpson Manufacturing Co. Inc. (SSD)
- Stanley Black & Decker Inc. (SWK)
- The Home Depot Inc. (HD)
- Trex Company Inc. (TREX)
- Watsco Inc. (WSO)
- Whirlpool Corporation (WHR)
Overall, the Building Products & Equipment industry can offer investment opportunities for those interested in the construction and real estate sectors. Still, you should carefully evaluate individual companies based on factors such as financial performance, market share, and growth potential before making investment decisions.
Interior and exterior doors market overview
The interior and exterior doors market is a segment of the Building Products & Equipment industry that focuses specifically on manufacturing and distributing doors used in residential and commercial settings.
The market includes a variety of door types, such as entry doors, patio doors, interior doors, sliding doors, and more. Materials used in the construction of doors can also vary widely, including wood, fiberglass, steel, and other materials.
The interior and exterior doors market is driven by factors such as new construction and renovation activity in the residential and commercial real estate sectors and changes in consumer preferences for design and functionality. Demand for more energy-efficient and secure doors is also a growing trend in the industry.
New Privately-Owned Housing Units Started: Total Units
New Privately-Owned Housing Units Started is a measure of the number of new residential housing units on which construction has been started during a given period. This includes all types of privately-owned housing units, including single-family homes, townhouses, and apartment buildings.
This indicator is important because it provides insight into the level of new housing supply in the market, which can affect the demand for construction materials, labor, and other related products and services. It also has implications for the overall health of the housing market and the economy, as housing is often a key driver of economic growth.
It clearly appears that the number of new residential housing units is strongly impacted by economic cycles. In consequence, Masonite International’s return should be impacted by these cycles. However, the Masonite International stock price seems well resisted to the recent decrease in the number of privately-owned housing units.
Interior and exterior doors market key players
Here is a list of some Interior and Exterior Doors companies:
- JELD-WEN Holding, Inc. (JELD)
- Masonite International Corporation (DOOR)
- Griffon Corporation (GFF)
- Andersen Corporation (privately held)
- Pella Corporation (privately held)
- Ply Gem Holdings Inc (PGEM)
- PGT Innovations, Inc. (PGTI)
- Marvin Windows and Doors (privately held)
- Simpson Door Company (privately held)
- Therma-Tru Doors (a division of Fortune Brands Home & Security, Inc.) (FBHS)
- Western Window Systems (privately held)
- Sierra Pacific Industries (privately held)
Overall, the interior and exterior doors market can provide investment opportunities for those interested in the building products and construction sectors, but you should carefully evaluate individual companies based on factors such as financial performance, market share, and growth potential before making investment decisions.
Masonite International Corporation Summary
- Masonite International Corporation is a global manufacturer of doors for both residential and commercial use. The company offers a wide range of interior and exterior doors made from various materials, including wood, fiberglass, and steel. Masonite operates in North America, Europe, and the Asia-Pacific region and has a diversified customer base, including builders, contractors, retailers, and wholesalers.
- In recent years, Masonite has focused on expanding its product offerings, improving operational efficiencies, and leveraging digital technology to enhance the customer experience. The company has also made strategic acquisitions to strengthen its position in key markets.
- Masonite’s financial performance has generally been strong, with revenue growth driven by higher sales volumes and price increases. The company has maintained a solid balance sheet and generated strong free cash flow.
- Overall, Masonite International Corporation is considered a leading player in the interior and exterior doors market and may be of interest to investors looking for exposure to the building products and construction sectors. However, investors should conduct their own research and consider factors such as valuation, competitive position, and growth prospects before making investment decisions.
Regarding the information I have on hand, I consider Masonite International Corporation is a good stock to buy from a long-term perspective. However, as a small cap with a 1.75 beta, Masonite International is more sensitive to global economic variation than a big cap. It would be better only to add a little stack of stocks into your portfolio.
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