2024-04-13 00:13:24 ET
Summary
- American Woodmark Corporation has experienced strong stock performance, with shares up 34.9% since June 2023 and 74.3% since February 2023.
- The company has seen weakness in revenue due to a decline in sales across key areas, but profitability has improved with net income and operating cash flow increasing.
- Management believes the future is bright, with opportunities for growth in the housing market and repair and remodeling activities, and the company is targeting $350 million in EBITDA by 2028.
One of my favorite things about value investing is that you don't need a company to continue to grow in order to achieve upside. If shares are cheap enough, even downside from a fundamental perspective can lead to attractive returns. This is because the market eventually comes to understand just how undervalued shares have been. And as a result, they end up getting pushed higher. One really good example that I could point to regarding this involves a company called American Woodmark Corporation ( AMWD ). For those who might not be familiar with it, it operates as a producer of cabinets and similar products....
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American Woodmark: Don't Close On Door On Further Upside Just Yet