Masonite International Intrinsic Value Calculation – Masonite International Reports Earnings for Q3 of FY2023
December 18, 2023
🌥️Earnings Overview
On November 7, 2023, Masonite International ($NYSE:DOOR) released their financial results for the third quarter of the 2023 fiscal year. Total revenue for Q3 was USD 702.2 million, a 3.5% decrease compared to the same period in the prior year. Year-over-year, net income decreased by 27.3% to a reported USD 41.5 million.
Share Price
However, in spite of this small dip in earnings, Masonite International’s stock prices opened at $85.9 on Tuesday and closed at $86.2, down only 0.2% from the prior closing price of $86.4. This increase in revenue was mainly attributed to the company’s strong performance in North America, with increased demand for their products and improved pricing. The company also highlighted their commitment to sustainability during this quarter. They announced a new initiative to reduce raw material waste by focusing on efficient product design and reducing production scrap.
They also announced several new partnerships with local organizations dedicated to promoting positive environmental practices in manufacturing. Overall, Masonite International reported a solid quarter, despite the slight decrease in net earnings. With increasing revenue and a focus on sustainability, the company has set itself up well for continued success in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Masonite International. More…
| Total Revenues | Net Income | Net Margin |
| 2.85k | 159.32 | 5.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Masonite International. More…
| Operations | Investing | Financing |
| 416.69 | -482.52 | 172.42 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Masonite International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.69k | 1.83k | 38.61 |
Key Ratios Snapshot
Some of the financial key ratios for Masonite International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.5% | 11.8% | 9.3% |
| FCF Margin | ROE | ROA |
| 9.9% | 19.8% | 6.1% |
Analysis – Masonite International Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of MASONITE INTERNATIONAL‘s fundamentals. Using our proprietary Valuation Line, we have calculated the intrinsic value of MASONITE INTERNATIONAL’s share at around $109.6. Currently, the stock is trading at $86.2, indicating a 21.3% undervaluation as of today. Therefore, we believe there is significant potential upside for investors in MASONITE INTERNATIONAL. More…
Peers
Masonite International Corp is one of the world’s largest manufacturers of interior and exterior doors. The company operates in North America, Europe, Asia, and South America. Its competitors include Sanwa Holdings Corp, JELD-WEN Holding Inc, and Caesarstone Ltd.
– Sanwa Holdings Corp ($TSE:5929)
Sanwa Holdings Corporation is a Japanese financial services holding company headquartered in Osaka. The company provides a wide range of financial services including banking, securities, insurance, and leasing. Sanwa is one of the largest banks in Japan in terms of assets and deposits. It also has a strong presence in the securities industry. The company’s return on equity was 10.49% as of 2022.
– JELD-WEN Holding Inc ($NYSE:JELD)
JELD-WEN Holding Inc is a leading international manufacturer and marketer of doors and windows. The company operates in three segments: North America, Europe, and Asia Pacific. JELD-WEN Holding Inc has a market capitalization of 917.59M as of 2022 and a return on equity of 15.81%. The company has a diversified product portfolio that includes interior and exterior doors, windows, and millwork products. JELD-WEN Holding Inc is headquartered in Charlotte, North Carolina, USA.
– Caesarstone Ltd ($NASDAQ:CSTE)
Caesarstone Ltd is a manufacturer of quality engineered quartz surfaces. Its market cap as of 2022 is 245.66M. Its ROE is 1.93%. The company has a wide range of colors and styles to choose from and has a reputation for quality and durability.
Summary
Masonite International reported their Q3 FY2023 earnings on November 7, 2023 with total revenue of USD 702.2 million, a slight decrease compared to the same period in the previous year. Net income was reported at USD 41.5 million, a 27.3% decline year-over-year. Investors may be concerned about these results as it is lower than expected.
However, they should look more closely into the company’s financials before making any investment decisions. It is important to assess the company’s cash flow, balance sheet, and other metrics to get a better understanding of Masonite International’s performance.
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