Fact based stock research
Masonite (NYSE:DOOR)

CA5753851099

How to read the ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Masonite stock research in summary

masonite.com

ANALYSIS: With an Obermatt Combined Rank of 64 (better than 64% compared with investment alternatives), Masonite (Building Products, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Masonite are low in value (priced high) with a consolidated Value Rank of 28 (worse than 72% of alternatives). But they show above-average growth (Growth Rank of 89) and are safely financed (Safety Rank of 64, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 64, is a buy recommendation based on Masonite's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Masonite exhibits low value (Obermatt Value Rank of 28), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 89). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 64) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	28
Growth Rank	89
Safety Rank	64
Combined Rank	64

Country	USA
Industry	Building Products
Index
Size class	Large

18-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Masonite

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	23	35	64	28
GROWTH
GROWTH	35	67	1	89
SAFETY
SAFETY	42	62	82	64
SENTIMENT
SENTIMENT	n/a	3	8	^new
360° VIEW
360° VIEW	n/a	27	8	^new

Most recent update of the stock research: 18-Apr-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Masonite is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	23	35	64	28
GROWTH
GROWTH	35	67	1	89
SAFETY
SAFETY	42	62	82	64
COMBINED
COMBINED	21	51	40	64

Last update of combined financial performance: 18-Apr-2024. Stock analysis on combined financial performance: The higher the rank of Masonite the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 28 (worse than 72% compared with alternatives), Masonite shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half are above average for Masonite. Price-to-Sales (P/S) is 57, which means that the stock price compared with what market professionals expect for future sales is lower than for 57% of comparable companies, indicating a good value concerning Masonite's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 63% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 1 (dividends are expected to be higher than for 1% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 51% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Masonite to 49. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 28, is a hold recommendation based on Masonite's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner on assets than its competitors. For instance, the company could be leasing its production facilities, or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	68	58	78	57
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	47	79	93	63
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	14	68	67	49
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	23	35	64	28

Last update of Value Rank: 18-Apr-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Masonite; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 89 (better than 89% compared with alternatives) for 2024, Masonite shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Masonite. Profit Growth has a rank of 85 which means that currently professionals expect the company to grow its profits more than 85% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 86, and Stock Returns has a rank of 50 which means that the stock returns have recently been above 50% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 49 (51% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 89, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	39	60	38	49
PROFIT GROWTH
PROFIT GROWTH	67	58	20	85
CAPITAL GROWTH
CAPITAL GROWTH	n/a	57	30	86
STOCK RETURNS
STOCK RETURNS	52	39	17	50
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	35	67	1	89

Last update of Growth Rank: 18-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Masonite.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 64 (better than 64% compared with alternatives), the company Masonite has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Masonite is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Masonite. Refinancing is at 67, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 67% of its competitors. Liquidity is also good at 96, meaning the company generates more profit to service its debt than 96% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 14, which means the company has an above-average debt-to-equity ratio. It has more debt than 86% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 64 (better than 64% compared with alternatives), Masonite has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Masonite could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Masonite and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	28	18	16	14
REFINANCING
REFINANCING	68	67	88	67
LIQUIDITY
LIQUIDITY	37	98	96	96
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	42	62	82	64

Last update of Safety Rank: 18-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Masonite and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	2	43	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	32	20	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	61	16	^new
MARKET PULSE
MARKET PULSE	n/a	10	29	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	3	8	^new

Last update of Sentiment Rank: 18-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Masonite.
Upgrade to a Premium Account to access the latest ranks.