Millwood, Veneer, Plywood, & Structural Wood Members
Masonite International Corporation designs, manufactures, markets, and distributes interior and exterior doors for the new construction and repair, renovation, and remodeling sectors of the residential and non-residential building construction markets worldwide. It offers molded panel, flush, stile and rail, steel, and fiberglass residential doors, as well as medium-density fiberboard (MDF) and architectural interior doors. The company also provides various door components, including interior door facings, agri-fiber and particleboard door cores, MDF and wood cut-stock components, critical door components, and mineral and particleboard door cores. It offers its products under the Masonite, Premdor, Masonite Architectural, Marshfield-Algoma, USA Wood Door, Solidor, Residor, Nicedor, Door-Stop International, Harring Doors, National Hickman, Graham-Maiman, Louisiana Millwork, Florida Made Door, Baillargeon, and BWI brands to remodeling contractors, builders, homeowners, retailers, dealers, lumberyards, commercial and general contractors, and architects through wholesale, retail, and direct distribution channels. The company was founded in 1925 and is headquartered in Tampa, Florida.
Discounted Cash Flow Valuation of Masonite International Corp
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +4.65%.
The trend of Net Margin over the past 5 years is -0.03%.
The average ROA over the past 5 years is +9.38%.
The trend of ROA over the past 5 years is +0.78%.
The average ROE over the past 5 years is +15.8%.
The trend of ROE over the past 5 years is +1.14%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is 4.02.
The trend of Debt/FCF over the past 5 years is 1.18.
Graham’s Stability measure stands at 0.39.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +7.3%.
The trend of Revenue growth rate over the past 5 years is +0.9%.
The Earnings CAGR over the past 5 years is +7.14%.
The trend of Earnings growth rate over the past 5 years is +19.95%.
The Equity CAGR over the past 5 years is +0.19%.
The trend of Equity growth rate over the past 5 years is +1.84%.
The FCF CAGR over the past 5 years is -5.56%.
The trend of FCF growth rate over the past 5 years is -130.87%.