DOOR - Embedded Expectations Analysis - 2020 05 06
Masonite International Corporation (DOOR:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 15.7x Uniform P/E, implying bearish expectations for the firm. Meanwhile, management may be concerned about their margins, revenue growth, and housing marketsSpecifically, management may lack confidence in their ability to sustain U.S. residential wholesale business growth, expand margins, and improve adjusted EBITDA. Furthermore, they may be overstating their organizational execution in 2019 and the benefits of divestitures on European margins. In addition, they may lack confidence in their ability to sustain average unit price growth, maintain operating cash flow increases, and mitigate volume losses from higher-priced products. Moreover, they may have concerns about increased health care accruals for factory employees, declines in their base volume, and the continued weakness of single-family housing starts in Canada
Masonite International designs, manufactures 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. Co. manufactures a line of interior doors, including residential molded, flush, stile and rail, louver and commercial and architectural doors; door components for internal use and sale to other door manufacturers; and exterior residential steel, fiberglass and wood doors and entry systems. Co.'s portfolio of brands include Masonite®, Marshfield®, Premdor®, Mohawk®, Megantic®, Algoma®, Birchwood Best®, Lemieux®, Door-Stop™, Harring Doors™ and National Hickman™ .
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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