MasterBrand Inc. Common Stock (MBC)
StalwartFairStock Score: 22/100 — RISKY
Key Financials
| Current Price | $7 |
| Market Cap | $1.2B |
| P/E Ratio | -700 |
| ROE | -0.15% |
| Dividend Yield | —% |
| Sector | Consumer Cyclical |
Strengths
- Generates $122 million in annual free cash flow (10.3% yield on market cap)
- Established organization with 12,633 employees providing operational scale
Concerns
- Elevated P/E of 44.5x prices in substantial future growth that may not materialize
- Revenue declining at 3.5% year-over-year signals potential demand weakness or market share loss
- Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
- Altman Z-Score of 1.3 places it in the financial distress zone—elevated bankruptcy risk
AI Analysis
MasterBrand Inc. Common Stock is a micro-cap consumer cyclical company valued at $1.2 billion. Revenue stands at $2.7 billion. From a quality standpoint, MasterBrand shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 1.3 warrants caution. On valuation, the stock is commanding a steep 44.5x multiple, with trades above its Graham Number with a negative 32% margin. Growth dynamics show revenue growing at -3.5% and profit growth of -400.0%. Our composite FairStock Score of 22/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $122 million in annual free cash flow (10.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
At 45x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer