April 11, 2018

DOOR – Market expectations are for sustained Uniform ROA, but management is confident about their acquisitions, productivity, and sales


      • Masonite International Corporation (DOOR:USA)currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 13.9x Uniform P/E, implying muted expectations for the firm. However, management is confident about their acquisitions, productivity, and sales
      • Specifically, management is confident in their execution of their capital deployment initiatives, and that their recent DW3 acquisition will extend their portfolio through timber core entry doors and new PVC doors. Additionally, they are confident in their focus on continuing to improve labor productivity in 2018, and in the 4% volume improvement in their North America Residential segment during Q4. Furthermore, they are confident that net sales were flat in Q4 excluding foreign exchange tailwinds, and that A&F Wood Products is contributing stronger sales and margins than originally anticipated
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