New Lifetime High Today: American Woodmark (AMWD)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified American Woodmark ( AMWD) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified American Woodmark as such a stock due to the following factors:

  • AMWD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.8 million.
  • AMWD has traded 52,214 shares today.
  • AMWD is trading at a new lifetime high.

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More details on AMWD:

American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and home construction markets in the United States. The company offers framed stock cabinets in approximately 600 various cabinet lines, which include 85 door designs in 19 colors. AMWD has a PE ratio of 25. Currently there is 1 analyst that rates American Woodmark a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for American Woodmark has been 137,000 shares per day over the past 30 days. American Woodmark has a market cap of $891.1 million and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.16 and a short float of 2.3% with 1.44 days to cover. Shares are up 38.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates American Woodmark as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • AMWD's revenue growth has slightly outpaced the industry average of 0.3%. Since the same quarter one year prior, revenues slightly increased by 9.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • AMWD's debt-to-equity ratio is very low at 0.10 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.73, which clearly demonstrates the ability to cover short-term cash needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Building Products industry and the overall market, AMERICAN WOODMARK CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • Powered by its strong earnings growth of 91.66% and other important driving factors, this stock has surged by 78.95% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AMWD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.

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