American Woodmark Price To Sales vs. Net Income

AMWD Stock  USD 100.86  3.62  3.72%   
Taking into consideration American Woodmark's profitability measurements, American Woodmark's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess American Woodmark's ability to earn profits and add value for shareholders.

American Woodmark Price To Sales Ratio

1.11

At present, American Woodmark's Days Sales Outstanding is projected to decrease significantly based on the last few years of reporting. The current year's EV To Sales is expected to grow to 1.31, whereas Sales General And Administrative To Revenue is forecasted to decline to 0.06. At present, American Woodmark's Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 159.6 M, whereas Interest Income is forecasted to decline to about 17.6 M.
For American Woodmark profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Woodmark to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Woodmark utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Woodmark's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Woodmark over time as well as its relative position and ranking within its peers.
  
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Is Building Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Woodmark. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Woodmark listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.17)
Earnings Share
6.76
Revenue Per Share
113.705
Quarterly Revenue Growth
(0.08)
Return On Assets
0.0609
The market value of American Woodmark is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Woodmark's value that differs from its market value or its book value, called intrinsic value, which is American Woodmark's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Woodmark's market value can be influenced by many factors that don't directly affect American Woodmark's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Woodmark's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Woodmark is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Woodmark's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

American Woodmark Net Income vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining American Woodmark's current stock value. Our valuation model uses many indicators to compare American Woodmark value to that of its competitors to determine the firm's financial worth.
American Woodmark is number one stock in price to sales category among its peers. It also is number one stock in net income category among its peers making up about  139,464,779  of Net Income per Price To Sales. At present, American Woodmark's Price To Sales Ratio is projected to drop slightly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value American Woodmark by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

American Net Income vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

American Woodmark

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.83 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

American Woodmark

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
116.22 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

American Net Income Comparison

American Woodmark is currently under evaluation in net income category among its peers.

American Woodmark Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in American Woodmark, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American Woodmark will eventually generate negative long term returns. The profitability progress is the general direction of American Woodmark's change in net profit over the period of time. It can combine multiple indicators of American Woodmark, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income7.3 M7.7 M
Operating Income161.4 M169.5 M
Income Before Tax152 M159.6 M
Total Other Income Expense Net-9.4 M-9 M
Net Income116.2 M122 M
Income Tax Expense35.8 M37.5 M
Net Income Applicable To Common Shares107.8 M113.2 M
Net Income From Continuing Ops116.2 M122 M
Non Operating Income Net Other2.1 M2.2 M
Interest Income34.6 M17.6 M
Net Interest Income-8.2 M-8.6 M
Change To Netincome-11.8 M-11.2 M
Net Income Per Share 7.15  7.50 
Income Quality 1.99  1.87 
Net Income Per E B T 0.76  0.50 

American Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on American Woodmark. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of American Woodmark position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the American Woodmark's important profitability drivers and their relationship over time.

Use American Woodmark in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Woodmark position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Woodmark will appreciate offsetting losses from the drop in the long position's value.

American Woodmark Pair Trading

American Woodmark Pair Trading Analysis

The ability to find closely correlated positions to American Woodmark could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Woodmark when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Woodmark - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Woodmark to buy it.
The correlation of American Woodmark is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Woodmark moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Woodmark moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Woodmark can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your American Woodmark position

In addition to having American Woodmark in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Small Blend Funds
Small Blend Funds Theme
Fund or Etfs that invest in stocks of small to mid-sized entities that have characteristics of both growth and value companies. The Small Blend Funds theme has 47 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Small Blend Funds Theme or any other thematic opportunities.
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When determining whether American Woodmark is a strong investment it is important to analyze American Woodmark's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact American Woodmark's future performance. For an informed investment choice regarding American Stock, refer to the following important reports:
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For information on how to trade American Stock refer to our How to Trade American Stock guide.
You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
To fully project American Woodmark's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of American Woodmark at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include American Woodmark's income statement, its balance sheet, and the statement of cash flows.
Potential American Woodmark investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although American Woodmark investors may work on each financial statement separately, they are all related. The changes in American Woodmark's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on American Woodmark's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.