American Woodmark's 15-min chart shows RSI Oversold, KDJ Golden Cross signals.

American Woodmark's 15-minute chart exhibits oversold conditions on the RSI indicator and a golden cross on the KDJ indicator, which occurred on August 14, 2025 at 13:15. This suggests that the stock price has declined more rapidly than its fundamental value would justify, and the momentum is shifting towards an upward trajectory, potentially leading to further price appreciation.

S&P Global Ratings has revised its outlook on MasterBrand Inc. to positive from stable following the company’s announced merger with American Woodmark (NASDAQ:AMWD). The rating agency affirmed its 'BB' credit rating while expressing optimism about the combined entity's financial prospects [1].

The proposed merger will create one of the largest cabinet manufacturers in the U.S., with expected revenue exceeding $4.4 billion and pro forma adjusted EBITDA of about $540 million before synergies [1]. S&P Global Ratings expects pro forma debt leverage to be approximately 2.1x after adjusting for cash and leases, providing financial flexibility amid weaker macroeconomic conditions. The companies have identified $90 million in synergies over three years that could enhance cash flows and leverage [1].

The merger significantly expands MasterBrand’s market share in cabinet manufacturing and broadens its geographic footprint, helping offset exposure to discretionary products. The combined entity will offer kitchen cabinetry products across multiple price points [1].

S&P Global Ratings projects EBITDA margins to remain flat for the combined company in 2026 and 2027 due to weaker residential construction activity and soft repair and remodel demand. Adjusted EBITDA is expected to reach $500 million-$550 million, resulting in EBITDA margins of 12%-13% over the next 12 to 18 months during integration [1].

The outlook could be raised if the combined entity maintains debt to EBITDA below 2x. Conversely, it could revert to stable if debt leverage remains above 3x into 2026, if the company pursues aggressive debt-financed acquisitions, or if the merger fails to close as expected [1].

American Woodmark's 15-minute chart exhibits oversold conditions on the RSI indicator and a golden cross on the KDJ indicator, which occurred on August 14, 2025, at 13:15. This suggests that the stock price has declined more rapidly than its fundamental value would justify, and the momentum is shifting towards an upward trajectory, potentially leading to further price appreciation [2].

References:
[1] https://www.investing.com/news/stock-market-news/masterbrand-outlook-revised-to-positive-on-american-woodmark-merger-93CH-4186209
[2] American Woodmark's 15-minute chart exhibits oversold conditions on the RSI indicator and a golden cross on the KDJ indicator, which occurred on August 14, 2025, at 13:15.