Masonite International (DOOR), mcap=$2bn, price $85 vs $90

Pitch: Interior and exterior door manufacturer with new management in place. A good business in a well-consolidated industry – the company should be able to offset the inflation pressures with price increases. Exposed to the new build (50%) and remodeling (50%) cycles. Under the new leadership, DOOR economics has structurally improved from one with poor ROIC of 10-12% and margins of 12% to one with ROIC approaching 20% and margins of 15-16%.

Valuation: Trades at 6.2x adj EBITDA ($450m) and 9-10xPE ($9-10/share) guidance for this year.

Exp. gain: 60-100% to $150-180/share based on $15 2025 EPS and 10-12x multiple.

Full DOOR write-up (free guest account required):

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