Shares of JELD-WEN Holding Inc (JELD, Financial) experienced a substantial decline, plummeting by 28.24%, as the market reacted to the company's disappointing third-quarter earnings report. The stock is currently trading at $10.14. The disappointing results were marked by a significant shortfall in both revenue and earnings per share (EPS). JELD-WEN's sales showed a 13% decrease compared to the same period last year, driven by reduced market demand and a shift towards entry-level products.
Looking into the financials, JELD-WEN (JELD, Financial) is currently struggling with profitability, as evidenced by its negative EPS of -$0.44 and a concerning net margin of -3.98%. The company's financial stress is also highlighted by its Altman Z-Score of 2, placing it in the grey zone, suggesting potential financial difficulties. Additionally, the company's return on equity (ROE) stands at -19.47%, indicating challenges in generating returns from shareholders' equity.
Despite these setbacks, JELD-WEN's GF Value suggests a potential upside. The stock is deemed significantly undervalued with a GF Value of $14.80, representing a substantial discount to its current trading price. Investors can view JELD-WEN's GF Value on the GF Value page for more insights.
Furthermore, the company's price-to-book (PB) ratio is 1.19, which is relatively low, suggesting that the stock might be undervalued based on its book value. However, with a debt-to-equity ratio of 1.83, JELD-WEN is leveraged, which could be a concern if market conditions do not improve.
JELD-WEN's free cash flow remains positive, with a TTM free cash flow per share of $1.09. The company also boasts a Beneish M-Score of -3.02, indicating that it is unlikely to be a manipulator of its financial statements.
In conclusion, JELD-WEN (JELD, Financial) is facing a challenging period with declining sales and profitability. Nevertheless, its current undervaluation provides a potential opportunity for long-term investors who are optimistic about the company's ability to recover and improve its financial performance. Caution is advised, as financial stress and market headwinds remain significant factors affecting the company's outlook.
