Breaking Down JELD-WEN Holding, Inc. (JELD) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments? Have you ever wondered about the financial stability of building product manufacturers like JELD-WEN Holding, Inc. (JELD)? In 2024, the company faced a challenging year with a 12.3% decrease in net revenues, landing at $3,775.6 million. With a net loss from continuing operations of $187.6 million, how does this impact their overall financial health, and what are the key factors driving these results? Dive in to explore the critical insights every investor should know, from revenue declines and strategic divestitures to debt management and future outlook.

JELD-WEN Holding, Inc. (JELD) Revenue Analysis

Analyzing JELD-WEN Holding, Inc. (JELD)'s revenue streams involves understanding where the company's income originates, how it has changed over time, and the relative importance of each business segment. This provides critical insights into the company’s financial health and future prospects. For additional context, refer to Mission Statement, Vision, & Core Values of JELD-WEN Holding, Inc. (JELD).

JELD-WEN Holding, Inc. (JELD) primarily generates revenue from the sale of doors and windows. These products are sold to various markets, including:

• Residential new construction
• Residential repair and remodeling
• Non-residential construction

A breakdown of the primary revenue sources includes specific product lines and geographic regions. Understanding the contribution from each area helps to identify strengths and weaknesses in JELD-WEN Holding, Inc. (JELD)'s business model.

Year-over-year revenue growth is a key indicator of JELD-WEN Holding, Inc. (JELD)'s performance. Examining historical trends reveals the company's ability to increase sales over time. For instance, fluctuations in the housing market and broader economic conditions can significantly impact revenue growth rates.

To illustrate, let's consider a hypothetical scenario based on typical financial analysis:

In this hypothetical example, there was a substantial growth of 8.3% in 2022, followed by declines in 2023 and 2024. These changes could be attributed to market conditions or company-specific factors.

JELD-WEN Holding, Inc. (JELD) operates through different business segments, each contributing uniquely to the overall revenue. These segments may include:

• North America
• Europe
• Australasia

Analyzing the contribution of each segment helps to understand where the majority of revenue is generated and where there may be opportunities for growth or areas needing improvement. For example, if North America accounts for 60% of the revenue, it signifies its importance, while a decline in Europe's contribution might warrant further investigation.

Significant changes in JELD-WEN Holding, Inc. (JELD)'s revenue streams could arise from various factors:

• Acquisitions or divestitures
• Changes in product offerings
• Shifts in market demand
• Economic downturns or expansions

Monitoring these changes is essential for investors to understand the evolving dynamics of the company and its ability to adapt to market conditions.

JELD-WEN Holding, Inc. (JELD) Profitability Metrics

Assessing the financial health of JELD-WEN Holding, Inc. (JELD) requires a close examination of its profitability metrics. These metrics provide insights into how efficiently the company generates profits from its revenue and assets. Key indicators include gross profit margin, operating profit margin, and net profit margin, each offering a unique perspective on the company's financial performance.

Here's a detailed look into JELD-WEN Holding, Inc. (JELD)'s profitability:

• Gross Profit Margin: Gross profit is calculated by deducting the cost of goods sold (COGS) from the total revenue. The gross profit margin, expressed as a percentage, indicates the proportion of revenue that remains after accounting for the direct costs of production.
• Operating Profit Margin: The operating profit margin reveals a company's earnings before interest and taxes (EBIT) as a percentage of total revenue. It reflects the profitability of a company's core operations, excluding the effects of financing and accounting decisions.
• Net Profit Margin: Net profit margin is the ratio of net profit to revenue. It indicates how much net income a company earns for each dollar of revenue. The net profit is a company's profit after all operating expenses, interest, taxes and preferred stock dividends have been deducted from total revenue.

Analyzing these margins over time helps identify trends in JELD-WEN Holding, Inc. (JELD)'s profitability and operational efficiency. For instance, a rising gross profit margin could indicate improved cost management or pricing strategies, while a declining operating profit margin might signal increasing operating expenses.

When evaluating JELD-WEN Holding, Inc. (JELD)'s profitability, it's essential to compare its ratios with industry averages. This benchmark provides context and helps determine whether the company is performing above or below its peers. Industry-specific factors can significantly impact profitability, making comparisons within the same sector more meaningful.

Operational efficiency plays a crucial role in JELD-WEN Holding, Inc. (JELD)'s profitability. Effective cost management and favorable gross margin trends are indicators of how well the company manages its resources. Monitoring these aspects can provide insights into the company's ability to control costs and improve profitability.

For example, according to the 2024 full year results, JELD-WEN Holding, Inc. (JELD) reported net revenues of $4.22 billion, a decrease of 7.5% compared to 2023. Income from continuing operations was $67.9 million, or $0.83 per diluted share, compared to a loss of $75.5 million, or $0.92 per share in 2023. Adjusted EBITDA was $429.6 million compared to $379.7 million in 2023. The company's performance reflects both challenges and improvements in its financial landscape.

Here’s a snapshot of JELD-WEN Holding, Inc. (JELD)’s financial performance in 2024:

Understanding JELD-WEN Holding, Inc. (JELD)'s mission, vision, and core values can further contextualize its financial strategies and long-term goals. Learn more about the company's guiding principles: Mission Statement, Vision, & Core Values of JELD-WEN Holding, Inc. (JELD).

JELD-WEN Holding, Inc. (JELD) Debt vs. Equity Structure

Understanding how JELD-WEN Holding, Inc. (JELD) finances its operations and growth involves analyzing its debt and equity structure. This provides insights into the company's financial leverage and risk profile.

As of December 28, 2024, JELD-WEN Holding, Inc. (JELD) reported the following debt levels:

• Total current liabilities: $748.2 million
• Total long-term debt: $1.39 billion

The debt-to-equity ratio is a critical metric for assessing a company's financial leverage. For JELD-WEN Holding, Inc. (JELD), the debt-to-equity ratio can be calculated using the total liabilities and shareholders' equity figures from their balance sheet. As of December 28, 2024, the company's total liabilities were $2.33 billion and total stockholder equity was $344.3 million. This results in a debt-to-equity ratio of approximately 6.77.

A high debt-to-equity ratio suggests that the company relies more on debt financing compared to equity. It's important to compare this ratio against industry averages to determine if JELD-WEN Holding, Inc. (JELD)'s leverage is within a reasonable range or if it indicates higher financial risk. The building products industry can have varying capital structures, so benchmarking against peers is essential.

Recent financial activities, such as debt issuances, credit ratings, or refinancing, also play a significant role in understanding the company's financial strategy. For instance, in Q4 2023, JELD-WEN Holding, Inc. (JELD) successfully refinanced its asset-based loan (ABL) facility, increasing the borrowing capacity from $500 million to $600 million and extending the maturity to December 2028. This move provides additional financial flexibility and improves the company's liquidity position.

Balancing debt and equity is crucial for sustainable growth. While debt can provide capital for expansion and operational needs, excessive debt can increase financial risk and limit flexibility. Equity financing, on the other hand, can dilute ownership but provides a more stable capital base. JELD-WEN Holding, Inc. (JELD)'s approach to managing this balance is evident in its strategic financial decisions, such as the ABL refinancing and ongoing efforts to optimize its capital structure.

More insights about the company can be found at: Mission Statement, Vision, & Core Values of JELD-WEN Holding, Inc. (JELD).

JELD-WEN Holding, Inc. (JELD) Liquidity and Solvency

Analyzing JELD-WEN Holding, Inc. (JELD)'s financial health requires a close look at its liquidity, which indicates its ability to meet short-term obligations. Key ratios and cash flow trends provide insights into the company's financial stability.

Liquidity Positions: Current and Quick Ratios

As of fiscal year 2024, assessing JELD-WEN Holding, Inc.'s liquidity involves examining its current and quick ratios. These metrics offer a snapshot of the company's capacity to cover its short-term liabilities with its current assets. Here's a general overview of what these ratios typically indicate:

• Current Ratio: This ratio is calculated by dividing current assets by current liabilities. A current ratio of around 1.5 or higher generally suggests good liquidity, indicating the company has $1.50 or more of assets for every $1 of liabilities.
• Quick Ratio (Acid-Test Ratio): This ratio excludes inventory from current assets before dividing by current liabilities. A quick ratio of 1.0 or higher is often considered healthy, as it shows the company can cover its short-term liabilities with its most liquid assets.

Working Capital Trends

Monitoring the trend of JELD-WEN Holding, Inc.'s working capital—the difference between its current assets and current liabilities—is crucial. A positive and increasing working capital balance typically indicates improving short-term financial health, while a decreasing balance could signal potential liquidity issues. Analyzing these trends over several periods provides a clearer picture of the company’s liquidity management.

Cash Flow Statements Overview

An examination of JELD-WEN Holding, Inc.'s cash flow statements provides a deeper understanding of its liquidity. The cash flow statement is divided into three main sections:

• Operating Activities: Cash flow from operating activities reflects the cash generated from the company's core business operations. Positive cash flow here indicates the company is effectively generating cash from its primary activities.
• Investing Activities: This section includes cash flow from the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E). These activities often represent investments in the company's future growth.
• Financing Activities: Cash flow from financing activities involves transactions related to debt, equity, and dividends. This includes activities like issuing or repurchasing stock, borrowing money, and paying back debt.

Trends in these cash flows can highlight potential liquidity strengths or weaknesses. For instance, consistently positive cash flow from operations, coupled with strategic investing and financing activities, suggests strong financial management.

Potential Liquidity Concerns or Strengths

Investors should watch for specific indicators that might point to liquidity concerns or strengths:

• Consistent Negative Cash Flow from Operations: This could indicate problems with the company's core business model.
• High Levels of Debt: Significant debt obligations can strain liquidity, especially if the debt matures in the short term.
• Decreasing Current and Quick Ratios: A downward trend in these ratios may suggest a weakening ability to meet short-term obligations.
• Significant Investments in Long-Term Assets: While these can drive future growth, they may also tie up cash in the short term.

Conversely, strengths might include:

• Strong Cash Reserves: A healthy cash balance provides a buffer against unexpected expenses or downturns.
• Positive and Growing Cash Flow from Operations: This indicates a sustainable business model.
• Prudent Management of Debt: Keeping debt levels manageable ensures that the company can meet its obligations without undue stress.

For more insights into JELD-WEN Holding, Inc.'s values, see Mission Statement, Vision, & Core Values of JELD-WEN Holding, Inc. (JELD).

JELD-WEN Holding, Inc. (JELD) Valuation Analysis

To determine whether JELD-WEN Holding, Inc. (JELD) is overvalued or undervalued, several key financial metrics and market indicators should be considered. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios, and analyst consensus.

As of April 2025, comprehensive real-time data for these metrics based on the 2024 fiscal year is essential for an accurate valuation assessment. Here’s how these elements typically factor into assessing JELD-WEN Holding, Inc. (JELD):

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of JELD-WEN Holding, Inc.'s (JELD) earnings. A high P/E ratio might suggest overvaluation, while a low P/E could indicate undervaluation, relative to industry peers.
• Price-to-Book (P/B) Ratio: The P/B ratio compares JELD-WEN Holding, Inc.'s (JELD) market capitalization to its book value. It can help determine if the stock price is reasonable compared to the company's net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio is used to assess the overall value of JELD-WEN Holding, Inc. (JELD) compared to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It’s particularly useful for evaluating companies with significant debt.

Analyzing these ratios in conjunction with JELD-WEN Holding, Inc.'s (JELD) stock price trends over the last 12 months provides a holistic view. Here is a sample table to illustrate how these metrics might be organized:

For JELD-WEN Holding, Inc. (JELD), it's also important to consider:

• Stock Price Trends: Reviewing the stock's performance over the past year to identify any significant upward or downward trends.
• Dividend Yield and Payout Ratios: If applicable, these can indicate the stability and attractiveness of the stock for income-seeking investors.
• Analyst Consensus: Gathering opinions from financial analysts (buy, hold, or sell recommendations) to gauge overall market sentiment.

For further insights, you might find this resource helpful: Breaking Down JELD-WEN Holding, Inc. (JELD) Financial Health: Key Insights for Investors

JELD-WEN Holding, Inc. (JELD) Risk Factors

JELD-WEN Holding, Inc. (JELD) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and broader market conditions. Understanding these factors is crucial for investors assessing the company's stability and growth potential.

Industry Competition: The building products industry is highly competitive. JELD-WEN competes with numerous global and regional players. Increased competition could lead to price reductions, reduced profit margins, and loss of market share. Maintaining a competitive edge requires continuous innovation and efficient operations. Exploring JELD-WEN Holding, Inc. (JELD) Investor Profile: Who’s Buying and Why?

Regulatory Changes: Changes in building codes, environmental regulations, and trade policies can significantly affect JELD-WEN's operations. For example, stricter energy efficiency standards could require costly investments in new product development and manufacturing processes. Monitoring and adapting to these changes is essential for compliance and sustained profitability.

Market Conditions: JELD-WEN's performance is closely tied to the housing market and overall economic conditions. Economic downturns, rising interest rates, and declines in construction activity can reduce demand for its products. Diversifying its product offerings and geographic presence can help mitigate these cyclical risks.

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Operational Risks: Supply chain disruptions, raw material price volatility, and manufacturing inefficiencies can impact production costs and delivery schedules. Implementing robust supply chain management and operational excellence programs is vital.
• Financial Risks: Fluctuations in currency exchange rates, increased debt levels, and access to capital markets can affect JELD-WEN's financial stability. Prudent financial management and hedging strategies are necessary to manage these risks.
• Strategic Risks: Failure to innovate, adapt to changing customer preferences, or execute strategic initiatives can hinder growth prospects. Investing in research and development, understanding market trends, and maintaining a customer-centric approach are critical.

Mitigation strategies and plans include:

JELD-WEN is actively working to mitigate these risks through various strategies:

• Operational Improvements: Investing in automation, lean manufacturing, and supply chain optimization to improve efficiency and reduce costs.
• Financial Discipline: Managing debt levels, hedging currency risks, and maintaining access to diverse funding sources.
• Strategic Initiatives: Focusing on product innovation, market diversification, and strategic acquisitions to drive growth and enhance competitiveness.

By proactively addressing these risks, JELD-WEN aims to strengthen its financial position and deliver long-term value to its shareholders. Investors should closely monitor the company's progress in implementing these mitigation strategies.

JELD-WEN Holding, Inc. (JELD) Growth Opportunities

To understand JELD-WEN Holding, Inc. (JELD)'s future, it's crucial to analyze its growth drivers, revenue projections, strategic initiatives, and competitive advantages. These elements paint a picture of the company's potential trajectory.

Key growth drivers for JELD-WEN Holding, Inc. (JELD) include:

• Product Innovations: Investments in research and development to create new and improved doors and windows.
• Market Expansions: Targeting growth in both North American and international markets.
• Acquisitions: Strategic acquisitions to expand product offerings and market reach.

While specific future revenue growth projections and earnings estimates are subject to market conditions and company performance, analysts' estimates and company guidance provide insight. For example, JELD-WEN Holding, Inc. (JELD) anticipated revenue to be in the range of $4.15 billion to $4.25 billion for the full year 2024, as stated in their Q4 2023 earnings report.

Strategic initiatives and partnerships that may drive future growth:

• Operational Excellence: Focusing on improving efficiency and reducing costs through lean manufacturing and supply chain optimization.
• Digital Transformation: Investing in digital technologies to enhance customer experience and streamline operations.
• Sustainability Initiatives: Developing eco-friendly products and reducing environmental impact to appeal to environmentally conscious consumers.

JELD-WEN Holding, Inc. (JELD) possesses several competitive advantages that position it for growth:

• Strong Brand Recognition: A well-established brand name in the doors and windows industry.
• Extensive Distribution Network: A wide network of dealers and distributors across North America and internationally.
• Broad Product Portfolio: A diverse range of products catering to various customer segments and applications.

The following table summarizes key financial data and growth forecasts to provide a clearer picture of JELD-WEN Holding, Inc. (JELD)'s financial outlook:

For further insights into JELD-WEN Holding, Inc. (JELD)'s financial health, you might find this resource helpful: Breaking Down JELD-WEN Holding, Inc. (JELD) Financial Health: Key Insights for Investors

These factors collectively influence JELD-WEN Holding, Inc. (JELD)'s capacity for growth and its attractiveness to investors.