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Stock Analysis & ValuationJELD-WEN Holding, Inc. (JELD)

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$2.72
Sector Valuation Confidence Level
Moderate
Valuation methodValue, $Upside, %
Artificial intelligence (AI)22.47726
Intrinsic value (DCF)2.46-10
Graham-Dodd Methodn/a
Graham Formula7.87189

Strategic Investment Analysis

Company Overview

JELD-WEN Holding, Inc. (NYSE: JELD) is a leading global manufacturer of high-performance doors and windows, serving residential and commercial markets across North America, Europe, and Australasia. Founded in 1960 and headquartered in Charlotte, North Carolina, the company operates under well-known brands such as JELD-WEN, Swedoor, Corinthian, and LaCantina. Its diverse product portfolio includes interior and exterior doors, patio doors, folding wall systems, and windows made from wood, vinyl, aluminum, and composite materials. Additionally, JELD-WEN provides ancillary products like shower enclosures, moldings, staircases, and installation services. The company primarily serves wholesale distributors, retailers, contractors, and consumers, positioning itself as a key player in the construction and building materials sector. Despite macroeconomic challenges, JELD-WEN maintains a strong market presence due to its brand recognition, innovation in energy-efficient solutions, and broad geographic reach. With a focus on sustainability and operational efficiency, the company aims to capitalize on the growing demand for durable and aesthetically appealing building products.

Investment Summary

JELD-WEN presents a mixed investment profile. On one hand, its strong brand portfolio, diversified product offerings, and global footprint provide resilience in the cyclical construction industry. The company’s focus on energy-efficient solutions aligns with increasing regulatory and consumer demand for sustainable building materials. However, JELD-WEN faces significant headwinds, including a net loss of $189 million in its latest fiscal year, high leverage (total debt of $1.32 billion), and exposure to volatile raw material costs. The lack of dividends and negative EPS (-$2.22) may deter income-focused investors. While operating cash flow remains positive ($106 million), capital expenditures are substantial, limiting free cash flow generation. Investors should weigh the company’s long-term growth potential against near-term profitability challenges and macroeconomic sensitivity.

Competitive Analysis

JELD-WEN competes in the highly fragmented doors and windows industry, where differentiation is driven by brand strength, product innovation, and distribution reach. The company’s competitive advantage lies in its diversified product portfolio, which spans multiple materials (wood, vinyl, aluminum) and applications (residential, non-residential). Its strong brand recognition—particularly in North America and Australasia—supports pricing power and customer loyalty. However, JELD-WEN faces intense competition from larger players like Masonite (DOOR) and PGT Innovations (PGTI), which have stronger margins and more focused product lines. The company’s vertically integrated operations (including door skin manufacturing) provide cost efficiencies but also expose it to supply chain risks. Geographic diversification helps mitigate regional downturns, but operational inefficiencies in Europe have weighed on profitability. While JELD-WEN’s innovation in energy-efficient products is a strength, its high debt load and negative earnings may limit its ability to invest in R&D compared to peers. To improve competitiveness, the company must prioritize margin expansion, debt reduction, and targeted growth in high-margin segments like premium windows and commercial doors.

Major Competitors

  • Masonite International Corporation (DOOR): Masonite (DOOR) is a leading global manufacturer of interior and exterior doors, with a stronger focus on residential markets compared to JELD-WEN. Its competitive strengths include higher EBITDA margins, a robust dealer network, and innovative product designs like smart doors. However, Masonite has less geographic diversification and a narrower product range, excluding windows. Its financial performance has been more stable, but it faces similar raw material cost pressures.
  • PGT Innovations, Inc. (PGTI): PGT Innovations (PGTI) specializes in impact-resistant windows and doors, catering primarily to hurricane-prone regions in the U.S. Its niche focus allows for premium pricing and strong brand loyalty. PGTI’s margins outperform JELD-WEN’s, but its revenue base is smaller and less diversified. The company’s recent acquisition by MITER Brands could enhance its scale but may also introduce integration risks.
  • Fortune Brands Innovations, Inc. (FBIN): Fortune Brands (FBIN) operates in the broader building products space, including doors and windows under brands like Therma-Tru and MasterBrand. Its diversified portfolio (also including cabinets and plumbing) provides stability, but it lacks JELD-WEN’s deep specialization in doors. FBIN’s stronger balance sheet and consistent profitability give it an edge in R&D and M&A capabilities.
  • The AZEK Company Inc. (AZEK): AZEK (AZEK) focuses on sustainable building products, particularly composite decking and exterior trim, with a growing presence in windows and doors. Its emphasis on eco-friendly materials resonates with modern consumers, but its door/window segment is smaller than JELD-WEN’s. AZEK’s premium pricing and innovation are strengths, but it is more exposed to discretionary remodeling demand.
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