MASCO CORP (MAS)
US5745991068 - Common Stock
We assign a fundamental rating of 5 out of 10 to MAS. MAS was compared to 39 industry peers in the Building Products industry. MAS has only an average score on both its financial health and profitability. MAS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MAS was profitable.
Each year in the past 5 years MAS has been profitable.
Each year in the past 5 years MAS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MAS (15.69%) is better than 87.18% of its industry peers.
MAS's Return On Invested Capital of 27.82% is amongst the best of the industry. MAS outperforms 97.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MAS is significantly above the industry average of 13.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.69% | ||
| ROE | N/A | ||
| ROIC | 27.82% |
ROA(3y)13.48%
ROA(5y)15.99%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.95%
ROIC(5y)27.98%
1.3 Margins
Looking at the Profit Margin, with a value of 10.54%, MAS is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
MAS's Profit Margin has been stable in the last couple of years.
The Operating Margin of MAS (16.92%) is better than 61.54% of its industry peers.
MAS's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 36.15%, MAS perfoms like the industry average, outperforming 58.97% of the companies in the same industry.
MAS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.92% | ||
| PM (TTM) | 10.54% | ||
| GM | 36.15% |
OM growth 3Y-1.71%
OM growth 5Y1.11%
PM growth 3Y-12.31%
PM growth 5Y0.85%
GM growth 3Y-0.37%
GM growth 5Y0.36%
2. Health
2.1 Basic Checks
MAS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MAS has been reduced compared to 1 year ago.
Compared to 5 years ago, MAS has less shares outstanding
MAS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.27 indicates that MAS is not in any danger for bankruptcy at the moment.
MAS has a Altman-Z score (4.27) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.27 |
ROIC/WACC2.87
WACC9.71%
2.3 Liquidity
A Current Ratio of 1.83 indicates that MAS should not have too much problems paying its short term obligations.
MAS has a Current ratio (1.83) which is in line with its industry peers.
A Quick Ratio of 1.21 indicates that MAS should not have too much problems paying its short term obligations.
MAS's Quick ratio of 1.21 is in line compared to the rest of the industry. MAS outperforms 43.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.89% over the past year.
MAS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.33% yearly.
Looking at the last year, MAS shows a decrease in Revenue. The Revenue has decreased by -1.57% in the last year.
Measured over the past years, MAS shows a small growth in Revenue. The Revenue has been growing by 3.67% on average per year.
EPS 1Y (TTM)8.89%
EPS 3Y7.98%
EPS 5Y9.33%
EPS Q2Q%8%
Revenue 1Y (TTM)-1.57%
Revenue growth 3Y3.49%
Revenue growth 5Y3.67%
Sales Q2Q%0.2%
3.2 Future
Based on estimates for the next years, MAS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.38% on average per year.
Based on estimates for the next years, MAS will show a small growth in Revenue. The Revenue will grow by 4.71% on average per year.
EPS Next Y6.27%
EPS Next 2Y7.14%
EPS Next 3Y8.25%
EPS Next 5Y9.38%
Revenue Next Year-0.41%
Revenue Next 2Y0.26%
Revenue Next 3Y1.51%
Revenue Next 5Y4.71%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.27 indicates a rather expensive valuation of MAS.
MAS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.20, MAS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.53, MAS is valued correctly.
61.54% of the companies in the same industry are more expensive than MAS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.73. MAS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 16.53 |
4.2 Price Multiples
MAS's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MAS does not grow enough to justify the current Price/Earnings ratio.
MAS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.91
PEG (5Y)1.96
EPS Next 2Y7.14%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
MAS has a Yearly Dividend Yield of 1.60%.
MAS's Dividend Yield is rather good when compared to the industry average which is at 1.07. MAS pays more dividend than 92.31% of the companies in the same industry.
MAS's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
The dividend of MAS is nicely growing with an annual growth rate of 21.06%!
MAS has paid a dividend for at least 10 years, which is a reliable track record.
MAS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)21.06%
Div Incr Years11
Div Non Decr Years14
5.3 Sustainability
7.70% of the earnings are spent on dividend by MAS. This is a low number and sustainable payout ratio.
MAS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP7.7%
EPS Next 2Y7.14%
EPS Next 3Y8.25%
MASCO CORP
NYSE:MAS (12/23/2024, 10:55:02 AM)
73.81
-0.58 (-0.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners100.64%
Inst Owner Change-5.22%
Ins Owners0.25%
Ins Owner Change-0.59%
Market Cap15.92B
Analysts71.11
Price Target89.28 (20.96%)
Short Float %2.13%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Dividend Growth(5Y)21.06%
DP7.7%
Div Incr Years11
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.3%
Min EPS beat(2)-1.34%
Max EPS beat(2)0.74%
EPS beat(4)3
Avg EPS beat(4)7.16%
Min EPS beat(4)-1.34%
Max EPS beat(4)25.17%
EPS beat(8)6
Avg EPS beat(8)11.55%
EPS beat(12)7
Avg EPS beat(12)7.24%
EPS beat(16)10
Avg EPS beat(16)8.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)-1.55%
Revenue beat(4)1
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)4.15%
Revenue beat(8)3
Avg Revenue beat(8)0.13%
Revenue beat(12)5
Avg Revenue beat(12)0.42%
Revenue beat(16)9
Avg Revenue beat(16)1.12%
PT rev (1m)2.71%
PT rev (3m)5.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 16.53 | ||
| P/S | 2.02 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.37 |
EPS(TTM)4.04
EY5.47%
EPS(NY)4.47
Fwd EY6.05%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS36.53
BVpS-0.41
TBVpS-4.3
PEG (NY)2.91
PEG (5Y)1.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.69% | ||
| ROE | N/A | ||
| ROCE | 36.27% | ||
| ROIC | 27.82% | ||
| ROICexc | 33.75% | ||
| ROICexgc | 46.68% | ||
| OM | 16.92% | ||
| PM (TTM) | 10.54% | ||
| GM | 36.15% | ||
| FCFM | N/A |
ROA(3y)13.48%
ROA(5y)15.99%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.95%
ROIC(5y)27.98%
ROICexc(3y)37.05%
ROICexc(5y)36.17%
ROICexgc(3y)55.38%
ROICexgc(5y)54.05%
ROCE(3y)39.05%
ROCE(5y)36.48%
ROICexcg growth 3Y-6.47%
ROICexcg growth 5Y7.68%
ROICexc growth 3Y-4.42%
ROICexc growth 5Y5.66%
OM growth 3Y-1.71%
OM growth 5Y1.11%
PM growth 3Y-12.31%
PM growth 5Y0.85%
GM growth 3Y-0.37%
GM growth 5Y0.36%
F-ScoreN/A
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 4.27 |
F-ScoreN/A
WACC9.71%
ROIC/WACC2.87
Cap/Depr(3y)134.11%
Cap/Depr(5y)116.3%
Cap/Sales(3y)2.39%
Cap/Sales(5y)2.23%
Profit Quality(3y)133.18%
Profit Quality(5y)108.17%
High Growth Momentum
Growth
EPS 1Y (TTM)8.89%
EPS 3Y7.98%
EPS 5Y9.33%
EPS Q2Q%8%
EPS Next Y6.27%
EPS Next 2Y7.14%
EPS Next 3Y8.25%
EPS Next 5Y9.38%
Revenue 1Y (TTM)-1.57%
Revenue growth 3Y3.49%
Revenue growth 5Y3.67%
Sales Q2Q%0.2%
Revenue Next Year-0.41%
Revenue Next 2Y0.26%
Revenue Next 3Y1.51%
Revenue Next 5Y4.71%
EBIT growth 1Y1.68%
EBIT growth 3Y1.72%
EBIT growth 5Y4.82%
EBIT Next Year16.86%
EBIT Next 3Y9.09%
EBIT Next 5Y8.72%
FCF growth 1Y89.94%
FCF growth 3Y11.72%
FCF growth 5Y7.55%
OCF growth 1Y68.21%
OCF growth 3Y14.03%
OCF growth 5Y6.49%