MASCO CORP (MAS) Stock Fundamental Analysis
NYSE:MAS - New York Stock Exchange, Inc. - US5745991068 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MAS. MAS was compared to 40 industry peers in the Building Products industry. While MAS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, MAS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
MAS had positive earnings in the past year.
In the past year MAS had a positive cash flow from operations.
Each year in the past 5 years MAS has been profitable.
In the past 5 years MAS always reported a positive cash flow from operatings.
1.2 Ratios
MAS has a better Return On Assets (16.39%) than 90.00% of its industry peers.
MAS's Return On Invested Capital of 30.11% is amongst the best of the industry. MAS outperforms 97.50% of its industry peers.
MAS had an Average Return On Invested Capital over the past 3 years of 29.73%. This is significantly above the industry average of 12.94%.
The last Return On Invested Capital (30.11%) for MAS is above the 3 year average (29.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.39% | ||
| ROE | N/A | ||
| ROIC | 30.11% |
ROA(3y)16.52%
ROA(5y)15.57%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.73%
ROIC(5y)29.08%
1.3 Margins
MAS's Profit Margin of 10.50% is fine compared to the rest of the industry. MAS outperforms 65.00% of its industry peers.
MAS's Profit Margin has declined in the last couple of years.
MAS has a better Operating Margin (17.40%) than 62.50% of its industry peers.
In the last couple of years the Operating Margin of MAS has remained more or less at the same level.
With a Gross Margin value of 36.16%, MAS perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Gross Margin of MAS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.4% | ||
| PM (TTM) | 10.5% | ||
| GM | 36.17% |
OM growth 3Y0.19%
OM growth 5Y1.26%
PM growth 3Y29.39%
PM growth 5Y-5.39%
GM growth 3Y1.89%
GM growth 5Y0.46%
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
The debt/assets ratio for MAS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.28 indicates that MAS is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 4.28, MAS perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
MAS has a debt to FCF ratio of 3.25. This is a good value and a sign of high solvency as MAS would need 3.25 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.25, MAS perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 4.28 |
ROIC/WACC3.02
WACC9.96%
2.3 Liquidity
A Current Ratio of 1.75 indicates that MAS should not have too much problems paying its short term obligations.
MAS has a Current ratio of 1.75. This is in the lower half of the industry: MAS underperforms 67.50% of its industry peers.
A Quick Ratio of 1.15 indicates that MAS should not have too much problems paying its short term obligations.
MAS's Quick ratio of 1.15 is on the low side compared to the rest of the industry. MAS is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
MAS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.40%.
Measured over the past years, MAS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.05% on average per year.
MAS shows a decrease in Revenue. In the last year, the revenue decreased by -1.74%.
MAS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.14% yearly.
EPS 1Y (TTM)5.4%
EPS 3Y3.57%
EPS 5Y10.05%
EPS Q2Q%7.23%
Revenue 1Y (TTM)-1.74%
Revenue growth 3Y-2.23%
Revenue growth 5Y3.14%
Sales Q2Q%-2.87%
3.2 Future
MAS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.24% yearly.
The Revenue is expected to grow by 6.22% on average over the next years.
EPS Next Y6.29%
EPS Next 2Y8.38%
EPS Next 3Y8.96%
EPS Next 5Y10.24%
Revenue Next Year-1.47%
Revenue Next 2Y1.19%
Revenue Next 3Y2.23%
Revenue Next 5Y6.22%
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
Based on the Price/Earnings ratio of 17.95, the valuation of MAS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MAS is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.71, MAS is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.88, which indicates a correct valuation of MAS.
MAS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of MAS to the average of the S&P500 Index (22.34), we can say MAS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MAS is on the same level as its industry peers.
MAS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.2 | ||
| EV/EBITDA | 11.69 |
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.
The decent profitability rating of MAS may justify a higher PE ratio.
PEG (NY)2.85
PEG (5Y)1.79
EPS Next 2Y8.38%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
MAS has a Yearly Dividend Yield of 1.66%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.17, MAS pays a better dividend. On top of this MAS pays more dividend than 90.00% of the companies listed in the same industry.
MAS's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
On average, the dividend of MAS grows each year by 18.34%, which is quite nice.
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)18.34%
Div Incr Years11
Div Non Decr Years14
5.3 Sustainability
MAS pays out 30.90% of its income as dividend. This is a sustainable payout ratio.
MAS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.9%
EPS Next 2Y8.38%
EPS Next 3Y8.96%
73.58
+1.08 (+1.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.41%
Inst Owner Change0.23%
Ins Owners0.24%
Ins Owner Change-0.98%
Market Cap15.60B
Analysts70.37
Price Target86.47 (17.52%)
Short Float %2.38%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Yearly Dividend1.17
Dividend Growth(5Y)18.34%
DP30.9%
Div Incr Years11
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.24%
Min EPS beat(2)-1.34%
Max EPS beat(2)0.86%
EPS beat(4)3
Avg EPS beat(4)1.09%
Min EPS beat(4)-1.34%
Max EPS beat(4)4.08%
EPS beat(8)7
Avg EPS beat(8)12.2%
EPS beat(12)8
Avg EPS beat(12)7.58%
EPS beat(16)11
Avg EPS beat(16)8.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-1.57%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)-1.35%
Revenue beat(8)3
Avg Revenue beat(8)0.17%
Revenue beat(12)4
Avg Revenue beat(12)0.07%
Revenue beat(16)8
Avg Revenue beat(16)0.92%
PT rev (1m)-0.37%
PT rev (3m)-3.15%
EPS NQ rev (1m)-6.35%
EPS NQ rev (3m)-6.98%
EPS NY rev (1m)-2%
EPS NY rev (3m)-2.41%
Revenue NQ rev (1m)-3.29%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)-2.26%
Revenue NY rev (3m)-2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 16.88 | ||
| P/S | 1.99 | ||
| P/FCF | 17.2 | ||
| P/OCF | 14.51 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.69 |
EPS(TTM)4.1
EY5.57%
EPS(NY)4.36
Fwd EY5.92%
FCF(TTM)4.28
FCFY5.82%
OCF(TTM)5.07
OCFY6.89%
SpS36.93
BVpS-1.32
TBVpS-5.18
PEG (NY)2.85
PEG (5Y)1.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.39% | ||
| ROE | N/A | ||
| ROCE | 39.41% | ||
| ROIC | 30.11% | ||
| ROICexc | 36.88% | ||
| ROICexgc | 51.91% | ||
| OM | 17.4% | ||
| PM (TTM) | 10.5% | ||
| GM | 36.17% | ||
| FCFM | 11.59% |
ROA(3y)16.52%
ROA(5y)15.57%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.73%
ROIC(5y)29.08%
ROICexc(3y)35.59%
ROICexc(5y)37.39%
ROICexgc(3y)51.43%
ROICexgc(5y)55.89%
ROCE(3y)38.9%
ROCE(5y)38.06%
ROICexcg growth 3Y-6.31%
ROICexcg growth 5Y4.48%
ROICexc growth 3Y-3.35%
ROICexc growth 5Y4.14%
OM growth 3Y0.19%
OM growth 5Y1.26%
PM growth 3Y29.39%
PM growth 5Y-5.39%
GM growth 3Y1.89%
GM growth 5Y0.46%
F-Score7
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.25 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 112% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 13.76 | ||
| Cash Conversion | 71.1% | ||
| Profit Quality | 110.34% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 4.28 |
F-Score7
WACC9.96%
ROIC/WACC3.02
Cap/Depr(3y)143.19%
Cap/Depr(5y)119.76%
Cap/Sales(3y)2.59%
Cap/Sales(5y)2.18%
Profit Quality(3y)104.12%
Profit Quality(5y)115.79%
High Growth Momentum
Growth
EPS 1Y (TTM)5.4%
EPS 3Y3.57%
EPS 5Y10.05%
EPS Q2Q%7.23%
EPS Next Y6.29%
EPS Next 2Y8.38%
EPS Next 3Y8.96%
EPS Next 5Y10.24%
Revenue 1Y (TTM)-1.74%
Revenue growth 3Y-2.23%
Revenue growth 5Y3.14%
Sales Q2Q%-2.87%
Revenue Next Year-1.47%
Revenue Next 2Y1.19%
Revenue Next 3Y2.23%
Revenue Next 5Y6.22%
EBIT growth 1Y-0.07%
EBIT growth 3Y-2.04%
EBIT growth 5Y4.44%
EBIT Next Year15.1%
EBIT Next 3Y10.28%
EBIT Next 5Y8.94%
FCF growth 1Y-22.48%
FCF growth 3Y4.19%
FCF growth 5Y6.21%
OCF growth 1Y-23.92%
OCF growth 3Y4.95%
OCF growth 5Y5.23%