MASCO CORP (MAS) Stock Fundamental Analysis
NYSE:MAS - New York Stock Exchange, Inc. - US5745991068 - Common Stock - Currency: USD
Taking everything into account, MAS scores 6 out of 10 in our fundamental rating. MAS was compared to 41 industry peers in the Building Products industry. MAS has an excellent profitability rating, but there are some minor concerns on its financial health. MAS has a correct valuation and a medium growth rate. MAS also has an excellent dividend rating. This makes MAS very considerable for dividend investing!
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.
In the past 5 years MAS has always been profitable.
MAS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.39%, MAS belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 30.11%, MAS belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MAS is significantly above the industry average of 12.62%.
The 3 year average ROIC (29.73%) for MAS is below the current ROIC(30.11%), indicating increased profibility in the last year.
| 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 60.98% of its industry peers.
MAS's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 17.40%, MAS is doing good in the industry, outperforming 70.73% of the companies in the same industry.
MAS's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 36.16%, MAS perfoms like the industry average, outperforming 56.10% 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MAS is creating value.
Compared to 1 year ago, MAS has less shares outstanding
MAS has less shares outstanding than it did 5 years ago.
MAS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.15 indicates that MAS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.15, MAS is in line with its industry, outperforming 56.10% 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 decent Debt to FCF ratio value of 3.25, MAS is doing good in the industry, outperforming 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 4.15 |
ROIC/WACC3.15
WACC9.56%
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 60.98% of its industry peers.
MAS has a Quick Ratio of 1.15. This is a normal value and indicates that MAS is financially healthy and should not expect problems in meeting its short term obligations.
MAS has a Quick ratio of 1.15. This is comparable to the rest of the industry: MAS outperforms 43.90% 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 2.28%.
The Earnings Per Share has been growing by 10.05% on average over the past years. This is quite good.
The Revenue has decreased by -2.67% in the past year.
The Revenue has been growing slightly by 3.14% on average over the past years.
EPS 1Y (TTM)2.28%
EPS 3Y3.57%
EPS 5Y10.05%
EPS Q2Q%-6.45%
Revenue 1Y (TTM)-2.67%
Revenue growth 3Y-2.23%
Revenue growth 5Y3.14%
Sales Q2Q%-6.49%
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 9.26% on average per year.
Based on estimates for the next years, MAS will show a small growth in Revenue. The Revenue will grow by 3.97% on average per year.
EPS Next Y-12.27%
EPS Next 2Y0.28%
EPS Next 3Y5.12%
EPS Next 5Y9.26%
Revenue Next Year-3.02%
Revenue Next 2Y0.45%
Revenue Next 3Y1.9%
Revenue Next 5Y3.97%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.65 indicates a correct valuation of MAS.
MAS's Price/Earnings ratio is a bit cheaper when compared to the industry. MAS is cheaper than 70.73% of the companies in the same industry.
When comparing the Price/Earnings ratio of MAS to the average of the S&P500 Index (27.28), we can say MAS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.32, the valuation of MAS can be described as correct.
MAS's Price/Forward Earnings is on the same level as the industry average.
MAS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.65 | ||
| Fwd PE | 16.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MAS indicates a somewhat cheap valuation: MAS is cheaper than 68.29% of the companies listed in the same industry.
78.05% of the companies in the same industry are more expensive than MAS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.65 | ||
| EV/EBITDA | 10.89 |
4.3 Compensation for Growth
MAS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.66
EPS Next 2Y0.28%
EPS Next 3Y5.12%
5. Dividend
5.1 Amount
MAS has a Yearly Dividend Yield of 1.95%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.19, MAS pays a better dividend. On top of this MAS pays more dividend than 92.68% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, MAS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
The dividend of MAS is nicely growing with an annual growth rate of 18.34%!
MAS has paid a dividend for at least 10 years, which is a reliable track record.
MAS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
The dividend of MAS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP30.9%
EPS Next 2Y0.28%
EPS Next 3Y5.12%
67.28
+0.18 (+0.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.6%
Inst Owner Change0.7%
Ins Owners0.15%
Ins Owner Change0.65%
Market Cap14.19B
Analysts71.43
Price Target71.93 (6.91%)
Short Float %2.58%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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)1.2%
PT rev (3m)-16.61%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-0.01%
EPS NY rev (1m)0.68%
EPS NY rev (3m)-17.36%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.65 | ||
| Fwd PE | 16.32 | ||
| P/S | 1.81 | ||
| P/FCF | 15.65 | ||
| P/OCF | 13.2 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.89 |
EPS(TTM)4.04
EY6%
EPS(NY)4.12
Fwd EY6.13%
FCF(TTM)4.3
FCFY6.39%
OCF(TTM)5.1
OCFY7.57%
SpS37.11
BVpS-1.33
TBVpS-5.2
PEG (NY)N/A
PEG (5Y)1.66
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 | 4.15 |
F-Score7
WACC9.56%
ROIC/WACC3.15
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)2.28%
EPS 3Y3.57%
EPS 5Y10.05%
EPS Q2Q%-6.45%
EPS Next Y-12.27%
EPS Next 2Y0.28%
EPS Next 3Y5.12%
EPS Next 5Y9.26%
Revenue 1Y (TTM)-2.67%
Revenue growth 3Y-2.23%
Revenue growth 5Y3.14%
Sales Q2Q%-6.49%
Revenue Next Year-3.02%
Revenue Next 2Y0.45%
Revenue Next 3Y1.9%
Revenue Next 5Y3.97%
EBIT growth 1Y-0.07%
EBIT growth 3Y-2.04%
EBIT growth 5Y4.44%
EBIT Next Year-4.91%
EBIT Next 3Y5.17%
EBIT Next 5Y7.33%
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%