MASCO CORP (MAS)
US5745991068 - Common Stock
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. MAS is quite expensive at the moment. It does show a decent growth rate.
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.
MAS had positive earnings in each of the past 5 years.
In the past 5 years MAS always reported a positive cash flow from operatings.
1.2 Ratios
MAS has a better Return On Assets (17.20%) than 87.50% of its industry peers.
The Return On Invested Capital of MAS (28.36%) is better than 97.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MAS is significantly above the industry average of 13.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.2% | ||
| ROE | N/A | ||
| ROIC | 28.36% |
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 11.60%, MAS is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
MAS's Profit Margin has been stable in the last couple of years.
MAS's Operating Margin of 17.26% is fine compared to the rest of the industry. MAS outperforms 65.00% of its industry peers.
MAS's Operating Margin has been stable in the last couple of years.
The Gross Margin of MAS (36.04%) is comparable to the rest of the industry.
MAS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.26% | ||
| PM (TTM) | 11.6% | ||
| GM | 36.04% |
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
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
Compared to 5 years ago, MAS has less shares outstanding
Compared to 1 year ago, MAS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.40 indicates that MAS is not in any danger for bankruptcy at the moment.
MAS has a Altman-Z score (4.40) which is comparable to the rest of the industry.
The Debt to FCF ratio of MAS is 2.79, which is a good value as it means it would take MAS, 2.79 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.79, MAS is in line with its industry, outperforming 52.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.79 | ||
| Altman-Z | 4.4 |
ROIC/WACC3.08
WACC9.21%
2.3 Liquidity
MAS has a Current Ratio of 1.74. This is a normal value and indicates that MAS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.74, MAS is doing worse than 70.00% of the companies in the same industry.
MAS has a Quick Ratio of 1.09. This is a normal value and indicates that MAS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.09, MAS is doing worse than 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.32% over the past year.
Measured over the past years, MAS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.33% on average per year.
Looking at the last year, MAS shows a decrease in Revenue. The Revenue has decreased by -4.31% in the last year.
The Revenue has been growing slightly by 3.67% on average over the past years.
EPS 1Y (TTM)7.32%
EPS 3Y7.98%
EPS 5Y9.33%
EPS Q2Q%0.84%
Revenue 1Y (TTM)-4.31%
Revenue growth 3Y3.49%
Revenue growth 5Y3.67%
Sales Q2Q%-1.69%
3.2 Future
The Earnings Per Share is expected to grow by 9.85% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.51% on average over the next years.
EPS Next Y6.83%
EPS Next 2Y8.2%
EPS Next 3Y9%
EPS Next 5Y9.85%
Revenue Next Year0.53%
Revenue Next 2Y1.91%
Revenue Next 3Y2.63%
Revenue Next 5Y5.51%
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.
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
MAS is valuated rather expensively with a Price/Earnings ratio of 20.26.
Compared to the rest of the industry, the Price/Earnings ratio of MAS is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MAS to the average of the S&P500 Index (30.52), we can say MAS is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.61 indicates a rather expensive valuation of MAS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MAS is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.99, MAS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.26 | ||
| Fwd PE | 17.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAS is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MAS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.3 | ||
| EV/EBITDA | 13.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MAS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.97
PEG (5Y)2.17
EPS Next 2Y8.2%
EPS Next 3Y9%
5. Dividend
5.1 Amount
MAS has a Yearly Dividend Yield of 1.47%. Purely for dividend investing, there may be better candidates out there.
MAS's Dividend Yield is rather good when compared to the industry average which is at 1.01. MAS pays more dividend than 90.00% of the companies in the same industry.
MAS's Dividend Yield is slightly below the S&P500 average, which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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 Years10
Div Non Decr Years13
5.3 Sustainability
27.89% of the earnings are spent on dividend by MAS. This is a low number and sustainable payout ratio.
The dividend of MAS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.89%
EPS Next 2Y8.2%
EPS Next 3Y9%
MASCO CORP
NYSE:MAS (9/13/2024, 8:04:00 PM)
After market: 80.21 0 (0%)80.21
+1.29 (+1.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.26 | ||
| Fwd PE | 17.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.97
PEG (5Y)2.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.2% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.26% | ||
| PM (TTM) | 11.6% | ||
| GM | 36.04% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.32%
EPS 3Y7.98%
EPS 5Y
EPS Q2Q%
EPS Next Y6.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.31%
Revenue growth 3Y3.49%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y