MASCO CORP (MAS)
US5745991068 - Common Stock
MAS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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
MAS had positive earnings in the past year.
In the past 5 years MAS has always been profitable.
In the past 5 years MAS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.69%, MAS belongs to the top of the industry, outperforming 87.18% of the companies in the same industry.
With an excellent Return On Invested Capital value of 27.82%, MAS belongs to the best of the industry, outperforming 97.44% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MAS is significantly above the industry average of 13.66%.
| 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
MAS's Profit Margin of 10.54% is fine compared to the rest of the industry. MAS outperforms 61.54% of its industry peers.
MAS's Profit Margin has been stable in the last couple of years.
MAS has a better Operating Margin (16.92%) than 61.54% of its industry peers.
In the last couple of years the Operating Margin of MAS has remained more or less at the same level.
MAS's Gross Margin of 36.15% is in line compared to the rest of the industry. MAS outperforms 58.97% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MAS 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 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.36 indicates that MAS is not in any danger for bankruptcy at the moment.
MAS's Altman-Z score of 4.36 is in line compared to the rest of the industry. MAS outperforms 51.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.36 |
ROIC/WACC2.81
WACC9.91%
2.3 Liquidity
MAS has a Current Ratio of 1.83. This is a normal value and indicates that MAS is financially healthy and should not expect problems in meeting its short term obligations.
MAS's Current ratio of 1.83 is in line compared to the rest of the industry. MAS outperforms 43.59% of 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 41.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
MAS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.89%, which is quite good.
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.
MAS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.67% yearly.
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
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 Y6.27%
EPS Next 2Y7.14%
EPS Next 3Y8.25%
EPS Next 5Y9.85%
Revenue Next Year-0.41%
Revenue Next 2Y0.26%
Revenue Next 3Y1.51%
Revenue Next 5Y5.51%
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.
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
Based on the Price/Earnings ratio of 19.39, 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.
When comparing the Price/Earnings ratio of MAS to the average of the S&P500 Index (28.96), we can say MAS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.54, MAS is valued on the expensive side.
MAS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MAS is cheaper than 61.54% of the companies in the same industry.
MAS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 17.54 |
4.2 Price Multiples
MAS's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of MAS may justify a higher PE ratio.
PEG (NY)3.09
PEG (5Y)2.08
EPS Next 2Y7.14%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
MAS has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.94, MAS pays a better dividend. On top of this MAS pays more dividend than 94.87% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.23, MAS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)21.06%
Div Incr Years10
Div Non Decr Years13
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 (11/21/2024, 8:04:00 PM)
After market: 78.26 -0.07 (-0.09%)78.33
+1.32 (+1.71%)
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 Cap16.90B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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 | 19.39 | ||
| Fwd PE | 17.54 | ||
| 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)3.09
PEG (5Y)2.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.69% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.92% | ||
| PM (TTM) | 10.54% | ||
| GM | 36.15% | ||
| 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 Turnover1.49
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 | 1.83 | ||
| Quick Ratio | 1.21 | ||
| 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)8.89%
EPS 3Y7.98%
EPS 5Y
EPS Q2Q%
EPS Next Y6.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.57%
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