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 40 industry peers in the Building Products industry. MAS scores excellent on profitability, but there are some minor concerns on its financial health. MAS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MAS was profitable.
In the past year MAS had a positive cash flow from operations.
MAS had positive earnings in each of the past 5 years.
MAS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 17.02%, MAS belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
With an excellent Return On Invested Capital value of 28.04%, MAS belongs to the best of the industry, outperforming 97.50% 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 13.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.02% | ||
| ROE | N/A | ||
| ROIC | 28.04% |
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
With a decent Profit Margin value of 11.59%, MAS is doing good in the industry, outperforming 67.50% of the companies in the same industry.
MAS's Profit Margin has been stable in the last couple of years.
MAS has a better Operating Margin (17.26%) 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 36.41%, 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 | 17.26% | ||
| PM (TTM) | 11.59% | ||
| GM | 36.41% |
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.
Compared to 1 year ago, MAS has less shares outstanding
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 4.41 indicates that MAS is not in any danger for bankruptcy at the moment.
MAS has a Altman-Z score of 4.41. This is comparable to the rest of the industry: MAS outperforms 55.00% of its industry peers.
MAS has a debt to FCF ratio of 2.85. This is a good value and a sign of high solvency as MAS would need 2.85 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.85, MAS is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 4.41 |
ROIC/WACC2.68
WACC10.47%
2.3 Liquidity
A Current Ratio of 1.76 indicates that MAS should not have too much problems paying its short term obligations.
MAS has a Current ratio of 1.76. This is in the lower half of the industry: MAS underperforms 65.00% of its industry peers.
MAS has a Quick Ratio of 1.12. 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 1.12. This is in the lower half of the industry: MAS underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.89% over the past year.
The Earnings Per Share has been growing by 9.33% on average over the past years. This is quite good.
MAS shows a decrease in Revenue. In the last year, the revenue decreased by -1.57%.
The Revenue has been growing slightly by 3.67% on average over the past years.
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-0.44%
Revenue Next 2Y0.18%
Revenue Next 3Y1.5%
Revenue Next 5Y4.71%
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
The Price/Earnings ratio is 19.62, which indicates a rather expensive current valuation of MAS.
The rest of the industry has a similar Price/Earnings ratio as MAS.
When comparing the Price/Earnings ratio of MAS to the average of the S&P500 Index (28.46), we can say MAS is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.75, which indicates a rather expensive current valuation of MAS.
MAS's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 92.56. MAS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 17.75 |
4.2 Price Multiples
MAS's Enterprise Value to EBITDA is on the same level as the industry average.
MAS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MAS is cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.54 | ||
| EV/EBITDA | 13.29 |
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)3.13
PEG (5Y)2.1
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 1.05, 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 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
On average, the dividend of MAS grows each year by 21.06%, which is quite nice.
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 Years11
Div Non Decr Years14
5.3 Sustainability
28.04% 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.
DP28.04%
EPS Next 2Y7.14%
EPS Next 3Y8.25%
MASCO CORP
NYSE:MAS (1/31/2025, 8:04:00 PM)
After market: 79.2 -0.08 (-0.1%)79.28
-1.82 (-2.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners100.64%
Inst Owner Change0.31%
Ins Owners0.25%
Ins Owner Change-1.52%
Market Cap17.10B
Analysts68.89
Price Target88.44 (11.55%)
Short Float %2.45%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend1.15
Dividend Growth(5Y)21.06%
DP28.04%
Div Incr Years11
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.41%
Min EPS beat(2)0.74%
Max EPS beat(2)4.08%
EPS beat(4)4
Avg EPS beat(4)9.63%
Min EPS beat(4)0.74%
Max EPS beat(4)25.17%
EPS beat(8)6
Avg EPS beat(8)10.69%
EPS beat(12)8
Avg EPS beat(12)8.3%
EPS beat(16)11
Avg EPS beat(16)10.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)-1.55%
Revenue beat(4)1
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)4.15%
Revenue beat(8)3
Avg Revenue beat(8)-0.03%
Revenue beat(12)6
Avg Revenue beat(12)0.9%
Revenue beat(16)10
Avg Revenue beat(16)1.62%
PT rev (1m)-0.94%
PT rev (3m)1.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 17.75 | ||
| P/S | 2.17 | ||
| P/FCF | 16.54 | ||
| P/OCF | 14.04 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.29 |
EPS(TTM)4.04
EY5.1%
EPS(NY)4.47
Fwd EY5.63%
FCF(TTM)4.79
FCFY6.05%
OCF(TTM)5.65
OCFY7.12%
SpS36.51
BVpS-0.12
TBVpS-4.57
PEG (NY)3.13
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.02% | ||
| ROE | N/A | ||
| ROCE | 36.56% | ||
| ROIC | 28.04% | ||
| ROICexc | 31.4% | ||
| ROICexgc | 44.16% | ||
| OM | 17.26% | ||
| PM (TTM) | 11.59% | ||
| GM | 36.41% | ||
| FCFM | 13.13% |
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-Score8
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.85 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 123.49% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.72% | ||
| Profit Quality | 113.25% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 4.41 |
F-Score8
WACC10.47%
ROIC/WACC2.68
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-0.44%
Revenue Next 2Y0.18%
Revenue Next 3Y1.5%
Revenue Next 5Y4.71%
EBIT growth 1Y6.25%
EBIT growth 3Y1.72%
EBIT growth 5Y4.82%
EBIT Next Year16.86%
EBIT Next 3Y9.05%
EBIT Next 5Y8.72%
FCF growth 1Y43.61%
FCF growth 3Y11.72%
FCF growth 5Y7.55%
OCF growth 1Y40.81%
OCF growth 3Y14.03%
OCF growth 5Y6.49%