MASTEC INC (MTZ) Stock Fundamental Analysis
NYSE:MTZ - New York Stock Exchange, Inc. - US5763231090 - Common Stock
Taking everything into account, MTZ scores 4 out of 10 in our fundamental rating. MTZ was compared to 45 industry peers in the Construction & Engineering industry. The financial health of MTZ is average, but there are quite some concerns on its profitability. MTZ has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MTZ had positive earnings in the past year.
MTZ had a positive operating cash flow in the past year.
Of the past 5 years MTZ 4 years were profitable.
Each year in the past 5 years MTZ had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MTZ (1.01%) is worse than 60.47% of its industry peers.
MTZ's Return On Equity of 3.16% is in line compared to the rest of the industry. MTZ outperforms 46.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.90%, MTZ is in line with its industry, outperforming 46.51% of the companies in the same industry.
MTZ had an Average Return On Invested Capital over the past 3 years of 4.27%. This is significantly below the industry average of 11.60%.
The last Return On Invested Capital (4.90%) for MTZ is above the 3 year average (4.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 3.16% | ||
| ROIC | 4.9% |
ROA(3y)1.48%
ROA(5y)3.69%
ROE(3y)4.11%
ROE(5y)10.08%
ROIC(3y)4.27%
ROIC(5y)6.81%
1.3 Margins
MTZ's Profit Margin of 0.73% is in line compared to the rest of the industry. MTZ outperforms 41.86% of its industry peers.
MTZ's Operating Margin of 3.00% is on the low side compared to the rest of the industry. MTZ is outperformed by 60.47% of its industry peers.
MTZ's Operating Margin has declined in the last couple of years.
The Gross Margin of MTZ (12.80%) is worse than 67.44% of its industry peers.
MTZ's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3% | ||
| PM (TTM) | 0.73% | ||
| GM | 12.8% |
OM growth 3Y-42.73%
OM growth 5Y-27.51%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.32%
GM growth 5Y-3.77%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MTZ is destroying value.
MTZ has more shares outstanding than it did 1 year ago.
MTZ has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MTZ has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.22 indicates that MTZ is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.22, MTZ is doing good in the industry, outperforming 60.47% of the companies in the same industry.
MTZ has a debt to FCF ratio of 2.31. This is a good value and a sign of high solvency as MTZ would need 2.31 years to pay back of all of its debts.
The Debt to FCF ratio of MTZ (2.31) is better than 72.09% of its industry peers.
MTZ has a Debt/Equity ratio of 0.76. This is a neutral value indicating MTZ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, MTZ is in line with its industry, outperforming 41.86% of the companies in the same industry.
Although MTZ does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 3.22 |
ROIC/WACC0.39
WACC12.65%
2.3 Liquidity
A Current Ratio of 1.24 indicates that MTZ should not have too much problems paying its short term obligations.
The Current ratio of MTZ (1.24) is worse than 67.44% of its industry peers.
MTZ has a Quick Ratio of 1.20. This is a normal value and indicates that MTZ is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.20, MTZ is not doing good in the industry: 67.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.91% over the past year.
MTZ shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.36% yearly.
Looking at the last year, MTZ shows a small growth in Revenue. The Revenue has grown by 3.89% in the last year.
The Revenue has been growing by 11.67% on average over the past years. This is quite good.
EPS 1Y (TTM)33.91%
EPS 3Y-27.44%
EPS 5Y-12.36%
EPS Q2Q%71.58%
Revenue 1Y (TTM)3.89%
Revenue growth 3Y23.81%
Revenue growth 5Y11.67%
Sales Q2Q%-0.14%
3.2 Future
The Earnings Per Share is expected to grow by 38.57% on average over the next years. This is a very strong growth
Based on estimates for the next years, MTZ will show a small growth in Revenue. The Revenue will grow by 6.51% on average per year.
EPS Next Y91.29%
EPS Next 2Y64.45%
EPS Next 3Y49.43%
EPS Next 5Y38.57%
Revenue Next Year2.08%
Revenue Next 2Y5.4%
Revenue Next 3Y6.29%
Revenue Next 5Y6.51%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 49.68, the valuation of MTZ can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MTZ is on the same level as its industry peers.
MTZ's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.96.
Based on the Price/Forward Earnings ratio of 29.24, the valuation of MTZ can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTZ is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.11, MTZ is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.68 | ||
| Fwd PE | 29.24 |
4.2 Price Multiples
60.47% of the companies in the same industry are more expensive than MTZ, based on the Enterprise Value to EBITDA ratio.
86.05% of the companies in the same industry are more expensive than MTZ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.23 | ||
| EV/EBITDA | 15.9 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MTZ's earnings are expected to grow with 49.43% in the coming years.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y64.45%
EPS Next 3Y49.43%
5. Dividend
5.1 Amount
No dividends for MTZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MASTEC INC
NYSE:MTZ (1/17/2025, 8:16:28 PM)
After market: 155 0 (0%)155
-0.32 (-0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners79.69%
Inst Owner Change-0.27%
Ins Owners21.38%
Ins Owner Change-0.71%
Market Cap12.28B
Analysts81.11
Price Target161.23 (4.02%)
Short Float %3.12%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.46%
Min EPS beat(2)9.71%
Max EPS beat(2)31.21%
EPS beat(4)4
Avg EPS beat(4)40.68%
Min EPS beat(4)9.71%
Max EPS beat(4)73.02%
EPS beat(8)7
Avg EPS beat(8)15.85%
EPS beat(12)11
Avg EPS beat(12)17.34%
EPS beat(16)15
Avg EPS beat(16)16.4%
Revenue beat(2)0
Avg Revenue beat(2)-5.59%
Min Revenue beat(2)-6%
Max Revenue beat(2)-5.18%
Revenue beat(4)1
Avg Revenue beat(4)-2.55%
Min Revenue beat(4)-6%
Max Revenue beat(4)1.46%
Revenue beat(8)3
Avg Revenue beat(8)-2.41%
Revenue beat(12)5
Avg Revenue beat(12)-1.36%
Revenue beat(16)7
Avg Revenue beat(16)-1.34%
PT rev (1m)1.42%
PT rev (3m)26.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)32.91%
EPS NY rev (1m)-1.34%
EPS NY rev (3m)21.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.68 | ||
| Fwd PE | 29.24 | ||
| P/S | 1.01 | ||
| P/FCF | 12.23 | ||
| P/OCF | 10.77 | ||
| P/B | 4.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.9 |
EPS(TTM)3.12
EY2.01%
EPS(NY)5.3
Fwd EY3.42%
FCF(TTM)12.68
FCFY8.18%
OCF(TTM)14.4
OCFY9.29%
SpS153.74
BVpS35.46
TBVpS-0.56
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 3.16% | ||
| ROCE | 6.23% | ||
| ROIC | 4.9% | ||
| ROICexc | 5.05% | ||
| ROICexgc | 10.13% | ||
| OM | 3% | ||
| PM (TTM) | 0.73% | ||
| GM | 12.8% | ||
| FCFM | 8.25% |
ROA(3y)1.48%
ROA(5y)3.69%
ROE(3y)4.11%
ROE(5y)10.08%
ROIC(3y)4.27%
ROIC(5y)6.81%
ROICexc(3y)4.57%
ROICexc(5y)7.27%
ROICexgc(3y)8.39%
ROICexgc(5y)12.62%
ROCE(3y)5.43%
ROCE(5y)8.66%
ROICexcg growth 3Y-39.09%
ROICexcg growth 5Y-26.91%
ROICexc growth 3Y-41.4%
ROICexc growth 5Y-28.95%
OM growth 3Y-42.73%
OM growth 5Y-27.51%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.32%
GM growth 5Y-3.77%
F-Score7
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 25.06% | ||
| Cap/Sales | 1.12% | ||
| Interest Coverage | 1.82 | ||
| Cash Conversion | 125.49% | ||
| Profit Quality | 1131.21% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.22 |
F-Score7
WACC12.65%
ROIC/WACC0.39
Cap/Depr(3y)41.39%
Cap/Depr(5y)49.93%
Cap/Sales(3y)2.15%
Cap/Sales(5y)2.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.91%
EPS 3Y-27.44%
EPS 5Y-12.36%
EPS Q2Q%71.58%
EPS Next Y91.29%
EPS Next 2Y64.45%
EPS Next 3Y49.43%
EPS Next 5Y38.57%
Revenue 1Y (TTM)3.89%
Revenue growth 3Y23.81%
Revenue growth 5Y11.67%
Sales Q2Q%-0.14%
Revenue Next Year2.08%
Revenue Next 2Y5.4%
Revenue Next 3Y6.29%
Revenue Next 5Y6.51%
EBIT growth 1Y49.65%
EBIT growth 3Y-29.09%
EBIT growth 5Y-19.06%
EBIT Next Year320.53%
EBIT Next 3Y75.92%
EBIT Next 5Y45.6%
FCF growth 1Y521.61%
FCF growth 3Y-11.93%
FCF growth 5Y7.17%
OCF growth 1Y176.38%
OCF growth 3Y-9.83%
OCF growth 5Y5.33%