MASTEC INC (MTZ) Stock Fundamental Analysis
NYSE:MTZ - New York Stock Exchange, Inc. - US5763231090 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MTZ. MTZ was compared to 49 industry peers in the Construction & Engineering industry. MTZ scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MTZ has a correct valuation and a medium growth rate.
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.
MTZ had positive earnings in 4 of the past 5 years.
In the past 5 years MTZ always reported a positive cash flow from operatings.
1.2 Ratios
MTZ has a worse Return On Assets (1.01%) than 60.87% of its industry peers.
The Return On Equity of MTZ (3.16%) is comparable to the rest of the industry.
The Return On Invested Capital of MTZ (4.90%) is comparable to the rest of the 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 11.92%.
The 3 year average ROIC (4.27%) for MTZ is below the current ROIC(4.90%), indicating increased profibility in the last year.
| 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 has a Profit Margin (0.73%) which is in line with its industry peers.
MTZ has a Operating Margin of 3.00%. This is comparable to the rest of the industry: MTZ outperforms 41.30% of its industry peers.
MTZ's Operating Margin has declined in the last couple of years.
MTZ has a Gross Margin of 12.80%. This is in the lower half of the industry: MTZ underperforms 63.04% of its industry peers.
In the last couple of years the Gross Margin of MTZ has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MTZ is destroying value.
Compared to 1 year ago, MTZ has more shares outstanding
MTZ has more shares outstanding than it did 5 years ago.
MTZ has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.04 indicates that MTZ is not in any danger for bankruptcy at the moment.
The Altman-Z score of MTZ (3.04) is comparable to the rest of the 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.
With a decent Debt to FCF ratio value of 2.31, MTZ is doing good in the industry, outperforming 71.74% of the companies in the same industry.
MTZ has a Debt/Equity ratio of 0.76. This is a neutral value indicating MTZ is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.76, MTZ is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for MTZ, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.48
WACC10.16%
2.3 Liquidity
A Current Ratio of 1.24 indicates that MTZ should not have too much problems paying its short term obligations.
MTZ has a worse Current ratio (1.24) than 67.39% of its industry peers.
A Quick Ratio of 1.20 indicates that MTZ should not have too much problems paying its short term obligations.
MTZ's Quick ratio of 1.20 is on the low side compared to the rest of the industry. MTZ is outperformed by 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
MTZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.91%, which is quite impressive.
MTZ shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.36% yearly.
The Revenue has been growing slightly by 3.89% in the past year.
MTZ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.67% yearly.
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
Based on estimates for the next years, MTZ will show a very strong growth in Earnings Per Share. The EPS will grow by 38.57% on average per year.
The Revenue is expected to grow by 6.51% on average over the next years.
EPS Next Y91.15%
EPS Next 2Y64.56%
EPS Next 3Y49.95%
EPS Next 5Y38.57%
Revenue Next Year2.06%
Revenue Next 2Y5.34%
Revenue Next 3Y6.52%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 40.55, MTZ can be considered very expensive at the moment.
MTZ's Price/Earnings ratio is in line with the industry average.
MTZ's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 29.63.
MTZ is valuated rather expensively with a Price/Forward Earnings ratio of 23.83.
The rest of the industry has a similar Price/Forward Earnings ratio as MTZ.
MTZ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.55 | ||
| Fwd PE | 23.83 |
4.2 Price Multiples
63.04% of the companies in the same industry are more expensive than MTZ, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MTZ is valued cheaper than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.98 | ||
| EV/EBITDA | 13.93 |
4.3 Compensation for Growth
MTZ's 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 49.95% in the coming years.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y64.56%
EPS Next 3Y49.95%
5. Dividend
5.1 Amount
MTZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
126.51
-6.26 (-4.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners79.69%
Inst Owner Change-1.17%
Ins Owners21.38%
Ins Owner Change-0.74%
Market Cap10.02B
Analysts82.22
Price Target169.61 (34.07%)
Short Float %3.2%
Short Ratio2.17
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)5.2%
PT rev (3m)23.96%
EPS NQ rev (1m)-2.11%
EPS NQ rev (3m)-3.69%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-1.98%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.55 | ||
| Fwd PE | 23.83 | ||
| P/S | 0.82 | ||
| P/FCF | 9.98 | ||
| P/OCF | 8.79 | ||
| P/B | 3.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.93 |
EPS(TTM)3.12
EY2.47%
EPS(NY)5.31
Fwd EY4.2%
FCF(TTM)12.68
FCFY10.02%
OCF(TTM)14.4
OCFY11.38%
SpS153.74
BVpS35.46
TBVpS-0.56
PEG (NY)0.44
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 | 3.04 |
F-Score7
WACC10.16%
ROIC/WACC0.48
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 Y91.15%
EPS Next 2Y64.56%
EPS Next 3Y49.95%
EPS Next 5Y38.57%
Revenue 1Y (TTM)3.89%
Revenue growth 3Y23.81%
Revenue growth 5Y11.67%
Sales Q2Q%-0.14%
Revenue Next Year2.06%
Revenue Next 2Y5.34%
Revenue Next 3Y6.52%
Revenue Next 5Y6.51%
EBIT growth 1Y49.65%
EBIT growth 3Y-29.09%
EBIT growth 5Y-19.06%
EBIT Next Year320.53%
EBIT Next 3Y76.01%
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%