MASTEC INC (MTZ) Stock Fundamental Analysis
NYSE:MTZ - New York Stock Exchange, Inc. - US5763231090 - Common Stock - Currency: USD
MTZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 52 industry peers in the Construction & Engineering industry. MTZ has only an average score on both its financial health and profitability. MTZ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MTZ was profitable.
MTZ had a positive operating cash flow in the past year.
MTZ had positive earnings in 4 of the past 5 years.
MTZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MTZ's Return On Assets of 2.41% is in line compared to the rest of the industry. MTZ outperforms 51.92% of its industry peers.
With a Return On Equity value of 7.41%, MTZ perfoms like the industry average, outperforming 55.77% of the companies in the same industry.
The Return On Invested Capital of MTZ (6.92%) is better than 63.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MTZ is significantly below the industry average of 16.67%.
The last Return On Invested Capital (6.92%) for MTZ is above the 3 year average (4.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 7.41% | ||
| ROIC | 6.92% |
ROA(3y)0.55%
ROA(5y)2.49%
ROE(3y)1.65%
ROE(5y)6.81%
ROIC(3y)4.07%
ROIC(5y)5.8%
1.3 Margins
MTZ has a Profit Margin of 1.72%. This is comparable to the rest of the industry: MTZ outperforms 48.08% of its industry peers.
In the last couple of years the Profit Margin of MTZ has declined.
With a Operating Margin value of 4.16%, MTZ perfoms like the industry average, outperforming 48.08% of the companies in the same industry.
MTZ's Operating Margin has declined in the last couple of years.
MTZ has a Gross Margin of 13.13%. This is comparable to the rest of the industry: MTZ outperforms 42.31% of its industry peers.
In the last couple of years the Gross Margin of MTZ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.16% | ||
| PM (TTM) | 1.72% | ||
| GM | 13.13% |
OM growth 3Y-13.4%
OM growth 5Y-12.87%
PM growth 3Y-31.6%
PM growth 5Y-24.69%
GM growth 3Y-2.72%
GM growth 5Y-3.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MTZ is destroying value.
Compared to 1 year ago, MTZ has about the same amount of shares outstanding.
MTZ has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MTZ has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.40 indicates that MTZ is not in any danger for bankruptcy at the moment.
MTZ has a Altman-Z score of 3.40. This is in the better half of the industry: MTZ outperforms 63.46% of its industry peers.
MTZ has a debt to FCF ratio of 2.42. This is a good value and a sign of high solvency as MTZ would need 2.42 years to pay back of all of its debts.
MTZ has a better Debt to FCF ratio (2.42) than 75.00% of its industry peers.
MTZ has a Debt/Equity ratio of 0.71. This is a neutral value indicating MTZ is somewhat dependend on debt financing.
MTZ has a Debt to Equity ratio of 0.71. This is comparable to the rest of the industry: MTZ outperforms 50.00% of its industry peers.
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 | 0.71 | ||
| Debt/FCF | 2.42 | ||
| Altman-Z | 3.4 |
ROIC/WACC0.66
WACC10.45%
2.3 Liquidity
A Current Ratio of 1.22 indicates that MTZ should not have too much problems paying its short term obligations.
With a Current ratio value of 1.22, MTZ perfoms like the industry average, outperforming 48.08% of the companies in the same industry.
MTZ has a Quick Ratio of 1.18. This is a normal value and indicates that MTZ is financially healthy and should not expect problems in meeting its short term obligations.
MTZ's Quick ratio of 1.18 is in line compared to the rest of the industry. MTZ outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 91.56% over the past year.
The Earnings Per Share has been decreasing by -5.63% on average over the past years.
The Revenue has been growing slightly by 3.03% in the past year.
The Revenue has been growing by 11.36% on average over the past years. This is quite good.
EPS 1Y (TTM)91.56%
EPS 3Y-11.15%
EPS 5Y-5.63%
EPS Q2Q%492.31%
Revenue 1Y (TTM)3.03%
Revenue growth 3Y15.66%
Revenue growth 5Y11.36%
Sales Q2Q%6%
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 24.76% on average per year.
The Revenue is expected to grow by 7.69% on average over the next years.
EPS Next Y57.97%
EPS Next 2Y36.12%
EPS Next 3Y29.51%
EPS Next 5Y24.76%
Revenue Next Year12.01%
Revenue Next 2Y10.5%
Revenue Next 3Y9.6%
Revenue Next 5Y7.69%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 37.50, which means the current valuation is very expensive for MTZ.
MTZ's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.30. MTZ is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 23.56, the valuation of MTZ can be described as rather expensive.
MTZ's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MTZ to the average of the S&P500 Index (21.76), we can say MTZ is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.5 | ||
| Fwd PE | 23.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MTZ indicates a somewhat cheap valuation: MTZ is cheaper than 65.38% of the companies listed in the same industry.
86.54% 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 | 14.58 | ||
| EV/EBITDA | 15.43 |
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.
MTZ's earnings are expected to grow with 29.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y36.12%
EPS Next 3Y29.51%
5. Dividend
5.1 Amount
No dividends for MTZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
170.24
+1.47 (+0.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners73.54%
Inst Owner Change-0.04%
Ins Owners21.42%
Ins Owner Change1.37%
Market Cap13.43B
Analysts82.86
Price Target183.89 (8.02%)
Short Float %1.81%
Short Ratio1.33
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)32.91%
Min EPS beat(2)16.35%
Max EPS beat(2)49.47%
EPS beat(4)4
Avg EPS beat(4)26.68%
Min EPS beat(4)9.71%
Max EPS beat(4)49.47%
EPS beat(8)7
Avg EPS beat(8)22.85%
EPS beat(12)11
Avg EPS beat(12)16.5%
EPS beat(16)15
Avg EPS beat(16)17.74%
Revenue beat(2)2
Avg Revenue beat(2)2.77%
Min Revenue beat(2)1.55%
Max Revenue beat(2)3.98%
Revenue beat(4)2
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-6%
Max Revenue beat(4)3.98%
Revenue beat(8)3
Avg Revenue beat(8)-3.01%
Revenue beat(12)6
Avg Revenue beat(12)-1.18%
Revenue beat(16)8
Avg Revenue beat(16)-0.84%
PT rev (1m)2.51%
PT rev (3m)5.34%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-1.53%
EPS NY rev (1m)0%
EPS NY rev (3m)8.04%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)3.74%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.5 | ||
| Fwd PE | 23.56 | ||
| P/S | 1.08 | ||
| P/FCF | 14.58 | ||
| P/OCF | 12.3 | ||
| P/B | 4.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.43 |
EPS(TTM)4.54
EY2.67%
EPS(NY)7.23
Fwd EY4.24%
FCF(TTM)11.68
FCFY6.86%
OCF(TTM)13.84
OCFY8.13%
SpS157.98
BVpS36.56
TBVpS-0.19
PEG (NY)0.65
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 7.41% | ||
| ROCE | 8.71% | ||
| ROIC | 6.92% | ||
| ROICexc | 7.35% | ||
| ROICexgc | 15.22% | ||
| OM | 4.16% | ||
| PM (TTM) | 1.72% | ||
| GM | 13.13% | ||
| FCFM | 7.39% |
ROA(3y)0.55%
ROA(5y)2.49%
ROE(3y)1.65%
ROE(5y)6.81%
ROIC(3y)4.07%
ROIC(5y)5.8%
ROICexc(3y)4.36%
ROICexc(5y)6.31%
ROICexgc(3y)8.75%
ROICexgc(5y)11.72%
ROCE(3y)5.12%
ROCE(5y)7.29%
ROICexcg growth 3Y1.9%
ROICexcg growth 5Y-5.86%
ROICexc growth 3Y-3.57%
ROICexc growth 5Y-10.58%
OM growth 3Y-13.4%
OM growth 5Y-12.87%
PM growth 3Y-31.6%
PM growth 5Y-24.69%
GM growth 3Y-2.72%
GM growth 5Y-3.06%
F-Score7
Asset Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 2.42 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 35.99% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 2.9 | ||
| Cash Conversion | 110.02% | ||
| Profit Quality | 430.88% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 3.4 |
F-Score7
WACC10.45%
ROIC/WACC0.66
Cap/Depr(3y)37.77%
Cap/Depr(5y)45.07%
Cap/Sales(3y)1.84%
Cap/Sales(5y)2.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)91.56%
EPS 3Y-11.15%
EPS 5Y-5.63%
EPS Q2Q%492.31%
EPS Next Y57.97%
EPS Next 2Y36.12%
EPS Next 3Y29.51%
EPS Next 5Y24.76%
Revenue 1Y (TTM)3.03%
Revenue growth 3Y15.66%
Revenue growth 5Y11.36%
Sales Q2Q%6%
Revenue Next Year12.01%
Revenue Next 2Y10.5%
Revenue Next 3Y9.6%
Revenue Next 5Y7.69%
EBIT growth 1Y96.52%
EBIT growth 3Y0.16%
EBIT growth 5Y-2.97%
EBIT Next Year126.74%
EBIT Next 3Y41.1%
EBIT Next 5Y27.66%
FCF growth 1Y944.67%
FCF growth 3Y16.01%
FCF growth 5Y18.08%
OCF growth 1Y712.68%
OCF growth 3Y12.25%
OCF growth 5Y15.31%