MASCO CORP (MAS) Stock Fundamental Analysis
USA - NYSE:MAS - US5745991068 - Common Stock
72.24 USD
-0.75 (-1.03%)
72.24 USD
0 (0%)
Taking everything into account, MAS scores 5 out of 10 in our fundamental rating. MAS was compared to 41 industry peers in the Building Products industry. Both the profitability and the financial health of MAS get a neutral evaluation. Nothing too spectacular is happening here. 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.
MAS had positive earnings in each of the past 5 years.
Each year in the past 5 years MAS had a positive operating cash flow.
1.2 Ratios
MAS's Return On Assets of 15.22% is amongst the best of the industry. MAS outperforms 90.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 27.94%, MAS belongs to the top of the industry, outperforming 97.56% 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 12.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.22% | ||
| ROE | N/A | ||
| ROIC | 27.94% |
ROA(3y)16.52%
ROA(5y)15.57%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.73%
ROIC(5y)29.08%
1.3 Margins
With a decent Profit Margin value of 10.51%, MAS is doing good in the industry, outperforming 60.98% of the companies in the same industry.
MAS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 17.55%, MAS is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
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 36.25% is in line compared to the rest of the industry. MAS outperforms 56.10% of its industry peers.
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 | 17.55% | ||
| PM (TTM) | 10.51% | ||
| GM | 36.25% |
OM growth 3Y0.19%
OM growth 5Y1.26%
PM growth 3Y29.39%
PM growth 5Y-5.39%
GM growth 3Y1.89%
GM growth 5Y0.46%
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.
MAS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MAS has less shares outstanding
Compared to 1 year ago, MAS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.12 indicates that MAS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.12, MAS is in line with its industry, outperforming 51.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.12 |
ROIC/WACC2.82
WACC9.9%
2.3 Liquidity
MAS has a Current Ratio of 1.82. This is a normal value and indicates that MAS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MAS (1.82) is comparable to the rest of the industry.
A Quick Ratio of 1.14 indicates that MAS should not have too much problems paying its short term obligations.
MAS has a Quick ratio of 1.14. This is comparable to the rest of the industry: MAS outperforms 46.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.55% over the past year.
MAS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.05% yearly.
MAS shows a decrease in Revenue. In the last year, the revenue decreased by -2.73%.
The Revenue has been growing slightly by 3.14% on average over the past years.
EPS 1Y (TTM)4.55%
EPS 3Y3.57%
EPS 5Y10.05%
EPS Q2Q%8.33%
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y-2.23%
Revenue growth 5Y3.14%
Sales Q2Q%-1.91%
3.2 Future
MAS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.29% yearly.
Based on estimates for the next years, MAS will show a small growth in Revenue. The Revenue will grow by 4.43% on average per year.
EPS Next Y-1.91%
EPS Next 2Y3.62%
EPS Next 3Y6.51%
EPS Next 5Y9.29%
Revenue Next Year-2.72%
Revenue Next 2Y0.2%
Revenue Next 3Y1.47%
Revenue Next 5Y4.43%
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
MAS is valuated rather expensively with a Price/Earnings ratio of 17.45.
Compared to the rest of the industry, the Price/Earnings ratio of MAS indicates a somewhat cheap valuation: MAS is cheaper than 65.85% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.38, MAS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.41, MAS is valued correctly.
65.85% of the companies in the same industry are more expensive than MAS, based on the Price/Forward Earnings ratio.
MAS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.45 | ||
| Fwd PE | 16.41 |
4.2 Price Multiples
63.41% of the companies in the same industry are more expensive than MAS, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.86 |
4.3 Compensation for Growth
MAS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.74
EPS Next 2Y3.62%
EPS Next 3Y6.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, MAS has a reasonable but not impressive dividend return.
MAS's Dividend Yield is rather good when compared to the industry average which is at 1.16. MAS pays more dividend than 87.80% of the companies in the same industry.
MAS's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
On average, the dividend of MAS grows each year by 18.34%, which is quite nice.
MAS has been paying a dividend for at least 10 years, so it has 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)18.34%
Div Incr Years11
Div Non Decr Years14
5.3 Sustainability
MAS pays out 15.65% of its income as dividend. This is a sustainable payout ratio.
MAS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP15.65%
EPS Next 2Y3.62%
EPS Next 3Y6.51%
72.24
-0.75 (-1.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners96.81%
Inst Owner Change-0.03%
Ins Owners0.16%
Ins Owner Change1.28%
Market Cap15.12B
Analysts69.63
Price Target76.76 (6.26%)
Short Float %2.83%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend1.17
Dividend Growth(5Y)18.34%
DP15.65%
Div Incr Years11
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.11%
Min EPS beat(2)-6.26%
Max EPS beat(2)18.48%
EPS beat(4)2
Avg EPS beat(4)2.93%
Min EPS beat(4)-6.26%
Max EPS beat(4)18.48%
EPS beat(8)6
Avg EPS beat(8)6.28%
EPS beat(12)8
Avg EPS beat(12)8.11%
EPS beat(16)10
Avg EPS beat(16)6.96%
Revenue beat(2)1
Avg Revenue beat(2)-0.51%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)1.89%
Revenue beat(4)1
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)1.89%
Revenue beat(8)2
Avg Revenue beat(8)-0.48%
Revenue beat(12)4
Avg Revenue beat(12)-0.36%
Revenue beat(16)7
Avg Revenue beat(16)0.42%
PT rev (1m)0%
PT rev (3m)6.72%
EPS NQ rev (1m)2.62%
EPS NQ rev (3m)17.82%
EPS NY rev (1m)0%
EPS NY rev (3m)11.81%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.45 | ||
| Fwd PE | 16.41 | ||
| P/S | 1.97 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.86 |
EPS(TTM)4.14
EY5.73%
EPS(NY)4.4
Fwd EY6.09%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS36.6
BVpS-0.4
TBVpS-4.41
PEG (NY)N/A
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.22% | ||
| ROE | N/A | ||
| ROCE | 36.56% | ||
| ROIC | 27.94% | ||
| ROICexc | 31.25% | ||
| ROICexgc | 41.97% | ||
| OM | 17.55% | ||
| PM (TTM) | 10.51% | ||
| GM | 36.25% | ||
| FCFM | N/A |
ROA(3y)16.52%
ROA(5y)15.57%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.73%
ROIC(5y)29.08%
ROICexc(3y)35.59%
ROICexc(5y)37.39%
ROICexgc(3y)51.43%
ROICexgc(5y)55.89%
ROCE(3y)38.9%
ROCE(5y)38.06%
ROICexcg growth 3Y-6.31%
ROICexcg growth 5Y4.48%
ROICexc growth 3Y-3.35%
ROICexc growth 5Y4.14%
OM growth 3Y0.19%
OM growth 5Y1.26%
PM growth 3Y29.39%
PM growth 5Y-5.39%
GM growth 3Y1.89%
GM growth 5Y0.46%
F-ScoreN/A
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 4.12 |
F-ScoreN/A
WACC9.9%
ROIC/WACC2.82
Cap/Depr(3y)143.19%
Cap/Depr(5y)119.76%
Cap/Sales(3y)2.59%
Cap/Sales(5y)2.18%
Profit Quality(3y)104.12%
Profit Quality(5y)115.79%
High Growth Momentum
Growth
EPS 1Y (TTM)4.55%
EPS 3Y3.57%
EPS 5Y10.05%
EPS Q2Q%8.33%
EPS Next Y-1.91%
EPS Next 2Y3.62%
EPS Next 3Y6.51%
EPS Next 5Y9.29%
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y-2.23%
Revenue growth 5Y3.14%
Sales Q2Q%-1.91%
Revenue Next Year-2.72%
Revenue Next 2Y0.2%
Revenue Next 3Y1.47%
Revenue Next 5Y4.43%
EBIT growth 1Y-1.1%
EBIT growth 3Y-2.04%
EBIT growth 5Y4.44%
EBIT Next Year5.06%
EBIT Next 3Y5.67%
EBIT Next 5Y7.56%
FCF growth 1Y-22.48%
FCF growth 3Y4.19%
FCF growth 5Y6.21%
OCF growth 1Y-23.92%
OCF growth 3Y4.95%
OCF growth 5Y5.23%