MASCO CORP (MAS) Stock Fundamental Analysis
NYSE:MAS - New York Stock Exchange, Inc. - US5745991068 - Common Stock - Currency: USD
MAS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. While MAS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MAS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MAS had positive earnings in the past year.
MAS had a positive operating cash flow in the past year.
Each year in the past 5 years MAS has been profitable.
Each year in the past 5 years MAS had a positive operating cash flow.
1.2 Ratios
MAS's Return On Assets of 16.39% is amongst the best of the industry. MAS outperforms 92.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 30.11%, MAS belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MAS is significantly above the industry average of 12.88%.
The last Return On Invested Capital (30.11%) for MAS is above the 3 year average (29.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.39% | ||
| ROE | N/A | ||
| ROIC | 30.11% |
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
MAS's Profit Margin of 10.50% is in line compared to the rest of the industry. MAS outperforms 58.54% of its industry peers.
MAS's Profit Margin has declined in the last couple of years.
The Operating Margin of MAS (17.40%) is better than 70.73% of its industry peers.
MAS's Operating Margin has been stable in the last couple of years.
MAS has a Gross Margin of 36.16%. This is comparable to the rest of the industry: MAS outperforms 58.54% 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 | 17.4% | ||
| PM (TTM) | 10.5% | ||
| GM | 36.17% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MAS is creating value.
Compared to 1 year ago, MAS has less shares outstanding
MAS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MAS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.15 indicates that MAS is not in any danger for bankruptcy at the moment.
MAS has a Altman-Z score of 4.15. This is comparable to the rest of the industry: MAS outperforms 58.54% of its industry peers.
MAS has a debt to FCF ratio of 3.25. This is a good value and a sign of high solvency as MAS would need 3.25 years to pay back of all of its debts.
The Debt to FCF ratio of MAS (3.25) is better than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 4.15 |
ROIC/WACC3.07
WACC9.82%
2.3 Liquidity
MAS has a Current Ratio of 1.75. 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 worse Current ratio (1.75) than 60.98% of its industry peers.
A Quick Ratio of 1.15 indicates that MAS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.15, MAS is in line with its industry, outperforming 46.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
MAS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.28%.
The Earnings Per Share has been growing by 10.05% on average over the past years. This is quite good.
MAS shows a decrease in Revenue. In the last year, the revenue decreased by -2.67%.
The Revenue has been growing slightly by 3.14% on average over the past years.
EPS 1Y (TTM)2.28%
EPS 3Y3.57%
EPS 5Y10.05%
EPS Q2Q%-6.45%
Revenue 1Y (TTM)-2.67%
Revenue growth 3Y-2.23%
Revenue growth 5Y3.14%
Sales Q2Q%-6.49%
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 9.26% yearly.
The Revenue is expected to grow by 3.97% on average over the next years.
EPS Next Y-12.27%
EPS Next 2Y0.28%
EPS Next 3Y5.12%
EPS Next 5Y9.26%
Revenue Next Year-3.02%
Revenue Next 2Y0.45%
Revenue Next 3Y1.9%
Revenue Next 5Y3.97%
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 stable.
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
A Price/Earnings ratio of 16.69 indicates a correct valuation of MAS.
MAS's Price/Earnings ratio is a bit cheaper when compared to the industry. MAS is cheaper than 70.73% of the companies in the same industry.
MAS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.36, 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.
When comparing the Price/Forward Earnings ratio of MAS to the average of the S&P500 Index (37.54), we can say MAS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.69 | ||
| Fwd PE | 16.36 |
4.2 Price Multiples
65.85% of the companies in the same industry are more expensive than MAS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MAS is valued a bit cheaper than 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.68 | ||
| EV/EBITDA | 10.94 |
4.3 Compensation for Growth
The decent profitability rating of MAS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.66
EPS Next 2Y0.28%
EPS Next 3Y5.12%
5. Dividend
5.1 Amount
MAS has a Yearly Dividend Yield of 1.88%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.15, MAS pays a better dividend. On top of this MAS pays more dividend than 92.68% of the companies listed in the same industry.
MAS's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)18.34%
Div Incr Years11
Div Non Decr Years14
5.3 Sustainability
MAS pays out 30.90% 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.
DP30.9%
EPS Next 2Y0.28%
EPS Next 3Y5.12%
67.43
-0.43 (-0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.6%
Inst Owner Change-0.56%
Ins Owners0.15%
Ins Owner Change1.88%
Market Cap14.22B
Analysts71.11
Price Target71.66 (6.27%)
Short Float %3.26%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Yearly Dividend1.17
Dividend Growth(5Y)18.34%
DP30.9%
Div Incr Years11
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.24%
Min EPS beat(2)-1.34%
Max EPS beat(2)0.86%
EPS beat(4)3
Avg EPS beat(4)1.09%
Min EPS beat(4)-1.34%
Max EPS beat(4)4.08%
EPS beat(8)7
Avg EPS beat(8)12.2%
EPS beat(12)8
Avg EPS beat(12)7.58%
EPS beat(16)11
Avg EPS beat(16)8.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-1.57%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)-1.35%
Revenue beat(8)3
Avg Revenue beat(8)0.17%
Revenue beat(12)4
Avg Revenue beat(12)0.07%
Revenue beat(16)8
Avg Revenue beat(16)0.92%
PT rev (1m)-0.37%
PT rev (3m)-17.36%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)0.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.64%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.69 | ||
| Fwd PE | 16.36 | ||
| P/S | 1.82 | ||
| P/FCF | 15.68 | ||
| P/OCF | 13.23 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.94 |
EPS(TTM)4.04
EY5.99%
EPS(NY)4.12
Fwd EY6.11%
FCF(TTM)4.3
FCFY6.38%
OCF(TTM)5.1
OCFY7.56%
SpS37.11
BVpS-1.33
TBVpS-5.2
PEG (NY)N/A
PEG (5Y)1.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.39% | ||
| ROE | N/A | ||
| ROCE | 39.41% | ||
| ROIC | 30.11% | ||
| ROICexc | 36.88% | ||
| ROICexgc | 51.91% | ||
| OM | 17.4% | ||
| PM (TTM) | 10.5% | ||
| GM | 36.17% | ||
| FCFM | 11.59% |
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-Score7
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.25 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 112% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 13.76 | ||
| Cash Conversion | 71.1% | ||
| Profit Quality | 110.34% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 4.15 |
F-Score7
WACC9.82%
ROIC/WACC3.07
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)2.28%
EPS 3Y3.57%
EPS 5Y10.05%
EPS Q2Q%-6.45%
EPS Next Y-12.27%
EPS Next 2Y0.28%
EPS Next 3Y5.12%
EPS Next 5Y9.26%
Revenue 1Y (TTM)-2.67%
Revenue growth 3Y-2.23%
Revenue growth 5Y3.14%
Sales Q2Q%-6.49%
Revenue Next Year-3.02%
Revenue Next 2Y0.45%
Revenue Next 3Y1.9%
Revenue Next 5Y3.97%
EBIT growth 1Y-0.07%
EBIT growth 3Y-2.04%
EBIT growth 5Y4.44%
EBIT Next Year-4.91%
EBIT Next 3Y5.17%
EBIT Next 5Y7.33%
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%