MASCO CORP (MAS) Stock Fundamental Analysis
NYSE:MAS - New York Stock Exchange, Inc. - US5745991068 - Common Stock - Currency: USD
Overall MAS gets a fundamental rating of 6 out of 10. We evaluated MAS 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. MAS also has an excellent dividend rating. This makes MAS very considerable for dividend investing!
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.
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 has a better Return On Assets (16.39%) than 92.68% of its industry peers.
The Return On Invested Capital of MAS (30.11%) is better than 97.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MAS is significantly above the industry average of 12.71%.
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 has a better Profit Margin (10.50%) than 60.98% of its industry peers.
MAS's Profit Margin has declined in the last couple of years.
MAS has a Operating Margin of 17.40%. This is in the better half of the industry: MAS outperforms 70.73% of its industry peers.
MAS's Operating Margin has been stable in the last couple of years.
MAS has a Gross Margin (36.16%) which is in line with its industry peers.
MAS's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MAS is creating value.
Compared to 1 year ago, MAS has less shares outstanding
Compared to 5 years ago, MAS has less shares outstanding
The debt/assets ratio for MAS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.08 indicates that MAS is not in any danger for bankruptcy at the moment.
The Altman-Z score of MAS (4.08) is comparable to the rest of the industry.
The Debt to FCF ratio of MAS is 3.25, which is a good value as it means it would take MAS, 3.25 years of fcf income to pay off all of its debts.
MAS has a Debt to FCF ratio of 3.25. This is in the better half of the industry: MAS outperforms 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 4.08 |
ROIC/WACC3.15
WACC9.56%
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 Current ratio (1.75) which is comparable to the rest of the industry.
A Quick Ratio of 1.15 indicates that MAS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.15, MAS perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.28% over the past year.
The Earnings Per Share has been growing by 10.05% on average over the past years. This is quite good.
Looking at the last year, MAS shows a decrease in Revenue. The Revenue has decreased by -2.67% in the last year.
MAS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.14% yearly.
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
Based on estimates for the next years, MAS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.26% on average per year.
Based on estimates for the next years, MAS will show a small growth in Revenue. The Revenue will grow by 3.97% on average per year.
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
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
The Price/Earnings ratio is 15.93, which indicates a correct valuation of MAS.
Based on the Price/Earnings ratio, MAS is valued a bit cheaper than the industry average as 70.73% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MAS to the average of the S&P500 Index (27.15), we can say MAS is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.61, which indicates a correct valuation of MAS.
63.41% of the companies in the same industry are more expensive than MAS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, MAS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.93 | ||
| Fwd PE | 15.61 |
4.2 Price Multiples
68.29% of the companies in the same industry are more expensive than MAS, based on the Enterprise Value to EBITDA ratio.
78.05% of the companies in the same industry are more expensive than MAS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.97 | ||
| EV/EBITDA | 10.51 |
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)1.59
EPS Next 2Y0.28%
EPS Next 3Y5.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.95%, 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 1.19. MAS pays more dividend than 92.68% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, MAS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
On average, the dividend of MAS grows each year by 18.34%, which is quite nice.
MAS has paid a dividend for at least 10 years, which is 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
30.90% of the earnings are spent on dividend by MAS. This is a low number and 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%
64.36
+0.19 (+0.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.6%
Inst Owner Change0.7%
Ins Owners0.15%
Ins Owner Change0.65%
Market Cap13.58B
Analysts71.43
Price Target71.93 (11.76%)
Short Float %2.58%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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)1.2%
PT rev (3m)-16.61%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-0.01%
EPS NY rev (1m)0.68%
EPS NY rev (3m)-17.36%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.93 | ||
| Fwd PE | 15.61 | ||
| P/S | 1.73 | ||
| P/FCF | 14.97 | ||
| P/OCF | 12.63 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.51 |
EPS(TTM)4.04
EY6.28%
EPS(NY)4.12
Fwd EY6.41%
FCF(TTM)4.3
FCFY6.68%
OCF(TTM)5.1
OCFY7.92%
SpS37.11
BVpS-1.33
TBVpS-5.2
PEG (NY)N/A
PEG (5Y)1.59
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 | 4.08 |
F-Score7
WACC9.56%
ROIC/WACC3.15
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%