MASTEC INC (MTZ) Stock Fundamental Analysis
NYSE:MTZ - New York Stock Exchange, Inc. - US5763231090 - Common Stock - Currency: USD
Taking everything into account, MTZ scores 4 out of 10 in our fundamental rating. MTZ was compared to 50 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.
In the past year MTZ had a positive cash flow from operations.
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 Return On Assets of 1.81%. This is comparable to the rest of the industry: MTZ outperforms 48.00% of its industry peers.
MTZ has a Return On Equity (5.59%) which is in line with its industry peers.
MTZ has a Return On Invested Capital of 6.48%. This is comparable to the rest of the industry: MTZ outperforms 60.00% of its industry peers.
MTZ had an Average Return On Invested Capital over the past 3 years of 4.07%. This is significantly below the industry average of 12.23%.
The last Return On Invested Capital (6.48%) for MTZ is above the 3 year average (4.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.81% | ||
| ROE | 5.59% | ||
| ROIC | 6.48% |
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 1.32%. This is comparable to the rest of the industry: MTZ outperforms 46.00% of its industry peers.
In the last couple of years the Profit Margin of MTZ has declined.
Looking at the Operating Margin, with a value of 3.96%, MTZ is in line with its industry, outperforming 46.00% of the companies in the same industry.
In the last couple of years the Operating Margin of MTZ has declined.
MTZ has a worse Gross Margin (13.27%) than 60.00% of its industry peers.
In the last couple of years the Gross Margin of MTZ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.96% | ||
| PM (TTM) | 1.32% | ||
| GM | 13.27% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MTZ is destroying value.
MTZ has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, MTZ has more shares outstanding
The debt/assets ratio for MTZ has been reduced compared to a year ago.
2.2 Solvency
MTZ has an Altman-Z score of 3.12. This indicates that MTZ is financially healthy and has little risk of bankruptcy at the moment.
MTZ's Altman-Z score of 3.12 is fine compared to the rest of the industry. MTZ outperforms 64.00% of its industry peers.
MTZ has a debt to FCF ratio of 2.29. This is a good value and a sign of high solvency as MTZ would need 2.29 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.29, MTZ is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
MTZ has a Debt/Equity ratio of 0.70. This is a neutral value indicating MTZ is somewhat dependend on debt financing.
The Debt to Equity ratio of MTZ (0.70) is comparable to the rest of the industry.
Although MTZ does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 2.29 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.68
WACC9.57%
2.3 Liquidity
MTZ has a Current Ratio of 1.22. This is a normal value and indicates that MTZ is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MTZ (1.22) is worse than 60.00% of its industry peers.
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 44.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
MTZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 91.56%, which is quite impressive.
The Earnings Per Share has been decreasing by -5.63% on average over the past years.
MTZ shows a small growth in Revenue. In the last year, the Revenue has grown by 2.56%.
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)2.56%
Revenue growth 3Y15.66%
Revenue growth 5Y11.36%
Sales Q2Q%5.99%
3.2 Future
MTZ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.68% yearly.
The Revenue is expected to grow by 7.36% on average over the next years.
EPS Next Y45.86%
EPS Next 2Y32.61%
EPS Next 3Y26.41%
EPS Next 5Y23.68%
Revenue Next Year9.92%
Revenue Next 2Y9.16%
Revenue Next 3Y8.39%
Revenue Next 5Y7.36%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 31.85 indicates a quite expensive valuation of MTZ.
MTZ's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.29, MTZ is valued a bit more expensive.
With a Price/Forward Earnings ratio of 21.08, MTZ is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as MTZ.
MTZ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.85 | ||
| Fwd PE | 21.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTZ is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
84.00% 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 | 11.75 | ||
| EV/EBITDA | 13.26 |
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 26.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)N/A
EPS Next 2Y32.61%
EPS Next 3Y26.41%
5. Dividend
5.1 Amount
MTZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
144.6
+1.03 (+0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners76.48%
Inst Owner Change0.33%
Ins Owners21.33%
Ins Owner Change1.23%
Market Cap11.43B
Analysts81
Price Target164.37 (13.67%)
Short Float %2.12%
Short Ratio1.03
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)23.78%
Min EPS beat(2)16.35%
Max EPS beat(2)31.21%
EPS beat(4)4
Avg EPS beat(4)32.57%
Min EPS beat(4)9.71%
Max EPS beat(4)73.02%
EPS beat(8)7
Avg EPS beat(8)17.44%
EPS beat(12)11
Avg EPS beat(12)18.42%
EPS beat(16)15
Avg EPS beat(16)17.2%
Revenue beat(2)1
Avg Revenue beat(2)-2.22%
Min Revenue beat(2)-6%
Max Revenue beat(2)1.55%
Revenue beat(4)2
Avg Revenue beat(4)-2.04%
Min Revenue beat(4)-6%
Max Revenue beat(4)1.55%
Revenue beat(8)3
Avg Revenue beat(8)-2.51%
Revenue beat(12)6
Avg Revenue beat(12)-0.85%
Revenue beat(16)8
Avg Revenue beat(16)-0.62%
PT rev (1m)-6.13%
PT rev (3m)-3.09%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-22.93%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)6.89%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-4.9%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.85 | ||
| Fwd PE | 21.08 | ||
| P/S | 0.93 | ||
| P/FCF | 11.75 | ||
| P/OCF | 10.19 | ||
| P/B | 3.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.26 |
EPS(TTM)4.54
EY3.14%
EPS(NY)6.86
Fwd EY4.74%
FCF(TTM)12.3
FCFY8.51%
OCF(TTM)14.19
OCFY9.81%
SpS155.62
BVpS36.83
TBVpS-0.24
PEG (NY)0.69
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.81% | ||
| ROE | 5.59% | ||
| ROCE | 8.15% | ||
| ROIC | 6.48% | ||
| ROICexc | 6.94% | ||
| ROICexgc | 14.63% | ||
| OM | 3.96% | ||
| PM (TTM) | 1.32% | ||
| GM | 13.27% | ||
| FCFM | 7.91% |
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 Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 2.29 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 29.38% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 2.49 | ||
| Cash Conversion | 112.88% | ||
| Profit Quality | 597.57% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 3.12 |
F-Score7
WACC9.57%
ROIC/WACC0.68
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 Y45.86%
EPS Next 2Y32.61%
EPS Next 3Y26.41%
EPS Next 5Y23.68%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y15.66%
Revenue growth 5Y11.36%
Sales Q2Q%5.99%
Revenue Next Year9.92%
Revenue Next 2Y9.16%
Revenue Next 3Y8.39%
Revenue Next 5Y7.36%
EBIT growth 1Y152.5%
EBIT growth 3Y0.16%
EBIT growth 5Y-2.97%
EBIT Next Year122.62%
EBIT Next 3Y40.51%
EBIT Next 5Y27.02%
FCF growth 1Y96.78%
FCF growth 3Y16.01%
FCF growth 5Y18.08%
OCF growth 1Y63.2%
OCF growth 3Y12.25%
OCF growth 5Y15.31%