MASTEC INC (MTZ) Stock Fundamental Analysis
NYSE:MTZ - US5763231090 - Common Stock
182.55 USD
+5.42 (+3.06%)
181.6 USD
-0.95 (-0.52%)
MTZ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 49 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of MTZ get a neutral evaluation. Nothing too spectacular is happening here. 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.
Of the past 5 years MTZ 4 years were profitable.
MTZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MTZ (2.91%) is comparable to the rest of the industry.
MTZ has a Return On Equity (9.01%) which is in line with its industry peers.
MTZ's Return On Invested Capital of 7.30% is in line compared to the rest of the industry. MTZ outperforms 59.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MTZ is significantly below the industry average of 14.54%.
The last Return On Invested Capital (7.30%) for MTZ is above the 3 year average (4.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 9.01% | ||
| ROIC | 7.3% |
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
Looking at the Profit Margin, with a value of 2.04%, MTZ is in line with its industry, outperforming 42.86% of the companies in the same industry.
MTZ's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.27%, MTZ is in line with its industry, outperforming 46.94% of the companies in the same industry.
MTZ's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 12.65%, MTZ is doing worse than 61.22% of the companies in the same industry.
In the last couple of years the Gross Margin of MTZ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.27% | ||
| PM (TTM) | 2.04% | ||
| GM | 12.65% |
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.
The number of shares outstanding for MTZ remains at a similar level compared to 1 year ago.
The number of shares outstanding for MTZ has been increased compared to 5 years ago.
Compared to 1 year ago, MTZ has an improved debt to assets ratio.
2.2 Solvency
MTZ has an Altman-Z score of 3.49. This indicates that MTZ is financially healthy and has little risk of bankruptcy at the moment.
MTZ's Altman-Z score of 3.49 is fine compared to the rest of the industry. MTZ outperforms 63.27% of its industry peers.
MTZ has a debt to FCF ratio of 3.58. This is a good value and a sign of high solvency as MTZ would need 3.58 years to pay back of all of its debts.
The Debt to FCF ratio of MTZ (3.58) is better than 61.22% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that MTZ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, MTZ is in line with its industry, outperforming 48.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | 3.49 |
ROIC/WACC0.65
WACC11.15%
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.
MTZ has a Current ratio (1.22) which is in line with its industry peers.
A Quick Ratio of 1.19 indicates that MTZ should not have too much problems paying its short term obligations.
MTZ's Quick ratio of 1.19 is in line compared to the rest of the industry. MTZ outperforms 44.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 107.79% over the past year.
Measured over the past years, MTZ shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.63% on average per year.
Looking at the last year, MTZ shows a small growth in Revenue. The Revenue has grown by 7.08% in the last year.
Measured over the past years, MTZ shows a quite strong growth in Revenue. The Revenue has been growing by 11.36% on average per year.
EPS 1Y (TTM)107.79%
EPS 3Y-11.15%
EPS 5Y-5.63%
EPS Q2Q%55.21%
Revenue 1Y (TTM)7.08%
Revenue growth 3Y15.66%
Revenue growth 5Y11.36%
Sales Q2Q%19.71%
3.2 Future
MTZ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.05% yearly.
Based on estimates for the next years, MTZ will show a quite strong growth in Revenue. The Revenue will grow by 8.67% on average per year.
EPS Next Y62.97%
EPS Next 2Y40.98%
EPS Next 3Y33.53%
EPS Next 5Y27.05%
Revenue Next Year14.43%
Revenue Next 2Y11.58%
Revenue Next 3Y10.98%
Revenue Next 5Y8.67%
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 36.01, which means the current valuation is very expensive for MTZ.
Compared to the rest of the industry, the Price/Earnings ratio of MTZ is on the same level as its industry peers.
MTZ's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.08.
A Price/Forward Earnings ratio of 23.55 indicates a rather expensive valuation of MTZ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTZ is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.67. MTZ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.01 | ||
| Fwd PE | 23.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MTZ is on the same level as its industry peers.
65.31% 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 | 22.85 | ||
| EV/EBITDA | 16.5 |
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.
A more expensive valuation may be justified as MTZ's earnings are expected to grow with 33.53% in the coming years.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y40.98%
EPS Next 3Y33.53%
5. Dividend
5.1 Amount
MTZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
182.55
+5.42 (+3.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners73.46%
Inst Owner Change-0.94%
Ins Owners21.45%
Ins Owner Change1.13%
Market Cap14.41B
Analysts81.82
Price Target207.8 (13.83%)
Short Float %1.89%
Short Ratio1.26
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)27.46%
Min EPS beat(2)5.46%
Max EPS beat(2)49.47%
EPS beat(4)4
Avg EPS beat(4)25.62%
Min EPS beat(4)5.46%
Max EPS beat(4)49.47%
EPS beat(8)7
Avg EPS beat(8)23.13%
EPS beat(12)11
Avg EPS beat(12)16.89%
EPS beat(16)15
Avg EPS beat(16)17.82%
Revenue beat(2)2
Avg Revenue beat(2)3.57%
Min Revenue beat(2)3.16%
Max Revenue beat(2)3.98%
Revenue beat(4)3
Avg Revenue beat(4)0.67%
Min Revenue beat(4)-6%
Max Revenue beat(4)3.98%
Revenue beat(8)4
Avg Revenue beat(8)-1.97%
Revenue beat(12)6
Avg Revenue beat(12)-1.08%
Revenue beat(16)9
Avg Revenue beat(16)-0.21%
PT rev (1m)11.99%
PT rev (3m)18.25%
EPS NQ rev (1m)0.86%
EPS NQ rev (3m)20.56%
EPS NY rev (1m)3.17%
EPS NY rev (3m)3.17%
Revenue NQ rev (1m)4.45%
Revenue NQ rev (3m)8.93%
Revenue NY rev (1m)2.16%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.01 | ||
| Fwd PE | 23.55 | ||
| P/S | 1.1 | ||
| P/FCF | 22.85 | ||
| P/OCF | 17.28 | ||
| P/B | 4.89 | ||
| P/tB | 205.63 | ||
| EV/EBITDA | 16.5 |
EPS(TTM)5.07
EY2.78%
EPS(NY)7.75
Fwd EY4.25%
FCF(TTM)7.99
FCFY4.38%
OCF(TTM)10.56
OCFY5.79%
SpS165.35
BVpS37.35
TBVpS0.89
PEG (NY)0.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 9.01% | ||
| ROCE | 9.18% | ||
| ROIC | 7.3% | ||
| ROICexc | 7.53% | ||
| ROICexgc | 14.77% | ||
| OM | 4.27% | ||
| PM (TTM) | 2.04% | ||
| GM | 12.65% | ||
| FCFM | 4.83% |
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 Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.58 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 46.01% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | 3.12 | ||
| Cash Conversion | 83.5% | ||
| Profit Quality | 237.31% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 3.49 |
F-Score7
WACC11.15%
ROIC/WACC0.65
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)107.79%
EPS 3Y-11.15%
EPS 5Y-5.63%
EPS Q2Q%55.21%
EPS Next Y62.97%
EPS Next 2Y40.98%
EPS Next 3Y33.53%
EPS Next 5Y27.05%
Revenue 1Y (TTM)7.08%
Revenue growth 3Y15.66%
Revenue growth 5Y11.36%
Sales Q2Q%19.71%
Revenue Next Year14.43%
Revenue Next 2Y11.58%
Revenue Next 3Y10.98%
Revenue Next 5Y8.67%
EBIT growth 1Y92.94%
EBIT growth 3Y0.16%
EBIT growth 5Y-2.97%
EBIT Next Year126.15%
EBIT Next 3Y43.11%
EBIT Next 5Y29.19%
FCF growth 1Y945.46%
FCF growth 3Y16.01%
FCF growth 5Y18.08%
OCF growth 1Y229.55%
OCF growth 3Y12.25%
OCF growth 5Y15.31%