MASTEC INC (MTZ) Stock Fundamental Analysis
NYSE:MTZ - New York Stock Exchange, Inc. - US5763231090 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MTZ. MTZ was compared to 51 industry peers in the Construction & Engineering industry. MTZ has an average financial health and profitability rating. MTZ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MTZ had positive earnings in the past year.
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
MTZ has a Return On Assets (2.41%) which is in line with its industry peers.
MTZ has a Return On Equity (7.41%) which is comparable to the rest of the industry.
MTZ has a better Return On Invested Capital (6.92%) than 62.75% 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 16.60%.
The last Return On Invested Capital (6.92%) for MTZ is above the 3 year average (4.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 7.41% | ||
| ROIC | 6.92% |
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 (1.72%) which is in line with its industry peers.
In the last couple of years the Profit Margin of MTZ has declined.
MTZ has a Operating Margin of 4.16%. This is comparable to the rest of the industry: MTZ outperforms 47.06% of its industry peers.
In the last couple of years the Operating Margin of MTZ has declined.
MTZ has a Gross Margin (13.13%) which is in line with its industry peers.
In the last couple of years the Gross Margin of MTZ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.16% | ||
| PM (TTM) | 1.72% | ||
| GM | 13.13% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MTZ is destroying value.
The number of shares outstanding for MTZ remains at a similar level compared to 1 year ago.
MTZ has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MTZ has been reduced compared to a year ago.
2.2 Solvency
MTZ has an Altman-Z score of 3.35. This indicates that MTZ is financially healthy and has little risk of bankruptcy at the moment.
MTZ has a better Altman-Z score (3.35) than 64.71% of its industry peers.
The Debt to FCF ratio of MTZ is 2.42, which is a good value as it means it would take MTZ, 2.42 years of fcf income to pay off all of its debts.
MTZ has a Debt to FCF ratio of 2.42. This is in the better half of the industry: MTZ outperforms 72.55% of its industry peers.
MTZ has a Debt/Equity ratio of 0.71. This is a neutral value indicating MTZ is somewhat dependend on debt financing.
The Debt to Equity ratio of MTZ (0.71) 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 | 0.71 | ||
| Debt/FCF | 2.42 | ||
| Altman-Z | 3.35 |
ROIC/WACC0.68
WACC10.12%
2.3 Liquidity
A Current Ratio of 1.22 indicates that MTZ should not have too much problems paying its short term obligations.
With a Current ratio value of 1.22, MTZ perfoms like the industry average, outperforming 45.10% of the companies in the same industry.
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 has a Quick ratio of 1.18. This is comparable to the rest of the industry: MTZ outperforms 47.06% 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.
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.
The Revenue has been growing slightly by 3.03% in the past year.
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)3.03%
Revenue growth 3Y15.66%
Revenue growth 5Y11.36%
Sales Q2Q%6%
3.2 Future
The Earnings Per Share is expected to grow by 24.76% on average over the next years. This is a very strong growth
MTZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.69% yearly.
EPS Next Y57.95%
EPS Next 2Y35.74%
EPS Next 3Y28.98%
EPS Next 5Y24.76%
Revenue Next Year12.02%
Revenue Next 2Y10.43%
Revenue Next 3Y9.49%
Revenue Next 5Y7.69%
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 accelerating.
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
With a Price/Earnings ratio of 36.06, MTZ can be considered very expensive at the moment.
MTZ's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of MTZ to the average of the S&P500 Index (26.35), we can say MTZ is valued slightly more expensively.
The Price/Forward Earnings ratio is 22.78, which indicates a rather expensive current valuation of MTZ.
The rest of the industry has a similar Price/Forward Earnings ratio as MTZ.
The average S&P500 Price/Forward Earnings ratio is at 22.19. MTZ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.06 | ||
| Fwd PE | 22.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTZ is valued a bit cheaper than the industry average as 62.75% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTZ indicates a rather cheap valuation: MTZ is cheaper than 86.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.05 | ||
| EV/EBITDA | 14.94 |
4.3 Compensation for Growth
The 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 28.98% in the coming years.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y35.74%
EPS Next 3Y28.98%
5. Dividend
5.1 Amount
MTZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
163.71
-0.95 (-0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners73.54%
Inst Owner Change-2.66%
Ins Owners21.42%
Ins Owner Change1.37%
Market Cap12.94B
Analysts81.9
Price Target183.89 (12.33%)
Short Float %1.65%
Short Ratio1.12
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)32.91%
Min EPS beat(2)16.35%
Max EPS beat(2)49.47%
EPS beat(4)4
Avg EPS beat(4)26.68%
Min EPS beat(4)9.71%
Max EPS beat(4)49.47%
EPS beat(8)7
Avg EPS beat(8)22.85%
EPS beat(12)11
Avg EPS beat(12)16.5%
EPS beat(16)15
Avg EPS beat(16)17.74%
Revenue beat(2)2
Avg Revenue beat(2)2.77%
Min Revenue beat(2)1.55%
Max Revenue beat(2)3.98%
Revenue beat(4)2
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-6%
Max Revenue beat(4)3.98%
Revenue beat(8)3
Avg Revenue beat(8)-3.01%
Revenue beat(12)6
Avg Revenue beat(12)-1.18%
Revenue beat(16)8
Avg Revenue beat(16)-0.84%
PT rev (1m)4.64%
PT rev (3m)6.99%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)2.31%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)16.06%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)4.59%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)2.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.06 | ||
| Fwd PE | 22.78 | ||
| P/S | 1.04 | ||
| P/FCF | 14.05 | ||
| P/OCF | 11.85 | ||
| P/B | 4.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.94 |
EPS(TTM)4.54
EY2.77%
EPS(NY)7.19
Fwd EY4.39%
FCF(TTM)11.66
FCFY7.12%
OCF(TTM)13.82
OCFY8.44%
SpS157.66
BVpS36.48
TBVpS-0.19
PEG (NY)0.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 7.41% | ||
| ROCE | 8.71% | ||
| ROIC | 6.92% | ||
| ROICexc | 7.35% | ||
| ROICexgc | 15.22% | ||
| OM | 4.16% | ||
| PM (TTM) | 1.72% | ||
| GM | 13.13% | ||
| FCFM | 7.39% |
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 Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 2.42 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 35.99% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 2.9 | ||
| Cash Conversion | 110.02% | ||
| Profit Quality | 430.88% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 3.35 |
F-Score7
WACC10.12%
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 Y57.95%
EPS Next 2Y35.74%
EPS Next 3Y28.98%
EPS Next 5Y24.76%
Revenue 1Y (TTM)3.03%
Revenue growth 3Y15.66%
Revenue growth 5Y11.36%
Sales Q2Q%6%
Revenue Next Year12.02%
Revenue Next 2Y10.43%
Revenue Next 3Y9.49%
Revenue Next 5Y7.69%
EBIT growth 1Y96.52%
EBIT growth 3Y0.16%
EBIT growth 5Y-2.97%
EBIT Next Year126.74%
EBIT Next 3Y41.1%
EBIT Next 5Y27.66%
FCF growth 1Y944.67%
FCF growth 3Y16.01%
FCF growth 5Y18.08%
OCF growth 1Y712.68%
OCF growth 3Y12.25%
OCF growth 5Y15.31%