MASTEC INC (MTZ) Stock Fundamental Analysis
NYSE:MTZ - New York Stock Exchange, Inc. - US5763231090 - Common Stock - Currency: USD
MTZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 51 industry peers in the Construction & Engineering industry. MTZ has an average financial health and profitability rating. MTZ has a correct valuation and a medium 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.
In the past 5 years MTZ always reported a positive cash flow from operatings.
1.2 Ratios
MTZ has a Return On Assets (2.41%) which is in line with its industry peers.
With a Return On Equity value of 7.41%, MTZ perfoms like the industry average, outperforming 54.90% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.92%, MTZ is doing good in the industry, outperforming 64.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MTZ is significantly below the industry average of 16.97%.
The 3 year average ROIC (4.07%) for MTZ is below the current ROIC(6.92%), indicating increased profibility in the last year.
| 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 comparable to the rest of the industry.
MTZ's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.16%, MTZ perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
In the last couple of years the Operating Margin of MTZ has declined.
Looking at the Gross Margin, with a value of 13.13%, MTZ is in line with its industry, outperforming 41.18% 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 | 4.16% | ||
| 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.
MTZ has about the same amout of shares outstanding than it did 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 3.29. This indicates that MTZ is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.29, MTZ is in the better half of the industry, outperforming 62.75% of the companies in the same industry.
MTZ has a debt to FCF ratio of 2.42. This is a good value and a sign of high solvency as MTZ would need 2.42 years to pay back of all of its debts.
MTZ's Debt to FCF ratio of 2.42 is fine compared to the rest of the industry. MTZ outperforms 70.59% 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 | 3.29 |
ROIC/WACC0.66
WACC10.43%
2.3 Liquidity
A Current Ratio of 1.22 indicates that MTZ should not have too much problems paying its short term obligations.
The Current ratio of MTZ (1.22) is comparable to the rest of the 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 45.10% 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
MTZ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.68% yearly.
Based on estimates for the next years, MTZ will show a small growth in Revenue. The Revenue will grow by 7.36% on average per year.
EPS Next Y57.97%
EPS Next 2Y36.67%
EPS Next 3Y29.92%
EPS Next 5Y23.68%
Revenue Next Year11.97%
Revenue Next 2Y10.36%
Revenue Next 3Y9.35%
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.
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
A Price/Earnings ratio of 34.35 indicates a quite expensive valuation of MTZ.
The rest of the industry has a similar Price/Earnings ratio as MTZ.
MTZ's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.25.
A Price/Forward Earnings ratio of 21.40 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.
MTZ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.35 | ||
| Fwd PE | 21.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MTZ indicates a somewhat cheap valuation: MTZ is cheaper than 62.75% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTZ indicates a rather cheap valuation: MTZ is cheaper than 82.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.38 | ||
| EV/EBITDA | 14.33 |
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 29.92% in the coming years.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y36.67%
EPS Next 3Y29.92%
5. Dividend
5.1 Amount
No dividends for MTZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
155.93
-0.14 (-0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners76.48%
Inst Owner Change-2.66%
Ins Owners21.33%
Ins Owner Change1.21%
Market Cap12.33B
Analysts81
Price Target175.73 (12.7%)
Short Float %2.81%
Short Ratio1.43
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)0.66%
PT rev (3m)3.02%
EPS NQ rev (1m)-1.68%
EPS NQ rev (3m)1.11%
EPS NY rev (1m)8.3%
EPS NY rev (3m)16.07%
Revenue NQ rev (1m)3.65%
Revenue NQ rev (3m)4.53%
Revenue NY rev (1m)1.86%
Revenue NY rev (3m)2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.35 | ||
| Fwd PE | 21.4 | ||
| P/S | 0.99 | ||
| P/FCF | 13.38 | ||
| P/OCF | 11.29 | ||
| P/B | 4.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.33 |
EPS(TTM)4.54
EY2.91%
EPS(NY)7.29
Fwd EY4.67%
FCF(TTM)11.66
FCFY7.48%
OCF(TTM)13.82
OCFY8.86%
SpS157.66
BVpS36.48
TBVpS-0.19
PEG (NY)0.59
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 | 3.29 |
F-Score7
WACC10.43%
ROIC/WACC0.66
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 Y57.97%
EPS Next 2Y36.67%
EPS Next 3Y29.92%
EPS Next 5Y23.68%
Revenue 1Y (TTM)3.03%
Revenue growth 3Y15.66%
Revenue growth 5Y11.36%
Sales Q2Q%6%
Revenue Next Year11.97%
Revenue Next 2Y10.36%
Revenue Next 3Y9.35%
Revenue Next 5Y7.36%
EBIT growth 1Y96.52%
EBIT growth 3Y0.16%
EBIT growth 5Y-2.97%
EBIT Next Year126.74%
EBIT Next 3Y41.1%
EBIT Next 5Y27.02%
FCF growth 1Y944.67%
FCF growth 3Y16.01%
FCF growth 5Y18.08%
OCF growth 1Y712.68%
OCF growth 3Y12.25%
OCF growth 5Y15.31%