MAS: Share Repurchases And Stable Margins Will Support Future Upside

Analysts have nudged their price target for Masco slightly lower to approximately 73.39 dollars from about 73.67 dollars, reflecting modestly higher discount rate assumptions and a marginally lower future earnings multiple, while largely maintaining their views on revenue growth and profit margins.

What's in the News

• Issued 2025 earnings guidance, projecting earnings per share in the range of 3.84 to 3.89 dollars. The company characterized this as an expectation for steady profit growth next year (company guidance).
• Reported completion of a major share repurchase program, buying back 21,313,934 shares, or about 9.76 percent of shares outstanding, for a total of 1,457.67 million dollars under the authorization announced in October 2022 (company disclosure).
• In the most recent quarter, repurchased 1,754,423 shares, or roughly 0.84 percent of shares, for 123.51 million dollars, highlighting an ongoing focus on shareholder returns (company disclosure).

Valuation Changes

• Fair Value Estimate has edged down slightly to approximately 73.39 dollars from about 73.67 dollars, implying a modest reduction in intrinsic value.
• Discount Rate has risen slightly to about 8.96 percent from roughly 8.91 percent, reflecting a marginally higher assumed cost of capital.
• Revenue Growth assumption is effectively unchanged at around 4.45 percent, indicating stable expectations for top line expansion.
• Net Profit Margin forecast remains essentially flat at approximately 12.42 percent, suggesting no material change in long term profitability assumptions.
• Future P/E multiple has slipped slightly to about 17.21 times from roughly 17.25 times, signaling a modestly lower valuation multiple applied to forward earnings.