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Masco

NYSE:MAS
Snowflake Description

Solid track record with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MAS
NYSE
$11B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Masco Corporation designs, manufactures, and distributes home improvement and building products worldwide. The last earnings update was 84 days ago. More info.


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MAS Share Price and Events
7 Day Returns
0.2%
NYSE:MAS
-0.4%
US Building
-0.3%
US Market
1 Year Returns
-2%
NYSE:MAS
1.3%
US Building
3.4%
US Market
MAS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Masco (MAS) 0.2% 1% -4.6% -2% 14.6% 85.5%
US Building -0.4% 2.6% 4.9% 1.3% 8.6% 23.8%
US Market -0.3% 2.9% 2.1% 3.4% 36.2% 41.3%
1 Year Return vs Industry and Market
  • MAS underperformed the Building industry which returned 1.3% over the past year.
  • MAS underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
MAS
Industry
5yr Volatility vs Market

Value

 Is Masco undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Masco to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Masco.

NYSE:MAS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MAS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Building Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.135 (1 + (1- 21%) (29.56%))
1.268
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.27
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.268 * 5.96%)
10.29%

Discounted Cash Flow Calculation for NYSE:MAS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Masco is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:MAS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.29%)
2020 886.59 Analyst x9 803.90
2021 927.25 Analyst x2 762.35
2022 926.00 Analyst x1 690.32
2023 987.00 Analyst x1 667.16
2024 1,017.34 Est @ 3.07% 623.54
2025 1,047.57 Est @ 2.97% 582.18
2026 1,077.93 Est @ 2.9% 543.18
2027 1,108.64 Est @ 2.85% 506.55
2028 1,139.82 Est @ 2.81% 472.22
2029 1,171.59 Est @ 2.79% 440.12
Present value of next 10 years cash flows $6,091.52
NYSE:MAS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,171.59 × (1 + 2.73%) ÷ (10.29% – 2.73%)
$15,928.45
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $15,928.45 ÷ (1 + 10.29%)10
$5,983.62
NYSE:MAS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,091.52 + $5,983.62
$12,075.13
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $12,075.13 / 293.55
$41.13
NYSE:MAS Discount to Share Price
Calculation Result
Value per share (USD) From above. $41.13
Current discount Discount to share price of $38.21
= -1 x ($38.21 - $41.13) / $41.13
7.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Masco is available for.
Intrinsic value
7%
Share price is $38.21 vs Future cash flow value of $41.13
Current Discount Checks
For Masco to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Masco's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Masco's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Masco's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Masco's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MAS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.31
NYSE:MAS Share Price ** NYSE (2019-07-18) in USD $38.21
United States of America Building Industry PE Ratio Median Figure of 31 Publicly-Listed Building Companies 18x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Masco.

NYSE:MAS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MAS Share Price ÷ EPS (both in USD)

= 38.21 ÷ 2.31

16.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Masco is good value based on earnings compared to the US Building industry average.
  • Masco is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Masco's expected growth come at a high price?
Raw Data
NYSE:MAS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.56x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
9%per year
United States of America Building Industry PEG Ratio Median Figure of 26 Publicly-Listed Building Companies 1.35x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:MAS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.56x ÷ 9%

1.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Masco is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Masco's assets?
Raw Data
NYSE:MAS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $-0.50
NYSE:MAS Share Price * NYSE (2019-07-18) in USD $38.21
United States of America Building Industry PB Ratio Median Figure of 37 Publicly-Listed Building Companies 2.22x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.8x
NYSE:MAS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MAS Share Price ÷ Book Value per Share (both in USD)

= 38.21 ÷ -0.50

-76.83x

* Primary Listing of Masco.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Masco has negative assets, we can't compare the value of its assets to the US Building industry average.
X
Value checks
We assess Masco's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Building industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Building industry average (and greater than 0)? (1 check)
  5. Masco has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Masco expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Masco expected to grow at an attractive rate?
  • Masco's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Masco's earnings growth is positive but not above the United States of America market average.
  • Masco's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MAS Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MAS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 9%
NYSE:MAS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 3%
United States of America Building Industry Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Building Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MAS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MAS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 9,570 1,227 1,060 2
2022-12-31 9,348 1,156 989 2
2021-12-31 9,207 1,155 946 3
2020-12-31 8,882 1,092 849 16
2019-12-31 8,562 1,038 762 16
NYSE:MAS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 8,347 956 694
2018-12-31 8,359 1,032 727
2018-09-30 8,171 938 616
2018-06-30 8,015 889 588
2018-03-31 7,784 845 539
2017-12-31 7,642 751 528
2017-09-30 7,548 773 546
2017-06-30 7,480 754 527
2017-03-31 7,415 710 514
2016-12-31 7,361 789 487
2016-09-30 7,313 760 463
2016-06-30 7,275 750 440

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Masco's earnings are expected to grow by 9% yearly, however this is not considered high growth (20% yearly).
  • Masco's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MAS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Masco Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MAS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 3.71 3.71 3.71 1.00
2022-12-31 3.46 3.46 3.46 1.00
2021-12-31 3.25 3.29 3.21 2.00
2020-12-31 3.02 3.15 2.88 12.00
2019-12-31 2.62 2.66 2.57 10.00
NYSE:MAS Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.31
2018-12-31 2.38
2018-09-30 2.00
2018-06-30 1.90
2018-03-31 1.73
2017-12-31 1.68
2017-09-30 1.73
2017-06-30 1.65
2017-03-31 1.59
2016-12-31 1.49
2016-09-30 1.41
2016-06-30 1.33

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Masco is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Masco's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Masco has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Masco performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Masco's growth in the last year to its industry (Building).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Masco's year on year earnings growth rate has been positive over the past 5 years.
  • Masco's 1-year earnings growth exceeds its 5-year average (28.8% vs 3.3%)
  • Masco's earnings growth has exceeded the US Building industry average in the past year (28.8% vs 24.3%).
Earnings and Revenue History
Masco's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Masco Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MAS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 8,347.00 694.00 1,490.00
2018-12-31 8,359.00 727.00 1,492.00
2018-09-30 8,171.00 616.00 1,492.00
2018-06-30 8,015.00 588.00 1,493.00
2018-03-31 7,784.00 539.00 1,475.00
2017-12-31 7,642.00 528.00 1,444.00
2017-09-30 7,548.00 546.00 1,450.00
2017-06-30 7,480.00 527.00 1,425.00
2017-03-31 7,415.00 514.00 1,416.00
2016-12-31 7,361.00 487.00 1,407.00
2016-09-30 7,313.00 463.00 1,365.00
2016-06-30 7,275.00 440.00 1,351.00
2016-03-31 7,203.00 400.00 1,344.00
2015-12-31 7,142.00 352.00 1,339.00
2015-09-30 7,093.00 361.00 1,365.00
2015-06-30 7,088.00 774.00 1,352.00
2015-03-31 7,035.00 788.00 1,348.00
2014-12-31 7,006.00 804.00 1,347.00
2014-09-30 7,338.00 760.00 1,404.00
2014-06-30 7,654.00 347.00 1,468.00
2014-03-31 7,927.00 306.00 1,535.00
2013-12-31 6,761.00 252.00 1,347.00
2013-09-30 8,006.00 180.00 1,479.00
2013-06-30 7,769.00 97.00 1,488.00
2013-03-31 7,565.00 -35.00 1,459.00
2012-12-31 7,495.00 -55.00 1,535.00
2012-09-30 7,402.00 -480.00 1,405.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Masco made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Masco used its assets more efficiently than the US Building industry average last year based on Return on Assets.
  • Masco has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Masco's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Building industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Masco has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Masco's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Masco's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Masco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Masco's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Masco's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Masco Company Filings, last reported 3 months ago.

NYSE:MAS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 42.00 3,029.00 316.00
2018-12-31 69.00 2,979.00 559.00
2018-09-30 207.00 2,973.00 569.00
2018-06-30 126.00 2,972.00 384.00
2018-03-31 183.00 3,087.00 469.00
2017-12-31 183.00 3,085.00 1,302.00
2017-09-30 60.00 3,086.00 1,218.00
2017-06-30 70.00 3,084.00 1,136.00
2017-03-31 -59.00 2,999.00 883.00
2016-12-31 -103.00 2,997.00 1,191.00
2016-09-30 103.00 2,996.00 1,235.00
2016-06-30 70.00 2,996.00 1,103.00
2016-03-31 84.00 4,296.00 2,382.00
2015-12-31 58.00 3,407.00 1,716.00
2015-09-30 28.00 3,424.00 1,534.00
2015-06-30 131.00 3,425.00 1,507.00
2015-03-31 959.00 3,924.00 1,775.00
2014-12-31 1,128.00 3,424.00 1,685.00
2014-09-30 1,358.00 3,424.00 1,557.00
2014-06-30 902.00 3,428.00 1,423.00
2014-03-31 801.00 3,427.00 1,211.00
2013-12-31 787.00 3,427.00 1,544.00
2013-09-30 686.00 3,426.00 1,288.00
2013-06-30 549.00 3,628.00 1,223.00
2013-03-31 495.00 3,627.00 1,032.00
2012-12-31 534.00 3,628.00 1,351.00
2012-09-30 674.00 3,629.00 1,166.00
  • Masco's level of debt (7300%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (427.2% vs 7300% today).
  • Debt is well covered by operating cash flow (31.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.2x coverage).
X
Financial health checks
We assess Masco's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Masco has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Masco's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.26%
Current annual income from Masco dividends. Estimated to be 1.28% next year.
If you bought $2,000 of Masco shares you are expected to receive $25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Masco's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Masco's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MAS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United States of America Building Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MAS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.48 1.00
2020-12-31 0.50 10.00
2019-12-31 0.48 10.00
NYSE:MAS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-21 0.480 1.232
2019-03-15 0.480 1.245
2018-12-18 0.480 1.425
2018-09-28 0.480 1.530
2018-06-22 0.420 1.094
2018-03-23 0.420 1.086
2017-12-14 0.420 0.974
2017-09-22 0.420 1.054
2017-06-22 0.400 1.061
2017-03-24 0.400 1.110
2016-12-07 0.400 1.209
2016-09-23 0.400 1.241
2016-06-24 0.380 1.113
2016-03-28 0.380 1.202
2015-12-15 0.380 1.388
2015-09-25 0.380 1.349
2015-07-28 0.360 1.350
2015-03-27 0.360 1.382
2014-12-16 0.360 1.403
2014-09-26 0.360 1.554
2014-05-15 0.360 1.627
2014-03-28 0.300 1.414
2013-12-17 0.300 1.340
2013-09-13 0.300 1.425
2013-06-21 0.300 1.509
2013-03-25 0.300 1.463
2012-12-14 0.300 1.639
2012-10-31 0.300 1.875
2012-07-31 0.300 2.097
2012-05-02 0.300 2.254
2012-04-30 0.300 2.164
2011-12-07 0.300 2.545
2011-10-28 0.300 3.250
2011-06-24 0.300 3.364
2011-03-25 0.300 2.262
2010-12-15 0.300 2.226
2010-09-10 0.300 2.648
2010-06-25 0.300 2.773
2010-03-26 0.300 2.088
2009-12-09 0.300 2.097
2009-09-11 0.300 2.239
2009-06-26 0.300 2.560
2009-03-27 0.300 3.304
2009-02-17 0.300 5.555
2009-02-11 0.300 4.517
2008-12-10 0.940 9.697
2008-09-12 0.940 8.375

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Masco's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (6.6x coverage).
X
Income/ dividend checks
We assess Masco's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Masco afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Masco has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Masco's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Keith Allman
COMPENSATION $11,636,439
AGE 56
TENURE AS CEO 5.4 years
CEO Bio

Mr. Keith J. Allman has been the Chief Executive Officer and President at Masco Corporation since February 14, 2014. Mr. Allman served as the Group President of Masco Corporation from November 22, 2011 to February 14, 2014. He was Group President for Masco’s Plumbing and North American Cabinet businesses. He was responsible for Brasstech, Delta Faucet Company, Hansgrohe, Liberty Hardware, Masco Bath, Masco Canada and Mirolin Industries Corporation. Mr. Allman was the Group Vice President of Plumbing Products and President at Delta Faucet Company from 2009 to 2011. Mr. Allman has experience in the automotive and home building industries. He served as the President of Masco Corporation of Indiana (also known as Delta Faucet Company) from April 9, 2007 to 2011. He joined Masco in 1998 as Vice President of Manufacturing at the Masco’s cabinet maker Merillat Industries. He served as an Executive Vice President of Operations at Masco’s Builder Cabinet Group. Prior to joining Masco, he spent 13 years with General Motors Corporation in a variety of Manufacturing, Engineering and Quality Management positions. Following his career at GM, he worked in the automotive tier one supply base in a number of senior leadership positions. He serves as a Member of Supervisory Board at Hansgrohe SE. Mr Allman has strong business leadership qualities with significant experience as a change agent and process improvement leader. In addition, he bungs significant experience in the automotive industry, international business, finance and accounting, marketing, product development and strategic planning. He has been an Independent Director of Oshkosh Corporation since September 15, 2015. He has been a Director of Masco Corporation since February 14, 2014. Mr. Allman holds a Bachelor of Science degree in Mechanical Engineering from General Motors Institute (now Kettering University) and a Master of Business Administration degree from the Stephen M. Ross School of Business at the University of Michigan.

CEO Compensation
  • Keith's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Keith's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Masco management team in years:

5.2
Average Tenure
54
Average Age
  • The average tenure for the Masco management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Keith Allman

TITLE
CEO, President & Director
COMPENSATION
$12M
AGE
56
TENURE
5.4 yrs

John Sznewajs

TITLE
VP & CFO
COMPENSATION
$4M
AGE
51
TENURE
12 yrs

Kenneth Cole

TITLE
VP, General Counsel & Secretary
COMPENSATION
$2M
AGE
53
TENURE
6 yrs

Jai Shah

TITLE
Group President
COMPENSATION
$2M
AGE
53
TENURE
0.8 yrs

Richard O’Reagan

TITLE
Group President of Global Plumbing
COMPENSATION
$3M
AGE
55
TENURE
5.2 yrs

John Lindow

TITLE
VP, Controller & Chief Accounting Officer
COMPENSATION
$1M
AGE
55
TENURE
2.5 yrs

David Chaika

TITLE
VP, Treasurer & Investor Relations
TENURE
4.2 yrs

Sue Sabo

TITLE
Director of Corporate Communications

Amit Bhargava

TITLE
Vice President of Strategy & Corporate Development
COMPENSATION
$2M
AGE
55
TENURE
4.5 yrs

Renee Straber

TITLE
VP & Chief Human Resource Officer
AGE
48
TENURE
5.5 yrs
Board of Directors Tenure

Average tenure and age of the Masco board of directors in years:

6
Average Tenure
59.5
Average Age
  • The tenure for the Masco board of directors is about average.
Board of Directors

Mike Losh

TITLE
Chairman of the Board
COMPENSATION
$473K
AGE
73
TENURE
4.2 yrs

Keith Allman

TITLE
CEO, President & Director
COMPENSATION
$12M
AGE
56
TENURE
5.4 yrs

Richard Manoogian

TITLE
Chairman Emeritus
COMPENSATION
$268K
AGE
82
TENURE
7.5 yrs

Lisa Payne

TITLE
Director
COMPENSATION
$290K
AGE
60
TENURE
12.6 yrs

Don Parfet

TITLE
Director
COMPENSATION
$292K
AGE
66
TENURE
6.6 yrs

John Plant

TITLE
Director
COMPENSATION
$268K
AGE
65
TENURE
7.2 yrs

Chris O’Herlihy

TITLE
Director
COMPENSATION
$273K
AGE
55
TENURE
6.5 yrs

Mark Alexander

TITLE
Director
COMPENSATION
$268K
AGE
55
TENURE
4.8 yrs

Reginald Turner

TITLE
Director
COMPENSATION
$268K
AGE
59
TENURE
4.3 yrs

Marie Ffolkes

TITLE
Director
COMPENSATION
$270K
AGE
48
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Mar 19 Sell John Lindow Individual 08. Mar 19 08. Mar 19 -16,827 $39.16 $-658,957
07. Mar 19 Sell Richard O’Reagan Individual 06. Mar 19 06. Mar 19 -12,336 $39.48 $-487,025
05. Mar 19 Sell Joseph Gross Individual 04. Mar 19 04. Mar 19 -11,252 $40.01 $-450,159
05. Mar 19 Sell Kenneth Cole Individual 04. Mar 19 04. Mar 19 -14,044 $40.08 $-562,827
07. Aug 18 Sell Joseph Gross Individual 06. Aug 18 06. Aug 18 -1,286 $39.91 $-51,331
14. Nov 18 Sell Richard O’Reagan Individual 13. Nov 18 13. Nov 18 -12,900 $31.48 $-406,153
X
Management checks
We assess Masco's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Masco has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Investors Who Bought Masco (NYSE:MAS) Shares Five Years Ago Are Now Up 86%

For example, the Masco Corporation (NYSE:MAS) share price is up 86% in the last 5 years, clearly besting than the market return of around 42% (ignoring dividends). … During five years of share price growth, Masco achieved compound earnings per share (EPS) growth of 21% per year. … We note that for Masco the TSR over the last 5 years was 126%, which is better than the share price return mentioned above.

Simply Wall St -

Here's Why I Think Masco (NYSE:MAS) Is An Interesting Stock

Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. … Although Masco certainly looks good to me, I would like it more if insiders were buying up shares. … If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Simply Wall St -

Are Masco Corporation’s (NYSE:MAS) High Returns Really That Great?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Masco: 0.33 = US$1.2b ÷ (US$5.6b - US$1.9b) (Based on the trailing twelve months to March 2019.) So, Masco has an ROCE of 33%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. … A medium level of current liabilities boosts Masco's ROCE somewhat.

Simply Wall St -

A Look At The Fair Value Of Masco Corporation (NYSE:MAS)

Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … We assume companies with shrinking free cash flow are will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $848.16 $889.31 $933.00 $926.00 $987.00 $1.02k $1.05k $1.08k $1.11k $1.14k Growth Rate Estimate Source Analyst x9 Analyst x9 Analyst x2 Analyst x1 Analyst x1 Est @ 2.96% Est @ 2.89% Est @ 2.85% Est @ 2.81% Est @ 2.79% Present Value ($, Millions) Discounted @ 10.34% $768.70 $730.49 $694.59 $624.80 $603.57 $563.24 $525.25 $489.59 $456.20 $424.98 Present Value of 10-year Cash Flow (PVCF)= $5.88b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage.

Simply Wall St -

Have Insiders Been Selling Masco Corporation (NYSE:MAS) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Masco Corporation (NYSE:MAS). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … That means that an insider was selling shares at below the current price (US$39.33).

Simply Wall St -

Why Masco Corporation (NYSE:MAS) Is A Dividend Rockstar

Is Masco Corporation (NYSE:MAS) a good dividend stock? … A dividend paying company with growing earnings can be rewarding in the long term. … On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.

Simply Wall St -

Should You Be Holding Masco Corporation (NYSE:MAS)?

Masco Corporation (NYSE:MAS) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … dividend-paying company

Simply Wall St -

Masco Corporation (NYSE:MAS): Is It A Smart Long Term Opportunity?

Since Masco Corporation (NYSE:MAS) released its earnings in December 2018,. … with earnings expected to grow by 7.1% in the upcoming year … the past 5-year average growth rate of 4.7%

Simply Wall St -

Is Now The Time To Look At Buying Masco Corporation (NYSE:MAS)?

led the NYSE gainers with a relatively large price hike in the past couple of weeks. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price … However, what if the stock is still a bargain?

Simply Wall St -

Should You Worry About Masco Corporation's (NYSE:MAS) CEO Salary Level?

This analysis aims first to contrast CEO compensation with other large companies. … Check out our latest analysis for Masco … How Does Keith Allman's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Company Info

Description

Masco Corporation designs, manufactures, and distributes home improvement and building products worldwide. The company’s Plumbing Products segment offers faucets, showerheads, handheld showers, valves, bath hardware and accessories, bathing units, shower bases and enclosures, toilets, acrylic tubs, shower trays, spas, exercise pools, fitness systems, and other non-decorative plumbing products; brass, copper, and composite plumbing system components; and thermoplastic extrusions, extruded plastic profiles, and specialized fabrications. It offers its products under the DELTA, BRIZO, PEERLESS, HANSGROHE, AXOR, GINGER, NEWPORT BRASS, BRASSTECH, WALTEC, BRISTAN, HERITAGE, MIROLIN, HÜPPE, HOT SPRING, CALDERA, FREEFLOW SPAS, FANTASY SPAS, ENDLESS POOLS, BRASSCRAFT, PLUMB SHOP, COBRA, COBRA PRO, and MASTER PLUMBER brands. Its Decorative Architectural Products segment provides paints, primers, specialty coatings, stains, and waterproofing products; cabinet and door hardware; functional hardware, wall plates, hook and rail products, and picture hanging accessories; decorative bath hardware, and shower accessories and doors; and decorative indoor and outdoor lighting fixtures, ceiling fans, landscape lighting, and LED lighting systems. This segment offers its products under the BEHR, KILZ, LIBERTY, BRAINERD, FRANKLIN BRASS, KICHLER, and ÉLAN brands. The company’s Cabinetry Products segment offers assembled cabinetry under the KRAFTMAID, CARDELL, MERILLAT, and QUALITY CABINETS brands. Its Windows and Other Specialty Products segment provides vinyl, fiberglass, and aluminum windows and patio doors under the MILGARD brand; and vinyl windows, composite, and panel doors, as well as related products and components under the DURAFLEX, GRIFFIN, PREMIER, and EVOLUTION brands. The company was founded in 1929 and is headquartered in Livonia, Michigan.

Details
Name: Masco Corporation
MAS
Exchange: NYSE
Founded: 1929
$11,216,502,475
293,548,874
Website: http://masco.com
Address: Masco Corporation
17450 College Parkway,
Livonia,
Michigan, 48152,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MAS Common Stock New York Stock Exchange US USD 02. Jan 1968
DB MSQ Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0JZ1 Common Stock London Stock Exchange GB USD 02. Jan 1968
BMV MAS * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
Number of employees
Current staff
Staff numbers
26,000
Masco employees.
Industry
Building Products
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 23:44
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/18
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.