NYSE:MAS

Stock Analysis Report

Executive Summary

Masco Corporation designs, manufactures, and distributes home improvement and building products worldwide.

Rewards

PE ratio (18.7x) is below the US market (18.8x)

Earnings are forecast to grow 5.25% per year

Earnings grew by 28.1% over the past year

Pays a reliable dividend of 1.14%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record average dividend payer.


Similar Companies

Masonite International

NYSE:DOOR

Share Price & News

How has Masco's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MAS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

MAS

0.06%

US Building

-1.3%

US Market


1 Year Return

53.5%

MAS

34.1%

US Building

22.0%

US Market

Return vs Industry: MAS exceeded the US Building industry which returned 35.5% over the past year.

Return vs Market: MAS exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

MASIndustryMarket
7 Day-1.1%0.06%-1.3%
30 Day1.2%2.8%1.8%
90 Day8.8%5.1%9.3%
1 Year55.4%53.5%36.2%34.1%24.6%22.0%
3 Year51.0%45.7%26.6%20.8%49.2%39.6%
5 Year136.5%95.5%59.7%39.3%77.9%58.3%

Price Volatility Vs. Market

How volatile is Masco's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Masco undervalued compared to its fair value and its price relative to the market?

18.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MAS ($47.56) is trading above our estimate of fair value ($36.9)

Significantly Below Fair Value: MAS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MAS is good value based on its PE Ratio (18.3x) compared to the Building industry average (23.1x).

PE vs Market: MAS is good value based on its PE Ratio (18.7x) compared to the US market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: MAS is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: MAS has negative assets, so we can't compare its PB Ratio to the US Building industry average.


Next Steps

Future Growth

How is Masco forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAS's forecast earnings growth (5.3% per year) is above the savings rate (1.7%).

Earnings vs Market: MAS's earnings (5.3% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: MAS's earnings are forecast to grow, but not significantly.

Revenue vs Market: MAS's revenue (2.2% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: MAS's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MAS's Return on Equity is forecast to be very high in 3 years time (119.1%).


Next Steps

Past Performance

How has Masco performed over the past 5 years?

1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAS has high quality earnings.

Growing Profit Margin: MAS's current net profit margins (9%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: MAS's earnings have grown by 1.6% per year over the past 5 years.

Accelerating Growth: MAS's earnings growth over the past year (28.1%) exceeds its 5-year average (1.6% per year).

Earnings vs Industry: MAS earnings growth over the past year (28.1%) exceeded the Building industry -5.5%.


Return on Equity

High ROE: Whilst MAS's Return on Equity (3530.43%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Masco's financial position?


Financial Position Analysis

Short Term Liabilities: MAS's short term assets ($2.8B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: MAS's short term assets ($2.8B) do not cover its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: MAS's debt to equity ratio (12800%) is considered high.

Reducing Debt: MAS's debt to equity ratio has increased from 252.6% to 12800% over the past 5 years.

Debt Coverage: MAS's debt is well covered by operating cash flow (33.4%).

Interest Coverage: MAS's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet

Inventory Level: MAS has a high level of physical assets or inventory.

Debt Coverage by Assets: MAS's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

1.11%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: MAS's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: MAS's dividend (1.14%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: MAS's dividends per share have been stable in the past 10 years.

Growing Dividend: MAS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.1%), MAS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MAS's dividends in 3 years are forecast to be well covered by earnings (18.9% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Keith Allman (56yo)

5.9yrs

Tenure

US$11,636,439

Compensation

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  ...


CEO Compensation Analysis

Compensation vs Market: Keith's total compensation ($USD11.64M) is about average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Keith's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.8yrs

Average Tenure

54yo

Average Age

Experienced Management: MAS's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: MAS's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: MAS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$918,03405 Dec 19
John Sznewajs
EntityIndividual
Role
Chief Financial Officer
VP & CFO
Shares20,000
Max PriceUS$45.90
SellUS$921,94602 Dec 19
Kenneth Cole
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares20,000
Max PriceUS$46.10
SellUS$5,643,82022 Nov 19
Richard Manoogian
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares123,138
Max PriceUS$45.88
SellUS$596,41914 Nov 19
Jai Shah
EntityIndividual
Role
Unit President
Group President
Shares12,822
Max PriceUS$46.52
SellUS$90,45313 Nov 19
Marie Ffolkes
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,957
Max PriceUS$46.22
SellUS$510,02601 Nov 19
Richard O’Reagan
EntityIndividual
Role
Unit President
Group President of Global Plumbing
Shares11,125
Max PriceUS$45.85
SellUS$658,95711 Mar 19
John Lindow
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Chief Accounting Officer
Shares16,827
Max PriceUS$39.16
SellUS$487,02507 Mar 19
Richard O’Reagan
EntityIndividual
Role
Unit President
Group President of Global Plumbing
Shares12,336
Max PriceUS$39.48
SellUS$450,15905 Mar 19
Joseph Gross
EntityIndividual
Shares11,252
Max PriceUS$40.01
SellUS$562,82705 Mar 19
Kenneth Cole
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares14,044
Max PriceUS$40.08

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jeffrey Mollerick (60yo)

    Head of Masco Service Partners

    • John Sznewajs (51yo)

      VP & CFO

      • Tenure: 12.5yrs
      • Compensation: US$3.58m
    • Keith Allman (56yo)

      CEO, President & Director

      • Tenure: 5.9yrs
      • Compensation: US$11.64m
    • Jai Shah (53yo)

      Group President

      • Tenure: 1.3yrs
      • Compensation: US$2.36m
    • Richard O’Reagan (55yo)

      Group President of Global Plumbing

      • Tenure: 5.7yrs
      • Compensation: US$2.72m
    • Renee Straber (48yo)

      VP & Chief Human Resource Officer

      • Tenure: 6yrs
    • John Lindow (55yo)

      VP, Controller & Chief Accounting Officer

      • Tenure: 3yrs
      • Compensation: US$1.23m
    • Kenneth Cole (53yo)

      VP, General Counsel & Secretary

      • Tenure: 6.5yrs
      • Compensation: US$2.08m
    • David Chaika

      VP, Treasurer & Investor Relations

      • Tenure: 4.7yrs
    • Sue Sabo

      Director of Corporate Communications


      Board Members

      • Richard Manoogian (82yo)

        Chairman Emeritus

        • Tenure: 8yrs
        • Compensation: US$267.60k
      • John Plant (65yo)

        Independent Director

        • Tenure: 7.7yrs
        • Compensation: US$267.60k
      • Lisa Payne (60yo)

        Independent Director

        • Tenure: 13.1yrs
        • Compensation: US$289.60k
      • Mike Losh (73yo)

        Chairman of the Board

        • Tenure: 4.7yrs
        • Compensation: US$472.60k
      • Don Parfet (66yo)

        Independent Director

        • Tenure: 7.1yrs
        • Compensation: US$292.10k
      • Reginald Turner (59yo)

        Independent Director

        • Tenure: 4.8yrs
        • Compensation: US$267.60k
      • Mark Alexander (55yo)

        Independent Director

        • Tenure: 5.3yrs
        • Compensation: US$267.60k
      • Keith Allman (56yo)

        CEO, President & Director

        • Tenure: 5.9yrs
        • Compensation: US$11.64m
      • Chris O’Herlihy (55yo)

        Independent Director

        • Tenure: 7yrs
        • Compensation: US$272.60k
      • Marie Ffolkes (48yo)

        Independent Director

        • Tenure: 2.3yrs
        • Compensation: US$269.60k

      Company Information

      Masco Corporation's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Masco Corporation
      • Ticker: MAS
      • Exchange: NYSE
      • Founded: 1929
      • Industry: Building Products
      • Sector: Capital Goods
      • Market Cap: US$13.677b
      • Shares outstanding: 276.80m
      • Website: https://masco.com

      Number of Employees


      Location

      • Masco Corporation
      • 17450 College Parkway
      • Livonia
      • Michigan
      • 48152
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      MASNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
      MSQDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
      MAS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
      0JZ1LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
      M1AS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

      Biography

      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. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/24 23:41
      End of Day Share Price2020/01/24 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      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.