NYSE:MAS

Stock Analysis Report

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Market Cap

US$14.8b

Last Updated

2021/07/28 02:46 UTC

Data Sources

Company Financials +

Executive Summary

Masco Corporation designs, manufactures, and distributes home improvement and building products in North America, Europe, and internationally. More Details


Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MAS's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.0%

MAS

1.4%

US Building

0.9%

US Market


1 Year Return

9.6%

MAS

68.6%

US Building

37.8%

US Market

Return vs Industry: MAS underperformed the US Building industry which returned 68.6% over the past year.

Return vs Market: MAS underperformed the US Market which returned 37.8% over the past year.


Shareholder returns

MASIndustryMarket
7 Day1.0%1.4%0.9%
30 Day3.0%3.1%0.3%
90 Day-6.7%3.5%2.1%
1 Year10.6%9.6%70.6%68.6%40.0%37.8%
3 Year53.2%48.1%93.5%76.7%63.8%53.5%
5 Year73.8%64.3%133.2%100.8%124.6%99.7%

Long-Term 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?

18.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MAS ($59.71) is trading below our estimate of fair value ($72.95)

Significantly Below Fair Value: MAS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MAS is good value based on its PE Ratio (20.4x) compared to the US Building industry average (23.6x).

PE vs Market: MAS is poor value based on its PE Ratio (20.4x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: MAS is poor value based on its PEG Ratio (1.5x)


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.


Future Growth

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

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAS's forecast earnings growth (13.9% per year) is above the savings rate (2%).

Earnings vs Market: MAS's earnings (13.9% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: MAS's revenue (4.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: MAS's revenue (4.1% 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 (355.7%).


Past Performance

How has Masco performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAS has high quality earnings.

Growing Profit Margin: MAS's current net profit margins (10%) are higher than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: MAS's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: MAS's earnings growth over the past year (15.9%) exceeds its 5-year average (11.4% per year).

Earnings vs Industry: MAS earnings growth over the past year (15.9%) underperformed the Building industry 25.3%.


Return on Equity

High ROE: Whilst MAS's Return on Equity (345.04%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Masco's financial position?


Financial Position Analysis

Short Term Liabilities: MAS's short term assets ($3.2B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: MAS's short term assets ($3.2B) do not cover its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: MAS's debt to equity ratio (1206.6%) is considered high.

Reducing Debt: MAS's debt to equity ratio has reduced from 5106.6% to 1206.6% over the past 5 years.

Debt Coverage: MAS's debt is well covered by operating cash flow (32.7%).

Interest Coverage: MAS's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Dividend

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

1.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MAS's dividend (1.57%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: MAS's dividend (1.57%) is low compared to the top 25% of dividend payers in the US market (3.53%).


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 (22.2%), 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 (28.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Keith Allman (58 yo)

7.42yrs

Tenure

US$14,001,941

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 ($USD14.00M) is about average for companies of similar size in the US market ($USD11.26M).

Compensation vs Earnings: Keith's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MAS's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: MAS's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$14.849b
  • Shares outstanding: 248.69m
  • Website: https://masco.com

Number of Employees


Location

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

Listings


Biography

Masco Corporation designs, manufactures, and distributes home improvement and building products in North America, Europe, and internationally. The company operates through two segments, Plumbing Products a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/28 02:46
End of Day Share Price2021/07/27 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.