NYSE:MAS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record with mediocre balance sheet.


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


Market Performance


7 Day Return

6.7%

NYSE:MAS

0.9%

US Building

2.1%

US Market


1 Year Return

4.7%

NYSE:MAS

-2.3%

US Building

-0.04%

US Market

MAS outperformed the Building industry which returned -1.6% over the past year.

MAS outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

MASIndustryMarket
7 Day6.7%0.9%2.1%
30 Day5.1%-1.2%-3.2%
90 Day8.8%4.8%2.8%
1 Year6.1%4.7%-0.7%-2.3%2.2%-0.04%
3 Year19.2%15.0%16.8%7.5%41.5%32.3%
5 Year109.1%72.5%39.7%22.3%55.0%37.8%

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

7%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

Masco is poor value based on expected growth next year.


Price Based on Value of Assets

Masco has negative assets, we can't compare the value of its assets to the US Building industry average.


Next Steps

Future Growth

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

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Masco's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

Masco's earnings are expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).

Masco's revenue growth is positive but not above the United States of America market average.

Masco's earnings growth is positive but not above the United States of America market average.

Masco's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Masco is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Masco performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (23.3% vs 2.3%)

Masco's earnings growth has exceeded the US Building industry average in the past year (23.3% vs 8.2%).


Return on Equity

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.


Return on Assets

Masco used its assets more efficiently than the US Building industry average last year based on Return on Assets.


Return on Capital Employed

Masco has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Masco's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Masco's level of debt (4177.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (378% vs 4177.5% today).

Debt is well covered by operating cash flow (32.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

1.22%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Masco's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Masco's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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

Dividends paid are well covered by earnings (5.1x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Keith Allman (56yo)

5.5yrs

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

Keith's remuneration is about average for companies of similar size in United States of America.

Keith's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.4yrs

Average Tenure

54yo

Average Age

The average tenure for the Masco management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.0yrs

Average Tenure

59.5yo

Average Age

The tenure for the Masco board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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
SellUS$406,15314 Nov 18
Richard O’Reagan
EntityIndividual
Role
Unit President
Group President of Global Plumbing
Shares12,900
Max PriceUS$31.48

Ownership Breakdown


Management Team

  • Jeffrey Mollerick (60yo)

    Head of Masco Service Partners

    • Tenure: 0.0yrs
  • John Sznewajs (51yo)

    VP & CFO

    • Tenure: 12.1yrs
    • Compensation: US$3.58m
  • Keith Allman (56yo)

    CEO, President & Director

    • Tenure: 5.5yrs
    • Compensation: US$11.64m
  • Jai Shah (53yo)

    Group President

    • Tenure: 0.9yrs
    • Compensation: US$2.36m
  • Richard O’Reagan (55yo)

    Group President of Global Plumbing

    • Tenure: 5.3yrs
    • Compensation: US$2.72m
  • Renee Straber (48yo)

    VP & Chief Human Resource Officer

    • Tenure: 5.6yrs
  • John Lindow (55yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 2.6yrs
    • Compensation: US$1.23m
  • Kenneth Cole (53yo)

    VP, General Counsel & Secretary

    • Tenure: 6.1yrs
    • Compensation: US$2.08m
  • David Chaika

    VP, Treasurer & Investor Relations

    • Tenure: 4.3yrs
  • Sue Sabo

    Director of Corporate Communications

    • Tenure: 0.0yrs

Board Members

  • Richard Manoogian (82yo)

    Chairman Emeritus

    • Tenure: 7.6yrs
    • Compensation: US$267.60k
  • John Plant (65yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$267.60k
  • Lisa Payne (60yo)

    Director

    • Tenure: 12.7yrs
    • Compensation: US$289.60k
  • Mike Losh (73yo)

    Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: US$472.60k
  • Don Parfet (66yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: US$292.10k
  • Reginald Turner (59yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: US$267.60k
  • Mark Alexander (55yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$267.60k
  • Keith Allman (56yo)

    CEO, President & Director

    • Tenure: 5.5yrs
    • Compensation: US$11.64m
  • Chris O’Herlihy (55yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: US$272.60k
  • Marie Ffolkes (48yo)

    Director

    • Tenure: 1.9yrs
    • 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$11.740b
  • Shares outstanding: 289.46m
  • 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

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, bat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:38
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
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.