NYSE:MAS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Proven track record with adequate balance sheet and pays a dividend.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.2%

MAS

4.2%

US Building

-0.04%

US Market


1 Year Return

46.0%

MAS

14.6%

US Building

17.1%

US Market

Return vs Industry: MAS exceeded the US Building industry which returned 12.6% over the past year.

Return vs Market: MAS exceeded the US Market which returned 16.8% over the past year.


Shareholder returns

MASIndustryMarket
7 Day-0.2%4.2%-0.04%
30 Day14.8%19.3%5.1%
90 Day43.4%48.1%19.5%
1 Year47.7%46.0%23.1%14.6%19.6%17.1%
3 Year58.3%52.8%42.8%29.7%42.5%33.3%
5 Year114.3%101.7%73.7%46.5%75.1%56.2%

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?

24.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MAS ($57.17) is trading above our estimate of fair value ($38.79)

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 (24x) compared to the US Building industry average (24.6x).

PE vs Market: MAS is poor value based on its PE Ratio (24x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: MAS is poor value based on its PEG Ratio (4.1x)


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 17 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAS's forecast earnings growth (5.8% per year) is above the savings rate (2.2%).

Earnings vs Market: MAS's earnings (5.8% per year) are forecast to grow slower than the US market (24% per year).

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

Revenue vs Market: MAS's revenue (2.7% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: MAS's revenue (2.7% 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 (429.8%).


Next Steps

Past Performance

How has Masco performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAS has high quality earnings.

Growing Profit Margin: MAS's current net profit margins (9.8%) are lower than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: MAS's earnings have grown by 7.4% per year over the past 5 years.

Accelerating Growth: MAS's earnings growth over the past year (8.6%) exceeds its 5-year average (7.4% per year).

Earnings vs Industry: MAS earnings growth over the past year (8.6%) exceeded the Building industry -9%.


Return on Equity

High ROE: Whilst MAS's Return on Equity (1902.7%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

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 ($2.2B).

Long Term Liabilities: MAS's short term assets ($3.2B) exceed its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: MAS's debt to equity ratio (7491.9%) is considered high.

Reducing Debt: MAS's debt to equity ratio has increased from 2660% to 7491.9% over the past 5 years.

Debt Coverage: MAS's debt is well covered by operating cash flow (32.8%).

Interest Coverage: MAS's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet


Next Steps

Dividend

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

0.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MAS's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: MAS's dividend (0.94%) is low compared to the top 25% of dividend payers in the US market (4.29%).


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 (22.7%), 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 (17.6% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Keith Allman (57 yo)

6.5yrs

Tenure

US$8,659,363

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 ($USD8.66M) is about average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Keith Allman
CEO, President & Director6.5yrsUS$8.66m0.17%
$ 25.2m
John Sznewajs
VP & CFO13.08yrsUS$3.85m0.086%
$ 12.9m
Jai Shah
Group President1.92yrsUS$2.10m0.019%
$ 2.8m
Richard O'Reagan
Group President of Global Plumbing6.25yrsUS$2.14m0.014%
$ 2.1m
John Lindow
VP, Controller & Chief Accounting Officer3.58yrsUS$1.23m0.0087%
$ 1.3m
David Chaika
VP of Investor Relations & Treasurer5.25yrsno datano data
Kenneth Cole
VP, General Counsel & Secretary7.08yrsUS$2.08m0.024%
$ 3.6m
Sue Sabo
Director of Corporate Communicationsno datano datano data
Renee Straber
VP & Chief Human Resource Officer5.83yrsno data0.011%
$ 1.6m
Jeffrey Mollerick
Head of Masco Service Partnersno datano datano data
Ken Roberts
President of Delta Faucet Company1.92yrsno datano data
R. Schirmer
Executive Officer of eBusiness Developmentno datano datano data

5.8yrs

Average Tenure

56yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Keith Allman
CEO, President & Director6.5yrsUS$8.66m0.17%
$ 25.2m
Richard Manoogian
Chairman Emeritus8.58yrsUS$270.00k0.081%
$ 12.1m
John Plant
Independent Director8.25yrsUS$270.00k0.013%
$ 1.9m
Lisa Payne
Independent Director13.67yrsUS$297.00k0.019%
$ 2.9m
John Losh
Independent Chairman of the Board5.25yrsUS$475.00k0.027%
$ 4.1m
Donald Parfet
Independent Director7.67yrsUS$295.00k0.014%
$ 2.0m
Reginald Turner
Independent Director5.42yrsUS$270.00k0.0093%
$ 1.4m
Mark Alexander
Independent Director5.83yrsUS$270.00k0.010%
$ 1.5m
Charles Stevens
Independent Director2.5yrsUS$270.00k0.0044%
$ 665.4k
Christopher O'Herlihy
Independent Director7.58yrsUS$275.00k0.013%
$ 2.0m
Marie Ffolkes
Independent Director2.92yrsUS$270.00k0.0043%
$ 635.5k

6.5yrs

Average Tenure

60yo

Average Age

Experienced Board: MAS's board of directors are considered experienced (6.5 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$14.952b
  • Shares outstanding: 261.53m
  • 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 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 Analysis2020/08/11 23:45
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.