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

1.2%

MAS

1.2%

US Building

1.0%

US Market


1 Year Return

33.6%

MAS

15.1%

US Building

6.7%

US Market

Return vs Industry: MAS exceeded the US Building industry which returned 15.1% over the past year.

Return vs Market: MAS exceeded the US Market which returned 6.7% over the past year.


Share holder returns

MASIndustryMarket
7 Day1.2%1.2%1.0%
30 Day-0.9%-1.3%-1.8%
90 Day8.7%1.2%-1.8%
1 Year35.4%33.6%16.8%15.1%9.1%6.7%
3 Year31.3%26.7%27.5%16.8%46.1%36.6%
5 Year132.8%92.2%64.4%44.5%66.9%48.6%

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?

17.54x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: MAS ($42.82) is trading above our estimate of fair value ($25.86)

Significantly Undervalued: MAS is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: MAS is good value based on its PE Ratio (17.5x) compared to the Building industry average (19.8x).

PE vs Market: MAS is good value based on its PE Ratio (17.5x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: MAS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price Based on Value of Assets

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

-0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: MAS's earnings are forecast to decline over the next 3 years (-0.2% per year).

Earnings vs Market: MAS's earnings are forecast to decline over the next 3 years (-0.2% per year).

High Growth Earnings: MAS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MAS's revenue is expected to decline over the next 3 years (-5.9% per year).

High Growth Revenue: MAS's revenue is forecast to decline over the next 3 years (-5.9%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: MAS's Return on Equity is forecast to be very high in 3 years time (581.2%).


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

Earnings Trend: MAS's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: MAS's earnings growth over the past year (23.3%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: MAS earnings growth over the past year (23.3%) exceeded the Building industry 7.7%.


Return on Equity

High ROE: Whilst MAS's Return on Equity (1095.77%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: MAS has a higher Return on Assets than the Building industry average last year.


Return on Capital Employed

ROCE Improving: MAS has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Masco's financial position?


Financial Position Analysis

Short Term Liabilities: MAS's short term assets ($2.8B) exceeds its short term liabilities ($2.0B)

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 (4177.5%) is considered high

Reducing Debt: MAS's debt to equity ratio has increased from 378% to 4177.5% over the past 5 years.

Debt Coverage: MAS's debt is well covered by operating cash flow (32.1%).

Interest Coverage: MAS's interest payments on its debt are well covered by EBIT (8.2x 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 1x debt).


Next Steps

Dividend

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

1.14%

Expected Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.5%markettop25%3.8%industryaverage1.4%forecastin3Years1.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: MAS's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: MAS's dividend (1.12%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: MAS's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.7%), 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 (16.2% 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?

5.5yrs

Average management tenure


CEO

Keith Allman (56yo)

5.7yrs

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 ($USD11.64M) is about average for companies of similar size in the US market ($USD11.20M).

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


Management Age and Tenure

5.5yrs

Average Tenure

54yo

Average Age

Experienced Management: MAS's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

6.2yrs

Average Tenure

59.5yo

Average Age

Experienced Board: MAS's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 0yrs
  • John Sznewajs (51yo)

    VP & CFO

    • Tenure: 12.3yrs
    • Compensation: US$3.58m
  • Keith Allman (56yo)

    CEO, President & Director

    • Tenure: 5.7yrs
    • Compensation: US$11.64m
  • Jai Shah (53yo)

    Group President

    • Tenure: 1.1yrs
    • Compensation: US$2.36m
  • Richard O’Reagan (55yo)

    Group President of Global Plumbing

    • Tenure: 5.4yrs
    • Compensation: US$2.72m
  • Renee Straber (48yo)

    VP & Chief Human Resource Officer

    • Tenure: 5.8yrs
  • John Lindow (55yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 2.8yrs
    • Compensation: US$1.23m
  • Kenneth Cole (53yo)

    VP, General Counsel & Secretary

    • Tenure: 6.3yrs
    • Compensation: US$2.08m
  • David Chaika

    VP, Treasurer & Investor Relations

    • Tenure: 4.4yrs
  • Sue Sabo

    Director of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Richard Manoogian (82yo)

    Chairman Emeritus

    • Tenure: 7.8yrs
    • Compensation: US$267.60k
  • John Plant (65yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: US$267.60k
  • Lisa Payne (60yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$289.60k
  • Mike Losh (73yo)

    Chairman of the Board

    • Tenure: 4.4yrs
    • Compensation: US$472.60k
  • Don Parfet (66yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$292.10k
  • Reginald Turner (59yo)

    Director

    • Tenure: 4.6yrs
    • Compensation: US$267.60k
  • Mark Alexander (55yo)

    Director

    • Tenure: 5yrs
    • Compensation: US$267.60k
  • Keith Allman (56yo)

    CEO, President & Director

    • Tenure: 5.7yrs
    • Compensation: US$11.64m
  • Chris O’Herlihy (55yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$272.60k
  • Marie Ffolkes (48yo)

    Director

    • Tenure: 2.1yrs
    • 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$12.395b
  • 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 Analysis2019/10/14 01:13
End of Day Share Price2019/10/11 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.

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