NYSE:MTZ

Stock Analysis Report

Executive Summary

MasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada.


Snowflake Analysis

Outstanding track record with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MTZ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.1%

MTZ

1.2%

US Construction

-2.0%

US Market


1 Year Return

-39.6%

MTZ

-27.0%

US Construction

-15.1%

US Market

Return vs Industry: MTZ underperformed the US Construction industry which returned -23.1% over the past year.

Return vs Market: MTZ underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

MTZIndustryMarket
7 Day3.1%1.2%-2.0%
30 Day-37.6%-27.3%-19.7%
90 Day-52.3%-30.9%-23.2%
1 Year-39.6%-39.6%-26.4%-27.0%-13.4%-15.1%
3 Year-24.4%-24.4%-25.1%-26.8%10.9%3.7%
5 Year61.7%61.7%-8.7%-12.1%28.4%14.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTZ ($30.8) is trading below our estimate of fair value ($95.12)

Significantly Below Fair Value: MTZ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MTZ is good value based on its PE Ratio (5.9x) compared to the Construction industry average (11.5x).

PE vs Market: MTZ is good value based on its PE Ratio (5.9x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: MTZ is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: MTZ is overvalued based on its PB Ratio (1.3x) compared to the US Construction industry average (1.3x).


Next Steps

Future Growth

How is MasTec forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTZ's forecast earnings growth (1.8% per year) is above the savings rate (1.7%).

Earnings vs Market: MTZ's earnings (1.8% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: MTZ's revenue (4.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: MTZ's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTZ's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

How has MasTec performed over the past 5 years?

40.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTZ has high quality earnings.

Growing Profit Margin: MTZ's current net profit margins (5.5%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: MTZ's earnings have grown significantly by 40.4% per year over the past 5 years.

Accelerating Growth: MTZ's earnings growth over the past year (51.1%) exceeds its 5-year average (40.4% per year).

Earnings vs Industry: MTZ earnings growth over the past year (51.1%) exceeded the Construction industry 23.5%.


Return on Equity

High ROE: MTZ's Return on Equity (22%) is considered high.


Next Steps

Financial Health

How is MasTec's financial position?


Financial Position Analysis

Short Term Liabilities: MTZ's short term assets ($2.2B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: MTZ's short term assets ($2.2B) exceed its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: MTZ's debt to equity ratio (63.1%) is considered high.

Reducing Debt: MTZ's debt to equity ratio has reduced from 99% to 63.1% over the past 5 years.

Debt Coverage: MTZ's debt is well covered by operating cash flow (48.6%).

Interest Coverage: MTZ's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: MTZ's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MTZ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MTZ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MTZ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MTZ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MTZ's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

13.0yrs

Average management tenure


CEO

José Mas (48yo)

13s

Tenure

US$7,275,847

Compensation

Mr. José Ramon Mas serves as a Director at Helmerich & Payne, Inc., since March 1, 2017. Mr. José Ramon Mas has been a Director of Pensare Acquisition Corp. since July 27, 2017. He has served as a director ...


CEO Compensation Analysis

Compensation vs Market: José's total compensation ($USD7.28M) is above average for companies of similar size in the US market ($USD4.60M).

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


Leadership Team

NamePositionTenureCompensationOwnership
José Mas
CEO & Director13yrsUS$7.28m5.78% $129.7m
George Pita
Executive VP & CFO6.25yrsUS$2.76m0.27% $6.1m
Robert Apple
Chief Operating Officer13.33yrsUS$3.42m0.30% $6.6m
Alberto de Cardenas
Executive VP14.42yrsUS$1.66m0.17% $3.8m
J. Lewis
Vice President of Investor Relationsno datano datano data
Gary Smith
Senior Vice President of Communications Groupno datano datano data
Pablo Alvarez
Executive Vice President of Mergers & Acquisitionsno datano datano data
Paul Dimarco
Senior VP & Treasurer9.08yrsno datano data

13.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: MTZ's management team is seasoned and experienced (13 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
José Mas
CEO & Director13yrsUS$7.28m5.78% $129.7m
Jorge Mas
Chairman22.25yrsUS$4.41m14.99% $336.6m
Julia Johnson
Independent Director18.17yrsUS$225.00k0.084% $1.9m
José Sorzano
Independent Director24.5yrsUS$230.00k0.057% $1.3m
C. Campbell
Director3.58yrsUS$220.00k0.091% $2.0m
Robert Dwyer
Lead Independent Director2.92yrsUS$265.00k0.027% $601.8k
Ernest Csiszar
Independent Director14.5yrsUS$220.00k0.035% $781.4k
Javier Palomarez
Independent Director4.33yrsUS$220.00k0.013% $283.8k

16.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: MTZ's board of directors are seasoned and experienced ( 16.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

MasTec, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MasTec, Inc.
  • Ticker: MTZ
  • Exchange: NYSE
  • Founded: 1929
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$2.245b
  • Shares outstanding: 73.84m
  • Website: https://www.mastec.com

Number of Employees


Location

  • MasTec, Inc.
  • 800 South Douglas Road
  • 12th Floor
  • Coral Gables
  • Florida
  • 33134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTZNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1994
MY8DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1994

Biography

MasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada. It operates through five segments: Communications, Oil and Gas, Electrical Transmission, Power Generation and Industrial, and Other. The company builds underground and overhead distribution systems, including trenches, conduits, cell towers, cable, and power lines, which provide wireless and wireline/fiber communications; natural gas, crude oil, and refined product transport pipelines; electrical power generation, transmission, and distribution systems; power generation infrastructure, such as renewable energy; heavy industrial plants; compressor and pump stations, and treatment plants; water and sewer infrastructure, including water pipelines; and other civil construction infrastructure. It also installs electrical and other energy distribution and transmission systems, power generation facilities, buried and aerial fiber optic and other cables, and satellite dishes, as well as home automation and energy management solutions. In addition, the company offers maintenance and upgrade support services comprising maintenance of customers’ distribution facilities, networks, and infrastructure, including natural gas and petroleum pipeline, communications, electrical distribution and transmission, power generation, and heavy civil infrastructure; emergency services for accidents or storm damage; and routine replacements and upgrades to overhauls. Its customers include public and private energy providers, pipeline operators, wireless and wireline/fiber service providers, broadband operators, install-to-the-home service providers, and government entities. The company was founded in 1929 and is headquartered in Coral Gables, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 04:59
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.