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.

Rewards

Trading at 31.6% below its fair value

Earnings are forecast to grow 7.21% per year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Excellent balance sheet and good value.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.8%

MTZ

-3.4%

US Construction

0.03%

US Market


1 Year Return

53.0%

MTZ

16.5%

US Construction

18.6%

US Market

Return vs Industry: MTZ exceeded the US Construction industry which returned 16.5% over the past year.

Return vs Market: MTZ exceeded the US Market which returned 18.6% over the past year.


Shareholder returns

MTZIndustryMarket
7 Day-5.8%-3.4%0.03%
30 Day-11.8%-5.6%1.7%
90 Day-1.8%3.2%5.7%
1 Year53.0%53.0%17.4%16.5%21.1%18.6%
3 Year56.7%56.7%-1.5%-3.7%45.6%36.2%
5 Year225.9%225.9%33.1%28.4%71.1%52.3%

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?

31.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTZ ($62.51) is trading below our estimate of fair value ($91.42)

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 (14.6x) compared to the Construction industry average (17.4x).

PE vs Market: MTZ is good value based on its PE Ratio (14.6x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: MTZ is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: MTZ is overvalued based on its PB Ratio (2.8x) compared to the US Construction industry average (1.6x).


Next Steps

Future Growth

How is MasTec forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTZ's forecast earnings growth (7.2% per year) is above the savings rate (1.7%).

Earnings vs Market: MTZ's earnings (7.2% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: MTZ's revenue (6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: MTZ's revenue (6% 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 high in 3 years time (21%)


Next Steps

Past Performance

How has MasTec performed over the past 5 years?

37.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTZ has high quality earnings.

Growing Profit Margin: MTZ's current net profit margins (4.4%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: MTZ's earnings have grown significantly by 37.9% per year over the past 5 years.

Accelerating Growth: MTZ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MTZ had negative earnings growth (-16.8%) over the past year, making it difficult to compare to the Construction industry average (-2.7%).


Return on Equity

High ROE: MTZ's Return on Equity (19.4%) is considered low.


Return on Assets


Return on Capital Employed


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 ($1.3B).

Long Term Liabilities: MTZ's short term assets ($2.2B) exceed its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: MTZ's debt to equity ratio (61.8%) is considered high.

Reducing Debt: MTZ's debt to equity ratio has reduced from 102.7% to 61.8% over the past 5 years.

Debt Coverage: MTZ's debt is well covered by operating cash flow (91%).

Interest Coverage: MTZ's interest payments on its debt are well covered by EBIT (7.1x 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 2.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.9%forecastin3Years0%

Current dividend yield vs market & industry

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

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

12.7yrs

Average management tenure


CEO

José Mas (48yo)

12.7yrs

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 ($USD7.28M) is above average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

12.7yrs

Average Tenure

53.5yo

Average Age

Experienced Management: MTZ's management team is seasoned and experienced (12.7 years average tenure).


Board Age and Tenure

16.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: MTZ's board of directors are seasoned and experienced ( 16.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$352,68006 Nov 19
Robert Dwyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$70.54
SellUS$193,57512 Sep 19
Ernest Csiszar
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$64.53
SellUS$288,58007 Aug 19
C. Campbell
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$57.72
SellUS$516,63210 May 19
Robert Dwyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$51.66

Ownership Breakdown

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


Management Team

  • George Pita (57yo)

    Executive VP & CFO

    • Tenure: 5.9yrs
    • Compensation: US$2.76m
  • José Mas (48yo)

    CEO & Director

    • Tenure: 12.7yrs
    • Compensation: US$7.28m
  • J. Lewis

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Alberto de Cardenas (50yo)

    Executive VP

    • Tenure: 14.1yrs
    • Compensation: US$1.66m
  • Gary Smith

    Senior Vice President of Communications Group

    • Tenure: 0yrs
  • Pablo Alvarez

    Executive Vice President of Mergers & Acquisitions

    • Tenure: 0yrs
  • Robert Apple (69yo)

    Chief Operating Officer

    • Tenure: 13yrs
    • Compensation: US$3.42m
  • Paul Dimarco

    Senior VP & Treasurer

    • Tenure: 8.8yrs

Board Members

  • Jorge Mas (56yo)

    Chairman

    • Tenure: 21.9yrs
    • Compensation: US$4.41m
  • Julia Johnson (56yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$225.00k
  • Jos Sorzano (78yo)

    Independent Director

    • Tenure: 24.2yrs
    • Compensation: US$230.00k
  • José Mas (48yo)

    CEO & Director

    • Tenure: 12.7yrs
    • Compensation: US$7.28m
  • Bob Campbell (74yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$220.00k
  • Robert Dwyer (74yo)

    Independent Director

    • Tenure: 15.2yrs
    • Compensation: US$265.00k
  • Ernest Csiszar (69yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$220.00k
  • Javier Palomarez (58yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$220.00k

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$4.780b
  • Shares outstanding: 75.19m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:38
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.