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Masco (MAS)
NYSE:MAS
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Masco
(NYSE:MAS)60Neutral
Positive Factors
Financial Performance
Strong balance sheet and solid cash flow provide financial flexibility.
International Growth
International volumes grew slightly in both Europe and China, which is encouraging.
Negative Factors
Guidance
The 2025 guidance is below consensus, which contributes to the reiteration of the Underperform rating.
Masco (MAS) vs. S&P 500 (SPY)
Market Cap
$15.37B
Dividend Yield1.63%
Average Volume (3M)1.55M
Price to Earnings (P/E)19.3
Beta (1Y)1.16
Revenue Growth-1.74%
EPS Growth-6.91%
CountryUS
Employees18,000
SectorIndustrials
Sector Strength66
IndustryConstruction
Share Statistics
EPS (TTM)3.75
Shares Outstanding211,983,490
10 Day Avg. Volume1,554,574
30 Day Avg. Volume1,553,681
Financial Highlights & Ratios
PEG Ratio7.76
Price to Book (P/B)N/A
Price to Sales (P/S)2.00
Price to Cash Flow (P/CF)9.60
P/FCF Ratio9.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$83.75Price Target Upside13.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Masco Business Overview & Revenue Model
Company DescriptionMasco Corp. engages in the design, manufacture, marketing and distribution of branded home improvement and building products. It operates through the following business segments: Plumbing Products and Decorative Architectural Products. The Plumbing Products segment includes faucets; plumbing fittings and valves; showerheads and hand showers; bathtubs and shower enclosures; toilets; spas, and exercise pools. The Decorative Architectural Products segment offers paints and coating products; and cabinet, door, window, and other hardware. The company was founded by Alex Manoogian in 1929 and is headquartered in Livonia, MI.
How the Company Makes MoneyMasco Corporation generates revenue primarily through the sale of its branded home improvement and building products. The company earns money by manufacturing and distributing a wide range of products, including faucets, showerheads, paints, stains, sealants, and cabinetry. These products are sold through multiple channels, including retail outlets like home improvement stores, wholesale distributors, and direct sales to professional contractors and builders. Additionally, Masco benefits from strategic partnerships and its strong brand recognition in the industry, which help maintain its competitive position and drive continued demand for its products. The company's revenues are influenced by factors such as trends in home renovation, new construction activity, and consumer spending on home improvement projects.
Masco Financial Statement Overview
Summary
Masco shows strong operational efficiency with robust margins. However, negative stockholders' equity and recent net losses highlight financial instability. Cash flows are decent but need more recent data for a comprehensive evaluation.Income Statement
Masco's income statement shows strong gross and EBITDA margins, indicating operational efficiency. However, recent negative net income in the latest year marks a significant concern. The revenue growth rate is volatile, declining recently, which impacts the overall score.72
Positive
Balance Sheet
Masco exhibits a negative stockholders' equity, reflecting potential financial instability and risk. The company has a high debt-to-equity ratio due to negative equity, although debt levels have been somewhat consistent. This weakens the balance sheet's strength and overall stability.40
Negative
Cash Flow
Operating cash flow remains positive, and free cash flow has been generally strong, highlighting decent cash generation capabilities. However, the lack of recent data impedes a comprehensive assessment, leading to a moderate score.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.83B | 7.97B | 8.68B | 8.38B | 7.19B | Gross Profit |
| 2.83B | 2.84B | 2.71B | 2.86B | 2.59B | EBIT |
| 1.36B | 1.35B | 1.30B | 860.00M | 1.29B | EBITDA |
| 1.41B | 1.49B | 1.49B | 1.19B | 1.41B | Net Income Common Stockholders |
| 822.00M | 908.00M | 844.00M | 410.00M | 862.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 634.00M | 634.00M | 452.00M | 926.00M | 1.33B | Total Assets |
| 5.02B | 5.36B | 5.19B | 5.58B | 5.78B | Total Debt |
| 3.21B | 3.21B | 3.41B | 3.13B | 2.94B | Net Debt |
| 2.58B | 2.57B | 2.95B | 2.21B | 1.62B | Total Liabilities |
| 5.07B | 5.25B | 5.43B | 5.52B | 5.36B | Stockholders Equity |
| -693.00M | -126.00M | -262.00M | 56.00M | 421.00M |
| Cash Flow | Free Cash Flow | |||
| 907.00M | 1.17B | 616.00M | 802.00M | 839.00M | Operating Cash Flow |
| 1.07B | 1.41B | 840.00M | 930.00M | 953.00M | Investing Cash Flow |
| 0.00 | -383.00M | -230.00M | -12.00M | 531.00M | Financing Cash Flow |
| -1.02B | -854.00M | -1.07B | -1.30B | -886.00M |
Masco Technical Analysis
Negative
73.58
Price Trends
75.72
Negative
77.97
Negative
75.62
Negative
Market Momentum
-0.90
Positive
41.06
Neutral
17.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAS, the sentiment is Negative. The current price of 73.58 is below the 20-day moving average (MA) of 75.96, below the 50-day MA of 75.72, and below the 200-day MA of 75.62, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 41.06 is Neutral, neither overbought nor oversold. The STOCH value of 17.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MAS.
Masco Risk Analysis
Masco disclosed 18 risk factors in its most recent earnings report. Masco reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Masco Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $6.48B | 24.78 | 34.99% | 0.77% | 11.62% | 20.76% | |
66 Neutral | $6.38B | 44.63 | 10.55% | ― | 6.59% | 30.00% | |
65 Neutral | $6.24B | 27.94 | 26.63% | ― | 5.17% | 10.39% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
60 Neutral | $15.37B | 19.32 | -118.61% | 1.63% | -1.74% | -6.91% | |
44 Neutral | $463.28M | ― | -30.48% | ― | -15.09% | -358.01% |
* Industrials Sector Average
Performance Comparison
MAS
Masco
73.58
-1.65
-2.19%
AWI
Armstrong World
152.57
31.81
26.34%
TREX
Trex Company
58.69
-35.82
-37.90%
JELD
JELD-WEN
5.64
-12.07
-68.15%
AZEK
AZEK Company
45.74
-3.64
-7.37%
Masco Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -4.76% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
Masco demonstrated strong margin expansion and innovative product introductions, which were significant positives. However, sales challenges due to the Kichler divestiture and a choppy plumbing market were notable concerns. The company's strategic initiatives and shareholder returns were strong, but sales performance was mixed.Highlights
Innovative Product Introductions
Masco's Plumbing segment introduced several innovative products, including water filtration products and a smart monitoring system for spas. Additionally, the integration of Sauna360 is ahead of schedule.
Decorative Architectural Segment Success
Behr was rated #1 in interior paint, exterior paint, and exterior stain. Pro paint sales increased over 70% since 2020, with annual sales now over $900 million.
Strong Margin Expansion
Operating margin improved by 140 basis points to 15.9% in Q4. For the full year, gross margin improved by 110 basis points to 36.3%, and operating margin expanded by 70 basis points to 17.5%.
Shareholder Returns
Masco returned over $1 billion to shareholders in the form of dividends and share repurchases. Earnings per share grew 6% to $4.10 per share.
Lowlights
Sales Decline Due to Divestiture
Fourth quarter sales decreased 3% primarily due to the divestiture of Kichler. Excluding this, sales increased by only 1%.
Plumbing Segment Challenges
Plumbing sales decreased 1% in local currency, with lower volumes in both trade and retail in North America. The market remains choppy.
Decorative Architectural Sales Decline
Sales decreased 6%, primarily due to the Kichler divestiture. Overall paint sales were down low single digits excluding inventory timing benefits.
Company Guidance
During the Masco Corporation 2024 Fourth Quarter and Full Year Conference Call, several key financial metrics and guidance for future performance were discussed. For the fourth quarter of 2024, the company's sales decreased by 3%, primarily due to the divestiture of Kichler, but increased by 1% when excluding this divestiture and currency impacts. Operating profit rose by $19 million, with an improvement in operating profit margin by 140 basis points to 15.9%. Earnings per share for the quarter increased by 7% to $0.89. For the full year, Masco's gross margin improved by 110 basis points to 36.3%, while operating margin expanded by 70 basis points to 17.5%. Earnings per share grew by 6% to $4.10. Looking forward to 2025, Masco expects sales to decline by low single digits, with an anticipated operating margin expansion to approximately 18%. The company aims to achieve earnings per share in the range of $4.20 to $4.45 and plans to return more than $600 million to shareholders through share repurchases or acquisitions. Additionally, Masco reiterated its margin expansion targets for 2026, expecting operating margins to reach 18.5%, with Plumbing margins at 20% and Decorative margins between 19% and 20%.Masco Corporate Events
Executive/Board Changes
Masco Appoints Heath M. Eisman as New CAO
Positive
Feb 27, 2025
On February 26, 2025, Masco Corporation announced the appointment of Heath M. Eisman as the Vice President, Controller, and Chief Accounting Officer, effective February 27, 2025. Eisman, who has been with Masco since 2014 as the Director of Financial Reporting, brings extensive experience from his previous roles at Caterpillar Inc. and PricewaterhouseCoopers. His compensation package includes a base salary of $310,000, eligibility for performance-based bonuses and equity awards, and other executive benefits. This strategic appointment is expected to strengthen Masco’s financial leadership and support its long-term growth objectives.
Executive/Board ChangesShareholder Meetings
Masco Board Member Donald Parfet to Retire
Neutral
Feb 11, 2025
On February 6, 2025, it was announced that Mr. Donald R. Parfet plans to retire from Masco’s Board of Directors and will not seek re-election at the upcoming Annual Meeting of Stockholders on May 9, 2025. His decision is not due to any disagreements with the company regarding its operations, policies, or practices.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.