Masco Corporation Fundamental Analysis (NYSE: MAS)
Masco Corporation (NYSE: MAS) shows weak financial fundamentals with a PE ratio of 19.90, profit margin of 10.90%, and ROE of -5.66%. The company generates $7.6B in annual revenue with weak year-over-year growth of -3.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -389.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MAS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMAS demonstrates superior asset utilization.
Valuation Score
ModerateMAS shows balanced valuation metrics.
Growth Score
WeakMAS faces weak or negative growth trends.
Financial Health Score
ExcellentMAS maintains a strong and stable balance sheet.
Profitability Score
WeakMAS struggles to sustain strong margins.
Key Financial Metrics
Is MAS Expensive or Cheap?
P/E Ratio
MAS trades at 19.90 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MAS's PEG of 2.10 indicates potential overvaluation.
Price to Book
The market values Masco Corporation at -67.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.33 times EBITDA. This is generally considered low.
How Well Does MAS Make Money?
Net Profit Margin
For every $100 in sales, Masco Corporation keeps $10.90 as profit after all expenses.
Operating Margin
Core operations generate 16.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-5.66 in profit for every $100 of shareholder equity.
ROA
Masco Corporation generates $15.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Masco Corporation produces operating cash flow of $1.09B, showing steady but balanced cash generation.
Free Cash Flow
Masco Corporation generates strong free cash flow of $937.78M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.65 in free cash annually.
FCF Yield
MAS converts 5.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
-67.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-13.64
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-5.66
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.36
vs 25 benchmark
How MAS Stacks Against Its Sector Peers
| Metric | MAS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.90 | 30.81 | Better (Cheaper) |
| ROE | -566.50% | 1163.00% | Weak |
| Net Margin | 10.90% | -20778.00% (disorted) | Strong |
| Debt/Equity | -13.64 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 1.75 | 24.24 | Neutral |
| ROA | 15.99% | -1311219.00% (disorted) | Strong |
MAS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Masco Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.97%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
63.24%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
32.49%
Industry Style: Cyclical, Value, Infrastructure
High Growth