MasTec, Inc.
MasTec, Inc. Fundamental Analysis
MasTec, Inc. (MTZ) shows weak financial fundamentals with a PE ratio of 56.92, profit margin of 2.79%, and ROE of 13.08%. The company generates $14.5B in annual revenue with weak year-over-year growth of 2.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MTZ's fundamental strength across five key dimensions:
Efficiency Score
WeakMTZ struggles to generate sufficient returns from assets.
Valuation Score
WeakMTZ trades at a premium to fair value.
Growth Score
WeakMTZ faces weak or negative growth trends.
Financial Health Score
ExcellentMTZ maintains a strong and stable balance sheet.
Profitability Score
WeakMTZ struggles to sustain strong margins.
Key Financial Metrics
Is MTZ Expensive or Cheap?
P/E Ratio
MTZ trades at 56.92 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MTZ's PEG of 2.79 indicates potential overvaluation.
Price to Book
The market values MasTec, Inc. at 6.97 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.47 times EBITDA. This signals the market has high growth expectations.
How Well Does MTZ Make Money?
Net Profit Margin
For every $100 in sales, MasTec, Inc. keeps $2.79 as profit after all expenses.
Operating Margin
Core operations generate 5.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.08 in profit for every $100 of shareholder equity.
ROA
MasTec, Inc. generates $3.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MasTec, Inc. generates limited operating cash flow of $552.78M, signaling weaker underlying cash strength.
Free Cash Flow
MasTec, Inc. generates weak or negative free cash flow of $210.30M, restricting financial flexibility.
FCF Per Share
Each share generates $2.67 in free cash annually.
FCF Yield
MTZ converts 0.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
56.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How MTZ Stacks Against Its Sector Peers
| Metric | MTZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 56.92 | 25.83 | Worse (Expensive) |
| ROE | 13.08% | 1278.00% | Weak |
| Net Margin | 2.79% | -43774.00% (disorted) | Weak |
| Debt/Equity | 0.86 | 0.80 | Neutral |
| Current Ratio | 1.32 | 10.63 | Neutral |
| ROA | 3.94% | -1539613.00% (disorted) | Weak |
MTZ outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MasTec, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
65.00%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-60.03%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
96.35%
Industry Style: Cyclical, Value, Infrastructure
High Growth