Masco (MAS) AI Stock Analysis

• Market Cap: $12.64B
• Dividend Yield: 1.94%
• Average Volume (3M): 2.80M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.93
• Revenue Growth: -3.62%
• EPS Growth: 3.41%
• Country: US
• Employees: 18,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.82
• Shares Outstanding: 203,607,090
• 10 Day Avg. Volume: 2,372,764
• 30 Day Avg. Volume: 2,797,448
• PEG Ratio: 5.61
• Price to Book (P/B): -71.31
• Price to Sales (P/S): 1.75
• P/FCF Ratio: 15.32
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 5.74
• Enterprise Value/Ebitda: 11.10
• 1Y Price Target: $80.33
• Price Target Upside: 30.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 4.21
• Revenue Forecast (FY): $7.70B

• Rating: 64 Neutral
• Price Target: $66.00 ▲(6.88% Upside)
• Action: Reiterated Date: 02/12/26
• Date: Action: Reiterated 02/12/26

The score is driven mainly by strong cash generation and solid profitability, offset by meaningful balance-sheet risk (negative equity, high debt) and a weak revenue trajectory. Technicals are supportive with positive momentum and the stock trading above key moving averages, while valuation is reasonable (P/E 18.34) with a modest dividend. Earnings call guidance points to modest improvement in 2026, but tariffs, decorative/DIY weakness, and restructuring costs remain key execution risks.

Positive Factors

Cash generation

Masco's consistent, high-quality cash generation—operating cash flow ~ $1.02B and free cash flow ~ $866M in 2025 with strong conversion—provides durable internal financing for capex, buybacks and debt servicing, insulating operations from short-term revenue swings and supporting strategic investments.

Plumbing segment strength

The plumbing business shows durable outperformance with growing sales and high operating margins (~18%), contributing a large, stable earnings base. This segment's scale, brand positions and margin profile reduce overall company exposure to weaker end markets like DIY paint.

Disciplined capital returns

A consistent shareholder-return policy (dividend raises and a new $2B buyback program) signals management discipline and confidence in cash flows. This policy anchors capital allocation, can enhance per-share economics over time, and aligns management incentives with long-term value creation.

Negative Factors

High leverage / negative equity

Masco's elevated debt load and negative equity materially reduce balance-sheet flexibility and increase refinancing and covenant risk. Limited equity cushion constrains strategic optionality during downturns, raises funding costs, and makes the company more sensitive to interest and cash-flow volatility.

Weak revenue trend

A persistent top-line decline, climaxing in a sharp 2025 drop, indicates structural demand pressure or loss of volume. Sustained revenue weakness reduces operating leverage, pressures margins despite cost actions, and limits the company's ability to grow earnings sustainably without successful market or product fixes.

Tariff and sourcing exposure

Material annual tariff headwinds (~$200M) and ongoing China sourcing exposure create a persistent cost and supply-chain risk. Even with mitigation plans, tariffs compress margins and force structural changes to sourcing and pricing, adding execution risk and potential durable margin pressure.

Masco Business Overview & Revenue Model

Company Description

Masco Corporation designs, manufactures, and distributes home improvement and building products in North America, Europe, and internationally. The company's Plumbing Products segment offers faucets, showerheads, handheld showers, valves, bath hardware and accessories, bathing units, shower bases and enclosures, sinks, toilets, acrylic tubs, shower trays, spas, exercise pools, and fitness systems; brass, copper, and composite plumbing system components; connected water products; thermoplastic solutions, extruded plastic profiles, specialized fabrications, and PEX tubing products; and other non-decorative plumbing products. This segment provides its products under the DELTA, BRIZO, PEERLESS, HANSGROHE, AXOR, KRAUS, EASY DRAIN, STEAMIST, ELITESTEAM, GINGER, NEWPORT BRASS, BRASSTECH, WALTEC, BRISTAN, HERITAGE, MIROLIN, HOT SPRING, CALDERA, FREEFLOW SPAS, FANTASY SPAS, ENDLESS POOLS, BRASSCRAFT, PLUMB SHOP, COBRA, COBRA PRO, and MASTER PLUMBER brands. Its Decorative Architectural Products segment offers paints, primers, specialty coatings, stains, and waterproofing products, as well as paint applicators and accessories; cabinet and door hardware, functional hardware, wall plates, hook and rail products, closet organization systems, and picture hanging accessories; decorative bath hardware, mirrors, and shower accessories and doors; and decorative indoor and outdoor lighting fixtures, ceiling fans, landscape lighting, and LED lighting systems. This segment provides its products under the BEHR, KILZ, WHIZZ, Elder & Jenks, LIBERTY, BRAINERD, FRANKLIN BRASS, KICHLER, and ÉLAN brands. It sells its products to the plumbing, heating, and hardware wholesalers; home centers and online retailers; hardware stores; electrical and landscape distributors; lighting showrooms; building supply outlets; and other mass merchandisers. Masco Corporation was incorporated in 1929 and is headquartered in Livonia, Michigan.

How the Company Makes Money

Masco makes money primarily by manufacturing and selling branded home improvement and building products, generating revenue when its products are purchased by retailers, distributors/wholesalers, and professional customers (e.g., contractors and builders). Its key revenue streams come from (1) Plumbing Products—sales of faucets, showering systems, and related plumbing fixtures and accessories; and (2) Architectural Coatings—sales of paint and other coatings products. Revenue is recognized from product shipments/sales under supply arrangements with major home improvement retailers, as well as through wholesale/distributor networks that serve professional and trade customers. Earnings are influenced by product mix and pricing, the scale of sales through large retail partners, demand tied to repair-and-remodel activity and housing/construction cycles, and the company’s ability to manage manufacturing and input costs (including commodity and logistics costs) and operating efficiency.

Masco Financial Statement Overview

Summary

Cash flow is a strength (2025 operating cash flow ~$1.02B; free cash flow ~$866M with strong conversion), and profitability is solid (gross margin mid-30s; net margin ~10–11%). However, the balance sheet is a major risk with negative equity (-$186M in 2025) and sizable debt (~$3.4B), and the revenue trend is weak with a sharp 2025 decline noted in the financial statement analysis.

Income Statement

Profitability is solid for the industry, with gross margin holding around the mid-30% range (35.5% in 2025) and net margin staying ~10–11% in 2024–2025. However, growth is a clear weak spot: revenue has been down for several years and fell sharply in 2025 (-46.1% vs. 2024), and earnings also trended lower versus 2023. Overall: healthy margins, but the recent top-line trajectory is a meaningful concern.

Balance Sheet

Leverage risk is elevated. Total debt remains high (~$3.4B in 2025) while shareholders’ equity is negative in most years (including -$186M in 2025), which makes equity-based leverage and return measures unfavorable and signals limited balance-sheet cushion. Assets are relatively stable (~$5.2B in 2025), but the capital structure (negative equity) is the key weakness.

Cash Flow

Cash generation is a relative strength: 2025 operating cash flow was ~$1.02B and free cash flow was ~$866M, with free cash flow running at ~85% of net income—suggesting earnings are generally backed by cash. Free cash flow growth also rebounded strongly in 2025 (off a weaker 2024). The main watch-out is that operating cash flow covers less than the full level of accounting profit (coverage below 1.0 across the period), implying some working-capital or timing drag at times.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.56B	7.83B	7.97B	8.68B	8.38B
Gross Profit	2.69B	2.84B	2.81B	2.71B	2.86B
EBITDA	1.38B	1.41B	1.49B	1.45B	951.00M
Net Income	810.00M	822.00M	908.00M	842.00M	406.00M
Balance Sheet
Total Assets	5.20B	5.02B	5.36B	5.19B	5.58B
Cash, Cash Equivalents and Short-Term Investments	647.00M	634.00M	634.00M	452.00M	926.00M
Total Debt	3.44B	3.21B	3.25B	3.44B	3.17B
Total Liabilities	5.13B	5.07B	5.25B	5.43B	5.50B
Stockholders Equity	-186.00M	-280.00M	-126.00M	-480.00M	-179.00M
Cash Flow
Free Cash Flow	866.00M	907.00M	1.17B	616.00M	802.00M
Operating Cash Flow	1.02B	1.07B	1.41B	840.00M	930.00M
Investing Cash Flow	-144.00M	-65.00M	-383.00M	-230.00M	-12.00M
Financing Cash Flow	-888.00M	-1.00B	-854.00M	-1.07B	-1.30B

Masco Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 61.75 is below the 20-day moving average (MA) of 68.07, below the 50-day MA of 69.03, and below the 200-day MA of 67.01, indicating a bearish trend. The MACD of -2.59 indicates Positive momentum. The RSI at 31.94 is Neutral, neither overbought nor oversold. The STOCH value of 15.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MAS.

Masco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSL	77 Outperform	$13.68B	18.48	36.69%	1.28%	0.14%	3.88%
WMS	76 Outperform	$10.93B	30.06	25.82%	0.47%	2.48%	-6.92%
AWI	72 Outperform	$7.17B	31.80	36.09%	0.66%	15.10%	23.35%
MAS	64 Neutral	$12.64B	16.37	-537.31%	1.94%	-3.62%	3.41%
OC	64 Neutral	$8.67B	-17.89	-11.39%	2.43%	3.47%	-148.53%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLDR	52 Neutral	$9.62B	90.31	10.11%	―	-6.44%	-48.84%

Masco Corporate Events

Masco Adjusts CEO Jonathon Nudi’s Equity Compensation Plan

On February 6, 2026, Masco Corporation’s Compensation and Talent Committee approved a full-value restricted stock unit award of $1,749,000 for President and Chief Executive Officer Jonathon J. Nudi. This award replaces a previously disclosed plan under which Nudi would have received an annual RSU grant equal to 159% of his base salary, pro-rated for service beginning July 7, 2025, signaling a specific board decision on the structure and scale of his equity-based compensation.

The most recent analyst rating on (MAS) stock is a Buy with a $79.00 price target. To see the full list of analyst forecasts on Masco stock, see the MAS Stock Forecast page.

Masco details separation agreement for departing senior executive

On January 12, 2026, Masco Corporation disclosed the terms of a separation agreement with Imran Ahmad, its former Group President of Decorative Architectural Products, whose service with the company concluded on December 31, 2025. Under this agreement, Ahmad will receive a cash payment of $998,875, a 2025 cash bonus based on his target opportunity if performance goals are achieved, the cash equivalent of an annual restricted stock unit award at his target level, and a cash payment under the company’s 2023–2025 Long-Term Incentive Program contingent on performance, and he will retain the right to exercise the vested portion of his stock options and stock appreciation rights for 90 days after his departure, underscoring Masco’s adherence to structured executive transition and incentive policies for senior leadership.

The most recent analyst rating on (MAS) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on Masco stock, see the MAS Stock Forecast page.