Masco (MAS) AI Stock Analysis

• Market Cap: $13.06B
• Dividend Yield: 1.91%
• Average Volume (3M): 2.42M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.03
• Revenue Growth: -1.74%
• EPS Growth: -6.91%
• Country: US
• Employees: 18,000
• Sector: Industrials
• Sector Strength: 70
• Industry: Construction
• EPS (TTM): 3.75
• Shares Outstanding: 211,652,330
• 10 Day Avg. Volume: 2,751,684
• 30 Day Avg. Volume: 2,418,863
• PEG Ratio: 7.76
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.88
• Price to Cash Flow (P/CF): 9.10
• P/FCF Ratio: 8.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $81.25
• Price Target Upside: 31.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Masco's overall score reflects strong operational efficiency and strategic initiatives, but is hampered by financial instability and bearish technical indicators. While the company shows reasonable valuation and positive earnings growth, the negative equity and mixed sales performance pose significant risks.

Positive Factors

Business Focus

The sale of Kichler lighting business is viewed as a modest positive, as Decorative Architectural margins should improve, while dilution appears manageable and MAS focuses on key plumbing and paint franchises.

Financial Strength

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

Decorative Sales Performance

Full-year EPS growth guidance was tweaked lower at the midpoint, reflecting lighter Decorative performance.

DIY Segment Challenges

DIY paint demand remains the weakest spot.

Earnings Guidance

The 2025 guidance is below consensus, which contributes to the reiteration of the Underperform rating.

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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 61.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 61.94 is below the 20-day moving average (MA) of 67.44, below the 50-day MA of 72.13, and below the 200-day MA of 75.76, indicating a bearish trend. The MACD of -1.39 indicates Negative momentum. The RSI at 41.15 is Neutral, neither overbought nor oversold. The STOCH value of 33.98 is Neutral, 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
SNA	79 Outperform	$17.62B	17.23	19.95%	2.38%	<0.01%	3.74%
PNR	76 Outperform	$13.34B	21.60	18.45%	1.16%	-0.53%	0.13%
BLDR	65 Neutral	$13.75B	13.37	23.88%	―	-4.08%	-24.71%
POOL	63 Neutral	$11.52B	27.01	33.41%	1.57%	-4.16%	-15.44%
Sector *	62 Neutral	$7.62B	13.01	3.19%	3.32%	3.77%	-14.28%
MAS	59 Neutral	$13.06B	16.44	-118.61%	1.91%	-1.74%	-6.91%
SWK	47 Neutral	$9.92B	33.94	3.22%	5.54%	-2.63%	―

Masco Corporate Events

Masco Appoints Heath M. Eisman as New CAO

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.

Masco Board Member Donald Parfet to Retire

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.