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Masco
(NYSE:MAS)
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Rating:61Neutral
Price Target:
$77.00
▼(-2.86% Downside)
Action:Reiterated
Date:07/30/26
MAS scores as moderately attractive. The biggest support comes from the earnings call (raised EPS and margin guidance, strong profitability in Plumbing, and substantial capital returns) and solid underlying cash generation. Offsetting that, financial risk is elevated due to persistent negative equity and meaningful leverage alongside a weak/declining revenue profile, and the stock’s near-term technical setup is soft with the price below the 20- and 50-day moving averages.
Positive Factors
Strong cash generation
Masco's TTM operating cash flow (~$1.58B) and free cash flow (~$1.41B) indicate durable internal funding. FCF converts at roughly 0.86x of net income, supporting reinvestment, buybacks and debt service and reducing dependence on external capital across housing cycles.
Negative Factors
Negative equity and leverage
Masco's negative TTM equity (-$365M) alongside ~$3.2–$3.5B of debt weakens the capital cushion and produces negative ROE. A thin or negative equity base heightens refinancing and covenant risk, limits strategic flexibility, and makes deleveraging a priority to preserve options.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Masco's TTM operating cash flow (~$1.58B) and free cash flow (~$1.41B) indicate durable internal funding. FCF converts at roughly 0.86x of net income, supporting reinvestment, buybacks and debt service and reducing dependence on external capital across housing cycles.
Read all positive factors
Masco Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Reports segment-level EBITDA after removing one-time or non-core items to show underlying operating performance. Helps compare profitability across business units on a cleaner basis and judge sustainable margins and the impact of recurring operations.
Reports segment-level EBITDA after removing one-time or non-core items to show underlying operating performance. Helps compare profitability across business units on a cleaner basis and judge sustainable margins and the impact of recurring operations.
Data provided by:
The Fly
The FlyMasco (MAS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.09B
Dividend Yield1.76%
Average Volume (3M)2.14M
Price to Earnings (P/E)16.4
Beta (1Y)0.92
Revenue Growth-0.56%
EPS Growth15.03%
CountryUS
Employees18,000
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)4.35
Shares Outstanding197,187,420
10 Day Avg. Volume1,938,006
30 Day Avg. Volume2,143,991
Financial Highlights & Ratios
PEG Ratio5.61
Price to Book (P/B)-71.31
Price to Sales (P/S)1.75
P/FCF Ratio15.32
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$81.46Price Target Upside2.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)4.49
Revenue Forecast (FY)$7.67B
Masco Business Overview & Revenue Model
Company Description
Masco Corporation is a prominent global manufacturer and distributor of home improvement and building products, serving markets across North America, Europe, and other international regions. The company operates through two main segments. Its Plum...
How the Company Makes Money
Masco makes money primarily by manufacturing and selling branded home improvement and building products to channel partners, with revenue recognized from product sales. The largest and most important revenue stream is its Plumbing Products segment...
Masco Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented several material positives — strong operating profit and margin expansion, double-digit EPS growth, an opportunistic tariff refund that supported results, upgraded EPS guidance, robust shareholder returns and solid liquidity. Offsetting this were modest top-line declines, notable weakness in DIY paint, elevated working capital and continued commodity and tariff-related cost pressures. Management emphasized that some Q2 weakness was driven by targeted, one-time strategic investments intended to support longer-term growth and that underlying trends (excluding those investments) showed low single-digit sales growth. Overall, the operational and financial improvements, guidance raise, and capital returns suggest a constructive tone despite near-term headwinds and market uncertainty.Positive Updates
Strong Operating Profit and Margin Expansion
Operating profit increased 17% to $482 million in Q2 with operating margin expanding to 24.2%, driven by the net tariff refund benefit, pricing actions and cost savings.
Negative Updates
Overall Net Sales Decline
Net sales decreased 3% in Q2. North American sales decreased ~5% in local currency (North American plumbing -6%), with management attributing part of the decline to targeted strategic investments and a tough Q2 2025 comparison.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Operating Profit and Margin Expansion
Operating profit increased 17% to $482 million in Q2 with operating margin expanding to 24.2%, driven by the net tariff refund benefit, pricing actions and cost savings.
Read all positive updates
Company Guidance
Masco raised 2026 adjusted EPS guidance to $4.40–$4.60 (from $4.10–$4.30), assuming ~200 million average diluted shares and a 24.5% effective tax rate, and continues to expect consolidated sales up low single digits with overall operating margin expanding to ~18% (was ~17%). Management now forecasts Plumbing sales up low single digits with operating margin ~20% (vs. prior 18%), Decorative Architectural sales roughly flat with ~19% margin, and estimates a full‑year net IEEPA tariff refund benefit of ~$85M (Q2 net benefit was ~$95M). They assume H2 commodity inflation in the mid‑single digits, expect year‑end working capital of ~16.5% of sales (Q2: 19.8%), finished the quarter with gross debt/EBITDA of 2.1x and $1.5B liquidity, returned $454M to shareholders in the quarter (including $390M repurchases and a $300M ASR) and now plan to deploy ≈$1.0B for buybacks or acquisitions in 2026 (up from ≥$800M).Masco Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
27
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.62B | 7.56B | 7.83B | 7.97B | 8.68B | 8.38B |
| Gross Profit | 2.81B | 2.69B | 2.84B | 2.81B | 2.71B | 2.86B |
| EBITDA | 1.45B | 1.38B | 1.41B | 1.49B | 1.45B | 951.00M |
| Net Income | 885.00M | 810.00M | 822.00M | 908.00M | 842.00M | 406.00M |
Balance Sheet | ||||||
| Total Assets | 5.40B | 5.20B | 5.02B | 5.36B | 5.19B | 5.58B |
| Cash, Cash Equivalents and Short-Term Investments | 548.00M | 647.00M | 634.00M | 634.00M | 452.00M | 926.00M |
| Total Debt | 3.49B | 3.44B | 3.21B | 3.25B | 3.44B | 3.17B |
| Total Liabilities | 5.52B | 5.13B | 5.07B | 5.25B | 5.43B | 5.50B |
| Stockholders Equity | -365.00M | -186.00M | -280.00M | -126.00M | -480.00M | -179.00M |
Cash Flow | ||||||
| Free Cash Flow | 1.45B | 866.00M | 907.00M | 1.17B | 616.00M | 802.00M |
| Operating Cash Flow | 1.62B | 1.02B | 1.07B | 1.41B | 840.00M | 930.00M |
| Investing Cash Flow | -152.00M | -144.00M | -65.00M | -383.00M | -230.00M | -12.00M |
| Financing Cash Flow | -1.39B | -888.00M | -1.00B | -854.00M | -1.07B | -1.30B |
Masco Technical Analysis
Negative
79.27
Price Trends
74.86
Negative
69.94
Positive
68.11
Positive
Market Momentum
0.95
Positive
56.57
Neutral
39.76
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 79.27 is above the 20-day moving average (MA) of 77.47, above the 50-day MA of 74.86, and above the 200-day MA of 68.11, indicating a neutral trend. The MACD of 0.95 indicates Positive momentum. The RSI at 56.57 is Neutral, neither overbought nor oversold. The STOCH value of 39.76 is Neutral, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $14.29B | 20.54 | 41.06% | 1.31% | 1.90% | -2.79% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $14.09B | 16.43 | -406.43% | 1.59% | -0.56% | 15.03% | |
60 Neutral | $5.88B | 21.89 | 11.48% | 1.99% | -2.01% | -34.26% | |
58 Neutral | $11.19B | -20.79 | -12.50% | 2.15% | -12.20% | -333.77% | |
55 Neutral | $7.15B | 72.22 | 2.46% | ― | -9.38% | -86.05% | |
46 Neutral | $15.26B | 118.16 | 1.94% | ― | 24.71% | -77.97% |
* Industrials Sector Average
MAS
Masco
71.48
3.30
4.83%
BLDR
Builders Firstsource
66.44
-61.74
-48.17%
CSL
Carlisle Companies
359.92
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FBIN
Fortune Brands Innovations
49.26
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-10.51%
OC
Owens Corning
138.90
4.81
3.59%
JHX
James Hardie Industries PLC
26.29
-0.04
-0.15%
Masco Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Masco Shareholders Approve Governance Changes and Board Elections
Neutral
May 14, 2026
At its recent annual meeting of shareholders, Masco investors elected four directors to serve until the 2027 annual meeting and approved, on an advisory basis, the compensation of the company’s named executive officers. Shareholders also rat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.