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Masco Corporation (MAS)
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Masco (MAS) AI Stock Analysis

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MAS

Masco

(NYSE:MAS)

Rating:72Outperform
Price Target:
$76.00
▲(3.37% Upside)
Masco's overall stock score of 72 reflects a balance of strengths and challenges. The company's strong cash flow and operational efficiency are offset by financial leverage risks and challenges in certain segments. Positive technical trends and reasonable valuation support the score, while recent governance changes offer additional confidence.
Positive Factors
Financial Flexibility
The balance sheet is healthy, providing financial flexibility.
Gross Margin
Gross margin improved slightly compared to the previous year and estimates, marking a positive turnaround.
Valuation
Valuation is very reasonable, which may appeal to investors.
Negative Factors
Pricing Strategy
Price hikes to mitigate tariff effects may further decrease demand.
Sales Performance
Core sales in the Decorative Architectural segment missed expectations, indicating softness in the market.
Tariffs and Demand
Uncertainty around tariffs and soft demand trends in DIY are likely to keep the stock range bound.

Masco (MAS) vs. SPDR S&P 500 ETF (SPY)

Masco Business Overview & Revenue Model

Company DescriptionMasco 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 MoneyMasco generates revenue primarily through the sale of its plumbing and decorative products to retail and wholesale customers, including home improvement centers, professional contractors, and distributors. The company benefits from a diversified portfolio of well-established brands, which helps it capture a significant share of the home improvement market. Key revenue streams include direct sales to consumers and contractors, as well as partnerships with major retailers for product placement. Additionally, Masco's strategic acquisitions of complementary businesses enhance its product offerings and market reach, further contributing to its earnings.

Masco Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: 12.35%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed overview, with strong performance in the plumbing segment and notable achievements in product innovation and operating profit growth. However, these were tempered by challenges in the decorative architectural segment, ongoing tariff impacts, and a decline in net sales. The market environment remains volatile, particularly concerning tariffs and the China market.
Q2-2025 Updates
Positive Updates
Strong Operating Profit Growth
Operating profit grew $14 million to $413 million, with an operating profit margin increase of 100 basis points to 20.1% for the quarter.
Earnings Per Share Increase
Earnings per share grew 8% in the second quarter to $1.30 per share.
Plumbing Segment Performance
Plumbing sales increased 4% in local currency with North American plumbing sales up 5% driven by favorable pricing and volume. Operating profit for the segment was $276 million and operating margin increased 110 basis points to 21%.
Recognition of Innovative Products
Delta Faucet's water filtration systems received the WaterSense certification from the U.S. Environmental Protection Agency, and Hansgrohe won 4 Red Dot Design awards.
Strong Cash Return to Shareholders
Returned $167 million to shareholders in the second quarter through dividends and share repurchases, including $101 million in stock repurchases.
Negative Updates
Net Sales Decline
Net sales decreased 2% for the quarter, though they were in line with the prior year in local currency and excluding the Kichler divestiture.
Decorative Architectural Segment Weakness
Sales in this segment decreased 12% in the quarter, or 4% excluding the Kichler divestiture, with DIY Paint sales decreasing high single digits.
Challenges in China Market
International plumbing sales increased only 1% in local currency, with China remaining a challenged market.
Impacts of Tariffs
The company faced an in-year tariff impact of approximately $140 million, with continued market volatility and uncertainty regarding tariffs.
Company Guidance
During Masco Corporation's Second Quarter 2025 Conference Call, the company provided several key metrics guiding their performance outlook. The second quarter saw a 2% decrease in net sales, but local currency sales remained steady excluding divestitures. Gross margins increased by 10 basis points to 37.7%, and operating profit rose by $14 million to $413 million, with a 100 basis point increase in operating profit margin to 20.1%. Earnings per share grew 8% to $1.30. For the full year 2025, Masco anticipates adjusted earnings per share in the range of $3.90 to $4.10, expecting sales to be roughly flat after accounting for divestitures and currency impacts. They aim to mitigate a $140 million tariff impact, and anticipate operating margins to be around 17%. The company plans to invest $450 million towards share repurchases or acquisitions, along with $175 million in capital expenditures.

Masco Financial Statement Overview

Summary
Masco's financial performance is mixed. The company demonstrates strong cash flow generation and stable operating efficiency, but the balance sheet is under financial stress due to high debt and negative equity. Consistent profitability is maintained despite revenue fluctuations, but leverage remains a concern.
Income Statement
70
Positive
Masco's revenue has shown fluctuations with a general downward trend from 2022 to 2024, but with a slight recovery in TTM 2025. Gross profit margins have been relatively stable, indicating consistent cost management. However, the net profit margin has seen some decline, pointing to increased expenses or reduced efficiency in converting revenue to net income. The EBIT and EBITDA margins are stable, suggesting operational efficiency is being maintained.
Balance Sheet
55
Neutral
The balance sheet is under pressure with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is not calculable due to negative equity, but the high total debt level is a concern. The equity ratio is negative, reflecting financial instability. Despite these challenges, the company manages to maintain operations, but leverage remains a risk factor.
Cash Flow
80
Positive
Masco demonstrates strong cash flow generation, with consistent positive free cash flow and stable operating cash flow. The growth in free cash flow from 2022 to TTM 2025 highlights effective cash management. The operating cash flow to net income ratio is strong, indicating good conversion of income into cash, which is a positive indicator of liquidity.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.66B7.83B7.97B8.68B8.38B7.19B
Gross Profit2.78B2.83B2.84B2.71B2.86B2.59B
EBITDA1.28B1.41B1.49B1.49B1.19B1.41B
Net Income805.00M822.00M908.00M844.00M410.00M862.00M
Balance Sheet
Total Assets5.29B5.02B5.36B5.19B5.58B5.78B
Cash, Cash Equivalents and Short-Term Investments390.00M634.00M634.00M452.00M926.00M1.33B
Total Debt3.22B3.21B3.25B3.44B3.17B2.98B
Total Liabilities5.14B5.07B5.25B5.43B5.50B5.36B
Stockholders Equity-85.00M-280.00M-126.00M-480.00M-179.00M195.00M
Cash Flow
Free Cash Flow1.27B907.00M1.17B616.00M802.00M839.00M
Operating Cash Flow1.43B1.07B1.41B840.00M930.00M953.00M
Investing Cash Flow-40.00M-50.00M-383.00M-230.00M-12.00M531.00M
Financing Cash Flow-957.00M-1.02B-854.00M-1.07B-1.30B-886.00M

Masco Technical Analysis

Technical Analysis Sentiment
Positive
Last Price73.52
Price Trends
50DMA
65.99
Positive
100DMA
64.54
Positive
200DMA
70.14
Positive
Market Momentum
MACD
2.00
Negative
RSI
69.83
Neutral
STOCH
87.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAS, the sentiment is Positive. The current price of 73.52 is above the 20-day moving average (MA) of 68.84, above the 50-day MA of 65.99, and above the 200-day MA of 70.14, indicating a bullish trend. The MACD of 2.00 indicates Negative momentum. The RSI at 69.83 is Neutral, neither overbought nor oversold. The STOCH value of 87.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$8.40B28.7439.29%0.63%15.59%23.46%
72
Outperform
$15.40B19.54-118.61%1.66%-2.73%-8.31%
71
Outperform
$10.83B25.1527.68%0.48%0.24%-12.68%
69
Neutral
$16.72B21.7431.34%1.05%1.37%5.96%
68
Neutral
$15.27B20.9717.83%-6.39%-42.36%
68
Neutral
$12.70B40.0412.26%1.78%13.08%-67.65%
58
Neutral
HK$13.63B5.51-2.78%5.71%2.29%-57.50%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MAS
Masco
73.52
-1.95
-2.58%
AWI
Armstrong World
194.13
72.55
59.67%
BLDR
Builders Firstsource
136.88
-26.43
-16.18%
CSL
Carlisle Companies
381.42
-22.68
-5.61%
OC
Owens Corning
150.27
-9.58
-5.99%
WMS
Advanced Drainage Systems
138.85
-12.19
-8.07%

Masco Corporate Events

Executive/Board Changes
Masco Announces Agreement with Retired CEO Allman
Neutral
Jul 9, 2025

Masco Corporation announced an agreement with its former President and CEO, Keith J. Allman, following his retirement on July 8, 2025. Under this agreement, Mr. Allman will receive a prorated 2025 cash bonus, a cash equivalent of a 2025 restricted stock unit award, and potential share awards under the 2023-2025 and 2024-2026 Long-Term Incentive Programs, contingent upon meeting performance goals.

The most recent analyst rating on (MAS) stock is a Hold with a $66.00 price target. To see the full list of analyst forecasts on Masco stock, see the MAS Stock Forecast page.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Masco Approves Bylaw Amendments Enhancing Governance
Positive
May 15, 2025

Masco‘s Board of Directors has approved significant amendments to the company’s Bylaws, which will take effect on May 9, 2025, following stockholder approval. These changes include eliminating the supermajority vote requirement and phasing out the classification of the Board of Directors over three years, allowing for the annual election of directors. At the recent Annual Meeting, stockholders voted on several proposals, including the election of directors and amendments to the Certificate of Incorporation. Key approvals included eliminating supermajority vote requirements and amending business combination provisions, which are expected to streamline governance and enhance shareholder influence.

The most recent analyst rating on (MAS) stock is a Hold with a $66.00 price target. To see the full list of analyst forecasts on Masco stock, see the MAS Stock Forecast page.

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.Date of analysis: Aug 02, 2025