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Masco
(NYSE:MAS)
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Rating:67Neutral
Price Target:
$73.00
▲(9.64% Upside)
Action:Downgraded
Date:04/23/26
MAS earns a mid-to-upper score primarily due to strong profitability and robust free cash flow, reinforced by steady guidance and raised sales outlook. The biggest constraint is balance-sheet weakness (negative equity and meaningful leverage), while technically the stock is in a strong uptrend but looks overextended based on RSI/Stoch readings; valuation is reasonable with a modest dividend.
Positive Factors
Strong free cash flow generation
Consistent, sizable operating and free cash flow provides durable internal funding for capex, working-capital normalization, and strategic actions (repurchases/acquisitions). This cash generation underpins flexibility to service debt and support returns over the next several quarters.
Negative Factors
Weak balance sheet: negative equity and sizable debt
A negative equity position and material gross debt reduce financial flexibility and elevate refinancing, covenant, and capital-allocation risk. This structural leverage limits room for sustained buybacks or large acquisitions without continued strong cash flow or deleveraging actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, sizable operating and free cash flow provides durable internal funding for capex, working-capital normalization, and strategic actions (repurchases/acquisitions). This cash generation underpins flexibility to service debt and support returns over the next several quarters.
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
$16.70B
Dividend Yield1.94%
Average Volume (3M)2.61M
Price to Earnings (P/E)20.5
Beta (1Y)0.92
Revenue Growth-0.31%
EPS Growth10.03%
CountryUS
Employees18,000
SectorIndustrials
Sector Strength72
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)4.04
Shares Outstanding201,734,440
10 Day Avg. Volume2,451,649
30 Day Avg. Volume2,610,004
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 Cap1.05
Enterprise Value/Revenue2.29
Enterprise Value/Gross Profit6.46
Enterprise Value/Ebitda12.33
Forecast
1Y Price Target
$81.00Price Target Upside21.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)4.28
Revenue Forecast (FY)$7.77B
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, generating revenue when its products are purchased by retailers, distributors/wholesalers, and professional customers (e.g., contractors and b...
Masco Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call reflected solid operational and financial execution in Q1 — with revenue growth, improved margins, 13% operating profit growth and 20% EPS growth — driven largely by strong plumbing performance, cost-savings and disciplined capital returns (notably an increased share-repurchase program). Management remains cautious due to material headwinds: elevated commodity inflation (copper, oil/resins), tariff uncertainty and geopolitical risks that are expected to pressure costs and create near-term margin cadence headwinds (flat H1 margins and a Q2 contraction implied). Balance sheet strength and active mitigation levers (pricing, footprint, restructuring savings) underpin confidence in delivering full-year guidance, but the outlook is guarded.Positive Updates
Balance Sheet and Liquidity Strength
Gross debt-to-EBITDA was 2.1x at quarter end and liquidity totaled $1.3 billion (cash plus revolver availability). Management expects working capital to normalize from 19.5% of sales to ~16.5% by year-end.
Negative Updates
Elevated Commodity Inflation
Management highlighted higher commodity and input costs (copper, zinc, oil and resin-based inputs). Copper remains elevated (management referenced levels above ~$6/lb) and oil-driven resin costs are creating mid- to high-single-digit upward pressure in some inputs; overall company expects mid-single-digit inflationary pressure that may offset tariff favorability.
Read all updates
Q1-2026 Updates
Positive
Negative
Balance Sheet and Liquidity Strength
Gross debt-to-EBITDA was 2.1x at quarter end and liquidity totaled $1.3 billion (cash plus revolver availability). Management expects working capital to normalize from 19.5% of sales to ~16.5% by year-end.
Read all positive updates
Company Guidance
Masco maintained 2026 adjusted EPS guidance of $4.10–$4.30 while raising full‑year sales guidance to up low single digits (previously flat to up low single digits) and targeting consolidated margins of about 17% (with margins expected to be roughly flat in H1 and to expand in H2 as tariff impacts are lapped and mitigations take hold). By segment, Plumbing is expected to be up low single digits with operating margin around 18%, Decorative Architectural roughly flat with ~19% margin (Pro paint sales mid‑single digit growth, DIY paint down mid‑single digits). Guidance assumes a ~200 million average diluted share count, a 24.5% effective tax rate, and contemplates higher commodity/inflationary pressure (mid‑single‑digit inflation; elevated copper and oil/resin costs) that could offset favorable tariff developments (management previously estimated ~ $200M of incremental tariffs pre‑mitigation); Masco expects to incur about $50M of restructuring charges in 2026 (≈$8M in Q1) and to reduce working capital to ~16.5% of sales by year‑end. Capital allocation plans call for at least $800M of share repurchases or acquisitions in 2026 (up from ~$600M), with $1.3B of liquidity and gross debt/EBITDA of 2.1x at quarter end.Masco Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
28
Negative
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.68B | 7.56B | 7.83B | 7.97B | 8.68B | 8.38B |
| Gross Profit | 2.72B | 2.69B | 2.84B | 2.81B | 2.71B | 2.86B |
| EBITDA | 1.43B | 1.38B | 1.41B | 1.49B | 1.45B | 951.00M |
| Net Income | 837.00M | 810.00M | 822.00M | 908.00M | 842.00M | 406.00M |
Balance Sheet | ||||||
| Total Assets | 5.23B | 5.20B | 5.02B | 5.36B | 5.19B | 5.58B |
| Cash, Cash Equivalents and Short-Term Investments | 388.00M | 647.00M | 634.00M | 634.00M | 452.00M | 926.00M |
| Total Debt | 3.30B | 3.44B | 3.21B | 3.25B | 3.44B | 3.17B |
| Total Liabilities | 5.21B | 5.13B | 5.07B | 5.25B | 5.43B | 5.50B |
| Stockholders Equity | -242.00M | -186.00M | -280.00M | -126.00M | -480.00M | -179.00M |
Cash Flow | ||||||
| Free Cash Flow | 943.00M | 866.00M | 907.00M | 1.17B | 616.00M | 802.00M |
| Operating Cash Flow | 1.10B | 1.02B | 1.07B | 1.41B | 840.00M | 930.00M |
| Investing Cash Flow | -147.00M | -144.00M | -65.00M | -383.00M | -230.00M | -12.00M |
| Financing Cash Flow | -953.00M | -888.00M | -1.00B | -854.00M | -1.07B | -1.30B |
Masco Technical Analysis
Positive
66.58
Price Trends
71.99
Positive
68.81
Positive
67.28
Positive
Market Momentum
3.23
Negative
75.58
Negative
92.65
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 66.58 is below the 20-day moving average (MA) of 75.31, below the 50-day MA of 71.99, and below the 200-day MA of 67.28, indicating a bullish trend. The MACD of 3.23 indicates Negative momentum. The RSI at 75.58 is Negative, neither overbought nor oversold. The STOCH value of 92.65 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.77B | 22.49 | 34.81% | 0.66% | 9.71% | 13.17% | |
67 Neutral | $16.70B | 20.49 | -566.50% | 1.94% | -0.31% | 10.03% | |
67 Neutral | $11.66B | 27.77 | 22.43% | 0.47% | 5.03% | -5.49% | |
66 Neutral | $14.84B | 21.40 | 38.36% | 1.28% | -0.53% | -1.29% | |
65 Neutral | $12.16B | -22.61 | -12.50% | 2.43% | -12.20% | -333.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $9.11B | 32.20 | 6.92% | ― | -8.33% | -66.48% |
* Industrials Sector Average
MAS
Masco
82.77
17.61
27.02%
AWI
Armstrong World
158.56
-7.94
-4.77%
BLDR
Builders Firstsource
84.69
-42.53
-33.43%
CSL
Carlisle Companies
366.73
-26.17
-6.66%
OC
Owens Corning
151.06
9.32
6.58%
WMS
Advanced Drainage Systems
152.18
33.96
28.73%
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...
Business Operations and StrategyExecutive/Board Changes
Masco Announces Planned Leadership Transition in Plumbing Segment
Neutral
Apr 21, 2026
On April 21, 2026, Masco Corporation said that Jai Shah, its Group President for Plumbing and Wellness, will conclude his service with the company on July 3, 2026, under an agreement dated April 16, 2026. The departure package includes a $1,206,00...
Business Operations and StrategyPrivate Placements and Financing
Masco Boosts Liquidity With New $1 Billion Credit Facility
Positive
Mar 26, 2026
On March 20, 2026, Masco Corporation and its subsidiary Masco Europe S.à r.l. entered into a new unsecured revolving credit agreement providing aggregate commitments of $1 billion, replacing a prior 2022 facility of the same size that was ter...
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.