Masco (MAS) AI Stock Analysis

• Market Cap: $15.55B
• Dividend Yield: 1.64%
• Average Volume (3M): 2.46M
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.98
• Revenue Growth: -2.73%
• EPS Growth: -8.31%
• Country: US
• Employees: 18,000
• Sector: Industrials
• Sector Strength: 76
• Industry: Construction
• EPS (TTM): 1.30
• Shares Outstanding: 209,363,630
• 10 Day Avg. Volume: 2,142,713
• 30 Day Avg. Volume: 2,460,244
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 2.17
• Enterprise Value/Gross Profit: 5.99
• Enterprise Value/Ebitda: 13.44
• 1Y Price Target: $76.70
• Price Target Upside: 2.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 73 Outperform
• Price Target: $81.00 ▲(8.67% Upside)

Masco's overall stock score reflects a balance of strong technical indicators and operational efficiency against financial leverage concerns and market challenges. The company's ability to maintain profitability and cash generation is a positive, but addressing balance sheet weaknesses is crucial for long-term stability. The earnings call provided a mixed outlook with growth in certain segments but highlighted ongoing market challenges.

Positive Factors

Financial Flexibility

The balance sheet is healthy, providing financial flexibility.

Product Strategy

MAS is well-positioned in products with an optimized category mix and methodical pricing strategies.

Trade Opportunities

MAS sees tariffs as an opportunity to optimize sourcing and potentially accelerate key initiatives.

Negative Factors

Demand Challenges

Soft demand trends in DIY pose a key issue for the company.

Market Expectations

Core sales in the Decorative Architectural segment missed expectations, indicating softness in the market.

Tariff Uncertainty

Uncertainty around tariffs is impacting the company's ability to provide clear guidance for the fiscal year.

Masco Business Overview & Revenue Model

Company Description

Masco Corporation (MAS) is a leading manufacturer of products for the home improvement and new home construction industries. The company operates primarily in two segments: Plumbing Products and Decorative Architectural Products. Masco’s core offerings include faucets, showerheads, and other plumbing fixtures under well-known brands like Delta, Moen, and Hansgrohe, as well as decorative products such as paints, stains, and cabinetry through its brands like Behr and KraftMaid.

How the Company Makes Money

Masco 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 Financial Statement Overview

Summary

Masco's financial performance is mixed. The income and cash flow statements show operational efficiency and strong cash generation, but the balance sheet reflects financial stress due to high debt and negative equity. The company maintains profitability despite revenue fluctuations, but needs to address leverage to improve financial stability.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.66B	7.83B	7.97B	8.68B	8.38B	7.19B
Gross Profit	2.78B	2.83B	2.84B	2.71B	2.86B	2.59B
EBITDA	1.24B	1.41B	1.49B	1.45B	1.12B	1.41B
Net Income	805.00M	822.00M	908.00M	844.00M	410.00M	1.22B
Balance Sheet
Total Assets	5.29B	5.02B	5.36B	5.19B	5.58B	5.78B
Cash, Cash Equivalents and Short-Term Investments	390.00M	634.00M	634.00M	452.00M	926.00M	1.33B
Total Debt	3.22B	3.21B	3.25B	3.44B	3.17B	2.98B
Total Liabilities	5.14B	5.07B	5.25B	5.43B	5.50B	5.36B
Stockholders Equity	-85.00M	-280.00M	-126.00M	-480.00M	-179.00M	195.00M
Cash Flow
Free Cash Flow	1.27B	907.00M	1.17B	616.00M	802.00M	839.00M
Operating Cash Flow	1.43B	1.07B	1.41B	840.00M	930.00M	953.00M
Investing Cash Flow	-40.00M	-50.00M	-383.00M	-230.00M	-12.00M	531.00M
Financing Cash Flow	-957.00M	-1.02B	-854.00M	-1.07B	-1.30B	-886.00M

Masco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 74.54 is above the 20-day moving average (MA) of 71.80, above the 50-day MA of 67.72, and above the 200-day MA of 69.92, indicating a bullish trend. The MACD of 2.07 indicates Negative momentum. The RSI at 63.30 is Neutral, neither overbought nor oversold. The STOCH value of 58.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MAS.

Masco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AWI	79 Outperform	$8.55B	29.24	39.29%	0.62%	15.59%	23.46%
WMS	75 Outperform	$11.30B	26.23	27.68%	0.45%	0.24%	-12.68%
MAS	73 Outperform	$15.55B	19.79	-118.61%	1.64%	-2.73%	-8.31%
OC	73 Outperform	$12.80B	40.48	12.26%	1.75%	13.08%	-67.65%
CSL	71 Outperform	$16.80B	21.84	31.34%	1.05%	1.37%	5.96%
BLDR	68 Neutral	$15.77B	21.66	17.83%	―	-6.39%	-42.36%
Sector *	65 Neutral	$2.63B	15.35	15.18%	3.65%	0.27%	30.08%

Masco Corporate Events

Masco Announces Agreement with Retired CEO Allman

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.