Masco (MAS) AI Stock Analysis

• Market Cap: $15.62B
• Dividend Yield: 1.94%
• Average Volume (3M): 2.64M
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.88
• Revenue Growth: -3.62%
• EPS Growth: 3.41%
• Country: US
• Employees: 18,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.82
• Shares Outstanding: 203,607,090
• 10 Day Avg. Volume: 3,452,957
• 30 Day Avg. Volume: 2,638,704
• PEG Ratio: 5.61
• Price to Book (P/B): -71.31
• Price to Sales (P/S): 1.75
• P/FCF Ratio: 15.32
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 2.36
• Enterprise Value/Gross Profit: 6.66
• Enterprise Value/Ebitda: 12.88
• 1Y Price Target: $79.40
• Price Target Upside: 7.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $77.00 ▲(4.31% Upside)
• Action: Reiterated Date: 02/12/26
• Date: Action: Reiterated 02/12/26

The score is driven mainly by strong cash generation and solid profitability, offset by meaningful balance-sheet risk (negative equity, high debt) and a weak revenue trajectory. Technicals are supportive with positive momentum and the stock trading above key moving averages, while valuation is reasonable (P/E 18.34) with a modest dividend. Earnings call guidance points to modest improvement in 2026, but tariffs, decorative/DIY weakness, and restructuring costs remain key execution risks.

Positive Factors

Free Cash Flow Strength

Masco's very strong free cash flow generation and high conversion provide durable internal funding for dividends, buybacks, M&A or debt paydown. Over the next 2–6 months this cash cushion underpins capital returns and funds mitigation actions without needing external financing.

Healthy Margins and High ROIC

Sustained mid-30s gross margins and double-digit net margins, plus a very high 2025 ROIC, indicate structural pricing power and capital efficiency. These durable profitability metrics should help protect cash flow and fund strategic initiatives even if top-line growth is muted.

Leading Brands & Plumbing Outperformance

Plumbing segment outperformance, recognized brands (Delta, Moen, Behr) and retailer partnerships create durable market share and stable demand from pros and consumers. Strength in plumbing provides a reliable earnings base and reduces reliance on weaker decorative demand.

Negative Factors

Elevated Leverage / Negative Equity

Significant gross debt and negative shareholders' equity limit financial flexibility and increase refinancing and covenant risk. Over the medium term this constrains strategic options, raises funding costs, and makes the company more vulnerable to cyclical shocks or larger M&A funding needs.

Weak Revenue Trajectory & Volume Pressure

Persistent top-line weakness and volume declines, especially in decorative/DIY, undermine operating leverage and make margin expansion harder to sustain. Unless volumes recover, reliance on pricing and cost cuts may be insufficient to offset lost scale and could pressure long-term growth prospects.

Material Tariff and Sourcing Exposure

Ongoing tariff and duties exposure is a structural cost headwind that can persist for multiple quarters. Mitigation via sourcing and pricing takes time and may not fully offset higher input costs, pressuring margins and working capital until supply-chain shifts are completed.

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 generates revenue primarily through the sale of its diverse range of products in the plumbing and decorative segments. Key revenue streams include the direct sales of plumbing fixtures and fittings, cabinetry, and paint products to retailers, wholesalers, and contractors. The company benefits from strong brand recognition and customer loyalty, which helps maintain steady demand for its products. Significant partnerships with major retailers such as Home Depot and Lowe's enhance Masco's distribution capabilities, allowing the company to reach a broad customer base. Additionally, Masco's focus on innovation and product development enables it to capture market share and respond to changing consumer preferences, further contributing to its earnings.

Masco Financial Statement Overview

Summary

Cash flow is a strength (2025 operating cash flow ~$1.02B; free cash flow ~$866M with strong conversion), and profitability is solid (gross margin mid-30s; net margin ~10–11%). However, the balance sheet is a major risk with negative equity (-$186M in 2025) and sizable debt (~$3.4B), and the revenue trend is weak with a sharp 2025 decline noted in the financial statement analysis.

Income Statement

Profitability is solid for the industry, with gross margin holding around the mid-30% range (35.5% in 2025) and net margin staying ~10–11% in 2024–2025. However, growth is a clear weak spot: revenue has been down for several years and fell sharply in 2025 (-46.1% vs. 2024), and earnings also trended lower versus 2023. Overall: healthy margins, but the recent top-line trajectory is a meaningful concern.

Balance Sheet

Leverage risk is elevated. Total debt remains high (~$3.4B in 2025) while shareholders’ equity is negative in most years (including -$186M in 2025), which makes equity-based leverage and return measures unfavorable and signals limited balance-sheet cushion. Assets are relatively stable (~$5.2B in 2025), but the capital structure (negative equity) is the key weakness.

Cash Flow

Cash generation is a relative strength: 2025 operating cash flow was ~$1.02B and free cash flow was ~$866M, with free cash flow running at ~85% of net income—suggesting earnings are generally backed by cash. Free cash flow growth also rebounded strongly in 2025 (off a weaker 2024). The main watch-out is that operating cash flow covers less than the full level of accounting profit (coverage below 1.0 across the period), implying some working-capital or timing drag at times.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.56B	7.83B	7.97B	8.68B	8.38B
Gross Profit	2.69B	2.84B	2.81B	2.71B	2.86B
EBITDA	1.38B	1.41B	1.49B	1.45B	951.00M
Net Income	810.00M	822.00M	908.00M	842.00M	406.00M
Balance Sheet
Total Assets	5.20B	5.02B	5.36B	5.19B	5.58B
Cash, Cash Equivalents and Short-Term Investments	647.00M	634.00M	634.00M	452.00M	926.00M
Total Debt	3.44B	3.21B	3.25B	3.44B	3.17B
Total Liabilities	5.13B	5.07B	5.25B	5.43B	5.50B
Stockholders Equity	-186.00M	-280.00M	-126.00M	-480.00M	-179.00M
Cash Flow
Free Cash Flow	866.00M	907.00M	1.17B	616.00M	802.00M
Operating Cash Flow	1.02B	1.07B	1.41B	840.00M	930.00M
Investing Cash Flow	-144.00M	-65.00M	-383.00M	-230.00M	-12.00M
Financing Cash Flow	-888.00M	-1.00B	-854.00M	-1.07B	-1.30B

Masco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.82
• 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 73.82 is above the 20-day moving average (MA) of 71.78, above the 50-day MA of 68.33, and above the 200-day MA of 66.77, indicating a bullish trend. The MACD of 2.21 indicates Negative momentum. The RSI at 56.54 is Neutral, neither overbought nor oversold. The STOCH value of 32.94 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
CSL	77 Outperform	$16.58B	23.65	35.05%	1.28%	0.14%	3.88%
AWI	76 Outperform	$8.48B	28.16	38.03%	0.66%	15.10%	23.35%
WMS	75 Outperform	$13.24B	28.25	26.50%	0.47%	2.48%	-6.92%
MAS	64 Neutral	$15.62B	19.89	―	1.94%	-3.62%	3.41%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLDR	52 Neutral	$12.60B	28.62	10.06%	―	-6.44%	-48.84%
OC	52 Neutral	$11.04B	-22.77	-3.27%	2.43%	3.47%	-148.53%

Masco Corporate Events

Masco details separation agreement for departing senior executive

On January 12, 2026, Masco Corporation disclosed the terms of a separation agreement with Imran Ahmad, its former Group President of Decorative Architectural Products, whose service with the company concluded on December 31, 2025. Under this agreement, Ahmad will receive a cash payment of $998,875, a 2025 cash bonus based on his target opportunity if performance goals are achieved, the cash equivalent of an annual restricted stock unit award at his target level, and a cash payment under the company’s 2023–2025 Long-Term Incentive Program contingent on performance, and he will retain the right to exercise the vested portion of his stock options and stock appreciation rights for 90 days after his departure, underscoring Masco’s adherence to structured executive transition and incentive policies for senior leadership.

The most recent analyst rating on (MAS) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on Masco stock, see the MAS Stock Forecast page.

Masco Appoints Gary Coombe as New Director

On December 16, 2025, Masco‘s Board of Directors appointed Mr. Gary A. Coombe as a Class II Director, effective January 1, 2026. Mr. Coombe, who has extensive experience from his tenure at Procter & Gamble, will join the Audit Committee and the Corporate Governance and Nominating Committee. His appointment is in line with the company’s governance standards, as he meets the independence requirements of the New York Stock Exchange and the SEC.

The most recent analyst rating on (MAS) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Masco stock, see the MAS Stock Forecast page.

Masco Announces Leadership Change in Management Structure

On December 8, 2025, Masco Corporation announced that Imran Ahmad, the Group President of Decorative Architectural Products, will leave the company on December 31, 2025, as his position is being eliminated. Jon Nudi, the President & CEO, will assume oversight of the Decorative Architectural Products segment, indicating a strategic shift in management structure.

The most recent analyst rating on (MAS) stock is a Hold with a $71.00 price target. To see the full list of analyst forecasts on Masco stock, see the MAS Stock Forecast page.