Masco (MAS) AI Stock Analysis

• Market Cap: $14.19B
• Dividend Yield: 1.84%
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.04
• Revenue Growth: -2.67%
• EPS Growth: -10.72%
• Country: US
• Employees: 18,000
• Sector: Industrials
• Sector Strength: 86
• Industry: Construction
• EPS (TTM): 0.87
• Shares Outstanding: 210,942,020
• 10 Day Avg. Volume: 2,743,510
• 30 Day Avg. Volume: 2,152,447
• PEG Ratio: -6.87
• Price to Book (P/B): -51.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.33
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 5.68
• Enterprise Value/Ebitda: 2.84
• 1Y Price Target: $68.94
• Price Target Upside: 2.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 64 Neutral
• Price Target: $67.00 ▼(-0.42%Downside)

Masco's overall stock score reflects strong operational profitability and cash flow resilience, but is tempered by balance sheet vulnerabilities and technical indicators suggesting potential bearish momentum. Valuation is fair, with a reasonable P/E ratio and attractive dividend yield. Earnings call highlights are mixed, with innovative growth initiatives overshadowed by tariff challenges and segment declines.

Positive Factors

Financial Flexibility

The balance sheet is healthy, providing financial flexibility.

Operational Strategy

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

Valuation Appeal

Valuation is very reasonable, which may appeal to investors.

Negative Factors

Demand Challenges

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

Sales Performance

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 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 Corporation generates revenue primarily through the sale of its home improvement and building products. The company's revenue model is centered around its strong portfolio of brands, which it sells through a variety of channels including home improvement retailers, online platforms, wholesalers, and direct to builders and contractors. Key revenue streams include sales of plumbing products such as faucets and showering devices, as well as decorative architectural products like paint and stains. Significant partnerships with major home improvement retailers like The Home Depot drive a substantial portion of Masco's sales. The company's emphasis on innovation, brand strength, and distribution efficiency are critical factors contributing to its earnings.

Masco Financial Statement Overview

Summary

Masco demonstrates strong profitability and cash flow generation, with a solid EBIT margin and impressive cash flow metrics. However, the balance sheet is highly leveraged with negative equity, posing significant financial risk.

Income Statement

Masco's income statement shows solid profitability with a consistent Gross Profit Margin around 36% and Net Profit Margin over 10% in TTM. However, there is a slight decline in revenue, with a Revenue Growth Rate of -1.59% in the latest TTM period compared to the previous year. The EBIT Margin remains strong at over 17%, indicating efficient operations despite the revenue dip.

Balance Sheet

Masco's balance sheet reflects high leverage with a negative Stockholders' Equity, leading to an undefined Debt-to-Equity Ratio. The Return on Equity is not calculable due to negative equity. The company's financial structure poses significant risk, although it maintains substantial total assets relative to liabilities.

Cash Flow

Masco demonstrates robust cash flow generation with strong Free Cash Flow and Operating Cash Flow. The Free Cash Flow Growth Rate is impressive, and the Operating Cash Flow to Net Income Ratio is healthy, indicating efficient cash conversion from income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.70B	7.83B	7.97B	8.68B	8.38B	7.19B
Gross Profit	2.79B	2.83B	2.84B	2.71B	2.86B	2.59B
EBITDA	1.31B	1.41B	1.49B	1.49B	1.19B	1.41B
Net Income	793.00M	822.00M	908.00M	844.00M	410.00M	862.00M
Balance Sheet
Total Assets	5.11B	5.02B	5.36B	5.19B	5.58B	5.78B
Cash, Cash Equivalents and Short-Term Investments	377.00M	634.00M	634.00M	452.00M	926.00M	1.33B
Total Debt	3.31B	3.21B	3.21B	3.41B	3.13B	2.94B
Total Liabilities	5.11B	5.07B	5.25B	5.43B	5.52B	5.36B
Stockholders Equity	-254.00M	-280.00M	-126.00M	-262.00M	56.00M	421.00M
Cash Flow
Free Cash Flow	842.00M	907.00M	1.17B	616.00M	802.00M	839.00M
Operating Cash Flow	1.01B	1.07B	1.41B	840.00M	930.00M	953.00M
Investing Cash Flow	-65.00M	0.00	-383.00M	-230.00M	-12.00M	531.00M
Financing Cash Flow	-940.00M	-1.00B	-854.00M	-1.07B	-1.30B	-886.00M

Masco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 67.28 is above the 20-day moving average (MA) of 63.54, above the 50-day MA of 63.01, and below the 200-day MA of 72.64, indicating a neutral trend. The MACD of 0.62 indicates Negative momentum. The RSI at 64.77 is Neutral, neither overbought nor oversold. The STOCH value of 85.45 is Negative, 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
PNR	78 Outperform	$17.42B	27.30	18.59%	0.94%	-0.42%	3.23%
BLDR	72 Outperform	$14.13B	16.42	19.62%	―	-5.49%	-33.51%
SNA	72 Outperform	$16.62B	16.63	19.15%	2.67%	-0.88%	0.04%
SWK	72 Outperform	$11.07B	30.39	4.03%	4.58%	-3.04%	―
Sector *	68 Neutral	£2.93B	10.19	8.40%	3.47%	2.87%	-9.95%
POOL	67 Neutral	$11.44B	28.52	31.49%	1.65%	-3.56%	-16.75%
MAS	64 Neutral	$14.19B	18.39	-118.61%	1.84%	-2.67%	-10.72%

Masco Corporate Events

Masco Approves Bylaw Amendments Enhancing Governance

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.