Masco (MAS) AI Stock Analysis

• Market Cap: $14.27B
• Dividend Yield: 1.79%
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.97
• Revenue Growth: -2.73%
• EPS Growth: -8.31%
• Country: US
• Employees: 18,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 1.30
• Shares Outstanding: 209,363,630
• 10 Day Avg. Volume: 1,793,455
• 30 Day Avg. Volume: 2,148,141
• 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: 1.17
• Enterprise Value/Revenue: 2.17
• Enterprise Value/Gross Profit: 5.99
• Enterprise Value/Ebitda: 13.44
• 1Y Price Target: $76.27
• Price Target Upside: 11.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 66 Neutral
• Price Target: $74.00 ▲(8.31% Upside)

Masco's overall stock score reflects a balanced view of its strengths and challenges. Strong cash flow and operational efficiency are offset by a pressured balance sheet and mixed technical indicators. The valuation is fair, providing a reasonable entry point for investors. The company's strategic focus on pricing and cost mitigation is crucial for navigating market volatility.

Positive Factors

Strong Cash Generation

Masco's ability to generate strong cash flow allows it to return capital to shareholders, indicating robust financial health and operational efficiency.

Plumbing Segment Growth

Growth in the plumbing segment highlights Masco's competitive advantage and strong market position, supporting long-term revenue stability.

Operational Efficiency

Improved operating margins and profit growth demonstrate Masco's effective cost management and operational efficiency, enhancing profitability.

Negative Factors

High Debt Levels

High debt and negative equity pose risks to financial stability, potentially limiting Masco's ability to invest in growth opportunities.

Sales Decline in Decorative Segment

Declining sales in the Decorative Architectural segment may impact overall revenue growth, indicating challenges in market demand and competition.

Geopolitical and Tariff Challenges

Tariffs and geopolitical issues increase operational costs and complexity, potentially affecting Masco's international market performance.

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: Negative
• Last Price: 68.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 68.32 is below the 20-day moving average (MA) of 68.60, below the 50-day MA of 71.33, and below the 200-day MA of 68.78, indicating a bearish trend. The MACD of -0.64 indicates Negative momentum. The RSI at 45.65 is Neutral, neither overbought nor oversold. The STOCH value of 56.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MAS.

Masco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AWI	―	$8.80B	30.10	39.29%	0.61%	15.59%	23.46%
WMS	―	$11.15B	25.90	27.68%	0.48%	0.24%	-12.68%
MAS	―	$14.27B	18.10	―	1.79%	-2.73%	-8.31%
CSL	―	$14.49B	18.84	31.34%	1.21%	1.37%	5.96%
OC	―	$10.68B	33.68	12.26%	2.16%	13.08%	-67.65%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLDR	―	$13.71B	18.70	17.83%	―	-6.39%	-42.36%

Masco Corporate Events

Masco Corporation’s Earnings Call: Mixed Sentiments and Future Outlook

The recent earnings call for Masco Corporation presented a mixed sentiment, reflecting both achievements and challenges. The company showcased strong performance in its plumbing segment and notable product innovations, contributing to operating profit growth. However, these positive aspects were countered by difficulties 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.

Masco Corporation Reports Strong Q2 2025 Results

Masco Corporation, headquartered in Livonia, Michigan, is a global leader in the design, manufacture, and distribution of branded home improvement and building products, including renowned brands like Behr paint and Delta faucets.