Masco (MAS)
NYSE:MAS
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Masco
(NYSE:MAS)
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Rating:56Neutral
Price Target:
$62.00
▼(-0.37% Downside)
Action:ReiteratedDate:03/27/26
The score is primarily held back by balance-sheet risk (negative equity and sizable debt) and weak technical momentum (below major moving averages with negative MACD). Offsetting these are strong free cash flow generation and a constructive (but risk-aware) 2026 outlook with ongoing buybacks/dividend growth, plus a moderate valuation and dividend yield.
Positive Factors
Strong free cash flow generation
Masco's persistent cash generation (OCF ~$1.02B and FCF ~$866M in 2025) and high cash conversion underpin durable financial flexibility. Reliable FCF supports dividends, buybacks, capex and selective M&A, providing a multi-quarter buffer versus cyclical revenue swings and funding restructuring without immediate refinancing.
Negative Factors
Elevated leverage and negative equity
Masco's capital structure shows elevated leverage and negative shareholders' equity, reducing the balance-sheet cushion and complicating equity-based metrics. Persistent negative equity increases refinancing and covenant sensitivity, limits strategic flexibility for large investments, and raises the funding cost premium during adverse cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Masco's persistent cash generation (OCF ~$1.02B and FCF ~$866M in 2025) and high cash conversion underpin durable financial flexibility. Reliable FCF supports dividends, buybacks, capex and selective M&A, providing a multi-quarter buffer versus cyclical revenue swings and funding restructuring without immediate refinancing.
Read all positive factors
Masco (MAS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.67B
Dividend Yield1.94%
Average Volume (3M)2.37M
Price to Earnings (P/E)16.4
Beta (1Y)0.88
Revenue Growth-3.62%
EPS Growth3.41%
CountryUS
Employees18,000
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)0.82
Shares Outstanding203,607,090
10 Day Avg. Volume1,849,130
30 Day Avg. Volume2,372,949
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 Cap1.24
Enterprise Value/Revenue2.08
Enterprise Value/Gross Profit5.87
Enterprise Value/Ebitda11.35
Forecast
1Y Price Target
$77.30Price Target Upside24.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)4.2
Revenue Forecast (FY)$7.69B
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 hard...
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 Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Highlights profitability across different business units, indicating which segments are driving earnings and where there may be opportunities for improvement or growth.
Highlights profitability across different business units, indicating which segments are driving earnings and where there may be opportunities for improvement or growth.
Data provided by:
The Fly
The FlyMasco Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call balanced clear operational and financial strengths — strong free cash flow, disciplined capital returns, plumbing segment outperformance, brand awards, and an actionable plan to mitigate tariff impacts — against meaningful near-term headwinds from tariffs, commodity price volatility, volume declines (especially in decorative/DIY paint), and restructuring costs. Management provided constructive 2026 guidance (flat to modest sales growth, margin expansion to ~17%, EPS up to $4.10–$4.30) and concrete mitigation steps (restructuring, sourcing changes, pricing), which combined with robust cash generation and shareholder return initiatives point to a cautiously constructive outlook despite execution and macro risks.Positive Updates
Strong Cash Generation and Shareholder Returns
Free cash flow > $850M for 2025 with ~100% conversion; returned $832M to shareholders (dividends + $571M repurchases full year, $217M repurchased in Q4); Board approved new $2B repurchase program and raised dividend 3% to $1.28 (13th consecutive increase).
Negative Updates
Overall Sales Decline
Net sales decreased 2% in Q4 (3% in local currency) and decreased 3% for full year 2025 (2% excluding currency and Kichler divestiture); North American sales down ~5% in Q4 in local currency.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Cash Generation and Shareholder Returns
Free cash flow > $850M for 2025 with ~100% conversion; returned $832M to shareholders (dividends + $571M repurchases full year, $217M repurchased in Q4); Board approved new $2B repurchase program and raised dividend 3% to $1.28 (13th consecutive increase).
Read all positive updates
Company Guidance
Masco guided 2026 sales to be flat to up low-single-digits with consolidated operating margin expanding to about 17% (vs. 16.8% in 2025); plumbing sales are expected up low-single-digits with plumbing margin ~18% (vs. ~17.6% in 2025) and decorative architectural sales roughly flat with decorative margin ~19% (vs. ~18.9% in 2025). The company expects EPS of $4.10–$4.30 (assumes ~202 million diluted shares and a 24.5% effective tax rate), plans ~$190 million of capital expenditures, will pay a $1.28 annual dividend per share (up 3%) with a ~30% payout target, and expects to deploy roughly $600 million of available free cash flow to share repurchases or M&A (Board authorized a new $2.0 billion repurchase program). Masco assumes SG&A as a percent of sales in line with 2025, working capital ~16.5% of sales, liquidity of ~$1.6 billion, gross debt/EBITDA ~2.1x, and an annualized tariff headwind of roughly $200 million before mitigation (including about $80 million from 20% China tariffs) that management expects to offset through sourcing, cost savings and pricing; additional restructuring charges of ~ $50 million are expected in 2026 (after ~$18 million in 2025).Masco Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
28
Negative
Cash Flow
72
Positive
| 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
Neutral
62.23
Price Trends
66.57
Negative
65.57
Negative
66.87
Negative
Market Momentum
-1.74
Negative
49.59
Neutral
47.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAS, the sentiment is Neutral. The current price of 62.23 is above the 20-day moving average (MA) of 60.42, below the 50-day MA of 66.57, and below the 200-day MA of 66.87, indicating a neutral trend. The MACD of -1.74 indicates Negative momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 47.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $14.06B | 18.48 | 36.69% | 1.28% | 0.14% | 3.88% | |
76 Outperform | $11.48B | 30.06 | 25.82% | 0.47% | 2.48% | -6.92% | |
72 Outperform | $7.40B | 31.80 | 36.09% | 0.66% | 15.10% | 23.35% | |
64 Neutral | $9.08B | ― | -11.39% | 2.43% | 3.47% | -148.53% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $12.67B | 16.37 | -537.31% | 1.94% | -3.62% | 3.41% | |
45 Neutral | $9.19B | 90.31 | 10.11% | ― | -6.44% | -48.84% |
* Industrials Sector Average
MAS
Masco
62.23
1.67
2.76%
AWI
Armstrong World
172.77
41.22
31.34%
BLDR
Builders Firstsource
83.09
-36.85
-30.72%
CSL
Carlisle Companies
343.85
11.22
3.37%
OC
Owens Corning
112.91
-18.31
-13.95%
WMS
Advanced Drainage Systems
147.42
44.54
43.30%
Masco Corporate Events
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...
Executive/Board Changes
Masco Adjusts CEO Jonathon Nudi’s Equity Compensation Plan
Neutral
Feb 12, 2026
On February 6, 2026, Masco Corporation’s Compensation and Talent Committee approved a full-value restricted stock unit award of $1,749,000 for President and Chief Executive Officer Jonathon J. Nudi. This award replaces a previously disclosed...
Executive/Board ChangesRegulatory Filings and Compliance
Masco details separation agreement for departing senior executive
Neutral
Jan 12, 2026
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 agree...
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.