MasTec (MTZ) AI Stock Analysis

• Market Cap: $22.70B
• Dividend Yield: N/A
• Average Volume (3M): 753.70K
• Price to Earnings (P/E): 68.4
• Beta (1Y): 1.67
• Revenue Growth: 12.99%
• EPS Growth: 274.10%
• Country: US
• Employees: 32,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 2.48
• Shares Outstanding: 78,900,930
• 10 Day Avg. Volume: 740,679
• 30 Day Avg. Volume: 753,699
• PEG Ratio: -0.15
• Price to Book (P/B): 3.65
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 10.92
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 1.83
• Enterprise Value/Gross Profit: 14.67
• Enterprise Value/Ebitda: 24.25
• 1Y Price Target: $268.00
• Price Target Upside: -6.85% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $265.00 ▼(-7.89% Downside)
• Action: Downgraded Date: 01/09/26
• Date: Action: Downgraded 01/09/26

MTZ scores as moderately attractive: solid financial performance (growth and improved balance sheet) and a strong, upbeat earnings call with record backlog are key positives. The score is held back by weak free-cash-flow trends and a demanding valuation (high P/E), while technicals suggest a longer-term uptrend but near-term consolidation.

Positive Factors

Backlog & Demand Visibility

A $16.8B and growing backlog provides multi-quarter revenue visibility and supports stable utilization. This reduces short-term bid risk, enables better resource planning and pricing on new awards, and underpins durable revenue and cash flow predictability across business cycles.

Improved Balance Sheet / Lower Leverage

A materially lower debt-to-equity ratio enhances financial flexibility to fund large EPC projects, absorb timing mismatches, and pursue selective M&A or investments without stressing liquidity. Lower leverage also reduces interest burden, supporting sustainable profitability and credit resilience.

Diversified Exposure to Structural End Markets

Strong, broad-based growth across communications, clean energy and power delivery aligns with long-term secular trends (5G rollout, grid modernization, energy transition). Diversification lowers concentration risk and creates cross-selling and scale advantages that support durable growth.

Negative Factors

Weak Free Cash Flow Trends

A nearly 34% FCF decline impairs the company's ability to self-fund working capital, capex, and growth initiatives. Persistently weak cash conversion increases reliance on external financing, heightens liquidity risk during project delays, and can constrain return-on-capital improvement.

Pressure on Operating Margins

Falling EBIT/EBITDA margins point to execution or mix challenges that can persist as the firm scales. Sustained margin compression will limit free cash flow recovery and long-term profitability, making earnings growth more sensitive to cost inflation and project complexity.

Project Execution & Permitting Risk

Permitting-related delays on large projects like Greenlink create revenue timing shifts, higher holding costs and potential contract penalties. Recurrent permitting or execution setbacks can materially disrupt multi-quarter cash flows and strain client relationships and margins.

MasTec Business Overview & Revenue Model

Company Description

MasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada. It operates through Communications, Clean Energy and Infrastructure, Oil and Gas, Power Delivery, and Other segments. The company builds underground and overhead distribution systems, including trenches, conduits, cell towers, cable, and power lines, which provide wireless and wireline/fiber communications; clean energy infrastructure comprising renewable energy; natural gas, product transport; electrical and gas transmission, and distribution systems; heavy industrial plants; compressor and pump stations, and treatment plants; water and sewer infrastructure, including water pipelines; and other civil construction infrastructure. It also installs electrical and other gas distribution and transmission systems, power generation facilities, buried and aerial fiber optic and other cables, as well as home automation and energy management solutions. In addition, the company offers maintenance and upgrade support services comprising maintenance of customers' distribution facilities, networks, and infrastructure, including communications, power generation, pipeline, electrical distribution and transmission, and heavy civil infrastructure; service restoration for natural disasters and accidents; and routine replacements and upgrades to overhauls. Its customers include public and private energy providers, pipeline operators, wireless and wireline/fiber service providers, broadband operators, install-to-the-home service providers, and government entities. MasTec, Inc. was founded in 1929 and is headquartered in Coral Gables, Florida.

How the Company Makes Money

MasTec generates revenue through a variety of channels, primarily by providing infrastructure services to clients in the telecommunications, energy, and transportation sectors. Key revenue streams include contracts for the construction and maintenance of telecommunications networks, installation of pipelines for oil and gas, and electric power transmission services. The company often engages in long-term contracts with major utility companies, telecommunications firms, and government agencies, ensuring a consistent revenue flow. Additionally, MasTec may benefit from strategic partnerships with leading technology and energy companies, which can enhance its service offerings and expand its market reach. Overall, the company's diverse service portfolio and focus on infrastructure development positions it to capitalize on the growing demand for reliable and modern infrastructure solutions.

MasTec Financial Statement Overview

Summary

Strong revenue growth and improved net margin alongside reduced leverage support the score, but declining free cash flow and weaker EBIT/EBITDA margins raise execution and cash-generation risk.

Income Statement

MasTec's revenue growth is strong, with a 5.48% increase in the TTM period, indicating robust demand. The gross profit margin is stable at 12.50%, though slightly lower than previous years. The net profit margin has improved to 2.41% in the TTM, reflecting better cost management. However, EBIT and EBITDA margins have decreased, suggesting potential operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.18 in the TTM, indicating reduced leverage and a stronger balance sheet. Return on equity has increased to 11.17%, showing enhanced profitability. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Free cash flow has declined by 33.92% in the TTM, raising concerns about cash generation. The operating cash flow to net income ratio is 0.20, indicating moderate cash conversion efficiency. The free cash flow to net income ratio is 0.65, suggesting adequate cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.76B	12.30B	12.00B	9.78B	7.95B	6.32B
Gross Profit	1.72B	1.63B	786.81M	1.19B	1.15B	1.05B
EBITDA	1.04B	950.85M	754.86M	662.46M	906.31M	782.54M
Net Income	331.07M	162.79M	-49.95M	33.35M	328.83M	322.85M
Balance Sheet
Total Assets	9.69B	8.98B	9.37B	9.29B	7.12B	5.23B
Cash, Cash Equivalents and Short-Term Investments	231.42M	399.90M	529.56M	370.59M	360.74M	423.12M
Total Debt	2.77B	2.63B	3.50B	3.51B	2.29B	1.49B
Total Liabilities	6.51B	5.99B	6.65B	6.55B	4.58B	3.22B
Stockholders Equity	3.11B	2.91B	2.71B	2.74B	2.54B	2.01B
Cash Flow
Free Cash Flow	416.59M	972.77M	494.34M	88.94M	623.01M	723.51M
Operating Cash Flow	644.67M	1.12B	687.28M	352.30M	793.07M	937.25M
Investing Cash Flow	-232.02M	-157.49M	-178.06M	-821.18M	-1.36B	-216.60M
Financing Cash Flow	-360.76M	-1.09B	-351.00M	480.90M	501.94M	-369.89M

MasTec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 287.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTZ, the sentiment is Positive. The current price of 287.7 is above the 20-day moving average (MA) of 257.60, above the 50-day MA of 239.35, and above the 200-day MA of 198.47, indicating a bullish trend. The MACD of 11.38 indicates Negative momentum. The RSI at 67.73 is Neutral, neither overbought nor oversold. The STOCH value of 88.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTZ.

MasTec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DY	83 Outperform	$12.41B	42.20	21.90%	―	13.19%	33.58%
APG	79 Outperform	$19.58B	123.84	8.71%	―	10.69%	―
PWR	76 Outperform	$85.02B	80.78	12.65%	0.09%	18.72%	23.97%
PRIM	75 Outperform	$8.21B	33.02	18.56%	0.25%	21.45%	67.31%
STRL	71 Outperform	$14.12B	45.08	35.73%	―	6.20%	72.81%
MTZ	66 Neutral	$22.70B	68.41	11.18%	―	12.99%	274.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%