MasTec (MTZ) AI Stock Analysis

• Market Cap: $11.90B
• Dividend Yield: N/A
• Average Volume (3M): 910.44K
• Price to Earnings (P/E): 55.7
• Beta (1Y): 1.54
• Revenue Growth: 3.03%
• EPS Growth: N/A
• Country: US
• Employees: 32,000
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): 0.51
• Shares Outstanding: 78,902,756
• 10 Day Avg. Volume: 827,035
• 30 Day Avg. Volume: 910,438
• PEG Ratio: 1.66
• Price to Book (P/B): 3.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $172.23
• Price Target Upside: 14.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 69 Neutral
• Price Target: ―

MasTec's overall stock score reflects a strong financial performance and positive earnings outlook, tempered by valuation concerns and mixed technical signals. The company exhibits robust revenue growth and operational efficiency, but high leverage and a high P/E ratio present risks. Positive backlog growth and raised guidance support an optimistic future outlook, though caution is advised due to potential overbought technical indicators.

Positive Factors

Market Opportunities

The demand for resilient electric grids, renewable energy, and expanded technology infrastructure is accelerating, providing MasTec with large and growing addressable markets.

Operational Performance

MasTec is focusing on organic growth and margin expansion, showing strong operational performance across its various business segments.

Valuation

The company is trading at a discount to peers, with similar revenue and EBITDA growth prospects, making it a valuable investment opportunity.

Negative Factors

Pipeline Revenue

Pipeline revenue is guided down reflecting the absence of MVP.

Sales Guidance Performance

MTZ has missed sales guidance in five of the last seven years, contributing to the stock's underperformance relative to peers.

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 diversified business model that encompasses multiple sectors within the infrastructure construction industry. The company earns money by providing end-to-end construction services, which include design, engineering, procurement, construction, and maintenance. Key revenue streams include contracts with telecommunications companies for the deployment and maintenance of communication networks, such as 5G infrastructure. Additionally, MasTec serves the energy sector by constructing oil and gas pipelines and facilities, as well as renewable energy projects, including wind and solar installations. The company also benefits from partnerships and long-term contracts with major utilities and energy companies, which provide a steady flow of projects and recurring revenue. MasTec's diverse service offerings across various industries help mitigate risks associated with market fluctuations in any single sector, contributing to its financial stability and growth.

MasTec Financial Statement Overview

Summary

MasTec's financial performance is strong, with significant revenue growth and operational efficiency. The income statement shows impressive revenue increases and margin improvements, though net profitability varies. The balance sheet reflects a stable equity base, but rising leverage is a concern. Cash flow management is robust, supporting strategic initiatives.

Income Statement

MasTec's income statement reveals a strong revenue growth trajectory, with an impressive rise from $6.32 billion in 2020 to $12.46 billion in TTM (Trailing-Twelve-Months) 2025. The gross profit margin improved significantly over the period, indicating efficient cost management. However, net profit margins have been inconsistent, with a downturn observed in certain years. The EBIT and EBITDA margins show resilience, highlighting operational efficiency. Overall, the company's revenue growth and operational performance are commendable, though net profitability requires monitoring.

Balance Sheet

The balance sheet reflects a stable equity base, with stockholders' equity growing from $2.01 billion in 2020 to $2.88 billion in TTM 2025. The debt-to-equity ratio has increased, indicating higher leverage, which may pose a risk. The equity ratio remains healthy, suggesting a balanced asset structure. Despite the rise in total debt, the company maintains a robust asset base, positioning it well for future growth. However, the increasing leverage warrants careful monitoring.

Cash Flow

MasTec's cash flow statement demonstrates solid operating cash flow, consistently exceeding net income, which is a positive indicator of cash-generating capability. Free cash flow has shown growth over time, supporting investment and financing activities. The free cash flow to net income ratio is strong, reflecting effective cash management. While capital expenditures are under control, fluctuations in investing and financing cash flows highlight potential volatility in cash deployment strategies.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.46B	12.30B	12.00B	9.78B	7.95B	6.32B
	Gross Profit
1.50B	1.63B	786.81M	1.19B	1.15B	1.05B
	EBIT
580.76M	436.35M	152.01M	155.31M	483.49M	490.36M
	EBITDA
948.13M	950.85M	754.86M	662.46M	906.31M	730.90B
	Net Income Common Stockholders
213.87M	162.79M	-49.95M	33.35M	328.83M	322.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
345.75M	399.90M	529.56M	370.59M	360.74M	423.12M
	Total Assets
8.86B	8.98B	9.37B	9.29B	7.12B	5.23B
	Total Debt
2.63B	2.63B	3.50B	3.51B	2.05B	1.27B
	Net Debt
2.29B	2.23B	2.97B	3.14B	1.69B	851.02M
	Total Liabilities
5.91B	5.99B	6.65B	6.55B	4.58B	3.22B
	Stockholders Equity
2.88B	2.91B	2.71B	2.74B	2.54B	2.01B
Cash Flow		Free Cash Flow
921.53M	972.77M	494.34M	88.94M	623.01M	723.51M
	Operating Cash Flow
1.09B	1.12B	687.28M	352.30M	793.07M	937.25M
	Investing Cash Flow
-185.16M	-157.49M	-178.06M	-821.18M	-1.36B	-216.60M
	Financing Cash Flow
-807.31M	-1.09B	-351.00M	480.90M	501.94M	-369.89M

MasTec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 150.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 150.77 is above the 20-day moving average (MA) of 145.61, above the 50-day MA of 129.41, and above the 200-day MA of 129.59, indicating a bullish trend. The MACD of 8.49 indicates Positive momentum. The RSI at 61.83 is Neutral, neither overbought nor oversold. The STOCH value of 58.48 is Neutral, 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
ACM	77 Outperform	$14.21B	23.42	28.07%	0.89%	4.55%	―
APG	76 Outperform	$12.90B	90.41	9.09%	―	3.20%	―
FLR	73 Outperform	$6.19B	3.60	66.58%	―	7.16%	523.56%
J	72 Outperform	$15.39B	35.34	8.46%	0.94%	-22.81%	-30.13%
PWR	71 Outperform	$51.12B	55.77	13.48%	0.11%	15.77%	19.58%
MTZ	69 Neutral	$11.90B	55.66	7.70%	―	3.03%	―
Sector *	64 Neutral	$4.39B	11.81	5.17%	249.38%	3.98%	-12.17%

MasTec Corporate Events

MasTec Reports Strong Q1 2025 Financial Results

On May 1, 2025, MasTec announced its financial results for the first quarter of 2025, reporting a 6% increase in revenue to $2.8 billion, driven by strong growth in non-pipeline segments. The company also raised its financial guidance for the year, highlighting a significant increase in its 18-month backlog to $15.9 billion, a 24% year-over-year growth. The results exceeded expectations with a diluted EPS of $0.13 and adjusted diluted EPS of $0.51, and the company completed $77 million in share repurchases. MasTec’s CEO, Jose Mas, emphasized the company’s strong financial performance and ongoing backlog development, particularly in the Pipeline Infrastructure segment.

MasTec Reports Record 2024 Revenues and Strong 2025 Outlook

On February 27, 2025, MasTec announced its financial results for the fourth quarter and full year of 2024, reporting record revenues of $3.4 billion for the quarter and $12.3 billion for the year. The company also achieved a significant increase in cash flow from operations and a reduction in net debt, with a record 18-month backlog of $14.3 billion. MasTec provided initial guidance for 2025, projecting a 9% revenue increase to $13.45 billion, with improvements in net income and earnings per share. The company’s strong financial performance in 2024, highlighted by a substantial backlog growth, positions it well for continued growth and operational success in 2025.