Masco (MAS) AI Stock Analysis

• Market Cap: $14.08B
• Dividend Yield: 1.74%
• Average Volume (3M): 2.86M
• Price to Earnings (P/E): 18.5
• Beta (1Y): 1.00
• Revenue Growth: -2.67%
• EPS Growth: -10.72%
• Country: US
• Employees: 18,000
• Sector: Industrials
• Sector Strength: 91
• Industry: Construction
• EPS (TTM): 0.87
• Shares Outstanding: 210,942,020
• 10 Day Avg. Volume: 2,559,771
• 30 Day Avg. Volume: 2,857,075
• PEG Ratio: -6.28
• Price to Book (P/B): -51.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.56
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 5.74
• Enterprise Value/Ebitda: 2.87
• 1Y Price Target: $69.06
• Price Target Upside: 3.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

Masco's overall stock score reflects a mixed performance. The company benefits from strong cash flows and operational profitability, but financial instability due to high leverage and negative equity poses significant risks. Technical indicators show limited upward momentum, contributing to a cautious outlook. The moderate P/E ratio and dividend yield provide a balanced view on valuation, while recent earnings call insights suggest challenges from tariffs and market uncertainty.

Positive Factors

Financial Flexibility

The balance sheet is healthy, providing financial flexibility.

Financial Performance

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

Market Opportunities

MAS has exposure to Mexico via the Watkins spa business, which qualifies for USMCA exemption, viewed as a clear positive.

Negative Factors

Demand Trends

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

Market 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's financial performance reflects strong operational profitability and cash flow resilience with robust cash flow generation. However, high leverage and negative equity on the balance sheet present significant risks, affecting financial stability.

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
	EBIT
1.33B	1.36B	1.35B	1.30B	860.00M	1.29B
	EBITDA
1.31B	1.41B	1.49B	1.49B	1.19B	1.41B
	Net Income Common Stockholders
793.00M	822.00M	908.00M	844.00M	410.00M	862.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
377.00M	634.00M	634.00M	452.00M	926.00M	1.33B
	Total Assets
5.11B	5.02B	5.36B	5.19B	5.58B	5.78B
	Total Debt
3.31B	3.21B	3.21B	3.41B	3.13B	2.94B
	Net Debt
2.93B	2.58B	2.57B	2.95B	2.21B	1.62B
	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: 66.73
• 50DMA: Positive
• 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 Positive. The current price of 66.73 is above the 20-day moving average (MA) of 62.55, above the 50-day MA of 65.55, and below the 200-day MA of 74.92, indicating a neutral trend. The MACD of 0.68 indicates Negative momentum. The RSI at 60.43 is Neutral, neither overbought nor oversold. The STOCH value of 72.42 is Neutral, 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	$16.63B	26.07	18.59%	0.95%	-0.42%	3.23%
SNA	71 Outperform	$17.35B	17.36	19.15%	2.41%	-0.88%	0.04%
BLDR	68 Neutral	$13.33B	15.49	19.62%	―	-5.49%	-33.51%
SWK	68 Neutral	$11.06B	30.35	4.03%	4.58%	-3.04%	―
POOL	67 Neutral	$12.06B	30.08	31.49%	1.50%	-3.56%	-16.75%
Sector *	64 Neutral	$4.44B	11.99	5.16%	249.23%	4.01%	-11.87%
MAS	64 Neutral	$14.08B	18.49	-118.61%	1.74%	-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.

Spark’s Take on MAS Stock

According to Spark, TipRanks’ AI Analyst, MAS is a Neutral.

Masco’s overall stock score reflects a mixed performance. Strong cash flows and operational profitability are key strengths, but financial instability due to high leverage and negative equity pose significant risks. The moderate P/E ratio and dividend yield provide a balanced view on valuation, while recent earnings call insights suggest challenges from tariffs and market uncertainty. Technical indicators show limited upward momentum, contributing to a cautious outlook.

To see Spark’s full report on MAS stock, click here.

Masco Appoints Heath M. Eisman as New CAO

On February 26, 2025, Masco Corporation announced the appointment of Heath M. Eisman as the Vice President, Controller, and Chief Accounting Officer, effective February 27, 2025. Eisman, who has been with Masco since 2014 as the Director of Financial Reporting, brings extensive experience from his previous roles at Caterpillar Inc. and PricewaterhouseCoopers. His compensation package includes a base salary of $310,000, eligibility for performance-based bonuses and equity awards, and other executive benefits. This strategic appointment is expected to strengthen Masco’s financial leadership and support its long-term growth objectives.