Masco (MAS) AI Stock Analysis

• Market Cap: $14.66B
• Dividend Yield: 1.73%
• Average Volume (3M): 2.23M
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.93
• 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: 2,757,057
• 30 Day Avg. Volume: 2,232,561
• 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: 1.14
• Enterprise Value/Revenue: 2.17
• Enterprise Value/Gross Profit: 5.99
• Enterprise Value/Ebitda: 13.44
• 1Y Price Target: $77.50
• Price Target Upside: 10.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 64 Neutral
• Price Target: $75.00 ▲(6.55% Upside)

Masco's strong cash flow and operational efficiency are offset by financial instability due to high debt levels. Technical indicators suggest caution with potential bearish momentum. The valuation is moderate, providing limited upside potential. The earnings call highlights operational strengths but also notes significant challenges in certain segments.

Positive Factors

Strong Cash Flow Generation

Strong cash flow generation indicates effective cash management and liquidity, enabling Masco to invest in growth opportunities and return capital to shareholders.

Plumbing Segment Growth

Growth in the plumbing segment showcases Masco's ability to leverage strong brands and pricing strategies, supporting long-term revenue stability.

Innovative Product Development

The launch of ChatHUE reflects Masco's commitment to innovation, enhancing customer experience and potentially driving higher sales in the decorative segment.

Negative Factors

High Debt Levels

High debt levels and negative equity can limit financial flexibility, posing risks to long-term financial stability and operational resilience.

Sales Decline in Decorative Segment

Declines in the decorative segment highlight challenges in maintaining market share and revenue growth, impacting overall company performance.

Geopolitical and Tariff Challenges

Ongoing geopolitical and tariff challenges increase operational costs and complexity, potentially affecting profitability and market competitiveness.

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 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: 70.39
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 70.39 is below the 20-day moving average (MA) of 72.68, below the 50-day MA of 71.53, and above the 200-day MA of 69.24, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 42.16 is Neutral, neither overbought nor oversold. The STOCH value of 18.41 is Positive, 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	80 Outperform	$8.38B	28.68	35.33%	0.63%	15.59%	23.46%
WMS	75 Outperform	$10.73B	24.91	21.03%	0.49%	0.24%	-12.68%
OC	69 Neutral	$11.80B	37.19	6.45%	1.89%	13.08%	-67.65%
CSL	66 Neutral	$14.28B	18.56	38.02%	1.25%	1.37%	5.96%
MAS	64 Neutral	$14.66B	18.60	-118.61%	1.73%	-2.73%	-8.31%
BLDR	59 Neutral	$13.22B	18.41	18.10%	―	-6.39%	-42.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Masco Corporate Events

Masco Announces Agreement with Retired CEO Allman

Masco Corporation announced an agreement with its former President and CEO, Keith J. Allman, following his retirement on July 8, 2025. Under this agreement, Mr. Allman will receive a prorated 2025 cash bonus, a cash equivalent of a 2025 restricted stock unit award, and potential share awards under the 2023-2025 and 2024-2026 Long-Term Incentive Programs, contingent upon meeting performance goals.