Masco (MAS) AI Stock Analysis

• Market Cap: $13.18B
• Dividend Yield: 2%
• Average Volume (3M): 2.02M
• Price to Earnings (P/E): 17.1
• Beta (1Y): 1.03
• Revenue Growth: -2.67%
• EPS Growth: -10.72%
• Country: US
• Employees: 18,000
• Sector: Industrials
• Sector Strength: 85
• Industry: Construction
• EPS (TTM): 0.87
• Shares Outstanding: 210,942,020
• 10 Day Avg. Volume: 1,779,186
• 30 Day Avg. Volume: 2,022,352
• PEG Ratio: 0.10
• Price to Book (P/B): -41.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.50
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 4.92
• Enterprise Value/Ebitda: 2.46
• 1Y Price Target: $68.94
• Price Target Upside: 12.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 65 Neutral
• Price Target: $66.00 ▲(7.98%Upside)

Masco's stock score reflects its strong profitability and cash flow resilience, offset by balance sheet vulnerabilities and mixed technical indicators. Governance enhancements and a reasonable valuation are positive factors, while tariff impacts and segment declines present risks.

Positive Factors

Cost Mitigation

Mitigation strategies, including pricing and cost savings, are expected to offset a significant portion of tariff-related costs.

Financial Performance

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

Gross Margin

Gross margin improved slightly compared to the previous year and estimates, marking a positive turnaround.

Negative Factors

Demand Trends

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

Sales Performance

Core sales in the Decorative Architectural segment missed expectations, indicating softness in the market.

Tariffs Impact

The company is pulling FY25 guidance due to tariff and macroeconomic uncertainty.

Masco Business Overview & Revenue Model

Company Description

Masco Corporation is a global leader in the design, manufacture, and distribution of branded home improvement and building products. The company operates in two primary sectors: Plumbing Products and Decorative Architectural Products. Masco's core products include faucets, kitchen and bath cabinets, paints and stains, showering and plumbing specialties, and decorative hardware. The company's well-known brands include Delta, Hansgrohe, Behr, and Kichler, which are widely recognized in both consumer and professional markets.

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 showcases strong operational profitability and cash flow resilience, but high leverage and negative equity on the balance sheet present risks. Income statement profitability is solid, but revenue is slightly declining.

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: Negative
• Last Price: 61.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 61.12 is below the 20-day moving average (MA) of 63.02, below the 50-day MA of 62.45, and below the 200-day MA of 73.30, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 42.22 is Neutral, neither overbought nor oversold. The STOCH value of 12.69 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
PNR	78 Outperform	$16.08B	25.21	18.59%	1.02%	-0.42%	3.23%
SNA	74 Outperform	$16.33B	16.34	19.15%	2.74%	-0.88%	0.04%
BLDR	70 Outperform	$12.35B	14.34	19.62%	―	-5.49%	-33.51%
SWK	66 Neutral	$10.17B	27.93	4.03%	4.99%	-3.04%	―
Sector *	66 Neutral	$4.49B	12.22	5.40%	3.71%	4.17%	-11.97%
POOL	65 Neutral	$10.92B	27.24	31.49%	1.72%	-3.56%	-16.75%
MAS	65 Neutral	$13.18B	17.08	-118.61%	2.00%	-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.