MasTec (MTZ) AI Stock Analysis

• Market Cap: $12.79B
• Dividend Yield: N/A
• Average Volume (3M): 770.37K
• Price to Earnings (P/E): 59.8
• Beta (1Y): 1.53
• Revenue Growth: 3.03%
• EPS Growth: N/A
• Country: US
• Employees: 32,000
• Sector: Industrials
• Sector Strength: 85
• Industry: Engineering & Construction
• EPS (TTM): 0.51
• Shares Outstanding: 78,902,756
• 10 Day Avg. Volume: 656,922
• 30 Day Avg. Volume: 770,371
• PEG Ratio: -2.13
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 71.87
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 6.38
• Enterprise Value/Ebitda: 2.62
• 1Y Price Target: $175.17
• Price Target Upside: 7.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 73 Outperform
• Price Target: $176.00 ▲(7.59%Upside)

MasTec's overall score is driven by strong earnings performance and bullish technical indicators. The high P/E ratio and increased leverage present risks, while the earnings call's positive outlook supports optimism.

Positive Factors

Investment Opportunity

The company is trading at a discount compared to peers, offering potential upside with large transmission project awards and pipeline performance as catalysts for share growth.

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.

Negative Factors

Clean Energy Segment

The lone sore spot has been its Clean Energy & Infrastructure segment, which had a rocky history.

Pipeline Revenue

Pipeline revenue is guided down reflecting the absence of MVP.

Sales Guidance

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 makes money through its diverse range of services in the infrastructure sector. The company's revenue model is primarily based on service contracts with clients across its key sectors. In the energy sector, MasTec earns revenue by constructing and maintaining electrical transmission and distribution networks, as well as renewable energy facilities such as wind and solar farms. In the oil and gas sector, it generates income from building and maintaining pipelines and related facilities. For communications, the company installs and maintains wireless and wireline networks, catering to telecommunications companies. MasTec's earnings are significantly influenced by its ability to secure large-scale contracts and maintain long-term relationships with its clients. Additionally, strategic partnerships and acquisitions help expand its market reach and enhance its service offerings, contributing to its financial performance.

MasTec Financial Statement Overview

Summary

MasTec shows strong revenue growth and operational efficiency, with a robust asset base. However, the increased leverage and inconsistent net profit margins warrant attention.

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: 163.59
• 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 163.59 is above the 20-day moving average (MA) of 158.31, above the 50-day MA of 141.36, and above the 200-day MA of 133.56, indicating a bullish trend. The MACD of 5.34 indicates Positive momentum. The RSI at 65.57 is Neutral, neither overbought nor oversold. The STOCH value of 79.36 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	80 Outperform	$14.82B	24.43	28.07%	0.93%	4.55%	―
APG	76 Outperform	$13.44B	93.84	9.09%	―	3.20%	―
PWR	76 Outperform	$53.09B	57.92	13.48%	0.11%	15.77%	19.58%
MTZ	73 Outperform	$12.79B	59.85	7.70%	―	3.03%	―
J	71 Outperform	$15.10B	34.72	8.46%	1.02%	-22.81%	-30.13%
FLR	70 Outperform	$8.37B	4.87	66.58%	―	7.16%	523.56%
Sector *	66 Neutral	$4.50B	12.26	5.40%	3.65%	4.17%	-12.02%

MasTec Corporate Events

MasTec Confirms Directors and Approves Key Proposals

On May 22, 2025, MasTec, Inc. held its Annual Meeting where shareholders voted on several key proposals. The election of C. Robert Campbell, Robert J. Dwyer, and Ava L. Parker as Class III directors was confirmed, with their terms set to last until the 2028 Annual Meeting. Additionally, the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the 2025 fiscal year was ratified, and a non-binding advisory resolution on executive compensation was approved.

The most recent analyst rating on (MTZ) stock is a Hold with a $120.00 price target. To see the full list of analyst forecasts on MasTec stock, see the MTZ Stock Forecast page.

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.