Masco logged a -0.61% change during today's afternoon session, and is now trading at a price of $51.05 per share. The S&P 500 index moved -0.23% and the Nasdaq posted a 0.1% change.
Masco shares moved -3.03% over the last 52 weeks, with a high of $57.21 and a low of $41.84. During this time, the stock outperformed the S&P 500 index by 3.25%. As of January 2022, the company's 50-day average price is $52.0. Masco Corporation is a manufacturer of products for the home improvement and new home construction markets. The large-cap Industrials company is based in Livonia, MI. Masco has returned a 2.23% dividend yield over the last 12 months.
Snapshot of the Company's Operating Margins Consistently Higher Than the 11.13% Industry Average:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $6,846 | $7,636 | $7,915 | $8,568 |
| Revenue Growth | n/a | 11.54% | 3.65% | 8.25% |
| Gross Margins | 34.63% | 33.88% | 36.17% | 31.66% |
| Gross Margins Growth | n/a | -2.17% | 6.76% | -12.47% |
| Operating Margins | 15.89% | 16.96% | 17.75% | 15.14% |
| Operating Margins Growth | n/a | 6.73% | 4.66% | -14.7% |
| Earnings Per Share | $3.39 | $4.74 | $1.7 | $3.75 |
| EPS Growth | n/a | 39.82% | -64.14% | 120.59% |
| Diluted Shares (MM) | 276 | 258 | 241 | 225 |
| Free Cash Flow (MM) | $671 | $839 | $802 | $616 |
| FCF Growth | n/a | 25.04% | -4.41% | -23.19% |
| Capital Expenditures (MM) | $162 | $114 | $128 | $224 |
| Net Debt / EBITDA | 1.56 | 0.89 | 2.23 | 2.16 |
Masco Is Reasonably Priced:
Compared to the Industrials sector's average of 20.49, Masco has a trailing twelve month P/E ratio of 14.29 and, according to its EPS guidance of 3.72, an expected P/E ratio of 13.94. Masco's PEG ratio is 0.54 based on its 26.4% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by Masco's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 1.1, which implies that the company's shares might in fact be fairly valued.
Masco's P/B ratio is 259.51 compared to its sector average of 3.78. The company is likely overvalued in terms of its equity.
Masco's elevated P/B ratio notwithstanding, the company's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued.
15 analysts are following Masco and have set target prices ranging from $45.0 to $70.0 per share. On average, they have given the company a rating of hold. At the current price of $51.87, MAS is trading -9.84% away from its average analyst target price of $57.53 per share, implying an analyst consensus of some upside potential for the stock.
