Masco logged a 0.2% change during today's morning session, and is now trading at a price of $49.82 per share. The S&P 500 index moved 0.0% and the Nasdaq posted a -0.0% change.
Masco shares moved -4.3% over the last 52 weeks, with a high of $58.18 and a low of $42.33. During this time, the stock outperformed the S&P 500 index by 6.0%. As of January 2022, the company's 50-day average price is $52.0. Masco Corporation designs, manufactures, and distributes home improvement and building products in North America, Europe, and internationally. The large-cap Industrials company has 19,000 full time employees and is based in Livonia, MI. Masco has returned a 2.3% dividend yield over the last 12 months.
Exceptional EPS Growth with Healthy Leverage Levels:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $6,707 | $7,188 | $8,375 | $8,680 |
| Revenue Growth | n/a | 7.17% | 16.51% | 3.64% |
| Gross Margins | 35.4% | 36.0% | 34.2% | 31.3% |
| Gross Margins Growth | n/a | 1.69% | -5.0% | -8.48% |
| Operating Margins | 16.4% | 18.0% | 17.3% | 15.2% |
| Operating Margins Growth | n/a | 9.76% | -3.89% | -12.14% |
| Net Margins | 13.94% | 17.03% | 4.87% | 9.75% |
| Net Margins Growth | n/a | 22.17% | -71.4% | 100.21% |
| Earnings Per Share | $3.22 | $4.59 | $1.62 | $3.73 |
| EPS Growth | n/a | 42.55% | -64.71% | 130.25% |
| Diluted Shares (MM) | 288 | 264 | 251 | 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 | 1.68 | 1.05 | 1.7 | 1.86 |
Masco Is Currently Fairly Valued:
Compared to the Industrials sector's average of 20.49, Masco has a trailing twelve month P/E ratio of 13.4 and, according to its EPS guidance of 3.71, an expected P/E ratio of 13.4. Masco's PEG ratio is 0.5 based on its 26.75% 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 1.02, which implies that the company's shares might in fact be fairly valued.
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.
Masco Is the Subject of Mixed Market Indicators:
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 $49.82, MAS is trading -13.4% away from its average analyst target price of $57.53 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 3.2% of the company's shares are tied to short positions. Institutions own 99.3% of Masco's shares, while the insider ownership rate stands at 0.32%. The biggest shareholder is the Vanguard Group, Inc. with a 11% stake in the company worth approximately $1,234,183,777.
