Masco Corp (MAS) stock analysis

P/E above its 5-year median

Masco's P/E of 18.4 is above its own 5-year median of 17.8.

P/E below the industry

Masco's P/E of 18.4 is below the Fabricated Metal Products, except Machinery and Transportation Equipment median of 22.3.

EV/EBITDA above its 5-year median

Masco's EV/EBITDA of 12.6 is above its 5-year median of 11.2.

P/S above the industry

Masco's price-to-sales of 2.13 is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 1.76 (book value is negative, so we use sales).

Trading above fair value

The share price of $84.91 is above our fair value estimate of $81.37.

Margin of safety under 20%

The price is 4.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -4.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 2.1% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 12.0% over the last twelve months, against a 5-year average of -7.9% a year.

Growing slower than the industry

Revenue grew 0.9% over the last twelve months; the Fabricated Metal Products, except Machinery and Transportation Equipment median is 10.2%.

Guidance raised

Masco raised its 2026 earnings per share outlook on Jul 29, 2026.

Gross margin improving

Gross margin was 37.6% over the last twelve months, against 35.6% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 46.6%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings shrank over 5 years

Net income shrank 7.9% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 12.1% over the last twelve months, against a 5-year average of 9.4%.

Net margin above the industry

Masco's net margin of 12.1% is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 4.5%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 37.2% of total debt.

Interest well covered

Operating income covers interest expense 12.8 times.

Short-term assets cover short-term debts

Current assets are 1.83 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.13; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Masco paid dividends worth 1.1% of the share price over the last twelve months.

Yield below Treasuries

The 1.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Masco yields 1.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 27.5% of net income.

Covered by free cash flow

Dividends take 24.4% of free cash flow.