Masco Corporation
Find Ratings ReportsMASCO CORP's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. MASCO CORP has average liquidity. Currently, the Quick Ratio is 1.02 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 73.75% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 1882.0 | 1923.0 |
EBITDA ($mil) | 313.0 | 269.0 |
EBIT ($mil) | 272.0 | 234.0 |
Net Income ($mil) | 191.0 | 115.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 634.0 | 452.0 |
Total Assets ($mil) | 5363.0 | 5187.0 |
Total Debt ($mil) | 3250.0 | 3445.0 |
Equity ($mil) | -126.0 | -480.0 |
Profitability | Q4 FY23 | Q4 FY22 |
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Gross Profit Margin | 37.3 | 31.36 |
EBITDA Margin | 16.63 | 13.98 |
Operating Margin | 14.45 | 12.17 |
Sales Turnover | 1.49 | 1.67 |
Return on Assets | 16.93 | 16.27 |
Return on Equity | 0.0 | 0.0 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.69 | 1.56 |
Debt/Capital | 1.04 | 1.16 |
Interest Expense | 24.0 | 26.0 |
Interest Coverage | 11.33 | 9.0 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 220.6 | 225.3 |
Div / share | 0.29 | 0.28 |
EPS | 0.85 | 0.51 |
Book value / share | -0.57 | -2.13 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1934635.0 | 1797308.0 |
HOLD. The current P/E ratio indicates a significant discount compared to an average of 43.07 for the Fabricated Metal Product Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, MASCO CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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MAS 18.43 | Peers 43.07 | MAS 11.54 | Peers 25.53 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. MAS is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. MAS is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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MAS 16.08 | Peers 21.13 | MAS 6.75 | Peers 2.46 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. MAS is trading at a discount to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. MAS trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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MAS NM | Peers 5.58 | MAS 10.46 | Peers 31.55 | |||||||||||||||||||||
Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MAS's P/B is negative making this valuation measure meaningless. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, MAS is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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MAS 2.05 | Peers 3.60 | MAS -8.22 | Peers 9.90 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. MAS is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. MAS significantly trails its peers on the basis of sales growth. |
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