Rating Change #9
Masco Corporation (MAS) has been upgraded by TheStreet Ratings from sell to hold. The company's strongest point has been its solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Building Products industry. The net income has significantly decreased by 557.1% when compared to the same quarter one year ago, falling from -$7.00 million to -$46.00 million.
- The gross profit margin for MASCO CORP is currently lower than what is desirable, coming in at 28.20%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.60% trails that of the industry average.
- MASCO CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, MASCO CORP reported poor results of -$2.99 versus -$0.40 in the prior year. This year, the market expects an improvement in earnings ($0.20 versus -$2.99).
- MAS, with its decline in revenue, slightly underperformed the industry average of 0.8%. Since the same quarter one year prior, revenues slightly dropped by 4.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
Masco Corporation manufactures, distributes, and installs home improvement and building products in North America and Europe. Masco has a market cap of $5.1 billion and is part of the industrial goods sector and materials & construction industry. Shares are up 12.6% year to date as of the close of trading on Wednesday.You can view the full Masco Ratings Report or get investment ideas from our investment research center.
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