Masco Corporation Stock Upgraded (MAS)
NEW YORK (
)
(NYSE:
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Building Products industry. The net income increased by 820.0% when compared to the same quarter one year prior, rising from -$5.00 million to $36.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.5%. Since the same quarter one year prior, revenues slightly increased by 2.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MASCO CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth 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 ($0.06 versus -$2.99).
- The gross profit margin for MASCO CORP is currently lower than what is desirable, coming in at 27.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.80% trails that of the industry average.
- Net operating cash flow has decreased to $126.00 million or 25.44% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
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Masco Corporation manufactures, distributes, and installs home improvement and building products for home improvement and new home construction markets principally in North America and Europe. Masco has a market cap of $4.37 billion and is part of the
sector and
industry. Shares are up 23.3% year to date as of the close of trading on Monday.
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-- Written by a member of TheStreet RatingsStaff
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