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1. Company Snapshot

1.a. Company Description

Masco Corporation designs, manufactures, and distributes home improvement and building products in North America, Europe, and internationally.The company's Plumbing Products segment offers faucets, showerheads, handheld showers, valves, bath hardware and accessories, bathing units, shower bases and enclosures, sinks, toilets, acrylic tubs, shower trays, spas, exercise pools, and fitness systems; brass, copper, and composite plumbing system components; connected water products; thermoplastic solutions, extruded plastic profiles, specialized fabrications, and PEX tubing products; and other non-decorative plumbing products.This segment provides its products under the DELTA, BRIZO, PEERLESS, HANSGROHE, AXOR, KRAUS, EASY DRAIN, STEAMIST, ELITESTEAM, GINGER, NEWPORT BRASS, BRASSTECH, WALTEC, BRISTAN, HERITAGE, MIROLIN, HOT SPRING, CALDERA, FREEFLOW SPAS, FANTASY SPAS, ENDLESS POOLS, BRASSCRAFT, PLUMB SHOP, COBRA, COBRA PRO, and MASTER PLUMBER brands.


Its Decorative Architectural Products segment offers paints, primers, specialty coatings, stains, and waterproofing products, as well as paint applicators and accessories; cabinet and door hardware, functional hardware, wall plates, hook and rail products, closet organization systems, and picture hanging accessories; decorative bath hardware, mirrors, and shower accessories and doors; and decorative indoor and outdoor lighting fixtures, ceiling fans, landscape lighting, and LED lighting systems.This segment provides its products under the BEHR, KILZ, WHIZZ, Elder & Jenks, LIBERTY, BRAINERD, FRANKLIN BRASS, KICHLER, and ÉLAN brands.It sells its products to the plumbing, heating, and hardware wholesalers; home centers and online retailers; hardware stores; electrical and landscape distributors; lighting showrooms; building supply outlets; and other mass merchandisers.


Masco Corporation was incorporated in 1929 and is headquartered in Livonia, Michigan.

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1.b. Last Insights on MAS

Masco Corporation's recent performance was positively driven by strong Q2 earnings, with EPS of $1.3 per share beating estimates, and revenue surpassing expectations. The company's plumbing products segment saw a 5% increase in net sales. Additionally, Masco's focus on operational efficiencies and disciplined capital allocation has positioned it for long-term success. Its strong brands and consistent free cash flow also contribute to its positive outlook. A recent analysis highlights Masco as a quality company trading at a depressed valuation, offering a margin of safety and downside protection.

1.c. Company Highlights

2. Masco's Q3 2025 Earnings: A Mixed Bag

Masco Corporation reported a 3% decline in net sales in local currency for Q3 2025, with operating profit margin coming in at 16.3%. Earnings per share (EPS) for the quarter was $0.97, missing estimates of $1.02. The company's Plumbing segment saw a 1% increase in sales, driven by favorable pricing, while the Decorative Architectural segment experienced a 12% decrease in sales, or 6% excluding the Kichler divestiture. The company's operating profit was $312 million, and it generated strong free cash flow, returning $188 million to shareholders through dividends and share repurchases.

Publication Date: Nov -03

📋 Highlights
  • Net Sales & Profit:: Q3 net sales down 3% (2% ex-Kichler), operating profit $312M (16.3% margin), EPS $0.97.
  • Segment Performance:: Plumbing up 1% (Delta driven by e-commerce/trade), Decorative Architectural down 12% (6% ex-Kichler).
  • Shareholder Returns:: $188M returned via dividends/share buybacks; full-year EPS guidance $3.90–$3.95.
  • Tariff Impact:: $270M annualized cost (Q3 impact $15M), $500M allocated for buybacks/acquisitions in 2025.
  • Delta Growth:: 25% new product vitality rate over 3 years, e-commerce/wholesale growth driving Plumbing segment.

Segment Performance

The Plumbing segment delivered strong performance in e-commerce and trade, driven by Delta Faucet. The Decorative Architectural segment, however, was impacted by the Kichler divestiture and softer industry demand. The company's best brands, such as Brizo and Hansgrohe, are performing well, with a bifurcation in the market between upper premium and luxury. As Jon Nudi, President and CEO, reflected on his first 100 days, he highlighted the company's strong foundation, industry-leading brands, and talented people, which are expected to drive long-term growth.

Tariff Impact and Mitigation

The company faced a significant impact from tariffs, with a $15 million impact in Q3 and an additional $10 million incremental impact expected in Q4. Masco expects to mitigate these costs through cost reductions, sourcing footprint changes, and pricing actions. The company has a $450 million underlying cost of goods sold from China and a $140 million impact from tariffs, with a hypothetical 10% reduction in tariffs potentially resulting in a $50 million annualized impact.

Outlook and Valuation

Masco anticipates adjusted EPS to be in the range of $3.90 to $3.95 per share for the full year, considering the impacts from the third quarter results, higher tariffs, and softer industry demand. The company's guidance includes a consolidated sales decline of low single digits. With a P/E Ratio of 16.44 and an EV/EBITDA of 12.68, the market appears to be pricing in a moderate growth outlook. Analysts estimate next year's revenue growth at 2.8%, which is relatively modest. The company's strong free cash flow yield of 8.45% and dividend yield of 1.88% provide a relatively attractive return profile.

Capital Allocation

Masco expects to deploy approximately $500 million towards share repurchases or acquisitions in 2025, with over $350 million returned to shareholders in the first three quarters. The company sees a favorable cash tax benefit from the recent tax bill and will utilize cash for share repurchases or M&A activity, indicating a commitment to returning value to shareholders.

3. NewsRoom

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Creative Planning Sells 3,462 Shares of Masco Corporation $MAS

Nov -24

Source: defenseworld.net

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Candriam S.C.A. Sells 8,355 Shares of Masco Corporation $MAS

Nov -18

Source: defenseworld.net

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Alberta Investment Management Corp Has $2.78 Million Position in Masco Corporation $MAS

Nov -17

Source: defenseworld.net

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Masco Corporation (MAS) Presents at Baird 55th Annual Global Industrial Conference Transcript

Nov -12

Source: seekingalpha.com

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Y Intercept Hong Kong Ltd Trims Position in Masco Corporation $MAS

Nov -04

Source: defenseworld.net

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Behr Paint Company Launches BEHR PREMIUM PLUS® ECOMIX™ Plant-Based* Paint & Primer

Nov -03

Source: prnewswire.com

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Masco Corporation to Participate in a Fireside Chat at an Investor Conference

Nov -03

Source: businesswire.com

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Janus International Group (NYSE:JBI) & Masco (NYSE:MAS) Financial Analysis

Nov -03

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.96%)

6. Segments

Plumbing Products

Expected Growth: 2.8%

Masco Corporation's Plumbing Products segment growth of 2.8% is driven by increasing demand for repair and remodel activities, fueled by an aging housing stock and rising homeownership rates. Additionally, growth in new construction and commercial building projects, as well as the adoption of water-efficient and smart plumbing products, contribute to the segment's expansion.

Decorative Architectural Products

Expected Growth: 3.2%

Masco Corporation's Decorative Architectural Products segment growth of 3.2% is driven by increasing demand for home renovation and remodeling, fueled by rising disposable incomes and aging housing stock. Additionally, the company's focus on innovative products, such as smart home solutions and water-conserving fixtures, is contributing to growth.

7. Detailed Products

BEHR Paint

BEHR is a leading manufacturer of paints, stains, and specialty coatings for the DIY and professional markets.

Delta Faucet

Delta Faucet is a leading manufacturer of faucets, shower systems, and other plumbing fixtures for the kitchen and bath.

Briggs & Stratton

Briggs & Stratton is a leading manufacturer of outdoor power equipment, including generators, pressure washers, and lawn and garden equipment.

Liberty Hardware

Liberty Hardware is a leading manufacturer of decorative hardware, including knobs, handles, and other decorative accessories for cabinets and furniture.

Merillat Cabinets

Merillat Cabinets is a leading manufacturer of semi-custom and custom cabinets for the kitchen, bath, and other rooms.

Milgard Windows & Doors

Milgard Windows & Doors is a leading manufacturer of windows, doors, and skylights for the residential and commercial markets.

8. Masco Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Masco Corporation's products are moderately substitutable, as customers have some alternatives, but they are not easily replaceable.

Bargaining Power Of Customers

Masco Corporation's customers have limited bargaining power due to the company's strong brand presence and diversified product offerings.

Bargaining Power Of Suppliers

Masco Corporation's suppliers have moderate bargaining power, as the company relies on a few key suppliers, but has some flexibility in its supply chain.

Threat Of New Entrants

The threat of new entrants is low for Masco Corporation, as the company has established a strong market presence and has significant barriers to entry.

Intensity Of Rivalry

The intensity of rivalry in the industry is high, with many established players competing for market share, but Masco Corporation's strong brand and diversified product offerings help it maintain a competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 104.09%
Debt Cost 4.26%
Equity Weight -4.09%
Equity Cost 10.38%
WACC 4.01%
Leverage -2544.44%

11. Quality Control: Masco Corporation passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Armstrong World Industries

A-Score: 5.9/10

Value: 2.2

Growth: 5.9

Quality: 8.0

Yield: 2.0

Momentum: 8.5

Volatility: 9.0

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Masco

A-Score: 5.4/10

Value: 6.5

Growth: 5.9

Quality: 6.0

Yield: 4.0

Momentum: 2.5

Volatility: 7.7

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A-Score: 4.9/10

Value: 3.1

Growth: 7.9

Quality: 7.5

Yield: 1.0

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Installed Building Products

A-Score: 4.8/10

Value: 2.9

Growth: 9.0

Quality: 5.6

Yield: 2.0

Momentum: 5.0

Volatility: 4.0

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GMS

A-Score: 4.7/10

Value: 4.4

Growth: 7.6

Quality: 4.1

Yield: 0.0

Momentum: 6.5

Volatility: 5.7

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Carlisle

A-Score: 4.5/10

Value: 4.0

Growth: 8.0

Quality: 5.2

Yield: 2.0

Momentum: 1.0

Volatility: 6.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

63.2$

Current Price

63.2$

Potential

-0.00%

Expected Cash-Flows