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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 its Q4 2025 earnings beat, with adjusted earnings surpassing the Zacks Consensus Estimate. Operating profit was $259 million, with an operating profit margin of 14.4%. The company's earnings per share came in at $0.82, beating the estimate of $0.78. Institutional investors, such as Atria Investments Inc, have increased their holdings, with a 31.8% boost in shares. Analysts have a consensus "Hold" rating on the stock, with 7 buy recommendations. The company's strategic growth initiatives and high-margin segments are expected to drive growth.

1.c. Company Highlights

2. Masco's Q4 Earnings: A Closer Look

In the fourth quarter, Masco Corporation's net sales decreased 2% or 3% in local currency, primarily due to lower volumes. Operating profit was $259 million, and operating profit margin was 14.4%. Earnings per share for the quarter was $0.82 per share, beating estimates of $0.78. For the full year 2025, net sales decreased 3% or 2% excluding the impacts of currency and the divestiture of Kichler. Operating profit was $1.3 billion, and operating profit margin was 16.8%. Earnings per share for the year was $3.96 per share.

Publication Date: Feb -18

📋 Highlights
  • Margin Expansion Target:: 2026 operating margin expected to expand to 17% from 16.8% in 2025, driven by tariff mitigation and cost savings.
  • Plumbing Segment Growth:: Full-year 2026 sales projected to rise low single digits, with margin target of 18% (up from 17.6% in 2025) due to pricing and efficiency gains.
  • China Tariff Reduction:: Exposure to China tariffs expected to drop by >60% to <$300M by 2026 exit, down from $450M in 2025.
  • Capital Allocation Strategy:: $600M allocated to share repurchases or acquisitions in 2026, alongside $190M in capex and $1.28/share dividend.
  • Decorative Market Share:: Pro paint sales at $950M with pro market share up >200 bps since 2019; margin target of 19% for 2026 (18.9% in 2025).

Segment Performance

The plumbing segment saw a decline in volumes, but the company expects to improve margins through pricing discipline and operational efficiencies. The decorative architectural segment remained strong, with Behr being rated number one in interior paint, exterior paint, and exterior stain in a third-party study. The company's pro paint business is expected to grow mid-single digits in 2026.

Guidance and Outlook

Masco expects sales across the global repair and remodel markets to be roughly flat in 2026. The company's guidance for 2026 is to be flat to up low single digits, with an operating margin expansion to approximately 17%. Earnings per share for 2026 is expected to be in the range of $4.10 to $4.30 per share. Analysts estimate next year's revenue growth at 3.3%.

Valuation Metrics

Masco's current P/E Ratio is 19.47, and its EV/EBITDA is 13.22. The company's ROE is -537.31%, which is not a reliable metric in this case. The dividend yield is 1.63%, and the free cash flow yield is 5.59%. These metrics indicate that the company is reasonably valued, with a moderate P/E Ratio and a relatively high free cash flow yield.

Tariff and Commodity Cost Mitigation

Masco has taken pricing actions to mitigate the impact of tariffs and commodity cost increases. The company expects mid-single-digit inflation in the plumbing segment due to copper prices. According to Jonathon Nudi, "If copper moves materially, we'll take action to mitigate the impact." The company is also working to reduce its exposure to tariffs, with an expected reduction in imports from China subject to reciprocal tariffs.

Capital Allocation

Masco expects to reinvest approximately $190 million in capital expenditures, pay a dividend of $1.28 per share, and deploy approximately $600 million toward share repurchases or acquisitions in 2026. The company's capital allocation framework remains unchanged, with a focus on investments in the business, capital expenditures, and a relevant dividend.

3. NewsRoom

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Masco (NYSE:MAS) and FBS Global (NASDAQ:FBGL) Head-To-Head Comparison

Feb -20

Source: defenseworld.net

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Illinois Municipal Retirement Fund Trims Stake in Masco Corporation $MAS

Feb -14

Source: defenseworld.net

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Atria Investments Inc Buys 25,608 Shares of Masco Corporation $MAS

Feb -14

Source: defenseworld.net

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Masco Corporation (NYSE:MAS) Given Average Recommendation of “Hold” by Analysts

Feb -13

Source: defenseworld.net

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Masco Corporation (MAS) Q4 2025 Earnings Call Transcript

Feb -10

Source: seekingalpha.com

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Masco Corp (MAS) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic Growth Initiatives

Feb -10

Source: gurufocus.com

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Masco Stock Up on Q4 Earnings Beat, Sales Miss Estimates

Feb -10

Source: zacks.com

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Compared to Estimates, Masco (MAS) Q4 Earnings: A Look at Key Metrics

Feb -10

Source: zacks.com

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: 5.7/10

Value: 2.2

Growth: 5.8

Quality: 8.0

Yield: 2.0

Momentum: 7.5

Volatility: 9.0

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Masco

A-Score: 5.6/10

Value: 6.8

Growth: 5.8

Quality: 6.2

Yield: 4.0

Momentum: 3.0

Volatility: 7.7

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Simpson Manufacturing Co

A-Score: 5.2/10

Value: 3.1

Growth: 7.8

Quality: 7.5

Yield: 1.0

Momentum: 4.5

Volatility: 7.3

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GMS

A-Score: 5.2/10

Value: 4.4

Growth: 7.4

Quality: 4.1

Yield: 0.0

Momentum: 7.5

Volatility: 7.7

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Installed Building Products

A-Score: 5.0/10

Value: 2.1

Growth: 9.0

Quality: 5.7

Yield: 2.0

Momentum: 7.0

Volatility: 4.3

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Carlisle

A-Score: 4.9/10

Value: 3.8

Growth: 8.0

Quality: 6.6

Yield: 2.0

Momentum: 2.0

Volatility: 7.0

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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

75.15$

Current Price

75.15$

Potential

-0.00%

Expected Cash-Flows