The Futility of Masco Corporation (NYSE:MAS)’s Fundamentals

Masco Corporation (NYSE:MAS) has a beta of 1.35, a 12-month trailing P/E ratio of 20.94, and a growth ratio of 1.22. The stock’s Relative Strength Index (RSI) is 52.63, with weekly volatility at 2.32% and ATR at 1.23. The MAS stock’s 52-week price range has touched low of $27.04 and a $60.16 high. Its shares traded lower over the last trading session, losing -2.47% on 12/29/20. The shares fell to a low of $55.32 before closing at $55.39. Intraday shares traded counted 1.52 million, which was 24.55% higher than its 30-day average trading volume of 2.02M. MAS’s previous close was $56.79 while the outstanding shares total 261.00M.

Investors have identified the Building Products & Equipment company Masco Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $14.35 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Masco Corporation (MAS) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 3.49 billion total, with 1.74 billion as their total liabilities.

MAS were able to record 501.0 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 629.0 million. In cash movements, the company had a total of 573.0 million as operating cash flow.

Potential earnings growth for Masco Corporation (MAS)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Masco Corporation recorded a total of 1.98 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 13.46% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 11.04%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.23 billion trying to sell their products during the last quarter, with the result yielding a gross income of 752.0 million. This allows shareholders to hold on to 261.00M with the recently reported earning now reading 1.05 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (1.04 cents a share).

Having a look at the company’s valuation, the company is expected to record 3.23 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on MAS sounds very interesting.

Is the stock of MAS attractive?

In related news, VP, Masco Operating Sys., McDowell Scott E. sold 2,283 shares of the company’s stock in a transaction that recorded on Nov 11. The sale was performed at an average price of 54.18, for a total value of 123,696. As the sale deal closes, the VP, Masco Operating Sys., McDowell Scott E. now sold 3,000 shares of the company’s stock, valued at 163,731. Also, Director, Parfet Donald R sold 3,783 shares of the company’s stock in a deal that was recorded on Nov 02. The shares were price at an average price of 54.44 per share, with a total market value of 205,934. Following this completion of acquisition, the President and CEO, Allman Keith J. now holds 10,000 shares of the company’s stock, valued at 578,761. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.

11 out of 20 analysts covering the stock have rated it a Buy, while 7 have maintained a Hold recommendation on Masco Corporation. 0 analysts has assigned a Sell rating on the MAS stock. The 12-month mean consensus price target for the company’s shares has been set at $66.19.

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