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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 driven by strong Q1 2026 earnings, which surpassed expectations due to pricing actions and cost-savings initiatives. These efforts helped offset higher tariff and commodity costs. The company's resilient plumbing division growth and robust balance sheet, which enables continued buybacks and a secure 1.9% dividend yield, are key positives. A solid Q1 performance, marked by margin gains and a focus on renovation, has led analysts to increase their forecasts. Additionally, Assetmark Inc. boosted its holdings in Masco by 17.2% during Q4, indicating growing investor confidence.

1.c. Company Highlights

2. Masco's Q1 2026: Strong Sales, Margin Gains, and Resilient Growth

Masco reported first‑quarter net sales up 6% (4% local currency) driven by favorable pricing, while operating profit climbed 13% to $324 million, lifting the margin to 16.9%—a 90‑basis‑point lift. Earnings per share hit $1.04, comfortably above the $0.88 estimate. The company trades at a P/E of 17.93, EV/EBITDA of 12.97, and boasts a ROIC of 26.31%, underscoring efficient capital deployment.

Publication Date: Apr -23

📋 Highlights
  • Sales & Profit Growth: Net sales rose 6% (4% in local currency), driven by pricing, while operating profit surged 13% to $324M, with margin expansion of 90 bps to 16.9%.
  • Regional Performance: North American sales grew 9% in local currency, led by Delta Faucet’s 7% Columbia product sales and strong trade, retail, and e-commerce growth.
  • Shareholder Returns: $267M returned to shareholders via dividends and buybacks, supported by strong cash flow, with $800M repurchase target now in place for 2026.
  • Margin Resilience: Plumbing segment operating profit rose 10% to $250M, with 10 bps margin expansion to 18.3%, despite headwinds like China’s weak market.
  • Outlook & Risks: Full-year sales guidance raised to low single-digit growth, with margin target set at ~17%, but tariffs and $6+/lb copper prices pose offsetting risks in H2 2026.

Pricing Power and Channel Strength

Columbia and Delta Faucet segments outperformed expectations, with Columbia sales up 7% and Delta delivering cross‑channel growth. North America saw a 9% sales rise, reflecting robust pricing actions and modest volume gains. The firm’s diversified retail, trade, and e‑commerce mix helped cushion commodity headwinds, sustaining margin expansion.

International Footprint and Tariff Dynamics

International plumbing sales edged up 1% as European markets, notably Germany, drove growth, while China’s weak demand tempered gains. Tariff shifts—particularly the February Section 232 and EBA rulings—offered some pricing relief, but copper and zinc cost surges offset this benefit, leaving the net impact largely flat for the year.

Capital Allocation and Shareholder Returns

Strong cash flow enabled a $267 million return to shareholders through dividends and share repurchases, with the share‑repurchase target raised to $800 million. The firm maintains a dividend yield of 1.69% and a free‑cash‑flow yield of 8.71%, signaling confidence in sustaining shareholder value amid ongoing market uncertainty.

Restructuring and Cost Discipline

Masco’s restructuring initiatives, costing $8 million in Q1 and projected $50 million for the year, have begun yielding cost savings. Footprint optimization, supply‑chain rationalization, and lean‑operations tactics have reduced SG&A to 19.1% of sales—80 basis points lower than the prior year—supporting margin resilience.

Outlook and Guidance

Management keeps its full‑year outlook steady, projecting low‑single‑digit sales growth and a margin expansion to roughly 17%. While macro‑economic uncertainty—war, tariffs, and volatile commodity prices—remains a risk, Masco’s pricing strategy and cost‑control measures position it to navigate potential headwinds and maintain profitability.

3. NewsRoom

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VMC Q1 Earnings & Revenues Beat Estimates on Pricing and Cost Control

Apr -29

Source: zacks.com

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EMCOR Q1 Earnings and Revenues Beat Estimates, Both Rise Y/Y, Stock Up

Apr -29

Source: zacks.com

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Masco: Now Is Not The Time To Turn Bullish Yet

Apr -29

Source: seekingalpha.com

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Robinhood Gets In-Principle Approval From MAS for Singapore Launch

Apr -27

Source: zacks.com

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Cwm LLC Sells 16,356 Shares of Masco Corporation $MAS

Apr -27

Source: defenseworld.net

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5 Early Q1 Earnings Winners Beating Expectations

Apr -24

Source: benzinga.com

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Here's How Masco Shocked the Market This Week

Apr -24

Source: fool.com

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Masco Analysts Increase Their Forecasts Following Strong Q1 Results

Apr -23

Source: benzinga.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

71.82$

Current Price

71.82$

Potential

-0.00%

Expected Cash-Flows