Masco Corporation (MAS) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Masco Corporation

Updated on October 3, 2026 · accounts published on July 29, 2026

Reading of October 3, 2026: A highly profitable business with steady margins and a dividend that keeps growing

Mas trades at a P/E of 15.7 over the last 12 months, 17 % below its ten-year median of 19.0 and 17 % below its sector median.

• Is Mas expensive or cheap? Its P/E of 15.7 sits 17 % below its ten-year median and has been lower only 12 % of the time in the last decade.
• How is the business doing? Operating margin of 18 % over the last 12 months tops its 2014-2025 average of 16 %, even as revenue slipped 3.4 %.
• How strong is the balance sheet? Net debt of 2.0× EBITDA in fiscal 2025 and an Altman Z of 3.9 keep Mas in the safe zone, with 11 years of dividend raises.
• What to expect from the next earnings? Mas reports on October 29, 2026; analysts expect EPS of $1.01, and the 2026 consensus has held at $4.53.
• Can the balance sheet ride out a cycle trough? Free cash flow covered the dividend 3.3 times in fiscal 2025, though the 6.8 % free cash flow yield misses the 8 % bar.

Is Mas expensive or cheap?

Over the last 12 months Mas trades at a P/E of 15.7. Its ten-year median is 19.0, and over the decade the P/E ranged from 12.9 to 32.8. That puts the stock in the cheapest eighth of its own history. The sector median P/E is 18.9, so Mas is also 17 % cheaper than its peers. EV/EBITDA of 11.0× is about 15 % below its seven-year average of 13.0×. A free cash flow yield of 6.8 % and an earnings yield of 6.3 % point the same way. The market has not rewarded it: the stock is down 3 % over 12 months and sits 19 % below its 52-week high of $82.77.

How is the business doing?

Revenue fell 3.4 % over the last 12 months, yet EPS rose 2.7 %, so profitability is doing the work. The operating margin of 18 % is above fiscal 2025 (17 %) and above the twelve-year average of 16 %. Returns stand out most. ROIC of 27 % over the last 12 months compares with a sector median of 8 %, and it has stayed above 10 % in each of the last ten fiscal years. Few companies in basic materials keep that up through a full decade. The ROE of −406 % comes from negative book equity and tells you little about the business. Here ROIC is the better gauge.

How strong is the balance sheet?

Net debt was $13.83 per share in fiscal 2025. That equals 20 % of the current price and 2.0× EBITDA, below the 3.0× ceiling considered healthy for basic materials. The Altman Z of 3.9 over the last 12 months is above the 2.99 safe-zone line, and a current ratio of 1.86 covers short-term obligations comfortably. The dividend yields 1.9 % and has risen for 11 consecutive fiscal years. In fiscal 2025 it took only 32 % of earnings. Book value is negative, so the P/B of −71.3× carries no valuation signal. The Piotroski score of 5 of 9 is middling.

What to expect from the next earnings?

The last report, on July 29, 2026, delivered EPS of $1.64 against $1.32 expected. That 24 % beat was the largest surprise of the last eight quarters. Mas has beaten EPS estimates in 5 of those 8 quarters, a good record but not a perfect one. For the quarter due on October 29, 2026, analysts expect $1.01, well below the July figure. The full-year 2026 EPS consensus has stayed at $4.53 over the last 18 days among 14 analysts, and revenue estimates have barely moved. Of the 38 analysts who cover the stock, 20 rate it a buy, 16 a hold and 2 a sell.

Can the balance sheet ride out a cycle trough?

Basic materials earnings follow raw-material cycles, so a plain P/E misleads at peaks and troughs. What counts is cost position and whether the dividend can survive a downturn. The fiscal 2025 gross margin of 35 % clears the healthy 30 % mark. Free cash flow covered the dividend 3.3 times, against a 1.3× threshold. Capex ran at 1.1× depreciation, inside the 0.8× to 1.5× range, so the payout is not being funded by cutting investment. The weak spot is the 6.8 % free cash flow yield over the last 12 months, below the 8 % healthy level. Net debt at 2.0× EBITDA uses current earnings, so the ratio would rise if EBITDA fell in a trough.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.