Masco Corp (MAS)
Fair ValueFundamental
77
Price
$67.40
Market Cap
$13.48B
Part 1 · What the company is worth
Overview
Masco Corporation designs, manufactures and distributes branded home improvement and building products, mostly for homes that already exist rather than for heavy construction projects. Its best known names are BEHR and KILZ paints and primers, DELTA, BRIZO, PEERLESS, HANSGROHE and AXOR faucets and showers, KRAUS sinks, LIBERTY cabinet and door hardware, and HOT SPRING spas. The company reports in two segments, Plumbing Products and Decorative Architectural Products, and sells through home center and online retailers, mass merchandisers, wholesalers and distributors, and to plumbers, remodelers, building contractors and homebuilders. Manufacturing and sales are international as well as domestic: the 10-K states that 20 percent of 2024 sales were made outside North America.
How it makes money
Masco earns money by selling physical products at a unit price, with no subscription or recurring-fee component: revenue is volume times price, and profit depends on the gap between selling prices and the cost of raw materials such as brass, copper, resins, titanium dioxide and zinc. A very large share of volume passes through a few big retailers rather than being sold directly to households, so shelf space, promotional programmes and retailer inventory decisions shape the reported numbers. The BEHR brand is sold in North America under an exclusive retail arrangement with The Home Depot, which the company describes as central to the coatings business. Net sales of architectural coatings were approximately 32 percent of consolidated net sales in 2024 (and also in 2023 and 2022), so paint is the single largest product line inside the group.
Revenue by segment
Faucets, showerheads and shower systems, bath hardware, bathing units, plumbing components, thermoplastic solutions, plus spas, exercise pools and saunas. Sold under DELTA, BRIZO, PEERLESS, HANSGROHE, AXOR, KRAUS and HOT SPRING to retailers, wholesalers and distributors, and to plumbers and contractors. Full-year 2024 net sales were $4,853 million.
Architectural coatings — paints, primers, stains and specialty products under BEHR and KILZ — together with cabinet and door hardware and bath accessories under LIBERTY. Sold mainly through home center retailers to do-it-yourself consumers and professional painters. Full-year 2024 net sales were $2,975 million, down 5 percent, partly because the Kichler lighting business was divested in the third quarter of 2024.
Competitive moat
Brand · NarrowMasco's durable advantage is brand recognition combined with retail shelf position. BEHR holds an exclusive retail arrangement with The Home Depot in North America, and DELTA and HANSGROHE are described in the filing as among the sales leaders in plumbing products in North America and Europe; consumers and contractors repeat-buy familiar names for products they install once and expect to last. The advantage is narrow, not wide, because the same filing lists intense competition on features, quality and price from Kohler, Moen, American Standard, Grohe, Benjamin Moore, Sherwin-Williams and PPG, plus low-cost foreign manufacturers, private label and digitally-native brands — and because the shelf that carries the brand belongs to a customer, not to Masco.
What drives demand
Moderately cyclicalDemand follows housing, but not the most violent part of it. Most of what Masco sells goes into homes that already exist — a faucet that failed, a room being repainted, cabinet handles being replaced — and that kind of spending keeps going through a soft patch better than new construction does, because a broken tap is not a postponable purchase. The cycle still shows up in three ways: the price and availability of credit changes how many houses are bought and renovated; bigger discretionary jobs (a full bathroom, and above all a spa or an exercise pool) get deferred when confidence falls; and the retailers in between adjust their own inventories, which can make a soft quarter look softer than end demand. The company's own framing in the 10-K is that results depend on repair and remodel activity and new home construction, driven by consumer confidence and spending, interest rates and housing inventory.
Key risks
- Dependence on home repair, remodel and new construction activity — The company states that its results depend on residential repair and remodel activity and new home construction, which are affected by economic cycles, consumer confidence and spending, interest rates, housing inventory and the availability of financing. A downturn in any of these reduces demand for its products.
- Concentration of sales in a few large customers — The filing discloses that net sales to The Home Depot were $3.0 billion in 2024, approximately 38 percent of consolidated net sales, and warns that the loss of, or a substantial reduction in orders from, a significant customer — or the end of the exclusive BEHR retail arrangement — would have a material adverse effect on the Decorative Architectural Products segment and on the company as a whole.
- Raw material cost volatility — Results depend on the cost and availability of raw materials including brass, copper, resins, titanium dioxide and zinc. The company notes it may not be able to pass cost increases through to customers in a timely way, or at all, which compresses margins.
- Supplier dependence and supply chain disruption — The company relies on third-party suppliers, in some cases single sources, and cites geopolitical events, labour shortages and severe weather among the causes of supply chain disruption that could interrupt production or delivery.
- International operations, trade policy and currency — With part of its business outside North America, the company is exposed to changes in trade relations and tariffs, local policy and regulation, and fluctuations in the euro, renminbi, Canadian dollar, pound sterling and Mexican peso, which affect both reported revenue and costs.
- Competition, including private label and low-cost imports — The company describes significant competition on product features, innovation, quality, customer service and price, from established branded rivals, foreign low-cost manufacturers, retailers' own private label lines and e-commerce entrants that make prices easy to compare.
- Cybersecurity and information systems — The company reports reliance on information systems and exposure to cyber attacks, including ransomware, that could interrupt the business, cause loss of data and damage its reputation, as well as risk from system failures and complex system implementations.
- Product liability, recalls and regulation — Masco faces product liability claims, class actions and regulatory proceedings, and the possibility of product recalls, with insurance that may not cover every exposure. It also lists compliance burdens across advertising, anti-corruption, environmental, data privacy, employment, product safety, tax and trade rules, and notes that new regulation may force product redesign or manufacturing changes.
Customer concentration
Top customers account for 38% of revenue
The 10-K states that 2024 net sales to The Home Depot were $3.0 billion, approximately 38 percent of consolidated net sales; no other customer reaches 10 percent, with Ferguson and Lowe's each below that threshold. The relationship is deeper than the number suggests, because BEHR paint is sold in North America under an exclusive retail arrangement with that one retailer. The figure given here is a single customer, not a top-five group.
The case for
Buyers argue that Masco sells small, repeatable, brand-led items into an enormous installed base of homes: paint, taps and handles are bought again and again regardless of how many new houses are built, and the buyer usually asks for a name rather than a specification. They point to the two-segment shape after the Kichler divestiture as a simpler, more focused company, to leading sales positions in plumbing in North America and Europe, and to the BEHR exclusive at the largest home-improvement retailer as a distribution position competitors cannot simply buy. They also argue that raw material costs — brass, copper, resins, titanium dioxide — move both ways, so the margin pressure of an expensive-input year can reverse, and that the repair-and-remodel skew makes the business less exposed to the housing-starts cycle than its Building Products label suggests.
The case against
Sellers fear the customer file above all: with approximately 38 percent of 2024 net sales going to one retailer and the BEHR brand tied to it by an exclusive arrangement, pricing, shelf space and inventory decisions sit largely on the other side of the table, and the company itself says losing that customer would be materially adverse. They point to 2024 as evidence that growth is not automatic — consolidated net sales fell 2 percent to $7,828 million, with the decorative segment down 5 percent on lower net selling prices and lower builders' hardware volume as well as the Kichler divestiture. Beyond that, they fear a demand base tied to interest rates and consumer confidence, competition from Sherwin-Williams, PPG and Benjamin Moore in coatings and Kohler, Moen, American Standard and Grohe in plumbing, retailers' own private label lines taking the value end of the shelf, low-cost imports and tariff exposure on an international footprint, and margins that depend on passing commodity costs through to customers who are large enough to resist.
Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users
Direct competitors
Who this company fights with for the same customers
Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users
Sherwin-Williams sells paints, primers, stains and waterproofing products — including the Valspar, Minwax, Thompson's Water Seal and Purdy lines — to the same do-it-yourself and professional painters that Masco's Behr and Kilz brands target in North America.
RPM's Rust-Oleum and Zinsser brands sit on the same home-centre shelves as Behr and Kilz, competing for the consumer's spending on primers, stains, sealers and speciality coatings.
Fortune Brands' Moen, Rohl and Riobel faucets fight Delta, Brizo and Peerless for the same North American kitchen and bath buyers, both in the big-box aisles and with plumbing wholesalers serving new construction.
Kohler is the other large American maker of faucets, showers, bathing units and shower enclosures, sold to the same homeowners, builders and remodelling contractors; it is privately held and has no listed shares.
LIXIL's Grohe and American Standard brands compete with Masco's Hansgrohe, Axor and Delta lines for the same faucet and bathroom fixture business in Europe, Asia and the Americas.
Zurn Elkay supplies faucets, sinks, flush valves and water-delivery fittings to the commercial and institutional buildings channel that Masco's plumbing brands also serve.
Balance Sheet & Liquidity
Revenue
$7.68B
Trailing 12 months (through 3/31/2026)
Net Income
$837M
Trailing 12 months (through 3/31/2026)
Free Cash Flow
$866M
Total Equity
$-185M
Total Liabilities
$5.13B
Current Ratio
1.75
Interest Coverage
12.65
Debt/EBITDA
2.27
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$66.03
Current Price
$67.40
Margin of Safety
-2.1%
Fair Value Range
$52.09 - $79.98
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
16.68
ROE
-437.8%
P/B Ratio
-
P/FCF
14.42
Gross Margin
35.4%
ROIC
28.2%
Profitability Radar
Value Creation (Economic Moat)
ROIC
28.2%
WACC
9.7%
ROIC − WACC
+18.6 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (19)
- EPS shows upward trend
- EPS CAGR 7.67%
- Price CAGR 8.04%
- ROIC 28.2%
- Gross Margin 35.4%
- P/FCF 14.42
- Operating Margin 16.6%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- ROE 279.8%
- Earnings Surprise avg 9.0%
- Earnings Quality (OCF/NI) 1.32
- Share Dilution -4.0%
- Net Margin Trend 10.9% vs 10.3%
- Piotroski F-Score 6/9
Failed (4)
- Low reliance on intangibles
- DCF valuation (Overvalued)
- Revenue Growth 5Y 1.0%
- Analyst Consensus 46% Buy
Unavailable (5)
- P/B Ratio NaN
- Dividend Payout NaN%
- Debt/Equity ratio
- Price below Graham Number
- PEG Ratio (need PE > 0 and growth > 0)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Jonathon J. Nudi | President, CEO & Director | 55 |
| Mr. Richard J. Westenberg | VP, CFO & Treasurer | 51 |
| Mr. Kenneth G. Cole J.D. | VP, General Counsel & Secretary | 59 |
| Renee Benedict | Vice President of Investor Relations & Corporate FP&A | - |
| Ms. Sue Sabo | Director of Corporate Communications | - |
| Mr. Zack Gordon | Vice President of Strategy, Corporate Development & Transformation | - |
| Mr. Brad Hiranaga | Chief Marketing Officer | - |
| Ms. Jennifer A. Stone | VP & Chief Human Resource Officer | 53 |
| Ms. Jill D. Ehnes | President of Delta Faucet Company & North America Plumbing | - |
| Mr. Steven Nikolopoulos | VP & Chief Procurement Officer | - |
Audit Risk
9
Board Risk
4
Compensation Risk
7
Shareholder Rights Risk
7
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-10
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-29
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-07-29
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for MAS, sourced from Markets Gazette.