MAS

Industrials

Masco

Price Chart

Market Data

Financials

XBRL · SEC EDGAR

2012–2025(14yr)

Revenue

Net Income

Free CF

Metric	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$7.7B	$8.2B	$8.5B	$7.1B	$7.4B	$7.6B	$8.4B	$6.7B	$7.2B	$8.4B	$8.7B	$8.0B	$7.8B	$7.6B	-3.4%
Gross Profit	$2.0B	$2.3B	$2.4B	$2.3B	$2.5B	$2.6B	$2.7B	$2.4B	$2.6B	$2.9B	$2.7B	$2.8B	$2.8B	$2.7B	-5.4%
Gross Margin	25.2%	27.6%	28.0%	31.5%	33.4%	34.2%	32.2%	35.4%	36.0%	34.2%	31.3%	35.6%	36.2%	35.4%	-0.7pp
Operating Income	$271.0M	$673.0M	$788.0M	$914.0M	$1.1B	$1.2B	$1.2B	$1.1B	$1.3B	$1.4B	$1.3B	$1.3B	$1.4B	$1.2B	-8.4%
Operating Margin	3.5%	8.2%	9.2%	12.8%	14.3%	15.3%	14.5%	16.2%	18.0%	16.8%	14.9%	16.9%	17.4%	16.5%	-0.9pp
Net Income	-$114.0M	$272.0M	$856.0M	$355.0M	$491.0M	$533.0M	$734.0M	$935.0M	$1.2B	$410.0M	$844.0M	$908.0M	$822.0M	$810.0M	-1.5%
Net Margin	-1.5%	3.3%	10.0%	5.0%	6.7%	7.0%	8.8%	13.9%	17.0%	4.9%	9.7%	11.4%	10.5%	10.7%	+0.2pp
Free Cash Flow	$162.0M	$519.0M	$474.0M	$541.0M	$546.0M	$578.0M	$813.0M	$671.0M	$839.0M	$802.0M	$616.0M	$1.2B	$907.0M	$866.0M	-4.5%
FCF Margin	2.1%	6.4%	5.6%	7.6%	7.4%	7.6%	9.7%	10.0%	11.7%	9.6%	7.1%	14.7%	11.6%	11.5%	-0.1pp
EPS (Diluted)	$-0.33	$0.76	$2.38	$1.02	$1.47	$1.66	$2.37	$3.22	$4.59	$1.62	$3.63	$4.02	$3.76	$3.86	+2.7%

Total Debt$2.9B

Cash & Equiv.$647.0M

Net Debt$2.3B

3 min read

1. THE BIG PICTURE

Masco is a story of high-quality brands operating in a low-growth environment. While Masco holds dominant positions in paint and plumbing through Behr and Delta, it is currently struggling to find organic growth, with revenues declining as it navigates a cooling remodeling market. Success now depends on whether management can use aggressive restructuring and share buybacks to manufacture earnings growth while waiting for the housing cycle to turn.

2. WHERE THE RISKS HIT HARDEST

Masco’s "powerful brands" are its greatest strength, yet this competitive advantage is structurally threatened by extreme customer concentration. Because The Home Depot accounts for $2.9 billion, or 38 percent, of consolidated net sales, Masco’s brand leverage is effectively capped by the bargaining power of a single retailer (10-K Item 1). Furthermore, Masco’s push into "connected water products" and high-end plumbing is directly threatened by rising input costs for brass, copper, and zinc. These costs are exacerbated by international duties and tariffs, which create a margin squeeze that Masco may be unable to offset through price increases alone (10-K Item 1).

3. WHAT THE NUMBERS SAY TOGETHER

The financial data reveals a business in transition, where aggressive capital allocation is being used to mask a top-line slowdown. While Masco leads its peer group in buyback yield at 4.2 percent, it ranks last in revenue growth at -3.4 percent (XBRL). This divergence suggests that management is prioritizing share retirement to support EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric as organic demand softens. The fourth quarter of 2025 highlighted a widening gap between segments: Plumbing grew 5 percent, but Decorative Architectural Products—which includes the Behr paint brand—collapsed by 15 percent (8-K).

This sharp decline in the decorative segment accounts for the divergence between Masco’s long-term brand narrative and its current shrinking revenue. With short interest sitting at 4.8 percent of the float, a segment of the market remains skeptical that Masco can quickly reverse these volume declines (Yahoo Finance).

4. IS IT WORTH IT AT THIS PRICE?

At 13.8x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Masco trades at a 29 percent discount to the peer median of 19.3x (XBRL). This discount is a direct reflection of Masco’s position as the slowest-growing company in its peer group. The market is currently pricing in approximately 4.1 percent long-term growth (CAPM analysis).

Whether this price is "right" depends entirely on Masco’s ability to execute its restructuring plan. Masco is currently guiding for "roughly flat" sales in 2026, which falls short of the market’s implied growth requirement (8-K). If growth were to slow further to a GDP-pace of 2.5 percent, the justified multiple would drop to 11.3x, suggesting significant downside if the remodeling market does not recover (CAPM analysis). The stock appears attractively valued only if one believes the $50 million restructuring program will successfully pivot Masco back to margin expansion despite flat sales.

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if Decorative Architectural Products sales do not stabilize in the first half of 2026, or if net leverage (currently 2.7x) increases significantly to fund continued buybacks.
Constructive if the Plumbing segment’s 5 percent growth accelerates or if Masco reports a significant reduction in raw material costs for resins and titanium dioxide.

6. BOTTOM LINE

Structural Advantage: Massive brand equity in category-leading names like Behr and Delta, supported by a dominant distribution partnership with the world’s largest home improvement retailer.

Bottom Line: Masco is an attractively valued cash cow for patient investors, but it will remain a laggard until it can prove that its restructuring can overcome a stagnant housing market.

Source: Synthesis · LLM Analysis

3 min read

1. Top 5 Material Risks

Customer Concentration: Masco relies heavily on The Home Depot, which accounted for $2.9 billion, or approximately 38 percent, of consolidated net sales in 2025. The loss of this customer or a significant reduction in their purchase volume would have a material adverse impact on Masco.
Economic Sensitivity: Masco’s performance is tied to residential repair, remodeling, and new home construction. Economic contractions or recessions can lead to declines in these activities, negatively impacting Masco’s results of operations.
Supply Chain and Cost Volatility: Masco faces risks from the cost and availability of raw materials like brass, copper, resins, titanium dioxide, and zinc. Increased duties and tariffs, particularly in the Plumbing Products segment, have driven higher costs that Masco may be unable to pass on to customers.
International Operations: With 21 percent of 2025 sales generated outside North America, Masco is exposed to foreign currency fluctuations (specifically the euro, Chinese renminbi, Canadian dollar, British pound sterling, and Mexican peso) and risks related to international trade policies and regulations.
Strategic Execution: Masco’s growth strategy depends on successful acquisitions and the integration of new businesses. Failure to realize anticipated synergies, economies of scale, or the diversion of management resources could adversely impact financial results.

2. Company-Specific Risks

Exclusivity Arrangements: Masco’s Behr business grants The Home Depot brand exclusivity in the North American retail channel and for Kilz branded primers in specific retail segments, which limits Masco’s ability to sell these products to other customers and increases operational complexity.
Private Label Competition: Masco faces direct competition from low-cost foreign manufacturers that sell products under private label brands through Masco’s own retail customers, potentially forcing a shift toward lower-margin, value-priced products.
E-commerce Channel Conflict: The growth of e-commerce creates pricing transparency and potential channel conflict between Masco’s existing distribution methods and new digital sales strategies.
Architectural Coatings Resource Dependency: Water is a critical component for Masco’s architectural coatings products and is subject to supply shortages and restrictions in certain regions due to climate-related influences.

3. Regulatory/Legal Risks

Product Liability and Safety: Masco is subject to product safety regulations and potential recalls. Because Masco relies on third-party suppliers for finished goods, it faces risks regarding the quality of sourced components and limited legal recourse against those suppliers.
Compliance Costs: Masco must comply with a broad range of international and domestic laws, including anti-bribery, data privacy, environmental, and trade regulations. Changes in tax laws regarding cross-border transactions could also impact Masco’s financial position.
Intellectual Property Litigation: Masco faces the risk of third-party infringement claims and the challenge of protecting its patents and trademarks globally, particularly in jurisdictions where property rights are not highly developed.

4. Financial Impact Map

Customer Concentration → Consolidated Net Sales → $2.9 billion of revenue is tied to a single customer (The Home Depot).

Economic Cycles → Results of Operations → Declines in residential repair and remodeling activity directly reduce demand for Masco products.

Duties and Tariffs → Plumbing Products Segment Margin → Increased costs from international jurisdictions (specifically China) pressure profitability.

Currency Exchange Rates → Operating Performance → Fluctuations in the euro, renminbi, Canadian dollar, British pound, and Mexican peso create volatility in period-to-period comparisons.

Credit Agreement Covenants → Financial Flexibility → Significant earnings declines could trigger defaults on financial covenants, restricting Masco’s ability to borrow.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
8-K	Feb 2026	—
10-K	Feb 2026	Dec 2025
10-Q	Oct 2025	Sep 2025
14A	Apr 2025	—