# Masco (MAS.US)

Canonical: https://gigainvestors.com/s/MAS

Analysis as of: 2026-10-16T07:30:04.272Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $72.58 per share; close as of 2026-10-15.

Estimated value: low $46.79 per share, central $53.06 per share, high $61.40 per share. Buy at or below the central value $53.06 per share. Valuation as of 2026-10-16T07:30:04.272Z; scenarios are not confidence intervals.

Expected annual return: 8.0% at the stated quote. About 8.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.11×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.16×

- FY2018: 0.16×

- FY2019: 0.16×

- FY2020: 0.18×

- FY2021: 0.17×

- FY2022: 0.15×

- FY2023: 0.11×

- FY2024: 0.18×

- FY2025: 0.17×

- LTM to Jun 2026: 0.18×

### moat: pass

- ROIC, median of available years: 57.6%

- ROIC, second-lowest year: 45.3%

- Typical minus recent gross margin: -1.1 pp

- Typical gross margin (annual median): 34.4%

- Recent gross margin (lower of latest and 3-year median): 35.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.3%

- ROIC including acquisitions, ten-year median: 29.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 61.6%

- FY2018: 45.3%

- FY2019: 53.6%

- FY2020: 76.6%

- FY2021: 67.3%

- FY2022: 50.8%

- FY2023: 33.4%

- FY2024: 60.6%

- FY2025: 54.6%

- LTM to Jun 2026: 52.1%

### economics: pass

- Owner earnings / net income, 5-yr: 0.97×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $3.7B

- Net income, five-year total: $3.8B

- Return on incremental invested capital: 52.3%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 1.6 pp

- Working capital / revenue, final three-year average: 15.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.05×

- FY2022: 0.96×

- FY2023: 0.90×

- FY2024: 0.98×

- FY2025: 0.99×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 61.6% vs 54.6%

- Per-share earnings: 1.48 to 3.86 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -4.7%

- Ordinary dilution, 5-year annual growth: -4.5%

- Market cap gain: $2.9B

- Cumulative retained earnings: -$307M

- Diluted shares, 10-year annual growth: -4.7%

- Diluted shares, 5-year annual growth: -4.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 12.8%

- Per-share value change: $2.38

- Per-share value, starting three-year median: $1.48

- Per-share value, ending three-year median: $3.86

- Buybacks concentrated in cheaper years (correlation): 0.24

- Average buyback yield: 5.3%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.1B

- Cumulative net income, 10 years: $6.8B

- ROIC, first three-year median: 61.6%

- ROIC, last three-year median: 54.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.48

- FY2017: $1.66

- FY2018: $2.37

- FY2019: $2.19

- FY2020: $2.32

- FY2021: $1.62

- FY2022: $3.63

- FY2023: $4.02

- FY2024: $3.75

- FY2025: $3.86

### accounting: pass

- Sloan accruals: -4.1%

- Receivables to sales index (DSRI): 1.03×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 2.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.26×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 11.04×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.7%

- FY2017: -4.1%

- FY2018: -5.7%

- FY2019: -4.0%

- FY2020: -5.9%

- FY2021: -9.4%

- FY2022: 0.0%

- FY2023: -9.4%

- FY2024: -5.0%

- FY2025: -4.1%

## Holders

- [John Rogers](https://gigainvestors.com/AI): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Donald Yacktman](https://gigainvestors.com/YAM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 5.4% a year for ten years · "Masco Earnings Rise as Pricing and Tariff Refunds Lift 2026 Margins" (finance.yahoo.com, Jul 2026) · sales +0.8%

Story as of 2026-10-16T09:59:07.714Z; price observation 2026-10-15.

Price needs cash profits to grow 5.4% a year for ten years

- 2025-04-23: Masco pulls annual profit forecast amid tariff-led volatility ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/masco-pulls-annual-profit-forecast-122320893.html))

- 2025-08-01: Masco reinstates 2025 guidance, targets $3.90–$4.10 EPS as tariff mitigation advances ([seekingalpha.com](https://seekingalpha.com/news/4476213-masco-reinstates-2025-guidance-targets-3_90-4_10-eps-as-tariff-mitigation-advances?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-10-30: MAS Q3 Deep Dive: Tariff Headwinds and Industry Softness Impact Results and Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/mas-q3-deep-dive-tariff-053231114.html))

- 2026-02-10: Masco Stock Up on Q4 Earnings Beat, Sales Miss Estimates ([finance.yahoo.com](https://finance.yahoo.com/news/masco-stock-q4-earnings-beat-153100256.html))

- 2026-04-23: MAS Q1 Deep Dive: Volume Gains, Cost Actions, and Product Expansion Drive Outperformance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/mas-q1-deep-dive-volume-114123942.html))

- 2026-07-29: Masco's Q2 Earnings Beat on Tariff Refunds, Sales Miss, Stock Down ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/mascos-q2-earnings-beat-tariff-151300404.html))

### Sales · FY2025–2026

sales +0.8%; source https://www.sec.gov/Archives/edgar/data/62996/000006299626000005/mas-20251231.htm; observed 2026-02-10.

- FY2017: $7.6B 

- FY2018: $6.7B 

- FY2019: $6.7B 

- FY2020: $7.2B 

- FY2021: $8.4B 

- FY2022: $8.7B 

- FY2023: $8.0B 

- FY2024: $7.8B 

- FY2025: $7.6B 

- FY2026: $7.6B 

### Gross margin · FY2025

gross margin 35.5%; source https://www.sec.gov/Archives/edgar/data/62996/000006299626000005/mas-20251231.htm; observed 2026-02-10.

- FY2016: 33.1% 

- FY2017: 33.8% 

- FY2018: 34.7% 

- FY2019: 35.2% 

- FY2020: 36.0% 

- FY2021: 34.2% 

- FY2022: 31.3% 

- FY2023: 34.1% 

- FY2024: 36.3% 

- FY2025: 35.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in building products & equipment; annual sales are USD 7.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/62996/000006299626000005/mas-20251231.htm (filed 2026-02-10); FY2025: revenue 7562000000; grossProfit 2687000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MAS.US: Masco Corporation provides 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, shower drains, steam shower systems, water filtration systems, and sinks and kitchen accessories; acrylic tubs, bath and shower enclosures, and shower bases and trays; spas, exercise pools, and aquatic fitness systems and saunas; brass, copper, and composite plumbing system component and other non-decorative plumbing products; water products; and thermoplastic products, extruded plastic profiles, and specialized fabrication products, as well as PEX tubing products. This segment provides its products under the DELTA, BRIZO, PEERLESS, HANSGROHE, AXOR, KRAUS, NEWPORT BRASS, GINGER, WALTEC, BRISTAN, HERITAGE, MIROLIN, HOT SPRING, CALDERA, FREEFLOW SPAS, FANTASY SPAS, AQUATERRA, LIFESMART, ENDLESS POOLS, TYLO, FINNLEO, HELO, BRASSCRAFT, PLUMBSHOP, and MASTER PLUMBER brands, as well as under private label to home center and online retailers, mass merchandisers, wholesalers and distributors, plumbers, building contractors, remodelers, smaller retailers, and consumers and homebuilders. 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, hook and hook rail products, and outdoor living hardware; and decorative bath hardware, shower accessories, and shower doors. This segment provides its products under the BEHR, KILZ, WHIZZ, LIBERTY, and FRANKLIN BRASS brands to home center and other retailers, mass and online retailers, other specialty retailers, and original equipment manufacturers and wholesalers. The company was incorporated in 1929 and is headquartered in Livonia, Michigan.

### Why customers stay

Margins ranged from 34.1% to 36.3% during 2023–25; it earns 57.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2023: grossProfit / revenue = 34.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2024: grossProfit / revenue = 36.3%.

- Source: https://www.sec.gov/Archives/edgar/data/62996/000006299626000005/mas-20251231.htm (filed 2026-02-10); FY2025: grossProfit / revenue = 35.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); 10-year return on capital observations [[2016,1.0615384615384615],[2017,0.6155192635454279],[2018,0.4530465677286903],[2019,0.5358679319663374],[2020,0.7657050510371717],[2021,0.6734042718567342],[2022,0.5079033057206173],[2023,0.3338632750397456],[2024,0.6061271447230613],[2025,0.5463436123348018]]; median 0.5762353785289316. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 571 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2016: growth capex 21000000; upkeep 159000000; cash acquisitions 0; owner earnings 487000000. Growth capex plus acquisitions / owner earnings = 0.043121149897330596.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2017: growth capex 21000000; upkeep 152000000; cash acquisitions 89000000; owner earnings 528000000. Growth capex plus acquisitions / owner earnings = 0.20833333333333334.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2018: growth capex 0; upkeep 219000000; cash acquisitions 549000000; owner earnings 688053571.4285715. Growth capex plus acquisitions / owner earnings = 0.7979029872051076.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2019: growth capex 0; upkeep 162000000; cash acquisitions 0; owner earnings 640000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2020: growth capex 0; upkeep 114000000; cash acquisitions 227000000; owner earnings 634000000. Growth capex plus acquisitions / owner earnings = 0.3580441640378549.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2021: growth capex 0; upkeep 128000000; cash acquisitions 57000000; owner earnings 425535564.8535565. Growth capex plus acquisitions / owner earnings = 0.13394885106634022.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2022: growth capex 46521646.42894402; upkeep 177478353.57105598; cash acquisitions 0; owner earnings 809521646.428944. Growth capex plus acquisitions / owner earnings = 0.05746806973496721.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2023: growth capex 0; upkeep 243000000; cash acquisitions 136000000; owner earnings 814000000. Growth capex plus acquisitions / owner earnings = 0.16707616707616707.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2024: growth capex 0; upkeep 168000000; cash acquisitions 4000000; owner earnings 804000000. Growth capex plus acquisitions / owner earnings = 0.004975124378109453.

- Source: https://www.sec.gov/Archives/edgar/data/62996/000006299626000005/mas-20251231.htm (filed 2026-02-10); FY2025: growth capex 0; upkeep 156000000; cash acquisitions 0; owner earnings 802447552.4475524. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); Dividend observations: [[2016,128000000],[2017,129000000],[2018,134000000],[2019,144000000],[2020,145000000],[2021,211000000],[2022,258000000],[2023,257000000],[2024,254000000],[2025,261000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/62996/000006299626000005/mas-20251231.htm (filed 2026-02-10); FY2025: cash repurchases 571000000 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MAS.US SharesStats.PercentInsiders = 0.231 percentage points; cache date 2026-10-16.

### What could break it

Many of the suppliers we rely upon are located in countries outside of the United States.

- Source: https://www.sec.gov/Archives/edgar/data/62996/000006299626000005/mas-20251231.htm (filed 2026-02-10); In addition, the loss of critical suppliers, or a substantial decrease in the availability of supply, has disrupted and could in the future disrupt our business and has had and may in the future have an adverse impact on our results of operations and financial position. Many of the suppliers we rely upon are located in countries outside of the United States. The differences in business practices, shipping and delivery requirements and costs, changes in economic conditions and trade policies and laws and regulations, together with the limited number of suppliers available to us, have increased the complexity of our supply chain logistics and the potential for interruptions in our production scheduling.

### What the price says

The price assumes cash profits grow 5.4% yearly over ten years; actual growth was 14.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); Ten-year compound average after fade. Initial solved rate 0.07895616375697001. Price 72.58; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.9753325039248794 → FY2025 3.821178821178821. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $30.88 per share

- 2016-11: $31.65 per share

- 2016-12: $31.62 per share

- 2017-01: $32.95 per share

- 2017-02: $33.78 per share

- 2017-03: $33.99 per share

- 2017-04: $37.02 per share

- 2017-05: $37.25 per share

- 2017-06: $38.21 per share

- 2017-07: $38.13 per share

- 2017-08: $36.77 per share

- 2017-09: $39.01 per share

- 2017-10: $39.82 per share

- 2017-11: $42.91 per share

- 2017-12: $43.94 per share

- 2018-01: $44.66 per share

- 2018-02: $41.12 per share

- 2018-03: $40.44 per share

- 2018-04: $37.87 per share

- 2018-05: $37.27 per share

- 2018-06: $37.42 per share

- 2018-07: $40.33 per share

- 2018-08: $37.97 per share

- 2018-09: $36.60 per share

- 2018-10: $30.00 per share

- 2018-11: $31.69 per share

- 2018-12: $29.24 per share

- 2019-01: $32.41 per share

- 2019-02: $37.56 per share

- 2019-03: $39.31 per share

- 2019-04: $39.06 per share

- 2019-05: $34.92 per share

- 2019-06: $39.24 per share

- 2019-07: $40.77 per share

- 2019-08: $40.73 per share

- 2019-09: $41.68 per share

- 2019-10: $46.25 per share

- 2019-11: $46.55 per share

- 2019-12: $47.99 per share

- 2020-01: $47.52 per share

- 2020-02: $41.32 per share

- 2020-03: $34.57 per share

- 2020-04: $41.04 per share

- 2020-05: $46.65 per share

- 2020-06: $50.21 per share

- 2020-07: $57.16 per share

- 2020-08: $58.30 per share

- 2020-09: $55.13 per share

- 2020-10: $53.60 per share

- 2020-11: $53.67 per share

- 2020-12: $54.93 per share

- 2021-01: $54.31 per share

- 2021-02: $53.22 per share

- 2021-03: $59.90 per share

- 2021-04: $63.88 per share

- 2021-05: $60.31 per share

- 2021-06: $58.91 per share

- 2021-07: $59.71 per share

- 2021-08: $60.72 per share

- 2021-09: $55.55 per share

- 2021-10: $65.55 per share

- 2021-11: $65.90 per share

- 2021-12: $70.22 per share

- 2022-01: $63.33 per share

- 2022-02: $56.04 per share

- 2022-03: $51.00 per share

- 2022-04: $52.69 per share

- 2022-05: $56.69 per share

- 2022-06: $50.60 per share

- 2022-07: $55.38 per share

- 2022-08: $50.87 per share

- 2022-09: $46.69 per share

- 2022-10: $46.27 per share

- 2022-11: $50.78 per share

- 2022-12: $46.67 per share

- 2023-01: $53.20 per share

- 2023-02: $52.43 per share

- 2023-03: $49.72 per share

- 2023-04: $53.51 per share

- 2023-05: $48.32 per share

- 2023-06: $57.38 per share

- 2023-07: $60.68 per share

- 2023-08: $59.01 per share

- 2023-09: $53.45 per share

- 2023-10: $52.09 per share

- 2023-11: $60.55 per share

- 2023-12: $66.98 per share

- 2024-01: $67.29 per share

- 2024-02: $76.76 per share

- 2024-03: $78.88 per share

- 2024-04: $68.45 per share

- 2024-05: $69.92 per share

- 2024-06: $66.67 per share

- 2024-07: $77.85 per share

- 2024-08: $79.56 per share

- 2024-09: $83.94 per share

- 2024-10: $79.91 per share

- 2024-11: $80.56 per share

- 2024-12: $72.57 per share

- 2025-01: $79.28 per share

- 2025-02: $75.18 per share

- 2025-03: $69.54 per share

- 2025-04: $60.61 per share

- 2025-05: $62.42 per share

- 2025-06: $64.36 per share

- 2025-07: $68.13 per share

- 2025-08: $73.39 per share

- 2025-09: $70.39 per share

- 2025-10: $64.76 per share

- 2025-11: $64.87 per share

- 2025-12: $63.46 per share

- 2026-01: $66.09 per share

- 2026-02: $71.62 per share

- 2026-03: $60.37 per share

- 2026-04: $71.82 per share

- 2026-05: $70.25 per share

- 2026-06: $81.37 per share

- 2026-07: $71.48 per share

- 2026-08: $72.16 per share

- 2026-09: $67.40 per share

- 2026-10: $72.58 per share

## Annual estimated value (USD per share)

- FY2016: low $14.51 per share, central $16.08 per share, high $18.16 per share

- FY2017: low $20.68 per share, central $23.08 per share, high $26.27 per share

- FY2018: low $17.65 per share, central $19.91 per share, high $22.91 per share

- FY2019: low $19.54 per share, central $21.96 per share, high $25.19 per share

- FY2020: low $28.32 per share, central $31.94 per share, high $36.76 per share

- FY2021: low $36.33 per share, central $43.00 per share, high $49.66 per share

- FY2022: low $41.52 per share, central $49.85 per share, high $57.87 per share

- FY2023: low $50.08 per share, central $72.10 per share, high $84.37 per share

- FY2024: low $40.19 per share, central $45.51 per share, high $52.59 per share

- FY2025: low $43.96 per share, central $49.80 per share, high $57.57 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:35:48.926Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/62996/000006299626000005/mas-20251231.htm); period 2025-12-31, filed 2026-02-10.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.