Will Masco continue to go crazy?

This post is geared to all Masco management as well as to investors considering exiting their position in the enterprise. I will evaluate if Masco shares are sensibly priced going into June and whether management should be worried. In this post I will also go over different drivers effecting the organisation products and services and how it may effect the company investors. What is Masco Target Price Odds to finish over Current Price? In regard to normal probability distribution, the odds of Masco to move above current price in 30 days from now is about 81.5%. The Masco Corporation probability density function shows the probability of Masco Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, the stock has beta coefficient of 1.3416 indicating as the benchmark fluctuates upward, the company is expected to outperform it on average . However, if the benchmark returns are expected to be negative, Masco will likely underperform. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. Masco is significantly underperforming S&P 500. Masco dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.21 per share.
Published over a year ago
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Reviewed by Michael Smolkin

I believe Masco is fairly valued at 38.09 per share with modest projections ahead. The company secures Beta (Market Risk) of 1.3416 which conveys that as market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Masco will likely underperform. Even though it is essential to pay attention to Masco price patterns, it is always good to be careful when utilizing equity historical price patterns. Macroaxis philosophy towards estimating future performance of any stock is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Masco exposes twenty-one different technical indicators which can help you to evaluate its performance. Masco has expected return of -0.1001%. Please be advised to verify Masco Corporation Information Ratio, Potential Upside as well as the relationship between Potential Upside and Kurtosis to decide if Masco past performance will be repeated at some point in the near future.
The performance of Masco in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Masco's stock prices. When investing in Masco, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Masco Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Masco carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of Masco earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Masco dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Masco one year expected dividend income is about USD0.76 per share.
At this time, Masco's Dividend Yield is comparatively stable compared to the past year. Dividend Payout Ratio is likely to gain to 0.32 in 2024, despite the fact that Dividends Paid is likely to grow to (244.2 M).
Last ReportedProjected for 2024
Dividends Paid-257 M-244.2 M
Dividend Yield 0.02  0.03 
Dividend Payout Ratio 0.28  0.32 
Dividend Paid And Capex Coverage Ratio 100.93  105.98 
Investing in dividend-paying stocks, such as Masco is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Masco must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Masco. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Masco's Liquidity

Masco financial leverage refers to using borrowed capital as a funding source to finance Masco ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Masco financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Masco's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Masco's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Masco's total debt and its cash.

What do experts say about Masco?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis Consensus

Breaking down Masco Indicators

Masco Corporation holds a total of 293.55 Million outstanding shares. Majority of Masco outstanding shares are owned by institutional investers. These third-party entities are referred to non-private investors that are looking to shop for positions in Masco Corporation to benefit from reduced commissions. Consequently, other institutions are subject to different set of regulations than regular investors in Masco. Please pay attention to any change in the institutional holdings of Masco as this could imply that something significant has changed or about to change at the company. Note that regardless of how profitable the company is, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns from it at some point. Masco Corporation price decrease over the last few months may encourage investors to take a closer look at the firm as it closed today at a share price of 37.7474 on 2447355.000 in trading volume. The company directors and management were not very successful in positioning the firm components to exploit market volatility in April. However, diversifying your holdings with Masco or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.5422. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Masco is trading at 38.07 which is 3.17 percent increase. Today highest was 38.34. Masco Asset Turnover is increasing over the last 5 years. The previous year value of Masco Asset Turnover was 1.03. Masco Trade and Non Trade Receivables is increasing over the last 5 years. The latest value of Masco Trade and Non Trade Receivables is 1,249,806,941. Furthermore, Masco Revenue Per Employee is relatively stable at the moment.
 2014 2015 2016 2018 (projected)
Masco Current Assets 3,620,000,000  3,328,000,000  2,934,000,000  3,374,100,000 
Masco Total Assets 7,208,000,000  5,664,000,000  5,137,000,000  5,907,550,000 
To conclude, we believe that at this point Masco is fairly valued with below average probability of distress within the next 2 years. Our actual buy-hold-sell recommendation on the enterprise is Strong Hold.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Masco. Please refer to our Terms of Use for any information regarding our disclosure principles.

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