Masco Corporation (MAS) Bundle
A Brief History of Masco Corporation
Company Overview
Masco Corporation, headquartered in Taylor, Michigan, is a manufacturer of home improvement and building products. The company operates through two primary segments: Plumbing Products and Decorative Architectural Products. As of 2024, Masco has established itself as a leader in the industry, focusing on innovation and customer service.
Financial Performance
For the three months ended September 30, 2024, Masco reported net sales of $1,983 million, a slight increase from $1,979 million in the same period of 2023. The company’s net sales for the nine months ended September 30, 2024, were $6,000 million, compared to $6,085 million for the same period in 2023, reflecting a 1% decrease.
| Period | Net Sales (in millions) | Cost of Sales (in millions) | Gross Profit (in millions) | Operating Profit (in millions) | Net Income (in millions) |
|---|---|---|---|---|---|
| Q3 2024 | $1,983 | $1,258 | $725 | $357 | $167 |
| Q3 2023 | $1,979 | $1,235 | $744 | $383 | $249 |
| 9M 2024 | $6,000 | $3,805 | $2,195 | $1,073 | $640 |
| 9M 2023 | $6,085 | $3,903 | $2,182 | $1,101 | $717 |
Segment Performance
Masco's Plumbing Products segment net sales for Q3 2024 were $1,219 million, reflecting a 2% increase compared to $1,191 million in Q3 2023. Conversely, the Decorative Architectural Products segment experienced a 3% decrease in net sales, reporting $764 million in Q3 2024 versus $788 million in Q3 2023.
Divestitures and Acquisitions
In 2024, Masco divested its Kichler business, a significant player in decorative lighting, for a preliminary consideration of $125 million. The company also acquired Sauna360 for approximately $136 million in 2023, enhancing its product offerings in the sauna category.
Shareholder Returns
Masco has been active in returning capital to shareholders. As of September 30, 2024, the company repurchased approximately 6.6 million shares for about $486 million. The Board of Directors has authorized a total share repurchase program of up to $2 billion.
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, Masco generated $668 million in cash from operations. The company reported net cash used for financing activities of $673 million, primarily driven by stock repurchases and dividend payments.
| Cash Flow Category | Amount (in millions) |
|---|---|
| Cash provided by operating activities | $668 |
| Cash used for financing activities | $(673) |
| Cash used for investing activities | $(12) |
Outlook and Market Position
As of 2024, Masco continues to focus on innovation and operational efficiency amidst changing market dynamics. The company is well-positioned to leverage its strong brand portfolio and market leadership to navigate challenges and capitalize on growth opportunities in the home improvement sector.
A Who Owns Masco Corporation (MAS)
Major Shareholders
As of 2024, the ownership structure of Masco Corporation (MAS) is comprised of various institutional and individual shareholders. The largest shareholders include:
| Shareholder Type | Shareholder Name | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.5% | 22.3 million |
| Institutional Investor | BlackRock, Inc. | 7.2% | 19.1 million |
| Institutional Investor | State Street Corporation | 5.9% | 15.6 million |
| Individual Investor | William J. Guenther | 1.2% | 3.2 million |
| Individual Investor | Michael J. McGarry | 0.9% | 2.4 million |
| Other | Other Shareholders | 76.3% | 203.0 million |
Recent Stock Performance
The stock performance of Masco Corporation has shown resilience in the market. As of September 30, 2024, the company's stock price ranged between $76.12 and $80.61 during the quarter, with a total trading volume of approximately 2.5 million shares.
Dividends Paid
Masco Corporation has maintained a consistent dividend payment structure. For the three months ended September 30, 2024, the cash dividends declared per common share were:
| Period | Dividend per Share | Total Dividends Paid |
|---|---|---|
| Q3 2024 | $0.290 | $63 million |
| Q3 2023 | $0.285 | $64 million |
Financial Overview
For the nine months ended September 30, 2024, Masco Corporation reported the following financial metrics:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Sales | $6,000 million | $6,085 million |
| Gross Profit | $2,195 million | $2,182 million |
| Operating Profit | $1,073 million | $1,101 million |
| Net Income | $640 million | $717 million |
Conclusion of Ownership Structure
In summary, the ownership of Masco Corporation is characterized by a blend of institutional investors, individual shareholders, and a significant percentage of shares held by other entities. This diverse ownership structure is indicative of the company's strong market presence and investor confidence.
Masco Corporation (MAS) Mission Statement
Overview of Mission Statement
Masco Corporation's mission is centered around delivering superior building products that enhance the lives of customers and communities. The company focuses on innovation, sustainability, and exceptional customer service, aiming to create long-term value for its stakeholders.
Financial Performance Indicators
As of September 30, 2024, Masco Corporation reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $1,983 million | $1,979 million | 0% |
| Gross Profit | $725 million | $744 million | -2.55% |
| Operating Profit | $357 million | $383 million | -6.79% |
| Net Income | $167 million | $249 million | -33.09% |
| Diluted EPS | $0.77 | $1.10 | -30% |
Strategic Initiatives
Masco is committed to several strategic initiatives to uphold its mission:
- Innovation in Products: Continuous investment in R&D to develop innovative solutions in plumbing and decorative architectural products.
- Sustainability: Implementation of eco-friendly practices in manufacturing processes to reduce environmental impact.
- Customer Engagement: Enhancing customer experience through improved service delivery and product availability.
Market Position
Masco operates primarily in two segments: Plumbing Products and Decorative Architectural Products. The following table summarizes the net sales by segment for Q3 2024:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| Plumbing Products | $1,219 million | $1,191 million | 2.35% |
| Decorative Architectural Products | $764 million | $788 million | -3.05% |
Challenges and Opportunities
Masco faces challenges including increased commodity costs and a competitive market landscape. However, opportunities arise from expanding its product portfolio and entering new markets.
Conclusion of Mission Statement Analysis
The mission statement of Masco Corporation reflects its dedication to quality, innovation, and sustainability, which are crucial for navigating the evolving market conditions as of 2024.
How Masco Corporation (MAS) Works
Overview of Operations
Masco Corporation operates primarily in the home improvement and building products sector, focusing on two main segments: Plumbing Products and Decorative Architectural Products. The company generates revenue through the manufacturing and distribution of a wide range of products including faucets, plumbing fixtures, cabinets, and decorative hardware.
Financial Performance
As of the third quarter of 2024, Masco Corporation reported the following financial metrics:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Sales | $1,983 million | $1,979 million | $6,000 million | $6,085 million |
| Cost of Sales | $1,258 million | $1,235 million | $3,805 million | $3,903 million |
| Gross Profit | $725 million | $744 million | $2,195 million | $2,182 million |
| Selling, General and Administrative Expenses | $368 million | $361 million | $1,123 million | $1,081 million |
| Operating Profit | $357 million | $383 million | $1,073 million | $1,101 million |
| Net Income | $167 million | $249 million | $640 million | $717 million |
| Diluted Income per Share | $0.77 | $1.10 | $2.91 | $3.17 |
Segment Performance
Masco's performance is divided into two key segments:
- Plumbing Products: This segment reported net sales of $1,219 million for the three months ended September 30, 2024, reflecting a 2% increase from the previous year. The operating profit for this segment was $240 million, up 8% year-over-year.
- Decorative Architectural Products: This segment saw net sales of $764 million, a decrease of 3% compared to the same period last year. The operating profit was $138 million, down 24% year-over-year.
Geographic Performance
Masco's geographic sales for the three months ended September 30, 2024, are as follows:
| Region | Net Sales (in millions) |
|---|---|
| North America | $1,595 |
| International | $388 |
| Total | $1,983 |
Cost Structure and Profit Margins
The company's cost structure includes significant expenses related to manufacturing and distribution, as well as selling, general, and administrative costs. For the three months ended September 30, 2024, the gross margin was 36.6%, down from 37.6% in the prior year.
Cash Flow Analysis
Masco's cash flow from operating activities for the nine months ended September 30, 2024, was $668 million, reflecting strong operational performance:
| Cash Flow Category | Amount (in millions) |
|---|---|
| Cash Provided by Operations | $957 |
| Net Cash Used for Financing Activities | $(673) |
| Net Cash Provided by Investing Activities | $12 |
Debt and Equity Position
As of September 30, 2024, Masco's total liabilities were $5,154 million, with total assets reported at $5,296 million. The company maintains a strong equity position with shareholders' equity recorded at $142 million.
How Masco Corporation (MAS) Makes Money
Business Segments
Masco Corporation operates through two primary business segments: Plumbing Products and Decorative Architectural Products. As of the nine months ended September 30, 2024, the financial performance of these segments is detailed below:
| Business Segment | Net Sales (2024) | Net Sales (2023) | Operating Profit (2024) | Operating Profit (2023) |
|---|---|---|---|---|
| Plumbing Products | $3,665 million | $3,638 million | $713 million | $673 million |
| Decorative Architectural Products | $2,336 million | $2,447 million | $436 million | $493 million |
| Total | $6,000 million | $6,085 million | $1,149 million | $1,166 million |
Revenue Generation
For the nine months ended September 30, 2024, Masco Corporation reported net sales of $6,000 million, representing a 1% decline from the previous year. The revenue is primarily generated through the sale of plumbing and decorative products across North America and international markets.
Net sales for the three months ended September 30, 2024 were $1,983 million, which remained flat compared to the same period in 2023. The breakdown by geographic area is as follows:
| Geographic Area | Net Sales (2024) | Net Sales (2023) |
|---|---|---|
| North America | $4,815 million | $4,875 million |
| International | $1,185 million | $1,210 million |
| Total | $6,000 million | $6,085 million |
Cost Structure
The cost of sales for the nine months ended September 30, 2024, was $3,805 million, resulting in a gross profit of $2,195 million and a gross margin of 36.6%.
Operating profit for the nine months ended September 30, 2024, was $1,073 million, with selling, general, and administrative expenses totaling $1,123 million.
Net Income
Masco Corporation reported net income attributable to the company of $640 million for the nine months ended September 30, 2024, down from $717 million in 2023. The diluted income per common share was $2.91 for the nine months ended September 30, 2024, compared to $3.17 for the same period in 2023.
Operating Profit by Segment
The operating profit for each segment for the nine months ended September 30, 2024, is as follows:
| Business Segment | Operating Profit (2024) | Operating Profit (2023) |
|---|---|---|
| Plumbing Products | $713 million | $673 million |
| Decorative Architectural Products | $436 million | $493 million |
Financial Ratios
Key financial ratios for the three months ended September 30, 2024, include:
| Metric | Value |
|---|---|
| Operating Profit Margin | 18.0% |
| Gross Margin | 36.6% |
| Effective Tax Rate | 27% |
Cash Flow and Capital Allocation
For the nine months ended September 30, 2024, net cash provided by operating activities was $668 million. The company utilized $673 million for financing activities, which included a $482 million repurchase of common stock and $191 million for cash dividends paid.
Masco Corporation also declared cash dividends per common share of $0.870 for the nine months ended September 30, 2024, compared to $0.855 in the previous year.
Market Positioning
Masco operates in a competitive market with a focus on brand strength and product innovation. The company continues to leverage its established brands and operational efficiencies to maintain its market position.
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Article updated on 8 Nov 2024
Resources:
- Masco Corporation (MAS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Masco Corporation (MAS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Masco Corporation (MAS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.