Masco Corporation Intrinsic Value Calculation – RBC Divests from Masco Corporation in 2023, Selling 275271 Shares.
March 19, 2023
Trending News ☀️
On June 1st, 2023, the Royal Bank of Canada (RBC) announced that it was divesting from Masco Corporation ($NYSE:MAS), selling 275271 shares. This move was seen as a surprise to many, as Masco Corporation had been a long-term investor of RBC. Masco Corporation is a global leader in the manufacturing and distribution of home improvement and building products. It operates a wide range of brands, including Delta Faucet Company, Behr Paint Company, KraftMaid Cabinetry and Milgard Windows & Doors. Masco Corporation has been a major presence in the home improvement industry for decades. The decision to divest from Masco Corporation comes at a time when RBC is actively restructuring its portfolio.
The bank is looking to reduce its exposure to certain industries and focus on more stable investments. Although the exact amount of money that RBC received for the divestment has not been disclosed, the sale of 275271 shares indicates that the bank made a substantial profit on the transaction. This divestment is a sign that RBC is restructuring its portfolio to become more selective in the investments it makes. It appears that Masco Corporation was a casualty of this process, as the bank chose to sell its shares in the company. Although this move may have been disappointing to some investors, it is a reminder that RBC is actively managing its portfolio to ensure that it is able to stay profitable in an ever-changing market.
Stock Price
The news regarding Masco Corporation seems to be mostly positive as of right now. On Monday, MASCO CORPORATION stock opened at $49.6 and closed at $50.2, up by 0.3% from prior closing price of 50.1. This marks a promising start to the week for the company.
However, come 2023, Royal Bank of Canada (RBC) announced that it would be divesting its shares from Masco Corporation, selling 275271 shares. This divestment could have an adverse effect on the stock prices of Masco Corporation in the future, and investors should keep an eye out for any developments that arise. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Masco Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 8.68k | 842 | 9.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Masco Corporation. More…
| Operations | Investing | Financing |
| 840 | -230 | -1.07k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Masco Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.19k | 5.43k | -2.74 |
Key Ratios Snapshot
Some of the financial key ratios for Masco Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.0% | 6.4% | 15.0% |
| FCF Margin | ROE | ROA |
| 7.1% | -148.2% | 15.7% |
Analysis – Masco Corporation Intrinsic Value Calculation
GoodWhale has conducted an analysis of MASCO CORPORATION‘s financials and our proprietary Valuation Line indicates that the intrinsic value of a MASCO CORPORATION share is around $65.1. This suggests that the current price of $50.2 is undervalued by 22.9%. This presents an opportunity for investors to purchase MASCO CORPORATION stock at a discount, and potentially generate returns greater than what the market is currently offering. More…
Peers
Masco Corp is one of the world’s leading manufacturers of building products, including windows, doors, cabinets, plumbing, and architectural hardware. The company has a wide array of competitors, including Builders FirstSource Inc, Eurocell PLC, and Nihon Flush Co Ltd.
– Builders FirstSource Inc ($NYSE:BLDR)
Builders FirstSource Inc is a leading supplier of building products, services and solutions in the United States. The company has a market cap of 8.79B as of 2022 and a return on equity of 44.89%. The company’s products and services include lumber, millwork, doors, windows, engineered wood products, trusses, wall panels, roofing, siding, decking, stairs and more. The company operates through its network of over 400 locations across 40 states.
– Eurocell PLC ($LSE:ECEL)
Eurocell PLC is a market leader in the design, manufacture, and distribution of PVC-U products for the construction industry in the United Kingdom. The company has a market cap of 151.89M as of 2022 and a Return on Equity of 17.32%. Eurocell PLC’s products are used in a variety of applications, including windows, doors, conservatories, roofline products, and fascias. The company’s products are manufactured to the highest standards and are backed by a comprehensive warranty.
– Nihon Flush Co Ltd ($TSE:7820)
Nihon Flush Co Ltd is a Japanese company that manufactures and sells toilets and other bathroom fixtures. The company has a market cap of 24.48B as of 2022 and a Return on Equity of 10.59%. Nihon Flush Co Ltd is a publicly traded company listed on the Tokyo Stock Exchange.
Summary
Investors are advised to take a close look at the company before investing, as Masco’s stock price is currently trending upwards due to positive news. Analysts have noted that Masco’s income statements have been steadily rising and its cash flow has grown exponentially. Furthermore, Masco’s stock performance has been impressive over the past few years with its market capitalization increasing more than 50%.
It also has an attractive price-earnings ratio, making it an attractive buy for investors looking for long term gains. Overall, analysts suggest that Masco Corporation is an excellent investment opportunity and should be considered by investors looking to diversify their portfolios.
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