Mastec Stock Intrinsic Value – BlackRock Cuts Stake in MasTec, by 518,165 Shares
December 8, 2023
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MASTEC ($NYSE:MTZ): MasTec, Inc. is divided into four business units: utility services, communications infrastructure, energy transmission and distribution infrastructure, and industrial infrastructure. Its services include engineering and design; construction, maintenance, and installation; and operations and maintenance.
Share Price
On Thursday, MasTec, Inc. (MASTEC) saw its stock open at $64.6 and close at $64.8, creating a slight 0.6% increase from its last closing price of 64.4. This is the second time in the past month that BlackRock’s stake in MasTec has dropped, as they previously sold off a portion of their shares in May. Overall, the news of the reduction in stake has had a minimal effect on MasTec’s stock, as it has been able to maintain an upward trend despite the news. This suggests that investors remain confident in MasTec’s future prospects and growth potential. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mastec. MasTec_by_518165_Shares”>More…
| Total Revenues | Net Income | Net Margin |
| 11.72k | -47.48 | -0.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mastec. MasTec_by_518165_Shares”>More…
| Operations | Investing | Financing |
| 430.2 | -751.17 | 438.79 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mastec. MasTec_by_518165_Shares”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.53k | 6.82k | 33.97 |
Key Ratios Snapshot
Some of the financial key ratios for Mastec are shown below. MasTec_by_518165_Shares”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.4% | -38.7% | 1.3% |
| FCF Margin | ROE | ROA |
| 3.2% | 3.6% | 1.0% |
Analysis – Mastec Stock Intrinsic Value
GoodWhale has conducted an analysis of MASTEC’s finances, and we have concluded that the fair value of their share is around $115.4. This figure was calculated using our proprietary Valuation Line, which takes into account factors such as financial performance and market trends. We believe that MASTEC stock is currently undervalued by 43.8%, as it is trading at $64.8. This discrepancy presents an opportunity to buy low and potentially gain returns in the future. Investors should consider such opportunities carefully, however, as they must assess all the risks and rewards associated with any investment. MasTec_by_518165_Shares”>More…
Peers
In the engineering and construction services industry, MasTec Inc faces competition from Assystem SA, Quanta Services Inc, and Elecnor SA. These companies are all large, international competitors with significant market share. While MasTec Inc has a strong presence in the United States, these companies have a strong international presence and are able to compete on a global scale.
– Assystem SA ($LTS:0OA7)
Assystem SA is a French engineering and consulting company. It was founded in 1966 and has since grown to become one of the largest engineering firms in the world. The company has a market capitalization of 547.52 million as of 2022 and a return on equity of 8.74%. Assystem SA provides engineering and consulting services to a variety of industries, including aerospace, defense, energy, transportation, and construction. The company has a strong presence in Europe, North America, and Asia.
– Quanta Services Inc ($NYSE:PWR)
Quanta Services, Inc. provides specialty contracting services in the United States, Canada, Australia, South America, and select other international markets. The company operates through Electric Power Infrastructure Services and Pipeline Infrastructure Services segments. The Electric Power Infrastructure Services segment engages in the installation, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure, including substations, underground and overhead conductor systems, and wireless and fiber optic communication systems. This segment also provides asset management services; and turnkey installation and maintenance services for solar power generation systems. The Pipeline Infrastructure Services segment engages in the construction, upgrade, repair, maintenance, and decommissioning of natural gas and oil pipelines, natural gas gathering systems, and other pipeline infrastructure; and provides asset management services. This segment also offers horizontal directional drilling services for the installation of pipelines and conduit systems. The company was founded in 1997 and is headquartered in Houston, Texas.
– Elecnor SA ($LTS:0K97)
Electricnor SA is a Spanish engineering and construction company. It focuses on the development, design, and construction of renewable energy projects, mainly wind farms. As of 2022, it has a market capitalization of 850.99 million dollars and a return on equity of 18.71%.
Summary
MasTec, Inc. has recently seen a significant drop in its share price, which has been attributed to the sale of 518165 shares by BlackRock Inc., one of its largest shareholders. Analysts have suggested that the sale could indicate a lack of confidence in the company’s future prospects, as well as a shift in focus from long-term investors to short-term traders.
However, some analysts have suggested that the sale may be part of a larger asset redeployment strategy on BlackRock’s part and not necessarily a negative signal for MasTec. The company’s fundamentals remain strong, with continued revenue growth, expanding margins, and growing earnings. Given the positive fundamentals, investors should consider MasTec as a potential long-term investment opportunity.
