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Masco Corp MAS

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Morningstar’s Analysis

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Masco Continues to See Strong Demand and Maintains 2021 Margin Outlook Despite Cost Headwinds

Analyst Note

| Brian Bernard, CFA, CPA |

Masco's third-quarter revenue increased 11% year over year to $2.2 billion, as the firm continues to benefit from elevated repair and remodel spending. The plumbing segment (60% of third-quarter revenue) reported a 16% increase in sales compared with the prior-year quarter, driven by robust demand across both North American and international markets. The decorative architectural segment's 4% revenue growth exceeded our expectations. We expected a slight year-over-year decline due to moderating do-it-yourself paint demand against a tough prior-year sales comparison (third-quarter 2020 sales increased over 25%). And while DIY paint sales did decline by a mid-single-digit percentage, professional paint sales surged 45% year over year. We believe Masco's professional paint strategy is gaining traction in a channel that is seeing resurging demand.

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Company Profile

Business Description

Masco is a global leader in home improvement and building products. The company’s $4.1 billion plumbing segment, led by the Delta and Hansgrohe brands, sells faucets, showerheads, and other related plumbing components. The $3.1 billion decorative architectural segment primarily sells paints and other coatings under the Behr and Kilz brands.

Contact
17450 College Parkway
Livonia, MI, 48152
T +1 313 274-7400
Sector Industrials
Industry Building Products & Equipment
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Classic Growth
Employees 18,000

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