MasTec Inc (MTZ, Financial) has experienced a remarkable surge in its stock price, with a 19.66% gain over the past week and an impressive 34.43% gain over the past three months. The company's market capitalization now stands at $6.69 billion, with the current stock price at $84.85. Despite these gains, the GF Value suggests caution, labeling the stock as a Possible Value Trap and advising investors to think twice before making an investment. The GF Value is currently set at $123.26, slightly down from the past GF Value of $124.09, indicating that the stock may be overvalued at its current price.
Introduction to MasTec Inc
MasTec Inc, a leader in the construction industry, primarily operates in North America, focusing on a variety of sectors. The company's core activities encompass the engineering, construction, installation, maintenance, and enhancement of essential infrastructure such as communications, oil and gas, utilities, renewable energy, and more. MasTec's business is organized into five segments: communications, clean energy and infrastructure, oil and gas, power delivery, and other. This diversified portfolio allows MasTec to leverage growth across different sectors, positioning it well within the construction industry.
Assessing MasTec's Profitability
MasTec's Profitability Rank stands strong at 8/10, indicating a high level of profitability relative to other companies. The company's Operating Margin is currently at 0.82%, which is better than 25.64% of 1,646 companies in the industry. However, the Return on Equity (ROE) is at -1.78%, and Return on Assets (ROA) is at -0.53%, both of which suggest that the company may be facing challenges in generating profits from its equity and assets. The Return on Invested Capital (ROIC) at 0.86% is better than 28.18% of the industry, showing some efficiency in using capital. MasTec has maintained profitability for 9 out of the past 10 years, which is a positive sign for potential investors.
Growth Trajectory of MasTec
The company's Growth Rank is an impressive 9/10, reflecting strong growth in revenue and profitability. MasTec's 3-Year Revenue Growth Rate per Share is at 10.70%, outperforming 70.25% of 1,553 companies in the industry. The 5-Year Revenue Growth Rate per Share stands at 8.60%, which is better than 73.69% of 1,452 companies. The estimated Total Revenue Growth Rate for the next 3 to 5 years is 5.53%, indicating a positive outlook for future revenue. However, the 3-Year EPS without NRI Growth Rate is at -17.60%, which is a concern, although the future EPS Growth Rate is expected to be a robust 20.39%, suggesting a potential turnaround in earnings.
Notable Shareholders in MasTec
Several prominent investors hold significant stakes in MasTec. Steven Cohen (Trades, Portfolio) is the top holder with 1,022,700 shares, representing 1.3% of the company. Richard Pzena (Trades, Portfolio) follows with 201,777 shares, accounting for 0.26%, and Ronald Muhlenkamp (Trades, Portfolio) holds 131,009 shares, making up 0.17% of MasTec's shares. These holdings reflect the confidence of seasoned investors in the company's potential.
Competitive Landscape
When compared to its competitors, MasTec holds its ground with a market cap of $6.69 billion. Fluor Corp (FLR, Financial) is close behind with a market cap of $6.25 billion, followed by Exponent Inc (EXPO, Financial) at $4.08 billion, and Arcosa Inc (ACA, Financial) at $4.05 billion. MasTec's recent stock performance and growth prospects position it competitively within the construction industry.
Conclusion
In conclusion, MasTec Inc's stock performance has been impressive, with significant gains over the past week and three months. The company's strong profitability and growth ranks, along with its diversified operations, contribute to its robust standing in the construction industry. However, the GF Value warns of a possible overvaluation, suggesting that investors should exercise caution. MasTec's future growth estimates, particularly in EPS, provide a positive outlook, but the current valuation status requires careful consideration. As the company continues to navigate the competitive landscape, investors should weigh these factors carefully when considering MasTec as a potential addition to their portfolios.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
