MasTec Inc (MTZ, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $6.54 billion. The current price per share is $83, marking a 4.50% gain over the past week and an impressive 24.44% gain over the past three months. Despite these gains, the GF Value of $123.2 suggests caution, as the stock is currently considered a possible value trap, a sentiment that has remained unchanged from the past GF Value of $124.09.
Introduction to MasTec Inc
MasTec Inc, a leader in the construction industry, specializes in infrastructure construction across North America. The company's services span various sectors, including communications, oil and gas, utility, renewable energy, and more. MasTec's business is segmented into five key areas: communications, clean energy and infrastructure, oil and gas, power delivery, and other. This diversification allows MasTec to leverage growth across multiple industries, positioning it as a robust player in the infrastructure construction space.
Assessing MasTec's Profitability
With a Profitability Rank of 8/10, MasTec demonstrates strong potential in maintaining its business success. The company's operating margin stands at 0.82%, which is more favorable than 25.79% of 1,648 companies in the same industry. However, the ROE of -1.78%, ROA of -0.53%, and ROIC of 0.86% indicate areas where the company lags behind its peers. Despite these mixed indicators, MasTec has maintained profitability for 9 out of the past 10 years, outperforming 66.52% of 1,634 companies in the industry.
Growth Trajectory of MasTec
MasTec's Growth Rank is an impressive 9/10, reflecting its strong expansion in revenue and profitability. The company's 3-year revenue growth rate per share is 10.70%, surpassing 70.33% of 1,554 companies. Its 5-year revenue growth rate per share is also robust at 8.60%. Looking ahead, the estimated total revenue growth rate for the next 3 to 5 years is 5.53%. However, the 3-year EPS without NRI growth rate shows a decline of -17.60%, but the future 3 to 5-year estimated EPS growth rate is expected to be a robust 20.39%, indicating potential for significant earnings improvement.
Notable Shareholders in MasTec
Investor interest in MasTec is evident from its notable shareholders. Steven Cohen (Trades, Portfolio) leads the pack with 1,022,700 shares, representing a 1.3% stake in the company. Richard Pzena (Trades, Portfolio) holds 201,777 shares, accounting for 0.26%, while Ronald Muhlenkamp (Trades, Portfolio) owns 131,009 shares, translating to a 0.17% share percentage. These investments by prominent figures in the investment community underscore confidence in MasTec's business model and future prospects.
Competitive Landscape
When compared to its competitors, MasTec holds its ground with a market cap of $6.54 billion. Fluor Corp (FLR, Financial) is close behind with a market cap of $6.34 billion, followed by Exponent Inc (EXPO, Financial) at $4.09 billion, and Arcosa Inc (ACA, Financial) at $4.02 billion. MasTec's recent stock performance and growth prospects suggest that it is well-positioned to maintain, if not enhance, its competitive standing in the construction industry.
Conclusion
In summary, MasTec Inc's recent stock price rally can be attributed to its solid growth prospects and consistent profitability, despite some concerns over its current valuation. The company's diversified business segments and strong growth rank indicate a capacity for sustained expansion. While the GF Value suggests investors should think twice, the interest from notable holders and the company's competitive market position provide a counterbalance to this cautionary note. As MasTec continues to navigate the dynamic construction industry, it remains a company to watch for value investors seeking long-term growth opportunities.
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.
