Mastec Inc

MTZ

Water, Sewer, Pipeline, Comm & Power Line Construction

Mkt Cap

$8.595B

PE

-812.12

Debt

$2.898B

Cash

$249.3M

EV

$11.24B

FCF

$726.4M

Market Cap

$8.595B

P/E Ratio

-812.12

Debt

$2.898B

Cash

$249.3M

EV

$11.24B

FCF

$726.4M

Charts data: {"Earnings":[{"time":"2014-12-30","value":115549000},{"time":"2015-12-30","value":-79703000},{"time":"2016-12-30","value":131263000},{"time":"2017-12-30","value":347213000},{"time":"2018-12-30","value":259231000},{"time":"2019-12-30","value":392334000},{"time":"2020-12-30","value":322699000},{"time":"2021-12-30","value":328831000},{"time":"2022-12-30","value":33354000},{"time":"2023-12-30","value":-49949000}],"Sales":[{"time":"2014-12-30","value":4611803000},{"time":"2015-12-30","value":4208330000},{"time":"2016-12-30","value":5134703000},{"time":"2017-12-30","value":6606978000},{"time":"2018-12-30","value":6909417000},{"time":"2019-12-30","value":7183188000},{"time":"2020-12-30","value":6320975000},{"time":"2021-12-30","value":7951781000},{"time":"2022-12-30","value":9778038000},{"time":"2023-12-30","value":11995934000}],"Net Margins":[{"time":"2014-12-30","value":0.02505505981066407},{"time":"2015-12-30","value":-0.018939341734132066},{"time":"2016-12-30","value":0.025563893374164},{"time":"2017-12-30","value":0.0525524680118505},{"time":"2018-12-30","value":0.03751850554106084},{"time":"2019-12-30","value":0.054618367220793884},{"time":"2020-12-30","value":0.051052092438270996},{"time":"2021-12-30","value":0.04135312579659827},{"time":"2022-12-30","value":0.0034111137633132537},{"time":"2023-12-30","value":-0.00416382751022138}],"Assets":[{"time":"2014-12-30","value":3563980000},{"time":"2015-12-30","value":2940197000},{"time":"2016-12-30","value":3183132000},{"time":"2017-12-30","value":4066576000},{"time":"2018-12-30","value":4439953000},{"time":"2019-12-30","value":4997006000},{"time":"2020-12-30","value":5227849000},{"time":"2021-12-30","value":7121393000},{"time":"2022-12-30","value":9293259000},{"time":"2023-12-30","value":9373511000}],"Stockholders Equity":[{"time":"2014-12-30","value":1148075000},{"time":"2015-12-30","value":943391000},{"time":"2016-12-30","value":1103634000},{"time":"2017-12-30","value":1433353000},{"time":"2018-12-30","value":1392024000},{"time":"2019-12-30","value":1791691000},{"time":"2020-12-30","value":2005525000},{"time":"2021-12-30","value":2543861000},{"time":"2022-12-30","value":2741187000},{"time":"2023-12-30","value":2721261000}],"ROE":[{"time":"2014-12-30","value":0.10064586372841496},{"time":"2015-12-30","value":-0.0844856480504902},{"time":"2016-12-30","value":0.11893707515353823},{"time":"2017-12-30","value":0.24223830417210554},{"time":"2018-12-30","value":0.186225955874324},{"time":"2019-12-30","value":0.21897414230467196},{"time":"2020-12-30","value":0.16090499993767218},{"time":"2021-12-30","value":0.12926453135607646},{"time":"2022-12-30","value":0.012167721501670626},{"time":"2023-12-30","value":-0.018355093465860128}],"ROA":[{"time":"2014-12-30","value":0.05567651894791778},{"time":"2015-12-30","value":-0.023041313218127902},{"time":"2016-12-30","value":0.07094239258692382},{"time":"2017-12-30","value":0.09143466149409232},{"time":"2018-12-30","value":0.08227632139349222},{"time":"2019-12-30","value":0.10224902671719825},{"time":"2020-12-30","value":0.08132675599467391},{"time":"2021-12-30","value":0.06039197668209015},{"time":"2022-12-30","value":0.004633358437551347},{"time":"2023-12-30","value":-0.008823161353307208}]}

MasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada. It operates through five segments: Communications, Clean Energy and Infrastructure, Oil and Gas, Power Delivery, and Other. The company builds underground and overhead distribution systems, including trenches, conduits, cell towers, fiber, cable, and power lines, which provide wireless and wireline/fiber communications; clean energy infrastructure comprising renewable energy power generation; natural gas, carbon capture sequestration, and other product transport; electrical and gas transmission, and distribution systems; industrial and heavy civil infrastructure; compressor and pump stations, and treatment plants; and water infrastructure, including water pipelines. It also installs electrical and other gas distribution and transmission systems, power generation facilities, buried and aerial fiber optic and other cables, as well as home automation and energy management solutions. In addition, the company offers maintenance and upgrade support services comprising maintenance of customers' distribution facilities, networks, and infrastructure, including communications, power generation, pipeline, electrical distribution and transmission, and industrial and heavy civil infrastructure; service restoration for natural disasters and accidents; and routine replacements and upgrades to overhauls. Its customers include wireless and wireline/fiber service providers, broadband operators, install-to-the-home service providers, public and private energy providers, pipeline operators, heavy civil and industrial infrastructure providers, and government entities. MasTec, Inc. was founded in 1929 and is headquartered in Coral Gables, Florida.

Sector

10-Q
9/30/23
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12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Mastec Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$726.4M	$785M	$845.6M	$908M	$971.9M	$1.037B	$1.103B	$1.169B	$1.236B	$1.302B	$1.367B	$13.67B
DCF		$682.6M	$639.4M	$597M	$555.7M	$515.6M	$476.9M	$439.6M	$404M	$370.1M	$337.9M	$3.379B
Value	$8.398B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 24%

Earnings Stability -12%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-1.9%	2.6%	5.3%	3.8%	5.5%	5.1%	4.1%	0.34%	-0.42%	-0.087%
ROA	-2.3%	7.1%	9.1%	8.2%	10%	8.1%	6%	0.46%	-0.88%	-0.034%
ROE	-8.4%	12%	24%	19%	22%	16%	13%	1.2%	-1.8%	-0.39%

What is the average Net Margin?

The average Net Margin over the past 5 years is +3.06%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -1.06%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +5.37%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -2.2%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +11.49%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -4.79%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	3.89	12.33	44.34	4.26	3.66	2.00	3.45	38.18	6.56	3.99
Debt Equity	1.17	0.99	1.02	1.07	0.87	0.72	0.85	1.24	1.19	1.08
MIN
Graham Stability	-	-	100%	100%	100%	97%	100%	9.6%	-22%	-22%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.99.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 3.33.

What is the Graham’s Stability?

Graham’s Stability measure stands at -0.22.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	13%	12%	24%	23%	1.8%
Net Income	-	-	-	-	-36%
Stockholders Equity	14%	14%	11%	-0.73%	0.82%
FCF	28%	7.2%	-12%	460%	14%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +11.67%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.77%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -35.98%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +14.35%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.82%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +7.18%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +14.12%.