Water, Sewer, Pipeline, Comm & Power Line Construction
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.
Discounted Cash Flow Valuation of Mastec Inc
Growth
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Discount
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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 |
In the chart Earnings are multiplied by this value.
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.
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% |
The average Net Margin over the past 5 years is +3.06%.
The trend of Net Margin over the past 5 years is -1.06%.
The average ROA over the past 5 years is +5.37%.
The trend of ROA over the past 5 years is -2.2%.
The average ROE over the past 5 years is +11.49%.
The trend of ROE over the past 5 years is -4.79%.
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.
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% |
The Debt/FCF trailing twelve month is 3.99.
The trend of Debt/FCF over the past 5 years is 3.33.
Graham’s Stability measure stands at -0.22.
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.
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% |
The Revenue CAGR over the past 5 years is +11.67%.
The trend of Revenue growth rate over the past 5 years is +1.77%.
The Earnings CAGR over the past 5 years is -.
The trend of Earnings growth rate over the past 5 years is -35.98%.
The Equity CAGR over the past 5 years is +14.35%.
The trend of Equity growth rate over the past 5 years is +0.82%.
The FCF CAGR over the past 5 years is +7.18%.
The trend of FCF growth rate over the past 5 years is +14.12%.