$Masco (MAS.US)$ Masco (MAS) masco, an American company list...

Masco (MAS) masco, an American company listed in 1969, has seen its stock price rise from 24.5 to 53.94 since 2002, with an average return rate of 4% over 20 years, which is lackluster.

The gross margin has remained around 34% for the past 5 years. Due to the company's net assets being close to zero or negative, the net asset return rate has no reference value.

Over the past 5 years, the revenue grew for two years, then dropped by 20% in 2019, followed by two more years of growth. Overall, there was some growth. The operating profit followed a similar trend, with only a 9.4% decline in 2019, followed by two years surpassing the previous peak. However, the net income continued to grow for 4 years before plunging by 62.5% in 2021.

In the first two quarters of 2022, the revenue increased by 9.7%, the operating profit declined by 5.1%, while the net income nearly increased 9 times, reaching 0.511 billion. It is possible that the net income may recover to 1 billion for the full year.

The income statement shows that interest expenses accounted for 19% of the operating profit. In 2021, due to other expenses of 0.484 billion, the net income declined significantly. Even with this adjustment, the net income in 2021 still declined, and it cannot be ruled out that the management intentionally suppressed the profit for 2021 to make the 2022 financial statement look better.

The debt-to-asset ratio has risen from 96.8% to 110.3% over the past 5 years, indicating that the company has virtually no investment in operations.

The balance sheet shows that the proportion of receivables and inventory is relatively normal. However, in 2021, the inventory increased by 0.34 billion, indicating that the situation in 2021 was more severe than what was shown, with not only a decrease in profit but also an overstatement due to excess inventory.

The long-term loans amount to 2.946 billion, which accounts for over half of the total assets of 5.467 billion, indicating a heavy loan burden as the company's net assets stand at -0.563 billion.

The net investment amount in the past 5 years has accumulated net inflows, and the operating net amount is generally higher than the net income, with a lot of shareholder earnings.

The current current ratio is 1.36, the quick ratio is 0.76, and the cash flow is a bit tight, mainly due to share buybacks, which should be controllable.

The current P/E ratio is 33.3, and the P/E ratio TTM is 15. If the annual profit can reach twice that of the first half of the year, the P/E ratio will further decrease to 12. The company's net assets are roughly half of the net profit for the first half of the year, which is not a big problem.

Based on the above analysis, you can choose (⭐️⭐️).