Last Updated: 14 Sep 2024
Executive Summary
MasTec Inc. (MTZ) is a leading infrastructure construction company with a strong presence in the United States and Canada. The company has a diverse portfolio of services, including engineering, construction, installation, maintenance, and upgrade services for communications, energy, utilities, and other infrastructure. MTZ has a solid financial position with a market capitalization of $8.89 billion and an EBITDA of $836.14 million. The company's trailing price-to-earnings (PE) ratio of 1020.73 indicates that it is currently overvalued compared to its peers. However, the forward PE ratio of 24.21 suggests that the company's earnings are expected to grow significantly in the future.
Company Overview
MasTec Inc. was founded in 1994 and is headquartered in Coral Gables, Florida. The company has a workforce of over 25,000 employees and operates in over 40 states and provinces. MTZ's customers include major telecommunications companies, utilities, and government agencies. The company has a long history of successful project execution and has a reputation for quality and reliability.
Fundamental Analysis
MTZ's financial performance has been strong in recent years. The company's revenue has grown from $10.5 billion in 2021 to $12.2 billion in 2023. The company's net income has also increased from $360.5 million in 2021 to $453.6 million in 2023. MTZ's gross profit margin has remained stable at around 10% over the past three years. The company's operating margin has also improved from 3.2% in 2021 to 3.98% in 2023. MTZ's return on assets (ROA) and return on equity (ROE) have also improved in recent years. The company's ROA has increased from 1.4% in 2021 to 1.74% in 2023, and its ROE has increased from 0.8% in 2021 to 0.95% in 2023.
Technical Analysis
MTZ's stock price has been trending higher in recent months. The stock price broke above its 50-day moving average in early 2023 and has continued to move higher since then. The stock price is currently trading above its 200-day moving average, which is a bullish sign. The relative strength index (RSI) is also above 50, which indicates that the stock is in a bullish trend.
Short Term Outlook
MTZ's stock price is expected to continue to move higher in the short term. The company's strong financial performance and positive technical indicators suggest that the stock is in a bullish trend. The stock price could reach its analyst target price of $124.69 in the next 12 months.
Long Term Outlook
MTZ's long-term outlook is also positive. The company's strong market position and diverse portfolio of services should allow it to continue to grow in the future. The company's focus on renewable energy and infrastructure projects should also provide it with long-term growth opportunities.
Analyst Recommendations
The majority of analysts who cover MTZ have a buy or strong buy rating on the stock. The average analyst target price is $124.69, which is 11.1% higher than the current stock price.
