One-glance verdict
Overvalued
$31.76 our estimate vs market $186.06
Wall Street consensus: $353.76 (1,013.8% higher than our fair-value estimate)
486% above our estimate, beyond the bull case
Fundamentals snapshot
MasTec, Inc.
MTZ · NYQ · Industrials · Engineering & Construction
Current price
$186.06
52-week range
$164.31 - $441.43
Market cap
$14.94B
Balance sheet
Stretched
3.77x Stretched
Net debt $4.22B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 20.9% last year.
- Reward Returns 14.5% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 10/10 years.
What this company does
MasTec, Inc.
MasTec builds and maintains essential infrastructure like power lines, pipelines, and communication networks for companies and governments. Their money mainly comes from these big construction projects and ongoing maintenance services, which shows how important their work is for keeping things like our internet and electricity running smoothly.
How the company got here
MasTec's roots go back to 1929, starting as a small electrical contracting business. Over the decades, it grew by acquiring other companies and expanding its services beyond just electrical work. A major turning point was its strategic shift to focus on large-scale infrastructure projects, particularly in the energy and communications sectors. This expansion allowed MasTec to become a significant player in building the essential networks and power systems that modern society relies on.
What it actually does
MasTec is essentially a builder of big, essential things. Think of the poles and wires that bring electricity to your home, the underground pipes that carry natural gas, or the fiber optic cables that enable high-speed internet. MasTec's job is to engineer, construct, and maintain these complex systems for other companies, like utility providers and telecommunications firms. They handle everything from initial design to final installation and ongoing upkeep.
Communications
This segment focuses on building and maintaining the infrastructure for how we connect and communicate. This includes installing fiber optic cables for faster internet, setting up cell towers for wireless service, and maintaining existing phone and cable networks. Customers here are typically telecom companies and internet service providers who need these networks built and kept in good working order to serve their customers. This is a significant part of MasTec's business, reflecting the ongoing demand for better and faster communication services.
Clean Energy and Infrastructure
This is where MasTec builds projects that help generate and deliver cleaner energy. This includes constructing solar farms and wind farms, which are facilities that harness renewable energy sources. They also work on other infrastructure projects that support a cleaner environment. The customers are often energy companies looking to invest in renewable power generation. This segment represents a growing area for MasTec as the world shifts towards more sustainable energy solutions.
Power Delivery
MasTec's Power Delivery segment is responsible for building and maintaining the systems that get electricity from where it's generated to where it's used. This involves constructing and upgrading high-voltage transmission lines that carry power over long distances, as well as the distribution networks closer to homes and businesses. They also work on electrical substations. The clients are primarily electric utility companies that need reliable power grids. This is a foundational part of MasTec's operations, ensuring the lights stay on.
Pipeline Infrastructure
In this segment, MasTec builds and maintains the pipelines that transport various products. This primarily includes natural gas pipelines, but can also extend to water pipelines and even newer projects like carbon capture sequestration, which involves storing carbon dioxide underground. They also perform maintenance and upgrades on existing pipeline systems. Customers are typically energy companies and industrial operators who rely on these pipelines for their operations. This business is crucial for the transport of essential resources.
Other
The 'Other' segment encompasses a variety of infrastructure projects that don't fit neatly into the main categories. This can include heavy civil construction like roads and bridges, as well as industrial facilities. It also covers maintenance and upgrade services across all the company's areas, including emergency restoration after natural disasters. This segment provides diversification and captures a range of specialized infrastructure needs from both private companies and government entities.
What management is betting on now
MasTec's leadership is heavily focused on capitalizing on the increasing demand for infrastructure related to clean energy and communications. They are strategically positioning the company to win large projects in areas like renewable energy installations (solar and wind) and the expansion of broadband internet networks. This focus aims to leverage major trends like the transition to cleaner energy sources and the ever-growing need for digital connectivity. By concentrating on these growth areas, MasTec aims to secure long-term contracts and drive future revenue.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$423.35M
FY2025 Q1
$31.10M
FY2025 Q2
$-58.15M
FY2025 Q3
$20.27M
FY2025 Q4
$292.52M
FY2026 Q1
$2.09M
FY2026 Q2
$-70.08M
FY2026 Q3
$180.11M
Revenue
$5.15B
Net income
$150.57M
Diluted EPS
1.89
Operating cash flow
$267.45M
Free cash flow
$180.11M
Fetching…
Sources
Revenue
$4.37B
Net income
$130.12M
Diluted EPS
1.65
Operating cash flow
$21.47M
Free cash flow
$-70.08M
Fetching…
Sources
Revenue
$3.83B
Net income
$60.84M
Diluted EPS
0.77
Operating cash flow
$98.85M
Free cash flow
$2.09M
Fetching…
Sources
Revenue
$3.94B
Net income
$142.71M
Diluted EPS
1.81
Operating cash flow
$372.74M
Free cash flow
$292.52M
Fetching…
Sources
Revenue
$3.97B
Net income
$160.66M
Diluted EPS
2.04
Operating cash flow
$88.97M
Free cash flow
$20.27M
Fetching…
Sources
Revenue
$3.54B
Net income
$85.77M
Diluted EPS
1.09
Operating cash flow
$5.65M
Free cash flow
$-58.15M
Fetching…
Sources
Revenue
$2.85B
Net income
$9.90M
Diluted EPS
0.13
Operating cash flow
$78.36M
Free cash flow
$31.10M
Fetching…
Sources
Revenue
$3.40B
Net income
$74.74M
Diluted EPS
0.95
Operating cash flow
$471.70M
Free cash flow
$423.35M
Fetching…
Sources
Is it cheap or expensive?
Fair value $31.76 vs current price $186.06
Wall Street consensus is the average analyst price target: $353.76 (1,013.8% higher than our fair-value estimate).
Our most-likely fair value is $31.76 a share — about 82.9% below today's price of $186.06, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $4.2B. Interest coverage 3.8x.
Net debt
$4.22B
Interest coverage
3.77x
MasTec, Inc.'s profit covers its interest bill about 3.8 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
MTZ
BASELINE
MasTec, Inc.
Total debt $4.70B Interest coverage 3.77x This is the baseline the peer rows are being compared against.
Total debt $4.05B Interest coverage 5.92x +57% vs MTZ Carries about 1.6x more debt cushion than MTZ.
Total debt $566.51M Interest coverage 130.49x +3,359% vs MTZ Carries about 34.6x more debt cushion than MTZ.
Total debt $3.05B Interest coverage 6.39x +69% vs MTZ Carries about 1.7x more debt cushion than MTZ.
Total debt $1.07B Interest coverage -6.40x -100% vs MTZ This peer has almost no interest-payment cushion compared with MTZ.
Total debt $281.11M Interest coverage 28.79x +663% vs MTZ Carries about 7.6x more debt cushion than MTZ.
What you should know
The case for and against MTZ
3 Rewards
0 Risks
Rewards
-
Revenue grew 20.9% last year.
-
Returns 14.5% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
30.35x
Forward P/E
15.05x
P/B
3.58x
P/S
0.86x
EV/EBITDA
13.96x
PEG ratio
0.56x
Profitability
How much profit each dollar creates
Gross margin
12.7%
Operating margin
5.6%
Net margin
2.8%
ROE
14.5%
ROA
4.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.12x
Current ratio
1.39x
Quick ratio
1.30x
Total debt
$4.70B
Total cash
$481.82M
Growth
How the business has been compounding
Revenue TTM
$17.29B
Revenue 5Y CAGR
15.8%
EPS TTM
6.13
EPS 5Y CAGR
129.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$760.51M
Free CF TTM
$285.73M
FCF margin
1.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
1982-08-04