One-glance verdict
Overvalued
$63.62 our estimate vs market $231.47
Wall Street consensus: $416.95 (555.4% higher than our fair-value estimate)
264% above our estimate, beyond the bull case
Fundamentals snapshot
MasTec, Inc.
MTZ · NYQ · Industrials · Engineering & Construction
Current price
$231.47
52-week range
$182.34 - $441.43
Market cap
$18.59B
Balance sheet
Stretched
3.77x Stretched
Net debt $2.92B. 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 12.7% last year.
- Reward Returns 16.2% 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 is a large construction company that builds and maintains critical infrastructure, including 5G cell towers, internet cables, power grids, and clean energy projects like wind farms. The company earns most of its revenue (the total money brought in from sales) by getting paid for these large, long-term projects by governments and major utility and communications companies. Because the country is investing heavily in upgrading its power grid and expanding internet access, demand for MasTec's services is growing.
How the company got here
MasTec's roots go back to 1929 with a construction company called Burnup & Sims. The modern company, MasTec, Inc., was officially formed in 1994 when a family-owned business, Church & Tower, merged with Burnup & Sims. Initially focused on building infrastructure for telephone companies, the company expanded over the years. Led by the Mas family, it grew by acquiring other companies, broadening its expertise into new areas like energy pipelines and renewable energy projects. A major step was the 2022 purchase of a company called Infrastructure and Energy Alternatives, which significantly grew its clean energy construction business.
What it actually does
MasTec is a large construction and engineering company that builds and maintains the essential infrastructure that powers and connects communities across North America. Think of them as the crews you see building cell towers, laying fiber optic cables for high-speed internet, constructing wind farms and solar fields, and building the pipelines that transport natural gas. They also build and repair the electrical grid that brings power to homes and businesses. Their customers are typically large companies like utility providers, telecom carriers, and energy companies, as well as government entities.
Communications
This is MasTec's original line of business and a significant part of the company, making up just under a quarter of its revenue. This segment builds the physical networks that make modern communication possible. They are paid by wireless carriers and broadband operators to erect cell towers and install the fiber optic cables needed for 5G and high-speed internet. This division also includes technicians who perform in-home installations for services like satellite TV and home security systems.
Clean Energy and Infrastructure
This is MasTec's largest business segment, accounting for about a third of its sales. This division focuses on building large-scale renewable energy projects for power companies and energy developers. This includes the construction of wind farms, solar power facilities, and battery storage systems. The 'Infrastructure' part of the name refers to other large civil engineering projects like building roads, bridges, and data centers.
Power Delivery
This segment is a major part of the company, responsible for nearly 30% of its revenue. Its main job is to build and maintain the infrastructure that delivers electricity to customers. Electric utility companies hire them to construct high-voltage transmission lines that carry power over long distances and the local distribution systems that bring it to neighborhoods and homes. They also provide maintenance and emergency repair services, for instance, when storms damage the power grid.
Pipeline Infrastructure
This is the smallest of the main segments, representing about 15% of the company's business. This division builds and maintains pipelines for energy companies. These pipelines are used to transport resources like natural gas to power plants and utilities, as well as other materials like water. Their work involves everything from installing new pipelines to providing maintenance and upgrade services on existing ones.
What management is betting on now
The company's leadership is focused on several key areas they believe will drive future growth. They are heavily invested in the transition to clean energy, positioning themselves to build more renewable power sources like wind and solar. Another major focus is upgrading the nation's infrastructure, including modernizing the electrical grid and expanding high-speed fiber optic networks. Management is also aiming to improve its profitability, focusing on taking on higher-quality projects and increasing its margins (the portion of sales revenue the company keeps as profit after costs).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$234.13M
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
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
Revenue
$3.25B
Net income
$95.24M
Diluted EPS
1.21
Operating cash flow
$277.73M
Free cash flow
$234.13M
Fetching…
Sources
Is it cheap or expensive?
Fair value $63.62 vs current price $231.47
Wall Street consensus is the average analyst price target: $416.95 (555.4% higher than our fair-value estimate).
Our most-likely fair value is $63.62 a share — about 72.5% below today's price of $231.47, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $2.9B. Interest coverage 3.8x.
Net debt
$2.92B
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 $3.24B 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 $548.03M 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 $67.10M 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 12.7% last year.
-
Returns 16.2% 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)
37.64x
Forward P/E
18.44x
P/B
5.20x
P/S
1.15x
EV/EBITDA
15.82x
PEG ratio
0.69x
Profitability
How much profit each dollar creates
Gross margin
12.9%
Operating margin
5.4%
Net margin
3.1%
ROE
16.2%
ROA
5.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.90x
Current ratio
1.40x
Quick ratio
1.29x
Total debt
$3.24B
Total cash
$315.64M
Growth
How the business has been compounding
Revenue TTM
$16.11B
Revenue 5Y CAGR
15.8%
EPS TTM
6.15
EPS 5Y CAGR
129.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$582.02M
Free CF TTM
$285.73M
FCF margin
1.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
1982-08-04