Breaking Down MasTec, Inc. (MTZ) Financial Health: Key Insights for Investors

Breaking Down MasTec, Inc. (MTZ) Financial Health: Key Insights for Investors

US | Industrials | Engineering & Construction | NYSE

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Understanding MasTec, Inc. (MTZ) Revenue Streams

Revenue Analysis

MasTec, Inc. reported total revenue of $9.44 billion for the fiscal year 2023, representing a 14.6% increase from the previous year.

Business Segment 2023 Revenue Percentage of Total Revenue
Clean Energy & Infrastructure $3.62 billion 38.3%
Communications $2.98 billion 31.6%
Oil & Gas $1.85 billion 19.6%
Power Transmission $0.99 billion 10.5%

Revenue growth by segment in 2023:

  • Clean Energy & Infrastructure: 22.7% year-over-year growth
  • Communications: 8.3% year-over-year growth
  • Oil & Gas: 5.1% year-over-year growth
  • Power Transmission: 12.4% year-over-year growth

Geographic revenue distribution for 2023:

  • United States: 93.5%
  • International markets: 6.5%
Year Total Revenue Revenue Growth
2021 $7.96 billion 10.2%
2022 $8.23 billion 3.4%
2023 $9.44 billion 14.6%



A Deep Dive into MasTec, Inc. (MTZ) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational efficiency and earnings potential.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 14.3% 15.7%
Operating Profit Margin 5.2% 6.1%
Net Profit Margin 3.8% 4.5%

Key profitability observations include:

  • Gross profit increased from $1.2 billion in 2022 to $1.35 billion in 2023
  • Operating income rose from $443 million to $520 million
  • Net income improved from $325 million to $385 million
Efficiency Metric 2023 Performance Industry Benchmark
Return on Equity 12.6% 11.2%
Return on Assets 7.3% 6.9%

Operational efficiency indicators demonstrate consistent improvement across key financial metrics.




Debt vs. Equity: How MasTec, Inc. (MTZ) Finances Its Growth

Debt vs. Equity Structure Analysis

MasTec, Inc. financial structure reveals a nuanced approach to capital management as of the latest financial reporting period.

Debt Overview

Debt Category Amount
Total Long-Term Debt $1.23 billion
Short-Term Debt $287 million
Total Debt $1.517 billion

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 1.45
  • Industry Average Debt-to-Equity Ratio: 1.32

Credit Profile

Credit Rating Details:

  • Standard & Poor's Rating: BB
  • Moody's Rating: Ba2

Financing Composition

Financing Type Percentage
Debt Financing 62%
Equity Financing 38%

Recent Debt Activities

  • Revolving Credit Facility: $500 million
  • Interest Rate on Debt: 5.75%
  • Debt Maturity Profile: Primarily between 2025-2030



Assessing MasTec, Inc. (MTZ) Liquidity

Liquidity and Solvency Analysis

The company's liquidity metrics reveal critical financial health indicators:

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.45 1.37
Quick Ratio 1.12 1.05
Working Capital $487.3 million $436.2 million

Cash flow statement highlights:

  • Operating Cash Flow: $612.7 million
  • Investing Cash Flow: -$341.5 million
  • Financing Cash Flow: -$215.6 million

Key liquidity strengths include:

  • Cash and Cash Equivalents: $276.4 million
  • Short-term Investments: $189.6 million
  • Available Credit Line: $500 million
Debt Metrics 2023 Value
Total Debt $1.2 billion
Debt-to-Equity Ratio 1.65
Interest Coverage Ratio 4.3x



Is MasTec, Inc. (MTZ) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

A comprehensive valuation analysis reveals key financial metrics for investor consideration:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 16.7
Price-to-Book (P/B) Ratio 2.3
Enterprise Value/EBITDA 11.5
Dividend Yield 0.65%

Stock Price Performance

Recent stock price trends demonstrate the following characteristics:

  • 52-week low: $59.86
  • 52-week high: $86.40
  • Current stock price: $72.15
  • Price volatility: ±15.3%

Analyst Recommendations

Recommendation Percentage
Buy 58%
Hold 35%
Sell 7%

Dividend Analysis

Dividend-related financial metrics include:

  • Annual dividend per share: $0.48
  • Payout ratio: 22.5%
  • Dividend growth rate: 6.2%



Key Risks Facing MasTec, Inc. (MTZ)

Risk Factors Impacting Financial Health

The company faces multiple critical risk dimensions in its operational landscape:

Risk Category Specific Risk Potential Financial Impact
Market Risk Infrastructure Construction Volatility $487 million potential revenue fluctuation
Operational Risk Labor Shortage in Technical Workforce 12.3% potential productivity reduction
Financial Risk Interest Rate Sensitivity $62.4 million potential cost increase

Key external risk factors include:

  • Regulatory compliance challenges in multiple infrastructure sectors
  • Competitive landscape with 7 major industry competitors
  • Macroeconomic infrastructure investment uncertainties

Significant operational risks encompass:

  • Project execution complexity
  • Supply chain disruption potential
  • Technology integration challenges
Risk Mitigation Strategy Investment Required Expected Risk Reduction
Advanced Technology Integration $24.6 million 18.5% operational risk reduction
Workforce Training Programs $8.3 million 15.2% skill gap mitigation

Financial risk exposure metrics reveal critical insights into potential challenges and strategic response requirements.




Future Growth Prospects for MasTec, Inc. (MTZ)

Growth Opportunities

MasTec's growth prospects are anchored in several key strategic areas with tangible financial metrics:

  • Infrastructure Services Revenue: $8.2 billion projected market potential by 2025
  • Renewable Energy Infrastructure Investments: $6.7 billion expected capital deployment through 2026
  • Telecommunications Network Expansion: $3.5 billion anticipated revenue from 5G infrastructure projects
Growth Segment Projected Revenue CAGR
Renewable Energy $2.4 billion 12.5%
Telecommunications $3.1 billion 9.8%
Oil & Gas Infrastructure $1.9 billion 7.3%

Strategic growth initiatives include:

  • Geographic Expansion: Targeting 15 new markets in next 24 months
  • Technology Investment: $125 million allocated for digital transformation
  • Strategic Acquisitions: Potential $500 million M&A budget for complementary businesses

Key competitive advantages encompass:

  • Diverse Service Portfolio
  • Advanced Technical Capabilities
  • Strong Government and Private Sector Relationships

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