Business Analysis of Masco

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Masco

Business Overview

Masco Corporation designs, manufactures, markets, and distributes home improvement and building products worldwide. Its Plumbing Products segment provides faucets, showerheads, handheld showers, valves, bathing units, shower enclosures, toilets, acrylic tubs, shower trays, spas products, exercise pools and systems, brass and copper plumbing system components, and other non-decorative plumbing products. The company's Decorative Architectural Products segment offers architectural coatings, including paints, primers, specialty paints, stains, and waterproofing products; cabinet, door, window, and hardware products; and functional hardware, wall plates, hook and rail products, and picture hanging accessories, as well as decorative bath hardware, shower accessories, and shower doors. The company's Cabinetry Products segment offers assembled cabinetry for kitchen, bath, storage, home office, and home entertainment applications; and integrated bathroom vanity and countertop products. Its Windows and Other Specialty Products segment provides vinyl, fiberglass, and aluminum windows and patio doors; vinyl windows, and composite and panel doors; and staple guns, hammer tackers, glue guns, and rivet tools, as well as staples, glues, and rivets. The company sells its products under DELTA, BRIZO, PEERLESS, HANSGROHE, AXOR, GINGER, NEWPORT BRASS, BRASSTECH, WALTEC, BRISTAN, HERITAGE, MIROLIN, HUPPE, HOT SPRING, CALDERA, FREEFLOW SPAS, FANTASY SPAS, ENDLESS POOLS, BRASSCRAFT, PLUMB SHOP, COBRA, MASTER PLUMBER, BEHR, KILZ, LIBERTY, BRAINERD, FRANKLIN BRASS, KRAFTMAID, CARDELL, MERILLAT, QUALITY CABINETS, MOORES, ESSENCE SERIES, MILGARD, DURAFLEX, GRIFFIN, PREMIER, EVOLUTION, ARROW, POWERSHOT, and EASYSHOT brands. It offers its products through home center retailers, mass merchandisers, hardware stores, homebuilders, distributors, and other outlets to consumers and contractors, as well as directly to consumers. The company was founded in 1929 and is headquartered in Taylor, Michigan.

Masco

Masco


R&P Rank: 377
Sector: Construction and Building Products
Industry:Building Materials & Fixtures
H.Q Location:Michigan
Website: www.masco.com
Company Address:
21001 VAN BORN RD, TAYLOR MI 48180
Ph:313-274-7400

Business Analysis of Masco

The Construction and Building Products Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Masco compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Masco to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Masco with an interactive chart.

  1. Revenue Growth: Masco reported a revenue growth of 3.0% year-on-year during 2016. Building Materials & Fixtures Industry grew at 10.7% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Masco spent 66.6% of its total revenues on COGS. Building Materials & Fixtures industry average (COGS share of revenue) in the same period was 72.8%
  3. R&D share of Revenues: Masco R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Masco spent 19.1% of its total revenues on Sales, Marketing, and General Administration (SG&A). Building Materials & Fixtures industry average SG&A spending in the same period was 16.5%
  5. Inventory share of Revenues: As a percentage of revenue, Masco spent 9.7% of its total revenues on Inventories. Building Materials & Fixtures industry average Inventory spending in the same period was 11.3%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Masco invested 10.9% of its total revenues on Accounts Payable (A/P) Building Materials & Fixtures industry average Accounts Payable investment in the same period was 7.6%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Masco invested 12.5% of its total revenues on Accounts Receivable (A/R). Building Materials & Fixtures industry average Accounts Receivable investment in the same period was 11.6%
  8. PP&E share of Revenues: As a percentage of revenue, Masco invested 14.4% of its total revenues on Property, Plants, and Equipments (PP&E). Building Materials & Fixtures industry average PPE investment in the same period was 26.2%
  9. Intangibles share of Revenues: As a percentage of revenue, Masco invested 13.4% of its total revenues on Intangibles. Building Materials & Fixtures industry average Intangibles investment in the same period was 27.0%
  10. Net Margins: Masco Net Margins in the year 2016 were 6.7%. Building Materials & Fixtures industry average Net Margins in the same period were 6.8%

Sector and Industry Association of Masco

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Masco is associated with Industrials Sector Group, Construction and Building Products Sector, and Building Materials & Fixtures Industry.

Construction and Building Products sector is comprised of the following industries: Building Materials & Fixtures; Heavy Construction. The definitions for each of the industries is as follows:

  • Building Materials & Fixtures industry includes producers of materials used in the construction and refurbishment of buildings and structures, including cement and other aggregates, wooden beams and frames, paint, glass, roofing and flooring materials other than carpets. Building Materials & Fixtures companies also offer bathroom and kitchen fixtures, plumbing supplies and central air-conditioning and heating equipment.
  • Heavy Construction industry includes companies engaged in the construction of commercial buildings, infrastructure such as roads and bridges, residential apartment buildings, and providers of services to construction companies, such as architects, masons, plumbers and electrical contractors. Heavy Construction companies also offer construction equipment.

Industry Ranking of Masco

With $7.4 billion revenues, Masco ranked number 1 of all the companies in the US Building Materials & Fixtures industry. There were a total of 60 public companies in the US Building Materials & Fixtures industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Building Materials & Fixtures industry by revenues during 2016 were:

  1. Masco ($7.4 billion)
  2. HD Supply Holdings ($7.1 billion)
  3. Builders FirstSource ($6.4 billion)
  4. Owens Corning ($5.7 billion)
  5. Fortune Brands Home & Security ($5 billion)
  6. Watsco ($4.2 billion)
  7. Beacon Roofing Supply ($4.1 billion)
  8. Fastenal ($4 billion)
  9. Boise Cascade ($3.9 billion)
  10. Martin Marietta Materials ($3.8 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Mascoand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of masco

HD Supply Holdings (HDS) Business Analysis – Analyze Historical Performance, Strategic...

HD Supply Holdings, Inc. with $7 billion revenues in the year 2016 was the number 2 Building Materials & Fixtures company. Read this report to know the top competitors of HD Supply Holdings and identify growth and cost optimization opportunities of HD Supply Holdings

Builders FirstSource (BLDR) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Builders FirstSource, Inc. with $6 billion revenues in the year 2016 was the number 3 Building Materials & Fixtures company. Read this report to know the top competitors of Builders FirstSource and identify growth and cost optimization opportunities of Builders FirstSource

Owens Corning (OC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Owens Corning with $6 billion revenues in the year 2016 was the number 4 Building Materials & Fixtures company. Read this report to know the top competitors of Owens Corning and identify growth and cost optimization opportunities of Owens Corning

Fortune Brands Home & Security (FBHS) Business Analysis – Analyze Historical...

Fortune Brands Home & Security, Inc. with $5 billion revenues in the year 2016 was the number 5 Building Materials & Fixtures company. Read this report to know the top competitors of Fortune Brands Home & Security and identify growth and cost optimization opportunities of Fortune Brands Home & Security

Watsco (WSO) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Watsco Inc with $4 billion revenues in the year 2016 was the number 6 Building Materials & Fixtures company. Read this report to know the top competitors of Watsco and identify growth and cost optimization opportunities of Watsco

Beacon Roofing Supply (BECN) Business Analysis – Analyze Historical Performance, Strategic...

Beacon Roofing Supply Inc with $4 billion revenues in the year 2016 was the number 7 Building Materials & Fixtures company. Read this report to know the top competitors of Beacon Roofing Supply and identify growth and cost optimization opportunities of Beacon Roofing Supply

Revenues Analysis

Masco (MAS) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Masco Corp (MAS) from 2012 to 2016. Masco generated a total of $7.4 billion revenues during 2016. Masco reported a revenue growth of 3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Masco (MAS) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Masco Corp (MAS) from 2002 to 2016. Masco generated a total of $7.4 billion revenues during 2016. Masco reported a revenue growth of 3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Masco (MAS) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Masco Corp (MAS) revenue growth with Building Materials & Fixtures industry growth during the last five years from 2012 to 2016. Masco reported a revenue growth of 3% year-over-year during 2016. The Building Materials & Fixtures industry growth was 10.7% year-over-year during 2016. Masco growth was slower than the industry during 2016.

Profit Analysis