As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of MasTec, Inc. (NYSE:MTZ), it is a company with great financial health as well as a a strong history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on MasTec here.
Excellent balance sheet with proven track record
Over the past few years, MTZ has demonstrated a proven ability to generate robust returns of 20%. Unsurprisingly, MTZ surpassed the Construction industry return of 11%, which gives us more confidence of the company's capacity to drive earnings going forward. MTZ's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. MTZ appears to have made good use of debt, producing operating cash levels of 0.78x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For MasTec, I've compiled three important aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for MTZ’s future growth? Take a look at our free research report of analyst consensus for MTZ’s outlook.
- Valuation: What is MTZ worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MTZ is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MTZ? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.