MasTec Inc. Common Stock (MTZ)

FairStock Score: 34/100 — RISKY

Key Financials

Strengths

• Generates $97 million in annual free cash flow (0.3% yield on market cap)
• Solid return on equity of 13.3% above cost of capital
• Revenue growth of 15.8% demonstrates strong top-line momentum
• Established organization with 36,000 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($69) with negative 459% margin of safety—limited downside protection

AI Analysis

MasTec Inc. Common Stock is a mid-cap industrials company valued at $30.3 billion. The business generates $14.3 billion in annual revenue with a 1.0% net margin and $97 million in free cash flow. From a quality standpoint, MasTec shows healthy Altman Z-Score of 3.7 and adequate 13% ROE. On valuation, the stock is commanding a steep 75.4x multiple, with trades far above its Graham Number ($69) with no margin of safety. Growth dynamics show revenue growing at 15.8% and profit growth of 91.0%. Our composite FairStock Score of 35/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

MasTec's 16% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $97 million in annual free cash flow (0.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 75x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer