MTZ

Based on the provided analysis, here is a comprehensive assessment of MasTec (MTZ).

Overall Analysis MTZ presents a compelling yet nuanced investment case. Fundamentally, the company is strong, demonstrating excellent recent revenue growth, expanding profit margins, and a healthy balance sheet with manageable debt. Operationally, it is highly efficient, particularly in inventory management. The most striking positive signal is the PEG ratio of 0.29, which suggests the stock is significantly undervalued relative to its earnings growth potential. However, this must be weighed against a premium valuation on other metrics and high share price volatility.

Risk Considerations The primary risk for MTZ is its high volatility, characterized by a beta of 1.9. This means the stock is likely to experience larger swings than the overall market, which is confirmed by its 34% maximum drawdown over the past year. While the company's core business is robust, investors must have the risk tolerance to endure significant short-term price fluctuations. The stock's current position near its 52-week high also suggests potential for a near-term pullback.

Buy Recommendation MasTec is a BUY for growth-oriented investors with a higher risk tolerance. The company's strong fundamental performance and highly attractive PEG ratio indicate substantial long-term growth potential that may justify its current premium. While the stock's high beta warrants caution and suggests a strategy of dollar-cost averaging, the underlying business strength and growth trajectory make it a worthwhile holding for those comfortable with market volatility. Investors should be prepared for a bumpy ride but are likely to be rewarded over the long term.

RockFlow Model Forecast: Three Scenarios for 2026

Of course. Here is a 12-month outlook for MasTec (MTZ) based on the provided analysis.

12-Month Outlook for MTZ:

The outlook for MTZ is positive, driven by strong fundamental execution and exposure to high-growth infrastructure sectors like renewable energy and communications. Key catalysts include continued revenue growth and expanding profit margins, supported by federal spending programs like the Infrastructure Investment and Jobs Act. The primary risk is the stock's high volatility (beta of 1.9), which could lead to significant swings, especially from a potential pullback after trading near its 52-week high. With no specific analyst target provided, the exceptionally low PEG ratio of 0.29 suggests substantial upside potential, indicating the current price may not fully reflect its earnings growth trajectory over the next year.

Wall Street Consensus

Most Wall Street analysts are optimistic about MTZ's 12-month outlook, with consensus target around $226.00, indicating expected upside potential.

Overall, MTZ has investment potential but also faces challenges. Here are key factors to weigh before investing.

Overall Assessment: MTZ has demonstrated strong outperformance relative to the market over the past three months despite recent short-term weakness, with significant upward momentum from its 52-week low.

Short-term Performance: The stock's 1-month decline of -2.95% contrasts with its solid 3-month gain of 7.61%, indicating recent profit-taking after substantial appreciation. Notably, MTZ has outperformed the market by 4.24% over this period, suggesting relative strength despite near-term volatility, though its high beta of 1.909 highlights above-average sensitivity to market swings.

Current Position: Trading near $226.07, MTZ sits in the upper quartile of its 52-week range ($99.70-$237.76), approximately 5% below its peak. While not severely overbought, the proximity to highs coupled with the maximum drawdown of -34.03% over the past year warrants caution for new entries, as the risk of pullbacks remains elevated given the stock's volatility profile.

Of course. Here is a concise analysis of MTZ's fundamentals based on the provided data.

**1. Revenue & Profitability**

MTZ demonstrated strong revenue growth in Q3 2025, increasing by approximately 12% from the previous quarter to $3.97 billion. Profitability improved significantly, with the gross profit margin rising from 12.3% to 13.6% and the operating income margin doubling from 4.4% to 9.0%. This indicates effective cost control and stronger operational execution, translating to a net income margin of 4.0% for the quarter.

**2. Financial Health**

The company maintains a solid financial position with a healthy current ratio of 1.33 and a low debt-to-equity ratio of 0.89, suggesting a balanced capital structure without excessive leverage. The interest coverage ratio of 7.85 is strong, indicating that operating profits are more than sufficient to cover interest expenses. Furthermore, the positive cash conversion cycle of 53 days shows the company efficiently manages its working capital.

**3. Operational Efficiency**

Operational efficiency is robust, as evidenced by a high inventory turnover ratio of 30.65, signaling very effective inventory management. The return on equity (ROE) of 5.16% and asset turnover of 0.41, while modest, are supported by the healthy profit margins. The high fixed asset turnover of 1.90 suggests the company is efficiently utilizing its asset base to generate sales.

MTZ's valuation presents a mixed outlook. While the forward PE ratio of 25.7 appears more reasonable than the trailing 49.9, the elevated PB ratio of 5.55 and very high EV/EBITDA of 74.2 suggest the market is pricing in significant growth expectations. However, the PEG ratio of 0.29, which is below 1, indicates the stock may be undervalued relative to its earnings growth potential.

Without specific industry averages for comparison, a definitive peer assessment is challenging. The analysis must rely on absolute valuation metrics, where the low PEG ratio is the most compelling positive signal amidst otherwise premium valuations. A comparison against concrete industry benchmarks would be necessary to determine its relative valuation positioning more accurately.

MTZ exhibits significant volatility risk, with a Beta of 1.909 indicating the stock is approximately 91% more volatile than the broader market. This heightened sensitivity is further evidenced by a substantial one-year maximum drawdown of -34.03%, reflecting considerable price erosion during recent downturns. Investors should be prepared for amplified price swings relative to market indices.

The absence of reported short interest suggests a lack of significant bearish sentiment from short sellers, which can be viewed as a positive indicator. However, this lack of data point should be interpreted cautiously, as it may indicate either strong consensus or simply limited trading activity; additional liquidity metrics would be required for a complete assessment. Other market and company-specific risks remain inherent.