Valuation
Value $110 Price $58. Underpriced by 47%.
현재 시장기대치와 스토리
현재 가격에 반영된 가정
매출성장 향후 5년간 연 5.5% , 타깃 영업이익률 5.5%(Converge 5년) .
스토리
성장 8%, 이익률8%. 과거 20년간의 Base rate 기준. 그리고 미국 통신 인프라 설치는 앞으로 성장도 어느정도 계속되지 않을까?
시뮬레이션
추후 해볼 것.
Pricing
- PE: 12
- PB: 2.6
- P/TangB: 12.6
- PS: 0.6
- P/CF: 4.6
- P/FCF: 5.4
- EV/Sales: 0.8
- EV/EBITDA: 4.9
- EV/EBIT: 11.1
- EV: 5.9B
기타
소스
Value Screen Feb2020
자료(시트)
Description
Company Description
MasTec, Inc. is a specialty contractor operating across a range of industries. The Company activities are the building, installation, maintenance, and upgrade of utility and communications infrastructure, including electrical utility transmission and distribution, wind farms, solar farms, renewable energy and natural gas infrastructure, wireless, and wireline.
Extended Company Description (Source: Hoover’s Inc., a Dun & Bradstreet Company)
OVERVIEW
MasTec goes the last mile ? and the first mile and the miles in between ? to bring communications and energy to homes, offices, factories, and other places. The company digs the trenches, lays the cable, and builds the towers that power communications and provide cell service and high-speed internet. The contractor plans and builds pipelines that transport natural gas and oil from wells to processing plants. It provides infrastructure construction to telecom vendors, wireless providers, cable TV operators, and energy and utility companies. MasTec also builds electrical utility transmission and distribution and power generation, wind and solar farms, industrial infrastructure, and water and sewer systems.
Operations
With more than 17,000 employees and locations throughout North America, MasTec has the size to tackle big projects that require large resources in equipment and people. Much of the company's equipment ? bucket trucks, forklifts, backhoes, sidebooms, bulldozers, excavators, trenchers, graders, loaders, directional boring machines, digger derricks, pile drivers, and cranes ? can be used on any of its projects. MasTec operates in five business units with most focused on a particular industry. The units are: Communications; Electrical Transmission; Oil and Gas; Power Generation and Industrial; and Other.
The Oil and Gas segment does engineering, construction, and maintenance on oil and natural gas pipelines and processing facilities for the energy and utilities industries. It accounts for about 55% of sales.
The Communications segment performs engineering, construction, and maintenance of communications infrastructure primarily related to wireless and wireline communications and install to the home, and infrastructure for electrical utilities. It accounts for about 35% of sales.
The Electrical Transmission segment primarily serves energy and utility industries through the engineering, construction, and maintenance of electrical transmission lines and substations. It accounts for about 5% of sales.
The Power Generation and Industrial segment serves the energy and utility through the installation and construction of power plants, wind farms, solar farms, related electrical transmission infrastructure, ethanol plants, and other industrial infrastructure. It accounts for less about 5% of sales.
The Other segment primarily includes small business units that perform construction services for a variety of end markets in Mexico and in other locations outside the US. It accounts for less than 1% of sales.
Geographic Reach
MasTec, headquartered in Coral Gables, Florida, has about 400 locations in the US, Canada, and Mexico.
Sales and Marketing
MasTec sells directly to existing and potential customers for service agreement contracts and individual projects. MasTec’s current fortunes are tied to two companies, Energy Transfer and AT&T. Pipeline work for Energy Transfer accounts for about 40% of MasTec’s revenue. MasTec’s communications work revolves around AT&T (including DirecTV), which supplies about 25% of revenue. The company’s level of business with AT&T has been consistent in recent years but business with Energy Transfer grew from just 7% of revenue in 2017.
Financial Performance
After eight years of steady gains, MasTec recorded a dip in revenue and a loss in 2015, but rebounded with increasing revenue and profit in 2016 and 2017.
Sales rose about 30% to $6.6 billion in 2017 from 2016 on the strength of a big year for MasTec’s Oil and Gas unit. Several long-haul pipeline projects combine to drive Oil & Gas revenue about 75% higher for 2017. The Communications business also recorded higher revenue, up about 4%, entirely on the contributions by acquisitions. The unit’s organic revenue dipped about 10% from lower install-to-the-home work. Sales in the Electrical Transmission and the Power Generation and Industrial units decreased in 2017 from 2016.
Higher revenue enabled MasTec to absorb higher costs and post a profit of $347 million in 2017, up from $39 million in 2016. The company had a lower tax bill in 2017 because of the US Tax Cuts and Jobs Act, which was signed into law at the end of the year.
Cash on hand was about the same at $40 million for 2016 and 2017, but free cash flow fell to about $33 million in 2017 from about $88 million the year before.
Strategy
MasTec is riding a wave of oil and gas activity in the US, Canada, and Mexico and it expects the wave to continue. The company has worked on several large projects connecting gas fields to processing facilities in the past few years and expects the trend to continue for several more years.
MasTec sees another force at work that could mean more business. The company itself benefited from the US Tax Cuts and Jobs Act of 2017 with lower taxes. Its customers with lower tax bills might be encouraged to spend more on projects that could add to MasTec’s backlog.
The company sees new construction for its Communications division with industry initiatives in the offing. Construction of infrastructure to support 5G networks is on the horizon. More immediately is the build out of the FirstNet network for public safety communications by AT&T and a large fiber project from Verizon Communications.
MasTec works in industries that go through cycles, but its multiple capabilities help it weather ups and downs. Currently, its oil and gas work is booming while the previous big revenue producer, communications, has waned by comparison. But transmission work should rev up as renewable energy projects move beyond the drawing board and into construction phases.
Mergers and Acquisitions
MasTec uses acquisitions to add to its capabilities and expand its footprint into new geographic regions.
In 2017 the company made three acquisitions: a wireline/fiber deployment construction contractor, a heavy civil construction services company, and an oil and gas pipeline equipment company. The company spent more than $115 million on acquisitions in 2017.
HISTORY
MasTec was formed by the merger of Burnup & Sims (B&S) and Church & Tower (C&T). B&S was founded in 1929 to provide construction and maintenance services to the phone and utilities industries. C&T began in 1968 building phone networks in Miami and Puerto Rico. Jorge Mas Canosa was brought on board in 1969 and given half of the company in exchange for managing it. By 1971 he had succeeded in turning C&T around and had bought the remainder.
In 1994 C&T and B&S merged; B&S became MasTec and C&T became a subsidiary. Mas was named chairman, and his son, who had been at C&T since 1980, was named president and CEO. The company began a program of acquisitions and started building a presence in Latin America.
MasTec doubled its size in 1996 by acquiring Sintel, a telecom infrastructure construction firm operating in South America and Spain, from Teléfonica. MasTec continued to grow through acquisitions, buying 10 more companies the next year. Mas died in 1997 and his son, Jorge Jr., succeeded him. It sold a near-bankrupt Sintel and began to refocus on domestic operations.
