MasTec, Inc. - A Financial Analysis and Valuation Report

Date of Award

Spring 5-13-2022

Document Type

Project (696 or 796 registration)

Degree Name

Master of Science in Accounting & Finance

Department

Graduate Studies

Committee Chair

Mohamed Elbannan

Keywords

Energy, Specialty Trade Contractors

Abstract

MasTec, Inc was founded in 1994 and is one of the leaders in the market of specialty trade contracts. They are headquartered in Coral Gables, FL, and currently are servicing projects in the United States and Canada. The company consists of many segments for its daily operations. These segments include power generation, power delivery, oil and gas, water and sewer, communications, civil and industrial, and technology deployment services. Operating with many segments could cause MasTec, Inc. to spread its resources thin and fall behind its competitors in the specialty trade industry. By relying on innovation and marketing strategic bids for profitable projects, they can expand their market footprint and acquire new subsidiaries to support its needs. Their core values include safety, customer service, tradition and legacy, ethics, teamwork, respect, recognition and celebration, and excellence.

This report summarizes results of the financial analysis of MasTec from 2016 to 2020 and current valuation of the firm. A financial comparison is included with a leading competitive firm in the same industry. From 2016 to 2020 the company had experienced explosive growth early and has leveled off or slightly declined in 2020. Reviewing the SEC 10-K annual reports, there were no material deficiencies or weaknesses for company’s internal controls, and external auditors concluded an unqualified opinion on all financial statements.

Concluding the analysis is a recommendation on MasTec’s stock. I believe the stock is slightly undervalued and purchasing this stock would be beneficial given the seasonal aspect of the industry currently and future projections.

Abstract only: No full text available.

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