{"schemaVersion":1,"research":true,"symbol":"mas","name":"Masco","topic":"moat","path":"/stock/mas/moat","status":"published","version":3,"updatedAt":"2026-10-18T00:58:46.024Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"none","summary":"The supplied passages show a branded business with substantial cash generation, but realized pricing weakness and powerful customers prevent an evidenced economic moat. Price increases have caused sales and market-share losses, while customer pressure to reduce prices has hurt results. Brand leadership is principally an issuer assertion; sustained consumer preference, pricing premiums and competitive barriers are not demonstrated.","advantages":[{"mechanism":"intangible_assets","claim":"Masco owns recognizable product brands and has substantial established distribution. These are current commercial assets, but the passages do not demonstrate that they create durable pricing power or customer dependency sufficient for a moat.","durability":"Brand assets may persist, but their economic protection is fragile in the supplied evidence. Historical adverse pricing outcomes and concentrated retailer bargaining power constrain the advantage.","risks":"Customers can influence prices and terms; higher prices have caused demand and market-share losses. Trading down and greater online price transparency threaten differentiation. Management's digital, innovation and operational initiatives remain potential improvements rather than demonstrated additional barriers.","invalidation":"The limited brand advantage would be invalidated by sustained brand-specific share losses, replacement by alternative suppliers at major accounts, or repeated discounting required to preserve distribution. The no-moat conclusion would warrant reconsideration if multiple periods demonstrated pricing premiums and repeat demand without material share losses through adverse cost cycles.","competitors":[],"evidenceIds":["e1","e2"],"counterEvidenceIds":["e3","e4","e5","e6","e7","e8","e9"]}],"evidence":[{"id":"e1","sourceId":"filing-1","location":"Item 1, Business: brand portfolio","excerpt":"Our portfolio of industry-leading brands includes BEHR® paint; DELTA® and HANSGROHE® faucets, bath and shower fixtures; LIBERTY® branded decorative and functional hardware; and HOT SPRING® spas."},{"id":"e2","sourceId":"filing-1","location":"Item 1A, Risk Factors: 2025 significant-customer sales","excerpt":"In 2025, our net sales to The Home Depot were $2.9 billion (approximately 38 percent of our consolidated net sales), and our net sales to Ferguson and Lowe’s were each less than 10 percent of our consolidated net sales."},{"id":"e3","sourceId":"filing-1","location":"Item 1A, Risk Factors: realized consequences of selling-price increases","excerpt":"Increased selling prices for our products have led and may in the future lead to sales declines, a shift in the mix of products we sell and loss of market share, particularly if those prices are not competitive."},{"id":"e4","sourceId":"filing-1","location":"Item 1A, Risk Factors: customer pressure to reduce prices","excerpt":"When our material costs decline, we have received and may in the future receive pressure from our customers to reduce our prices."},{"id":"e5","sourceId":"filing-1","location":"Item 1A, Risk Factors: realized adverse effects of price reductions","excerpt":"Such reductions have had and could in the future have an adverse impact on our results of operations and financial position."},{"id":"e6","sourceId":"filing-1","location":"Item 1A, Risk Factors: experienced lower demand and trading down","excerpt":"As a result of this trend, we have experienced and may in the future experience lower demand for our products or a shift in the mix of some products we sell toward more value-priced or opening price point products, which has impacted and may in the future impact our results of operations and financial position."},{"id":"e7","sourceId":"filing-1","location":"Item 1A, Risk Factors: e-commerce competition and pricing transparency","excerpt":"The growing e-commerce channel brings an increased number of competitors and greater pricing transparency for consumers and customers, as well as conflicts between our existing distribution channels and a need for different distribution methods."},{"id":"e8","sourceId":"filing-1","location":"Item 1A, Risk Factors: significant customers' bargaining power","excerpt":"These customers can significantly impact the prices we receive for our products and the terms and conditions on which we do business with them."},{"id":"e9","sourceId":"filing-1","location":"Item 1A, Risk Factors: difficulty replacing major customer sales","excerpt":"Although other retailers, dealers, distributors, wholesalers and homebuilders represent other channels of distribution for our products and services, we might not be able to quickly replace, or replace at all, the loss of a substantial portion of our sales to The Home Depot or the loss of all of our sales to either Ferguson or Lowe’s."},{"id":"e10","sourceId":"filing-1","location":"Item 1A, Risk Factors: customer arrangements and constraints on price adjustments","excerpt":"Our existing arrangements with customers, competitive considerations and customer resistance to price increases may delay or make us unable to adjust selling prices."},{"id":"e11","sourceId":"filing-3","location":"Compensation Discussion and Analysis: experienced 2025 volume and cost headwinds","excerpt":"Over the course of 2025, we experienced lower sales volume and higher tariffs and commodity costs."},{"id":"e12","sourceId":"filing-3","location":"Compensation Discussion and Analysis: 2025 operating profit and margin results","excerpt":"Despite these headwinds, we were able to deliver $1,248 million in operating profit, down 8% from $1,363 million in 2024, and reported an operating margin of 16.5%, 90 basis points below 2024."},{"id":"e13","sourceId":"filing-1","location":"Consolidated statements of cash flows: 2023–2025","excerpt":"36 MASCO CORPORATION and Consolidated Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2025, 2024 and 2023 (In Millions) 2025 2024 2023 CASH FLOWS FROM (FOR) OPERATING ACTIVITIES: Net income $ 858 $ 874 $ 960 Depreciation and amortization 148 150 149 Deferred income taxes 64 28 (32) Employee withholding taxes paid on stock-based compensation 10 35 29 Loss on disposition of business, net — 80 — (Gain) loss on disposition of property and equipment (5) 3 6 Pension and other post-retirement benefits (8) (7) (6) Impairment charges for other intangible assets 5 — 15 Stock-based compensation 30 39 31 Decrease (increase) in receivables 19 (39) 42 (Increase) decrease in inventories (81) 4 233 Decrease in accounts payable and accrued liabilities, net (14) (95) (34) Other, net (4) 3 21 Net cash from operating activities 1,022 1,075 1,413 CASH FLOWS FROM (FOR) FINANCING ACTIVITIES: Purchase of Company common stock (571) (751) (353) Excise tax paid on the purchase of Company common stock (6) (3) — Cash dividends paid (261) (254) (257) Purchase of redeemable noncontrolling interest — (15) — Dividends paid to noncontrolling interest (45) (37) (49) Proceeds from short-term borrowings — — 77 Payment of short-term borrowings — — (77) Payment of term loan — — (200) Proceeds from the exercise of stock options 6 79 38 Employee withholding taxes paid on stock-based compensation (10) (35) (29) Payment of debt (2) (3) (5) Net cash for financing activities (888) (1,017) (854) CASH FLOWS FROM (FOR) INVESTING ACTIVITIES: Capital expenditures (156) (168) (243) Acquisition of businesses, net of cash acquired — (4) (136) Proceeds from disposition of: Business, net of cash disposed — 126 — Property and equipment 14 1 3 Other, net (3) (5) (7) Net cash for investing activities (144) (50) (383) Effect of exchange rate changes on cash and cash investments 25 (9) 6 CASH AND CASH INVESTMENTS: Increase (decrease) for the year 14 (1) 182 At January 1 634 634 452 At December 31 $ 647 $ 634 $ 634 See notes to consolidated financial statements."},{"id":"e14","sourceId":"filing-2","location":"Unaudited condensed consolidated statements of cash flows: first half of 2026 and 2025","excerpt":"3 MASCO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Six Months Ended June 30, 2026 and 2025 (In Millions) Six Months Ended June 30, 2026 2025 CASH FLOWS FROM (FOR) OPERATING ACTIVITIES: Cash provided by operations $ 705 $ 606 Increase in receivables (327) (271) Increase in inventories (22) (133) Increase (decrease) in accounts payable and accrued liabilities, net 61 (55) Net cash from operating activities 417 148 CASH FLOWS FROM (FOR) FINANCING ACTIVITIES: Purchase of common stock (592) (231) Excise tax paid on the purchase of common stock (5) (6) Cash dividends paid (129) (132) Dividends paid to noncontrolling interest (13) (15) Proceeds from revolving credit borrowings, net — 46 Proceeds from term loan 300 — Proceeds from the exercise of stock options 23 2 Employee withholding taxes paid on stock-based compensation (14) (8) Payment of debt (1) (1) Debt financing costs (3) — Net cash for financing activities (433) (344) CASH FLOWS FROM (FOR) INVESTING ACTIVITIES: Capital expenditures (77) (68) Other, net (1) (1) Net cash for investing activities (78) (70) Effect of exchange rate changes on cash and cash investments (6) 22 CASH AND CASH INVESTMENTS: Decrease for the period (100) (243) At January 1 647 634 At June 30 $ 548 $ 390 See notes to condensed consolidated financial statements."},{"id":"e15","sourceId":"filing-2","location":"MD&A, Cash Flows: operating cash flow and tariff-refund benefit","excerpt":"Cash Flows For the six months ended June 30, 2026, net cash provided by operations was $417 million, primarily driven by operating profit, inclusive of the net tariff benefit from IEEPA tariff refunds, partially offset by changes in working capital."},{"id":"e16","sourceId":"filing-2","location":"MD&A, Share Repurchases: anticipated 2026 spending including term-loan funds","excerpt":"Consistent with our long-term capital allocation strategy, outside of any potential acquisitions, we currently anticipate using approximately $1.0 billion of cash, including funds available under the term loan, for share repurchases in 2026."},{"id":"e17","sourceId":"filing-3","location":"Compensation Discussion and Analysis: actual 2025 annual bonus outcome","excerpt":"As a result of our performance in 2025, which was negatively impacted by the headwinds described above, our executive officers earned 34% of target under our annual performance program, and received a cash bonus consistent with this performance."},{"id":"e18","sourceId":"filing-3","location":"Compensation Discussion and Analysis: 2023–2025 LTIP performance metrics","excerpt":"For the three-year period of 2023-2025, our LTIP was based on the financial metrics of cumulative earnings per share (“EPS”), a three-year average return on invested capital (“ROIC”) and relative total shareholder return (“rTSR”)."},{"id":"e19","sourceId":"filing-3","location":"Compensation Discussion and Analysis: actual LTIP achievement and share awards","excerpt":"We achieved 200% of our cumulative EPS target, 106% of our ROIC target and 88% of our rTSR target, resulting in overall achievement of 131%, and our executive officers received a share award consistent with this performance."},{"id":"e20","sourceId":"filing-3","location":"Compensation Discussion and Analysis: adopted change to time-based annual RSU awards","excerpt":"Beginning with the 2025 performance year, our annual grant of restricted stock units to our executive officers is a time-based award that is forward-looking, meaning that it rewards stock price appreciation and continuous service during the vesting period, rather than a backward-looking award that is granted following the achievement of specified performance goals."},{"id":"e21","sourceId":"filing-3","location":"Corporate Governance: board size and independence as disclosed April 10, 2026","excerpt":"DIRECTORS AND DIRECTOR NOMINEES Our Board is currently comprised of ten directors, nine of whom are independent directors."},{"id":"e22","sourceId":"filing-3","location":"Corporate Governance: Audit Committee activities during 2025","excerpt":"Audit Committee key activities in 2025: • reviewed and approved our 2024 Form 10-K • reviewed our Form 10-Qs filed in 2025 and related earnings press releases • discussed with management quarterly updates regarding our 2025 internal audit annual operating plan and our internal controls over financial reporting • reviewed with management quarterly updates on ethics matters and fraud reporting • discussed with management certain accounting and risk management practices, including in the areas of product compliance, tax, employee benefits and treasury governance • discussed with management the impact of tariffs, our related mitigation actions and our trade compliance governance • discussed with management our sustainability reporting processes and controls • reviewed the performance of our internal and independent auditors and evaluated the independent auditors’ qualifications and independence • reviewed and approved our independent auditors’ 2026 integrated audit plan and service fees • reviewed and approved our 2026 internal audit annual operating plan 14 Table of Contents PART I — CORPORATE GOVERNANCE | MASCO 2026 Compensation and Talent Committee Mark R."},{"id":"e23","sourceId":"filing-2","location":"Item 4, Controls and Procedures: management's June 30, 2026 effectiveness conclusion","excerpt":"The Company's Principal Executive Officer and Principal Financial Officer have concluded, based on an evaluation of the Company's disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) or 15d-15(e)) as required by paragraph (b) of Exchange Act Rules 13a-15 or 15d-15 that, as of June 30, 2026, the Company's disclosure controls and procedures were effective."},{"id":"e24","sourceId":"filing-2","location":"MD&A, Overview: incurred and expected 2026 restructuring charges","excerpt":"In connection with these actions, we incurred approximately $12 million and $20 million in charges in the three and six months ended June 30, 2026, respectively, and we expect to incur approximately $50 million in charges during the full year of 2026."}],"changes":["No comparable previous version was supplied."],"limitations":["Assessment uses only the supplied excerpts from filings dated February 10, April 10 and July 29, 2026; each date is a filing date, not a retrieval date.","No competitor is identified as a competitor in the supplied passages. The Home Depot, Ferguson and Lowe’s are disclosed customers; companies appearing in director biographies or compensation discussions do not establish competitor coverage.","Brand leadership and future growth benefits are issuer assertions. The excerpts provide no comparative brand premiums, market-share series, customer retention rates or demonstrated cost advantage.","Historical pricing harm is explicitly disclosed, but its magnitude and timing are not quantified. Generic prospective risks are not treated as realized losses.","The supplied operating data do not isolate pricing, volume, mix and underlying cost effects sufficiently to establish durable pricing power. First-half 2026 cash generation includes tariff-refund benefits.","The proxy supplies actual compensation outcomes and governance practices, but the passages omit executive ownership levels and complete compensation weights. Proposed charter amendments and special-meeting rights are not treated as adopted."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":1,"rationale":"The brand portfolio and established customer sales support commercial relevance, but significant customers control prices and terms. No protected distribution, switching barrier or comparative cost advantage is demonstrated.","evidenceIds":["e1","e2","e8"]},{"criterion":"durability","grade":1,"rationale":"Historical sales and market-share losses following price increases weaken the case for durable brand protection. Difficulty replacing major customer sales shows Masco's dependence on distribution partners.","evidenceIds":["e3","e9"]},{"criterion":"customer_dependency","grade":1,"rationale":"Customer bargaining power and observed price sensitivity indicate weak dependency on Masco. The disclosed concentration establishes Masco's reliance on customers rather than customer lock-in.","evidenceIds":["e2","e3","e8","e9"]},{"criterion":"erosion_resilience","grade":1,"rationale":"Realized pricing harm and trading down show fragile differentiation. Continued substantial profitability provides some resilience, but 2025 operating profit and margin declined; online transparency adds prospective pressure.","evidenceIds":["e3","e5","e6","e7","e12"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":1,"rationale":"Price increases have caused sales, mix and market-share losses, and customer-driven price reductions have adversely affected results. These are observed adverse outcomes, although their magnitude is unspecified.","evidenceIds":["e3","e4","e5"]},{"criterion":"retention","grade":1,"rationale":"Assessed indirectly from disclosed demand behavior: higher prices have caused sales and market-share losses, and customers have traded toward lower-priced products. Repeat-purchase rates and account retention are not supplied.","evidenceIds":["e3","e6"]},{"criterion":"margin_resilience","grade":2,"rationale":"Despite lower volume and higher tariffs and commodity costs, Masco generated $1.248 billion of operating profit in 2025. However, profit fell 8% and margin declined 90 basis points to 16.5%. This is mixed resilience, without isolating pricing's contribution.","evidenceIds":["e11","e12"]},{"criterion":"contractual_freedom","grade":1,"rationale":"Existing customer arrangements can delay or prevent selling-price adjustments, and concentrated major customers materially influence prices and terms. Full contract terms are absent, but the disclosed constraints support a weak grade.","evidenceIds":["e10","e2","e8"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"2025 operating cash flow of $1.022 billion supported $156 million of capital expenditures, repurchases and dividends. In the first half of 2026, $417 million of operating cash flow less $77 million of capital expenditures was below $592 million of repurchases plus $129 million of dividends; a $300 million term loan supplemented funding. Cash generation is substantial, but debt-supported distributions and unproven buyback value make discipline mixed. Planned full-year spending is a commitment, not an achieved outcome.","evidenceIds":["e13","e14","e15","e16"]},{"criterion":"incentive_alignment","grade":2,"rationale":"Actual annual bonuses fell to 34% of target with weaker 2025 performance. The completed three-year LTIP used EPS, ROIC and relative shareholder returns and paid 131% of target. These demonstrate performance linkage, while the adopted shift of annual RSUs to time-based awards weakens that component's performance condition. Ownership levels and full pay weights are missing.","evidenceIds":["e17","e18","e19","e20"]},{"criterion":"execution","grade":2,"rationale":"Assessed from operating outcomes rather than management's growth claims: substantial profit and cash generation persisted through adverse demand and costs, but 2025 profit declined. First-half 2026 operating cash flow improved with working-capital changes and tariff benefits. Restructuring charges demonstrate implementation spending, not proven savings.","evidenceIds":["e11","e12","e13","e14","e15","e24"]},{"criterion":"governance","grade":3,"rationale":"The April proxy disclosed nine independent directors out of ten and documented Audit Committee work on financial reporting, ethics, tariffs, controls and auditor independence. Management subsequently concluded disclosure controls were effective at June 30. These support strong demonstrated oversight practices, with issuer-source limitations and no evidence of exceptional durability. Proposed shareholder-rights amendments are excluded.","evidenceIds":["e21","e22","e23"]}]}],"qualityPolicy":"quality-scores-2","basisHash":"9dd84dc9fd62e70055930903b52d28a92d07997b21c5be56eab30745e3701a8b","updatedAt":"2026-10-18T00:58:46.024Z","sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/62996/000006299626000005/mas-20251231.htm","publishedAt":"2026-02-10","sha256":"0709bea2b4ed82fb44ac3fdf96067657927cecd5eacbad7582d80ad463348ed7","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/62996/000006299626000027/mas-20260630.htm","publishedAt":"2026-07-29","sha256":"237b47a6ce5a82b090043a9bf3196d63b5c8b9943dafeb05d896c20fc69d1aad","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/62996/000119312526151241/d44594ddef14a.htm","publishedAt":"2026-04-10","sha256":"0b1351b0ed25eb5e83c5181ce96970b6aca3f72b2e4a143668e7cb11205120e7","dateKind":"filed"}],"model":"gpt-6.1-sol","providerId":"codex:c034387bc66136eb90dd26d78ce20d9fa66dd866fc07e1a93a3951b4ecddf6db","usage":{"input_tokens":49011,"cached_input_tokens":20992,"cache_write_input_tokens":0,"output_tokens":3373,"reasoning_output_tokens":206}},"signals":[{"period":"2021","end":"2021-12-31","values":{"gross_margin":34.18507462686567,"operating_margin":16.776119402985074,"roic":49.0650040620233,"fcf_margin":9.576119402985075,"sbc_revenue":0.728358208955224},"issues":{"peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pb":"Equity attributable to owners is zero or negative, so this ratio is undefined.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2022","end":"2022-12-31","values":{"gross_margin":31.255760368663594,"operating_margin":14.942396313364057,"roic":43.477399278972676,"fcf_margin":7.096774193548387,"sbc_revenue":0.564516129032258},"issues":{"pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pb":"Equity attributable to owners is zero or negative, so this ratio is undefined.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roe":"Average equity attributable to owners is zero or negative, so this ratio is undefined.","roic_wacc":"Enter a WACC assumption from 0 to 100%.","debt_equity":"Equity is zero or negative, so this ratio is undefined."}},{"period":"2023","end":"2023-12-31","values":{"gross_margin":35.59683695242877,"operating_margin":16.91979415087235,"roic":43.113997489947636,"fcf_margin":14.685578009288314,"sbc_revenue":0.38910505836575876},"issues":{"pb":"Equity attributable to owners is zero or negative, so this ratio is undefined.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roiic":"Invested capital did not increase versus the prior year. ROIIC requires a positive increase.","roe":"Average equity attributable to owners is zero or negative, so this ratio is undefined.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2024","end":"2024-12-31","values":{"gross_margin":36.16504854368932,"operating_margin":17.41185487991824,"roic":43.91463560066967,"fcf_margin":11.58661216147164,"sbc_revenue":0.49821154828819625},"issues":{"peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pb":"Equity attributable to owners is zero or negative, so this ratio is undefined.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roiic":"Invested capital did not increase versus the prior year. ROIIC requires a positive increase.","roe":"Average equity attributable to owners is zero or negative, so this ratio is undefined.","roic_wacc":"Enter a WACC assumption from 0 to 100%.","debt_equity":"Equity is zero or negative, so this ratio is undefined."}},{"period":"2025","end":"2025-12-31","values":{"gross_margin":35.427135678391956,"operating_margin":16.503570483998942,"roic":40.691051388040464,"fcf_margin":11.451996826236446,"sbc_revenue":0.3967204443268976},"issues":{"pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pb":"Equity attributable to owners is zero or negative, so this ratio is undefined.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roe":"Average equity attributable to owners is zero or negative, so this ratio is undefined.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}}],"sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/62996/000006299626000005/mas-20251231.htm","publishedAt":"2026-02-10","sha256":"0709bea2b4ed82fb44ac3fdf96067657927cecd5eacbad7582d80ad463348ed7","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/62996/000006299626000027/mas-20260630.htm","publishedAt":"2026-07-29","sha256":"237b47a6ce5a82b090043a9bf3196d63b5c8b9943dafeb05d896c20fc69d1aad","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/62996/000119312526151241/d44594ddef14a.htm","publishedAt":"2026-04-10","sha256":"0b1351b0ed25eb5e83c5181ce96970b6aca3f72b2e4a143668e7cb11205120e7","dateKind":"filed"}],"history":[{"version":3,"updatedAt":"2026-10-18T16:35:43.872Z","verdict":"none","value":null},{"version":2,"updatedAt":"2026-10-18T02:27:49.793Z","verdict":"none","value":null},{"version":1,"updatedAt":"2026-10-18T02:18:02.026Z","verdict":null,"value":null}],"hasRequested":false,"requestStatus":"completed","researchIssue":null,"archivedMoat":null,"scope":"supported_catalog"}