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MasTec (MasTec) Altman Z-Score : 2.76 (As of May. 19, 2024)


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What is MasTec Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Warning Sign:

Altman Z-score of 2.76 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

MasTec has a Altman Z-Score of 2.76, indicating it is in Grey Zones. This implies that MasTec is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for MasTec's Altman Z-Score or its related term are showing as below:

MTZ' s Altman Z-Score Range Over the Past 10 Years
Min: 2.17   Med: 2.8   Max: 3.51
Current: 2.76

During the past 13 years, MasTec's highest Altman Z-Score was 3.51. The lowest was 2.17. And the median was 2.80.


MasTec Altman Z-Score Historical Data

The historical data trend for MasTec's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

MasTec Altman Z-Score Chart

MasTec Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.40 3.16 2.87 2.23 2.34

MasTec Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.39 2.58 2.25 2.34 2.65

Competitive Comparison of MasTec's Altman Z-Score

For the Engineering & Construction subindustry, MasTec's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


MasTec's Altman Z-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, MasTec's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where MasTec's Altman Z-Score falls into.



MasTec Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

MasTec's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0929+1.4*0.2407+3.3*0.0264+0.6*1.4084+1.0*1.3834
=2.76

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Mar. 2024:
Total Assets was $8,745 Mil.
Total Current Assets was $3,445 Mil.
Total Current Liabilities was $2,633 Mil.
Retained Earnings was $2,105 Mil.
Pre-Tax Income was -45.538 + 0.014 + 22.874 + 19.688 = $-3 Mil.
Interest Expense was -52.059 + -59.741 + -62.556 + -59.415 = $-234 Mil.
Revenue was 2686.849 + 3280.083 + 3257.077 + 2874.115 = $12,098 Mil.
Market Cap (Today) was $8,528 Mil.
Total Liabilities was $6,055 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(3445.47 - 2633.371)/8745.353
=0.0929

X2=Retained Earnings/Total Assets
=2104.613/8745.353
=0.2407

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-2.962 - -233.771)/8745.353
=0.0264

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=8528.274/6055.329
=1.4084

X5=Revenue/Total Assets
=12098.124/8745.353
=1.3834

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

MasTec has a Altman Z-Score of 2.76 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


MasTec  (NYSE:MTZ) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


MasTec Altman Z-Score Related Terms

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MasTec (MasTec) Business Description

Traded in Other Exchanges
Address
800 S. Douglas Road, 12th Floor, Coral Gables, FL, USA, 33134
MasTec is a leading infrastructure construction company operating mainly in North America across a range of industries. The company's primary activities include the engineering, building, installation, maintenance, and upgrade of communications, oil and gas, utility, renewable energy, and other infrastructure. MasTec reports its results under five reportable segments: 1) communications; 2) clean energy and infrastructure; 3) oil and gas; 4) power delivery, and 5) other.
Executives
Paul Dimarco officer: CFO 800 S. DOUGLAS ROAD, SUITE 1200, CORAL GABLES FL 33134
Timothy Michael Love officer: CAO 8915 GEORGE WILLIAMS RD., KNOXVILLE TN 37923
Ava L Parker director 1469 HARRINGTON PARK DRIVE, JACKSONVILLE FL 32225
Ernst N Csiszar director 2600 S RIVER ROAD, DES PLAINES IL 60018
Robert E Apple officer: Chief Operations Officer 800 S DOUGLAS ROAD, 12TH FLOOR, CORAL GABLES FL 33134
C Robert Campbell officer: EVP & CFO 800 DOUGLAS ROAD, 12TH FLOOR, CORAL GABLES FL 33134
De Cardenas Alberto I officer: Executive Vice President 800 S DOUGLAS ROAD, 12TH FLOOR, CORAL GABLES X1 33134
George Pita officer: CFO 3000 NW 107TH AVENUE, MIAMI FL 33172
Robert J Dwyer director 880 SOUTH OCEAN BOULEVARD, PALM BEACH FL 33480
Jose S Sorzano director AUSTIN GROUP INC, 5305 LEE HIGHWAY NORTH, ARLINGTON VA 22207
Julia L Johnson director NETCOMMUNICATIONS LLC, 614 GRAND HIGHWAY, CLAREMONT FL 34711
Javier Alberto Palomarez director 3405 PINNEY POINT DRIVE, FLOWER MOUND TX 75022
Jorge Mas director, 10 percent owner 800 DOUGLAS ROAD, 12TH FLOOR, CORAL GABLES FL 33134
Jose Ramon Mas director, officer: EVP 800 DOUGLAS ROAD, 12TH FLOOR, CORAL GABLES FL 33134
Daniel A Restrepo director C/O MASTEC, INC., 800 S. DOUGLAS RD., 12TH FLOOR, CORAL GABLES FL 33134