MTZ

MasTec Inc

Industrial/Transportation, TMT


Presented:06/01/2018
Price:$47.90
Cap:$3.94B
Current Price:$125.38
Cap:$9.93B

Presented

Date06/01/2018
Price$47.90
Market Cap$3.94B
Ent Value$5.26B
P/E Ratio11.89x
Book Value$16.96
Div Yield0%
Shares O/S82.22M
Ave Daily Vol899,296
Short IntN/A

Current

Price$125.38
Market Cap$9.93B
MasTec, Inc. is an infrastructure construction company, which engages in engineering, building, installation, maintenance, and upgrade of communications, energy, and utility infrastructure. It operates through the following segments: Communications; Oil and Gas; Electrical Transmissions; Power Generation and Industrial; and Other. The Communications segment performs engineering, construction, and maintenance of communications infrastructure. The Oil and Gas segment gives engineering, construction and maintenance services on oil and natural gas pipelines and processing facilities. The Electrical Transmission segment serves the energy and utility industries through the engineering, construction and maintenance of electrical transmission lines and substations. The Power Generation and Industrial segment engages in the energy, utility and other end-markets through the installation and construction of conventional and renewable power facilities, related electrical transmission infrastructure, ethanol/biofuel facilities and various types of heavy civil and industrial infrastructure. The Other segment includes equity investees; other small business units that perform construction; and other services for a variety of international end-markets. The company was founded by Russell Burnup and Riley Sims in 1929 and is headquartered in Coral Gables, FL.

Publicly traded companies mentioned herein: AT&T Inc (T), MasTec Inc (MTZ), Sprint Corp (S), T-Mobile US Inc (TMUS), Verizon Communications Inc (VZ)

Highlights

The presenter is long shares of MasTec (MTZ), an engineering and construction contractor, seeing upside in all of MTZ’s segments. According to the presenter, the Communications segment will lead growth as MTZ benefits from the 5G infrastructure cycle, while Oil and Gas is still growing backlog despite market perceptions of a peaking cycle. The presenter targets $75 on MTZ shares from organic growth, and a $90 target with some M&A and/or other capital deployment optionality.

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Idea Discussion

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