Entering text into the input field will update the search result below

MasTec: A Long-Term Play On America's Need For Better Infrastructure

Jun. 07, 2020 3:15 PM ETMasTec, Inc. (MTZ)3 Comments
Invested Thought profile picture
Invested Thought


  • United States energy infrastructure is rated a "D+", according to the American Society of Civil Engineers' most recent report card.
  • Trillions of dollars will likely need to be invested over the coming years - both to make up for the current shortfall and allow for new technologies such as 5G.
  • MasTec is a solid, growing operator in the infrastructure construction space.
  • With a strong track record of growth and an attractive valuation, MasTec seems to be a good pick for the long haul.

Thoughts On Infrastructure Investing

The need to construct and rebuild critical infrastructure in the US is palpable, and many people understand there is great potential for money to be made investing based on that simple fact. However, one serious question remains: what is the best way to invest based on such a broad topic?

The fragmented nature of the construction and engineering market fundamentally contributes to my idea that there will be no clear-cut "winner" in infrastructure investment. Instead, I believe the best bet for long-term investors is to focus on a company with a nationwide footprint in the space and a solid operating track record that is trading at an attractive valuation. Such a company not only stands to benefit from any acceleration of investment in the area, but also a consistent track record protects it from more speculative risk over the long-term.

After conducting some research into the area, MasTec (NYSE:MTZ) stands out as holding serious potential to be a long-term winner in the infrastructure construction industry.

Company and Leadership Story

MasTec was formed by Jorge Mas Canosa in 1994 through a combination of Burnup & Sims and Church & Tower, two construction firms with extensive histories in communications infrastructure. Upon creation of the combined entity, Jorge Mas Canosa assumed the position of chairman of the board, with his namesake son, Jorge Mas, becoming president.

To this day, the family is still heavily ingrained in the company's operations; Jorge Mas has since taken over his father's former position as chairman while his younger brother, Jose, has assumed the role of CEO. As of the 2020 Proxy Statement, the two brothers remained beneficial owners of more than 23% of MasTec's shares outstanding.

This clear alignment of management's interests with shareholders is the first notable thing about the company. Over the

This article was written by

Invested Thought profile picture
Generalist focused on understanding the people, moat, and economics behind excellent companies. Indefinite (long-term) holding periods.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in MTZ over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (3)

James Hanshaw profile picture
Good article. Few seem to know MTZ but, in my view, it is one of the best in the infrastructure sectors operates in.

It will also do well in the recovery I wrote on last week; seekingalpha.com/...
It's appalling that our infrastructure is so shoddy. It's also expensive. Potholes, antiquated airports and lack of rural broadband curtail our economy. I was certain a New Deal effort would be initiated by Obama after the '08 collapse. I was wrong.
MasTec has done very well in the absence of govt leadership (what else is new). If we every get around to addressing the pathetic state of our public works at a national level, it should be a big beneficiary.
jambo297 profile picture
"public works" mtz has always been mistaken for involvement here. They may get there by acquisition (how they got into pipeline and tower construction). They have a couple irons in the civil engrg./municipal fire but it's not even reported it's so small...a road and water/sewer pipe co in TX and a water / sewer co in FL. They are a specialty contractor not a gov't dependent "infrastructure" contractor. Jose Mas is a great CEO. His brother Jorge's disinterested in the company and has put shares at risk as loan collateral to build a stadium for the Miami soccer team...see Nov 2019 drop from $72 to $60 in early Dec. Stock follows oil price and sometimes 5-G / AT&T (largest customer) news....customer concentration risk is high. All that and I still like the company. They are performing well...but a pipeline / tower / wireline specialty co is what they are...and about 10-15% power (think wind towers and one or two refuse burn plants).
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.