If you’re in the construction industry, odds are you were twiddling your thumbs for the better part of five years as new construction starts collapsed like a shoddily built storage shed. But residential construction has recovered to post-recession highs for a few months now, despite a slight drop in August, as an improving jobs market and low mortgage rates are allowing many Americans to take the plunge and buy a home.

The continuing real estate rebound will do wonders for Masco (NYSE: MAS), which manufactures a variety of materials used in new home construction such as plumbing fixtures, windows, architectural coatings and cabinets. If you’ve built a home recently or embarked on any home improvement projects, you’ll probably recognize its brand names such as Delta plumbing fixtures, Behr paint products and KraftMaid and Merilatt cabinetry.

In fact, the company announced that in the second quarter revenue was up by 5.1% on a year-over-year basis, hitting $2.26 billion. Revenue in its plumbing products division grew 6% year-over-year, architectural product sales were up 5% while sales of specialty products shot up by 11%. Earnings per share also jumped an impressive 39%, hitting 32 cents per share thanks to lower costs and margin improvement.

That’s a stunning turnaround for a company that many thought wouldn’t make it through the recession. Masco underwent a massive restructuring to survive the lean years, making $600 million of fixed costs reductions that including laying off about half of its workforce between 2006 and 2012, while it suspended work at or closed 33 facilities.

Masco has largely maintained its productive capacity despite its drastic reductions in staffing numbers and facilities, becoming a much more efficient operator. As a result, its adjusted operating margin jumped by 140 basis points year-over-year to hit 11%. The most significant improvement came in its plumbing products division, which saw margins surge up by 270 basis points to 16.4%.

While new construction is an important market for Masco, perhaps even more significant is the strong recovery in existing home sales, which hit a 10-month high in July. If you’ve ever purchased an existing home before, you know that very rarely is your new purchase exactly to your taste; perhaps it still has the avocado green tile popular in the 1970s or a deck that needs to be refinished. About 72% of the company’s products are sold by retailers such as Home Depot (NYSE: HD), rather than directly to installers and contractors. That’s largely thanks to the rise of the do-it-yourselfer and the wave of remodels that inevitably follow rising existing home sales.

Masco also offers impressive geographic diversification in its sales as about 20% of its revenue comes from outside the US. About 40% of that international revenue comes from Central and Eastern Europe, which has been showing impressive economic growth over the past few years. At the same time, residential construction in countries such as Poland and Hungary has been growing by more than 10% over the past few years.

Even as rebounding construction markets and home sales are driving renewed growth at Masco, it remains attractively valued. It is currently trading at just 24.2 times trailing earnings, only about half of the industry average of 45.9. On a forward-looking basis, it is trading at just 18.8 times forecast 1-year earnings, compared the average 30 times multiple most of its competitors get.

Masco’s price-to-earnings-growth ratio, which is essentially its PE ratio divided by annual earnings per share growth, is also just 0.9. Any reading below 1 implies that the stock is undervalued, which is interesting in the case because it is finding increasing favor among analysts. The consensus estimate looks for full-year EPS to reach $1.12 this year, a marked increase over last year’s earnings of 76 cents. Furthermore, they expect another better-than-15% gain in 2015 as they predict EPS to reach $1.29. Overall, they look for growth of better than 20% over the next five years.

So while Masco faces several tough competitors in its markets, not the least of which is Fortune Brands Home & Security (NYSE: FBHS), few are as well positioned for growth and margin improvement. As the US economy continues growing and driving improvement in the real estate market, Masco should continue to see earnings growth outpace revenue growth, thanks to strong improvements in efficiency.