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Matrix Service (MTRX)
:MTRX
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Matrix Service Company
(NASDAQ:MTRX)
48Neutral
Matrix Service Company (MTRX) vs. S&P 500 (SPY)
Market Cap
$295.67M
Dividend YieldN/A
Average Volume (3M)243.34K
Price to Earnings (P/E)―
Beta (1Y)1.16
Revenue Growth-7.47%
EPS Growth-74.28%
CountryUS
Employees2,064
SectorIndustrials
Sector Strength65
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-1.22
Shares Outstanding27,606,852
10 Day Avg. Volume241,856
30 Day Avg. Volume243,341
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.49
Price to Cash Flow (P/CF)2.60
P/FCF Ratio2.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.00Price Target Upside86.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Matrix Service Company Business Overview & Revenue Model
Company DescriptionMatrix Service Company (MTRX) is a leading provider of engineering, procurement, construction, and maintenance services to various sectors, including energy, power, and industrial markets. The company specializes in delivering comprehensive solutions in the areas of electrical infrastructure, oil, gas, and chemical industries, as well as storage solutions for liquid and gas products. With a focus on safety, quality, and customer satisfaction, Matrix Service Company serves clients across North America through a network of subsidiaries and strategic partnerships.
How the Company Makes MoneyMatrix Service Company generates revenue primarily through its diverse service offerings in engineering, procurement, construction, and maintenance. The company earns income by undertaking large-scale projects for clients in the energy and industrial sectors, providing specialized services such as construction of storage tanks, terminals, and refining facilities. Key revenue streams include contracts for designing and building complex infrastructure, as well as ongoing maintenance services to ensure operational efficiency and compliance with regulatory standards. Additionally, Matrix Service Company benefits from strategic partnerships and long-term relationships with major corporations in the oil, gas, and power industries, which contribute to a steady flow of project opportunities and recurring revenue streams.
Matrix Service Company Financial Statement Overview
Summary
Matrix Service Company faces challenges with declining revenues and persistent net losses. Despite improved cash flow metrics, the company's financial resilience is in question due to declining equity and ongoing profitability issues.Income Statement
Matrix Service Company shows declining revenue trends, with revenues decreasing from $795M in 2023 to $708M in the TTM period. The company has consistently reported negative net income, with the TTM net income at -$33.7M. Gross profit margin improved slightly to 5.2% in TTM, but overall profitability remains challenged due to negative EBIT and EBITDA margins. Revenue growth has been negative, indicating struggle in top-line expansion.45
Neutral
Balance Sheet
The company's balance sheet reveals a moderate debt-to-equity ratio of 0.14 in the TTM, indicating manageable leverage. However, the declining stockholders' equity from $227M in 2022 to $151M in the TTM reflects financial strain. Total assets and equity have decreased, impacting the equity ratio. The firm's ability to sustain operations without significant equity erosion is a concern.55
Neutral
Cash Flow
Cash flow analysis shows a positive trend with operating cash flow increasing to $117M in TTM, indicating improved cash generation capability. Free cash flow also increased significantly to $108M in TTM. The free cash flow to net income ratio is positive, suggesting better cash conversion, despite negative earnings. The company needs to continue focusing on cash flow stability to offset net losses.60
Neutral
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 708.26M | 728.21M | 795.02M | 707.78M | 673.40M | 1.10B | Gross Profit |
| 36.73M | 40.47M | 30.82M | -1.21M | 32.77M | 102.18M | EBIT |
| -36.38M | -29.61M | -52.89M | -87.85M | -36.99M | -1.65M | EBITDA |
| -22.66M | -12.86M | -37.04M | -40.08M | -23.85M | -15.92M | Net Income Common Stockholders |
| -33.71M | -24.98M | -52.36M | -63.90M | -31.22M | -33.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 53.30M | 115.61M | 54.81M | 52.37M | 83.88M | 100.04M | Total Assets |
| 269.70M | 451.35M | 400.50M | 440.79M | 467.56M | 517.31M | Total Debt |
| 1.24M | 22.89M | 35.32M | 40.62M | 26.52M | 36.77M | Net Debt |
| -52.06M | -92.72M | -19.49M | -11.75M | -57.36M | -63.26M | Total Liabilities |
| 87.61M | 287.17M | 219.02M | 213.09M | 182.02M | 209.42M | Stockholders Equity |
| 182.08M | 164.18M | 181.48M | 227.71M | 285.54M | 307.89M |
| Cash Flow | Free Cash Flow | ||||
| 108.26M | 65.58M | 1.24M | -57.54M | -7.33M | 25.55M | Operating Cash Flow |
| 117.26M | 72.57M | 10.25M | -54.20M | -2.97M | 44.09M | Investing Cash Flow |
| -5.59M | -945.00K | -2.54M | 35.67M | -2.26M | -17.12M | Financing Cash Flow |
| -1.04M | -10.37M | -5.06M | 12.70M | -12.32M | -16.04M |
Matrix Service Company Technical Analysis
Negative
10.71
Price Trends
12.44
Negative
12.84
Negative
11.78
Negative
Market Momentum
-0.57
Negative
43.10
Neutral
67.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTRX, the sentiment is Negative. The current price of 10.71 is below the 20-day moving average (MA) of 11.22, below the 50-day MA of 12.44, and below the 200-day MA of 11.78, indicating a bearish trend. The MACD of -0.57 indicates Negative momentum. The RSI at 43.10 is Neutral, neither overbought nor oversold. The STOCH value of 67.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTRX.
Matrix Service Company Risk Analysis
Matrix Service Company disclosed 30 risk factors in its most recent earnings report. Matrix Service Company reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Matrix Service Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $138.58M | 5.74 | 49.47% | 0.69% | 8.42% | 156.91% | |
66 Neutral | $308.76M | 20.28 | 5.57% | ― | -7.12% | -19.18% | |
63 Neutral | $226.80M | ― | -1.21% | ― | 11.89% | 84.04% | |
62 Neutral | $4.16B | 11.31 | 5.46% | 215.65% | 4.12% | -8.47% | |
48 Neutral | $295.67M | ― | -20.38% | ― | -7.47% | -74.28% | |
43 Neutral | $171.14M | ― | -50.99% | ― | -15.53% | -427.61% | |
34 Underperform | $52.49M | ― | -679.42% | ― | -24.11% | -4214.51% |
* Industrials Sector Average
Performance Comparison
MTRX
Matrix Service Company
10.71
-0.84
-7.27%
ESOA
Energy Services of America
8.46
1.42
20.17%
ORN
Orion Group Holdings
5.99
-1.63
-21.39%
BBCP
Concrete Pumping Holdings
6.04
0.25
4.32%
SLND
Southland Holdings
3.17
-1.32
-29.40%
SHIM
Shimmick Corporation
1.53
-1.51
-49.67%
Matrix Service Company Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -23.72% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Matrix Service Company. While there is significant revenue growth in key segments and an increased opportunity pipeline, challenges such as a revenue guidance reduction, under-recovery of construction overhead costs, and a net loss for the quarter weigh on the outlook. Market conditions are positive, and there is optimism for future profitability, but current financial challenges are evident.Highlights
Revenue Growth in Key Segments
Second quarter revenue increased by 7% year-over-year to $187.2 million, with a 13% increase over the first quarter of fiscal 2025. Revenue growth was driven by the storage and terminal solutions and utility and power infrastructure segments.
Increased Opportunity Pipeline
Opportunity pipeline increased from $5.7 billion at the end of the second quarter to $7 billion by January 2025, driven by LNG peak shaving opportunities.
Strong Backlog and Future Prospects
Backlog remains at $1.3 billion, with expectations for strong future project awards, including a planned $1 billion in fiscal 2025 project awards.
Positive Market Conditions
Supportive policy environment for energy and industrial infrastructure projects, with domestic LNG export capacity expected to grow by 85% by 2028.
Return to Profitability Expected
Company expects to return to profitability in the second half of fiscal 2025 due to improved fixed cost absorption and margin realization.
Lowlights
Guidance Reduction
Full-year revenue guidance lowered by approximately 5%, from $900-$950 million to $850-$900 million, due to project award delays and mobilization timing.
Under-Recovery of Construction Overhead Costs
Gross margins impacted by under-recovery of construction overhead costs, though the impact is decreasing as revenue increases.
Reduced Book to Bill Ratio
Second quarter book to bill ratio at 0.5 times, with a trailing twelve-month ratio of 0.9 times, indicating softer bookings in the first half of fiscal 2025.
Net Loss for the Quarter
Net loss of $5.5 million or $0.20 per share in the second quarter, compared to a net loss of $2.9 million or $0.10 per share in the prior year.
Company Guidance
During the Matrix Service Company conference call for the second quarter of fiscal 2025, guidance included a downward revision of the full-year revenue forecast by approximately 5% at the midpoint, adjusting from a range of $900 to $950 million to a range of $850 to $900 million. This adjustment was primarily due to the delayed award of a major energy project and the postponed mobilization to site for another significant project. Despite these setbacks, the company's opportunity pipeline increased from $5.7 billion to $7 billion, with significant contributions from LNG peak shaving opportunities. Matrix anticipates organic revenue growth of over 40% in the second half of fiscal 2025 compared to the same period in fiscal 2024 and expects to return to profitability due to improved fixed cost absorption and margin realization. The full-year book to bill ratio is projected to be at or above 1.0. The company also highlighted its strong balance sheet, with a net cash position and total liquidity of $211.7 million, supporting future growth and strategic investments.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.