NasdaqGS:MYRG

Stock Analysis Report

Executive Summary

MYR Group Inc., through its subsidiaries, provides electrical construction services in the United States and Canada.

Rewards

Trading at 42.6% below its fair value

Earnings are forecast to grow 21.23% per year

Earnings grew by 4.6% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Very undervalued with reasonable growth potential.


Similar Companies

Share Price & News

How has MYR Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MYRG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

MYRG

-4.6%

US Construction

-1.2%

US Market


1 Year Return

18.2%

MYRG

13.0%

US Construction

15.5%

US Market

Return vs Industry: MYRG exceeded the US Construction industry which returned 13% over the past year.

Return vs Market: MYRG exceeded the US Market which returned 15.5% over the past year.


Shareholder returns

MYRGIndustryMarket
7 Day-2.4%-4.6%-1.2%
30 Day-0.7%-7.0%1.4%
90 Day20.1%3.2%4.7%
1 Year18.2%18.2%13.9%13.0%18.0%15.5%
3 Year-15.3%-15.3%-1.0%-3.2%44.8%35.4%
5 Year31.3%31.3%29.2%24.6%67.3%48.9%

Price Volatility Vs. Market

How volatile is MYR Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MYR Group undervalued compared to its fair value and its price relative to the market?

42.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MYRG ($33.6) is trading below our estimate of fair value ($58.54)

Significantly Below Fair Value: MYRG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MYRG is good value based on its PE Ratio (15.6x) compared to the Construction industry average (16.9x).

PE vs Market: MYRG is good value based on its PE Ratio (15.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: MYRG is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: MYRG is good value based on its PB Ratio (1.6x) compared to the US Construction industry average (1.7x).


Next Steps

Future Growth

How is MYR Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MYRG's forecast earnings growth (21.2% per year) is above the savings rate (1.7%).

Earnings vs Market: MYRG's earnings (21.2% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MYRG's revenue (9.1% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: MYRG's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MYRG's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has MYR Group performed over the past 5 years?

-1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MYRG has high quality earnings.

Growing Profit Margin: MYRG's current net profit margins (1.8%) are lower than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: MYRG's earnings have declined by -1.1% per year over the past 5 years.

Accelerating Growth: MYRG's earnings growth over the past year (4.6%) exceeds its 5-year average (-1.1% per year).

Earnings vs Industry: MYRG earnings growth over the past year (4.6%) exceeded the Construction industry -2.7%.


Return on Equity

High ROE: MYRG's Return on Equity (9.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MYR Group's financial position?


Financial Position Analysis

Short Term Liabilities: MYRG's short term assets ($639.4M) exceed its short term liabilities ($393.5M).

Long Term Liabilities: MYRG's short term assets ($639.4M) exceed its long term liabilities ($243.9M).


Debt to Equity History and Analysis

Debt Level: MYRG's debt to equity ratio (50.8%) is considered high.

Reducing Debt: Insufficient data to determine if MYRG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MYRG's debt is well covered by operating cash flow (32.5%).

Interest Coverage: MYRG's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet

Inventory Level: MYRG has a high level of physical assets or inventory.

Debt Coverage by Assets: MYRG's debt is covered by short term assets (assets are 3.6x debt).


Next Steps

Dividend

What is MYR Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MYRG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MYRG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MYRG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MYRG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MYRG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of MYR Group's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Rick Swartz (55yo)

2.9yrs

Tenure

US$2,349,643

Compensation

Mr. Richard S. Swartz, Jr., also known as Rick, has been the Chief Executive Officer and President of MYR Group Inc. since January 1, 2017. Mr. Swartz serves as the Director at MYR Group Inc. since April 2 ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD2.35M) is above average for companies of similar size in the US market ($USD1.71M).

Compensation vs Earnings: Rick's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.9yrs

Average Tenure

55yo

Average Age

Experienced Management: MYRG's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

56yo

Average Age

Experienced Board: MYRG's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: MYRG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$13,27505 Nov 19
William Patterson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares386
Max PriceUS$34.39
SellUS$72,00015 Mar 19
Gary Johnson
EntityIndividual
Shares2,000
Max PriceUS$36.00
SellUS$105,07512 Mar 19
Gerald Engen
EntityIndividual
Shares2,877
Max PriceUS$36.52

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Betty Johnson (61yo)

    Senior VP

    • Tenure: 4.2yrs
    • Compensation: US$1.13m
  • Rick Swartz (55yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$2.35m
  • Tod Cooper (54yo)

    Senior VP & COO of Transmission and Distribution

    • Tenure: 6.3yrs
    • Compensation: US$1.14m
  • William Fry (44yo)

    VP, Chief Legal Officer & Corporate Secretary

    • Tenure: 0.9yrs
  • Jeff Waneka (57yo)

    Senior VP and COO of Commercial & Industrial

    • Tenure: 2.9yrs
    • Compensation: US$935.74k
  • Kristine Walczak

    Senior Vice President

    • Tenure: 0yrs
  • Doreen Keller

    Vice President of Human Resources

    • Tenure: 0yrs

Board Members

  • William Koertner (69yo)

    Director

    • Tenure: 12.9yrs
    • Compensation: US$249.21k
  • Ken Hartwick (56yo)

    Independent Chairman

    • Tenure: 1.7yrs
    • Compensation: US$200.60k
  • Larry Altenbaumer (70yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$144.36k
  • Donald C. Lucky (56yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$138.73k
  • Bill Patterson (64yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$134.98k
  • Jennifer Lowry (50yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$57.47k
  • Brad Favreau (35yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$137.98k
  • Rick Swartz (55yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$2.35m
  • Maurice Moore (68yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$144.36k

Company Information

MYR Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MYR Group Inc.
  • Ticker: MYRG
  • Exchange: NasdaqGS
  • Founded: 1891
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$557.532m
  • Shares outstanding: 16.65m
  • Website: https://www.myrgroup.com

Number of Employees


Location

  • MYR Group Inc.
  • 1701 Golf Road
  • Suite 3-1012
  • Rolling Meadows
  • Illinois
  • 60008
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MYRGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2008
MYPDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2008

Biography

MYR Group Inc., through its subsidiaries, provides electrical construction services in the United States and Canada. It operates in two segments, Transmission and Distribution, and Commercial and Industria ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 00:11
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.