NasdaqGS:MTRX

Stock Analysis Report

Executive Summary

Matrix Service Company provides engineering, fabrication, infrastructure, construction, and maintenance services primarily to the oil, gas, power, petrochemical, industrial, agricultural, mining, and minerals markets in the United States, Canada, and internationally.

Rewards

PE ratio (18.5x) is below the US market (18.6x)

Earnings are forecast to grow 18.21% per year

Became profitable this year

Risk Analysis

No risks detected for MTRX from our risk checks.


Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Matrix Service's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

6.2%

MTRX

5.3%

US Energy Services

0.6%

US Market


1 Year Return

20.5%

MTRX

-12.4%

US Energy Services

20.8%

US Market

Return vs Industry: MTRX exceeded the US Energy Services industry which returned -12.4% over the past year.

Return vs Market: MTRX matched the US Market which returned 20.8% over the past year.


Shareholder returns

MTRXIndustryMarket
7 Day6.2%5.3%0.6%
30 Day13.6%10.3%2.5%
90 Day14.6%0.9%4.9%
1 Year20.5%20.5%-9.6%-12.4%23.5%20.8%
3 Year-2.3%-2.3%-51.7%-58.2%46.5%37.0%
5 Year7.8%7.8%-53.6%-60.6%64.6%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Matrix Service undervalued compared to its fair value and its price relative to the market?

18.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MTRX ($21.88) is trading above our estimate of fair value ($5.07)

Significantly Below Fair Value: MTRX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MTRX is poor value based on its PE Ratio (18.5x) compared to the Energy Services industry average (16.3x).

PE vs Market: MTRX is good value based on its PE Ratio (18.5x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: MTRX is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: MTRX is overvalued based on its PB Ratio (1.7x) compared to the US Energy Services industry average (0.7x).


Next Steps

Future Growth

How is Matrix Service forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTRX's forecast earnings growth (18.2% per year) is above the savings rate (1.7%).

Earnings vs Market: MTRX's earnings (18.2% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: MTRX's earnings are forecast to grow, but not significantly.

Revenue vs Market: MTRX's revenue (4% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: MTRX's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MTRX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Matrix Service performed over the past 5 years?

-30.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTRX has high quality earnings.

Growing Profit Margin: MTRX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MTRX's earnings have declined by -30.4% per year over the past 5 years.

Accelerating Growth: MTRX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MTRX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (-23.5%).


Return on Equity

High ROE: MTRX's Return on Equity (8.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Matrix Service's financial position?


Financial Position Analysis

Short Term Liabilities: MTRX's short term assets ($439.4M) exceed its short term liabilities ($285.3M).

Long Term Liabilities: MTRX's short term assets ($439.4M) exceed its long term liabilities ($30.0M).


Debt to Equity History and Analysis

Debt Level: MTRX's debt to equity ratio (3.2%) is considered satisfactory.

Reducing Debt: MTRX's debt to equity ratio has reduced from 4% to 3.2% over the past 5 years.

Debt Coverage: MTRX's debt is well covered by operating cash flow (780.2%).

Interest Coverage: MTRX's interest payments on its debt are well covered by EBIT (1308.4x coverage).


Balance Sheet

Inventory Level: MTRX has a low level of unsold assets or inventory.

Debt Coverage by Assets: MTRX's debt is covered by short term assets (assets are 38.7x debt).


Next Steps

Dividend

What is Matrix Service's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate MTRX'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 MTRX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MTRX'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 MTRX'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 Matrix Service's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

John Hewitt (61yo)

8.6yrs

Tenure

US$3,251,474

Compensation

Mr. John R. Hewitt has been the President and Chief Executive Officer at Matrix Service Company since joining in May 4, 2011. Mr. Hewitt serves as Senior Vice President at Aker Solutions, where he is respo ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD3.25M) is above average for companies of similar size in the US market ($USD1.69M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.2yrs

Average Tenure

55yo

Average Age

Experienced Management: MTRX's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

61yo

Average Age

Experienced Board: MTRX's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$73,12305 Dec 19
Nancy Austin-Downs
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer & VP
Shares3,540
Max PriceUS$20.66
SellUS$120,72005 Sep 19
Joseph Montalbano
EntityIndividual
Role
Chief Operating Officer
COO & VP
Shares6,036
Max PriceUS$20.00
SellUS$209,23230 Aug 19
Joseph Montalbano
EntityIndividual
Role
Chief Operating Officer
COO & VP
Shares10,275
Max PriceUS$20.36
SellUS$306,80514 May 19
Kevin Cavanah
EntityIndividual
Role
Chief Financial Officer
VP of Finance
Shares14,505
Max PriceUS$21.15
SellUS$40,60613 May 19
James Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,825
Max PriceUS$22.25
SellUS$64,37425 Mar 19
Alan Updyke
EntityIndividual
Role
Senior Key Executive
President of Operations
Shares3,000
Max PriceUS$21.46
SellUS$40,32027 Feb 19
Rick Bennett
EntityIndividual
Role
Chief Information Officer
Chief Information Officer & VP
Shares1,920
Max PriceUS$21.00
SellUS$48,30120 Feb 19
Rick Bennett
EntityIndividual
Role
Chief Information Officer
Chief Information Officer & VP
Shares2,300
Max PriceUS$21.01
SellUS$60,63115 Feb 19
Rick Bennett
EntityIndividual
Role
Chief Information Officer
Chief Information Officer & VP
Shares2,884
Max PriceUS$21.02

Ownership Breakdown

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


Management Team

  • Nancy Austin-Downs (52yo)

    Chief Administrative Officer & VP

    • Tenure: 3.3yrs
  • Kevin Cavanah (55yo)

    VP of Finance

    • Tenure: 9yrs
    • Compensation: US$1.37m
  • Joe Montalbano (70yo)

    COO & VP

    • Tenure: 11.6yrs
    • Compensation: US$1.51m
  • Jason Turner (48yo)

    President of Matrix North American Construction

    • Tenure: 6yrs
    • Compensation: US$997.44k
  • John Hewitt (61yo)

    CEO, President & Director

    • Tenure: 8.6yrs
    • Compensation: US$3.25m
  • Rick Bennett (55yo)

    Chief Information Officer & VP

    • Tenure: 5.2yrs
  • Alan Updyke (59yo)

    President of Operations

    • Tenure: 0.3yrs
    • Compensation: US$1.12m
  • Justin Sheets (41yo)

    VP, General Counsel

    • Tenure: 5.2yrs
  • Quinton Beasley

    Vice President of Accounting

    • Tenure: 1.9yrs
  • Kellie Smythe

    Senior Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Jim Mogg (70yo)

    Independent Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$236.80k
  • John Gibson (67yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$183.35k
  • John Chandler (49yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$170.57k
  • Martha Carnes (58yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$185.57k
  • Liane Hinrichs (61yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$211.25k
  • Jim Miller (64yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$179.56k
  • John Hewitt (61yo)

    CEO, President & Director

    • Tenure: 8.6yrs
    • Compensation: US$3.25m

Company Information

Matrix Service Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Matrix Service Company
  • Ticker: MTRX
  • Exchange: NasdaqGS
  • Founded: 1984
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$594.312m
  • Shares outstanding: 27.16m
  • Website: https://www.matrixservicecompany.com

Number of Employees


Location

  • Matrix Service Company
  • 5100 East Skelly Drive
  • Suite 500
  • Tulsa
  • Oklahoma
  • 74135
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTRXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1990
MX2DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1990

Biography

Matrix Service Company provides engineering, fabrication, infrastructure, construction, and maintenance services primarily to the oil, gas, power, petrochemical, industrial, agricultural, mining, and miner ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 23:55
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.