NasdaqGS:MTRX

Stock Analysis Report

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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, South Korea, Australia, and internationally. More Details

Rewards

Earnings are forecast to grow 132.93% per year

Risk Analysis

No risks detected for MTRX from our risk checks.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: MTRX's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

3.7%

MTRX

9.6%

US Energy Services

2.8%

US Market


1 Year Return

-50.2%

MTRX

-33.0%

US Energy Services

20.7%

US Market

Return vs Industry: MTRX underperformed the US Energy Services industry which returned -33.2% over the past year.

Return vs Market: MTRX underperformed the US Market which returned 19.8% over the past year.


Shareholder returns

MTRXIndustryMarket
7 Day3.7%9.6%2.8%
30 Day43.1%52.8%12.3%
90 Day13.2%16.4%6.4%
1 Year-50.2%-50.2%-30.8%-33.0%23.4%20.7%
3 Year-41.1%-41.1%-58.6%-61.9%47.2%37.4%
5 Year-52.8%-52.8%-59.1%-66.4%94.1%72.7%

Long-Term 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?

0.9x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MTRX ($10.43) is trading above our estimate of fair value ($8.03)

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


Price To Earnings Ratio

PE vs Industry: MTRX is unprofitable, so we can't compare its PE Ratio to the US Energy Services industry average.

PE vs Market: MTRX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MTRX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MTRX is overvalued based on its PB Ratio (0.9x) 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?

132.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTRX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: MTRX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MTRX's is expected to become profitable in the next 3 years.

Revenue vs Market: MTRX's revenue (1.5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: MTRX's revenue (1.5% 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?

-52.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTRX is currently unprofitable.

Growing Profit Margin: MTRX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MTRX is unprofitable, and losses have increased over the past 5 years at a rate of 52.1% per year.

Accelerating Growth: Unable to compare MTRX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MTRX is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-38.2%).


Return on Equity

High ROE: MTRX has a negative Return on Equity (-13.81%), as it is currently unprofitable.


Next Steps

Financial Health

How is Matrix Service's financial position?


Financial Position Analysis

Short Term Liabilities: MTRX's short term assets ($331.3M) exceed its short term liabilities ($170.2M).

Long Term Liabilities: MTRX's short term assets ($331.3M) exceed its long term liabilities ($36.0M).


Debt to Equity History and Analysis

Debt Level: MTRX's debt to equity ratio (3.1%) is considered satisfactory.

Reducing Debt: MTRX's debt to equity ratio has reduced from 3.2% to 3.1% over the past 5 years.

Debt Coverage: MTRX's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: MTRX is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

John Hewitt (62 yo)

9.5yrs

Tenure

US$2,541,840

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 ($USD2.54M) is above average for companies of similar size in the US market ($USD1.10M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Hewitt
CEO, President & Director9.5yrsUS$2.54m0.98%
$ 2.7m
Kevin Cavanah
VP, CFO & Treasurer9.92yrsUS$1.08m0.28%
$ 776.5k
Alan Updyke
Chief Operating Officer0.58yrUS$1.58m0.15%
$ 409.9k
Joseph Montalbano
Consultant0.58yrUS$1.98m0.047%
$ 131.8k
Bradley Rinehart
President of Matrix Service Inc.3.92yrsUS$923.75k0.18%
$ 490.1k
Jason Turner
President of Matrix North American Construction6.92yrsUS$773.38k0.19%
$ 522.9k
Glyn Rodgers
President of Matrix PDM Engineering1.17yrsUS$796.63k0.011%
$ 31.5k
Quinton Beasley
Vice President of Accounting2.83yrsno datano data
Rick Bennett
Chief Information Officer & VP6.08yrsno data0.056%
$ 156.4k
Nancy Austin-Downs
Chief Administrative Officer & VP4.25yrsno data0.13%
$ 359.1k
Kellie Smythe
Senior Director of Investor Relationsno datano datano data
Justin Sheets
VP, General Counsel6.08yrsno data0.097%
$ 269.3k

4.3yrs

Average Tenure

56yo

Average Age

Experienced Management: MTRX's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Hewitt
CEO, President & Director9.5yrsUS$2.54m0.98%
$ 2.7m
Jimmy Mogg
Independent Chairman of the Boardno dataUS$286.10k0.16%
$ 454.7k
John Chandler
Independent Director3.42yrsUS$187.31k0.070%
$ 195.0k
Martha Carnes
Independent Director3.33yrsUS$202.31k0.068%
$ 189.2k
Liane Hinrichs
Independent Director2.42yrsUS$194.81k0.042%
$ 116.8k
James Miller
Independent Director6.5yrsUS$207.28k0.13%
$ 350.9k
Carlin Conner
Independent Director0.25yrno datano data

3.4yrs

Average Tenure

62yo

Average Age

Experienced Board: MTRX's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MTRX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$277.832m
  • Shares outstanding: 26.46m
  • 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 Analysis2020/11/28 00:24
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2020/06/30


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.