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.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.

Risks

  • Matrix Service is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-6.6%

MTRX

-0.004%

US Energy Services

-0.2%

US Market


1 Year Return

-27.8%

MTRX

-42.7%

US Energy Services

1.1%

US Market

MTRX outperformed the Energy Services industry which returned -41.9% over the past year.

MTRX underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

MTRXIndustryMarket
7 Day-6.6%-0.004%-0.2%
30 Day-9.1%9.4%2.5%
90 Day-8.5%-8.5%1.6%
1 Year-27.8%-27.8%-41.1%-42.7%3.4%1.1%
3 Year-1.7%-1.7%-43.1%-50.1%45.2%35.8%
5 Year-28.4%-28.4%-65.4%-70.6%62.6%44.8%

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

2 weeks ago | Simply Wall St

Matrix Service (NASDAQ:MTRX) Seems To Use Debt Rather Sparingly

Valuation

Is Matrix Service undervalued based on future cash flows and its price relative to the stock market?

17.13x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Matrix Service's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Matrix Service's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Matrix Service is overvalued based on earnings compared to the US Energy Services industry average.

Matrix Service is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Matrix Service is good value based on expected growth next year.


Price Based on Value of Assets

Matrix Service is overvalued based on assets compared to the US Energy Services industry average.


Next Steps

Future Growth

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

21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Matrix Service's revenue is expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).

Matrix Service's earnings are expected to grow significantly at over 20% yearly.

Matrix Service's revenue growth is positive but not above the United States of America market average.

Matrix Service's earnings growth is expected to exceed the United States of America market average.

Matrix Service's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Matrix Service is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Matrix Service performed over the past 5 years?

-42.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Matrix Service's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Matrix Service has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Matrix Service has become profitable in the last year making it difficult to compare the US Energy Services industry average.


Return on Equity

Matrix Service has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Matrix Service used its assets less efficiently than the US Energy Services industry average last year based on Return on Assets.


Return on Capital Employed

Matrix Service's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Matrix Service's financial position?


Financial Position Analysis

Matrix Service is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Matrix Service's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Matrix Service's level of debt (1.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (4.1% vs 1.5% today).

Debt is well covered by operating cash flow (774.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 294x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 78x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Matrix Service's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Matrix Service's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Matrix Service has not reported any payouts.

Unable to verify if Matrix Service's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Matrix Service has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

John Hewitt (61yo)

8.3yrs

Tenure

US$2,374,985

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

John's remuneration is higher than average for companies of similar size in United States of America.

John's compensation has increased in line with Matrix Service recently becoming profitable.


Management Age and Tenure

5.3yrs

Average Tenure

55yo

Average Age

The average tenure for the Matrix Service management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.4yrs

Average Tenure

61yo

Average Age

The tenure for the Matrix Service board of directors is about average.


Insider Trading

Matrix Service individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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
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
SellUS$304,27801 Oct 18
Bradley Rinehart
EntityIndividual
Shares12,647
Max PriceUS$24.06
SellUS$27,50927 Sep 18
Bradley Rinehart
EntityIndividual
Shares1,116
Max PriceUS$24.75

Ownership Breakdown


Management Team

  • Nancy Austin-Downs (52yo)

    Chief Administrative Officer & VP

    • Tenure: 3.1yrs
  • Kevin Cavanah (55yo)

    VP of Finance

    • Tenure: 8.8yrs
    • Compensation: US$974.76k
  • Joe Montalbano (70yo)

    COO & VP

    • Tenure: 11.3yrs
    • Compensation: US$1.12m
  • Jason Turner (48yo)

    President of Matrix North American Construction

    • Tenure: 5.8yrs
    • Compensation: US$754.05k
  • John Hewitt (61yo)

    CEO, President & Director

    • Tenure: 8.3yrs
    • Compensation: US$2.37m
  • Rick Bennett (55yo)

    Chief Information Officer & VP

    • Tenure: 4.9yrs
  • Justin Sheets (41yo)

    VP & General Counsel

    • Tenure: 4.9yrs
  • Quinton Beasley

    Vice President of Accounting

    • Tenure: 1.7yrs
  • Kellie Smythe

    Senior Director of Investor Relations

    • Tenure: 0yrs
  • Melissa Gilliland

    Vice President of Human Resources

    • Tenure: 0yrs

Board Members

  • Jim Mogg (70yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$192.40k
  • John Gibson (67yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$189.14k
  • John Chandler (49yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$214.26k
  • Martha Carnes (58yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$213.67k
  • Liane Hinrichs (61yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$7.08k
  • Jim Miller (64yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$183.21k
  • John Hewitt (61yo)

    CEO, President & Director

    • Tenure: 8.3yrs
    • Compensation: US$2.37m

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$483.754m
  • Shares outstanding: 27.13m
  • 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 Analysis2019/09/20 00:16
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
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.