Matrix (MTRX) AI Stock Analysis

• Market Cap: 7.62B
• Dividend Yield: 2.7%
• Average Volume (3M): 142.70K
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.04
• Revenue Growth: 6.43%
• EPS Growth: 14.81%
• Country: IL
• Employees: 11,570
• Sector: Technology
• Sector Strength: 85
• Industry: Software - Application
• EPS (TTM): 114.60
• Shares Outstanding: 63,633,030
• 10 Day Avg. Volume: 76,252
• 30 Day Avg. Volume: 142,697
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 13,224.00
• Price Target Upside: 10.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: 13,224.00 ▲(10.48% Upside)

Matrix's overall stock score is driven by its strong financial performance, characterized by consistent revenue growth and solid profitability. The technical analysis presents mixed signals, with some bearish momentum but potential support levels. The valuation indicates a high P/E ratio, suggesting potential overvaluation, but the dividend yield offers some appeal. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable and expanding market presence, ensuring long-term income stability and potential for future expansion.

Cash Flow Management

Effective cash flow management supports operational needs and strategic investments, enhancing financial resilience and shareholder value over time.

Profitability

Robust profitability and operational efficiency reflect a competitive business model, enabling sustained investment in growth and innovation.

Negative Factors

Debt Reliance

High reliance on debt could pose financial risks, especially in volatile markets, potentially impacting long-term financial stability and flexibility.

Net Profit Margin

A relatively low net profit margin compared to industry standards may limit reinvestment capabilities and shareholder returns, affecting long-term growth.

Debt-to-Equity Ratio

While balanced, the moderate debt-to-equity ratio requires careful monitoring to avoid over-leverage, which could constrain future financial options.

Matrix Business Overview & Revenue Model

Company Description

Matrix (MTRX) is a leading provider of engineering, procurement, fabrication, and construction services primarily focused on the energy and industrial sectors. The company specializes in delivering comprehensive solutions including advanced technology integration, project management, and maintenance services to a diverse range of industries such as oil and gas, power generation, and chemical processing.

How the Company Makes Money

Matrix (MTRX) generates revenue through a diversified business model centered around providing engineering and construction services to industrial clients. The company's key revenue streams include project-based contracts, where they offer end-to-end solutions from design and engineering to construction and maintenance. These projects often involve long-term agreements and partnerships with major energy and industrial companies, ensuring a consistent flow of income. Additionally, Matrix may also earn from ancillary services like technology integration and consulting, leveraging its expertise to drive project efficiency and cost-effectiveness for its clients.

Matrix Financial Statement Overview

Summary

Matrix demonstrates strong profitability and cash flow management with consistent revenue growth and a stable balance sheet. However, moderate leverage needs monitoring.

Income Statement

Matrix exhibits solid profitability with a Gross Profit Margin of 15.0% and a Net Profit Margin of 4.9% for TTM (Trailing-Twelve-Months). Revenue has shown a consistent growth trajectory, with a recent TTM growth rate of 1.66%. The EBIT and EBITDA Margins at 8.2% and 11.3% respectively, underline strong operational efficiency. The company is positioned well within its industry, demonstrating both profitability and growth.

Balance Sheet

Matrix maintains a stable balance sheet with a Debt-to-Equity Ratio of 1.10, suggesting moderate leverage. The Return on Equity is robust at 25.2%, reflecting efficient use of equity capital. The Equity Ratio stands at 23.9%, indicating a solid equity base relative to assets. However, the company's leverage could pose potential risks if not managed carefully.

Cash Flow

Matrix demonstrates strong cash flow management with a Free Cash Flow to Net Income Ratio of 2.13, indicating substantial cash generation relative to net income. The Operating Cash Flow to Net Income Ratio is 2.27, suggesting efficient conversion of income to cash. Additionally, Free Cash Flow growth is consistent, enhancing the company's capacity to reinvest and cover obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.79B	5.58B	5.23B	4.67B	4.36B	3.85B
Gross Profit	873.82M	832.99M	764.18M	672.01M	621.40M	562.99M
EBITDA	654.62M	627.13M	459.13M	654.80M	460.09M	400.93M
Net Income	282.78M	272.42M	227.33M	334.67M	195.34M	172.60M
Balance Sheet
Total Assets	4.46B	4.48B	4.08B	4.00B	3.44B	3.22B
Cash, Cash Equivalents and Short-Term Investments	547.75M	668.50M	640.21M	839.31M	534.13M	644.26M
Total Debt	1.19B	1.16B	1.17B	1.40B	1.05B	1.01B
Total Liabilities	3.30B	3.34B	2.98B	3.04B	2.56B	2.39B
Stockholders Equity	1.10B	1.09B	1.05B	916.41M	825.01M	776.31M
Cash Flow
Free Cash Flow	621.10M	577.68M	455.08M	348.63M	184.14M	498.59M
Operating Cash Flow	662.54M	619.22M	496.20M	387.39M	219.22M	535.18M
Investing Cash Flow	-122.61M	-56.93M	-75.75M	36.43M	-53.18M	-63.78M
Financing Cash Flow	-464.14M	-531.44M	-628.87M	-139.39M	-263.80M	-263.40M

Matrix Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11970.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:MTRX, the sentiment is Positive. The current price of 11970 is above the 20-day moving average (MA) of 11800.00, below the 50-day MA of 12118.20, and above the 200-day MA of 9814.59, indicating a neutral trend. The MACD of -87.15 indicates Negative momentum. The RSI at 53.73 is Neutral, neither overbought nor oversold. The STOCH value of 74.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:MTRX.

Matrix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTRX	73 Outperform	7.62B	26.91		2.70%	6.43%	14.81%
ABRA	72 Outperform	497.36M	36.74		―	―	―
ONE	66 Neutral	5.86B	23.23		2.84%	11.47%	26.50%
Sector *	61 Neutral	$36.58B	11.16	-10.43%	1.86%	8.71%	-7.09%
SNEL	―	123.66M	11.72		15.15%	―	―
TRA	―	146.65M	―		―	―	―
PRPD	―	125.97M	―		―	―	―