Matrix (MTRX) AI Stock Analysis

• Market Cap: 7.93B
• Dividend Yield: 2.85%
• Average Volume (3M): 101.38K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.96
• Revenue Growth: 5.14%
• EPS Growth: 18.71%
• Country: IL
• Employees: 11,570
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 118.80
• Shares Outstanding: 63,622,555
• 10 Day Avg. Volume: 80,238
• 30 Day Avg. Volume: 101,384
• PEG Ratio: 0.20
• Price to Book (P/B): 5.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.28
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: 13,340.00 ▲(34.75%Upside)

Matrix's strong financial performance and bullish technical indicators drive a solid stock score. However, the high P/E ratio and overbought conditions on technical indicators suggest caution. Investors should consider potential corrections and monitor financial stability.

Matrix Business Overview & Revenue Model

Company Description

Matrix Service Company (MTRX) is a leading provider of engineering, fabrication, construction, and maintenance services to a range of industrial sectors, including energy, power, and industrial markets. The company offers a comprehensive suite of solutions designed to support the lifecycle of its clients' projects, from initial concept and design to construction and ongoing maintenance. With a strong emphasis on safety, quality, and customer satisfaction, Matrix Service Company serves a diverse array of clients across North America.

How the Company Makes Money

Matrix Service Company generates revenue through a combination of project-based contracts and long-term service agreements. The company's key revenue streams include engineering and construction services, fabrication of critical infrastructure components, and maintenance services for industrial facilities. These services are primarily delivered to clients in the energy sector, including oil, gas, and petrochemical industries, as well as power and industrial sectors. Matrix Service Company often collaborates with major industry players and enters into strategic partnerships to enhance its service offerings and expand its market reach. The company's ability to secure large-scale contracts and maintain strong client relationships significantly contributes to its financial performance.

Matrix Financial Statement Overview

Summary

Matrix has shown strong financial performance with consistent revenue and profit growth, efficient cost management, and solid cash flow generation. However, increasing liabilities present some risk.

Income Statement

Matrix has demonstrated consistent revenue growth over the years, with a notable increase in gross profit margin from 14.4% in 2019 to 14.9% in 2024. The net profit margin has also improved, reaching 4.9% in 2024 from 4.4% in 2019. The company shows a strong EBIT margin of 8.1% and a solid EBITDA margin of 11.2% in 2024, indicating efficient cost management and profitability enhancement. However, there was a dip in EBIT in 2022, which was corrected in subsequent years.

Balance Sheet

Matrix's balance sheet displays a stable equity ratio of around 24.3% in 2024, reflecting a balanced financial structure. The debt-to-equity ratio has seen a slight increase to 1.06 in 2024, suggesting moderate leverage. Return on equity (ROE) has improved to 25.0% in 2024, indicating effective use of shareholders' equity to generate profits. However, the increasing total liabilities over the years pose a potential risk.

Cash Flow

The company's free cash flow has grown significantly, with a free cash flow to net income ratio of 2.12 in 2024, indicating strong cash flow generation relative to profits. Operating cash flow to net income ratio stands at 2.27, suggesting robust cash flow from operations. The consistent increase in operating cash flow over the years highlights the company's ability to generate cash efficiently, although capital expenditures have increased slightly.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.58B	5.23B	4.67B	4.36B	3.85B
Gross Profit	832.99M	764.18M	672.01M	621.40M	562.99M
EBITDA	627.13M	459.13M	654.80M	477.13M	413.90M
Net Income	272.42M	227.33M	334.67M	195.34M	172.60M
Balance Sheet
Total Assets	4.48B	4.08B	4.00B	3.44B	3.22B
Cash, Cash Equivalents and Short-Term Investments	668.50M	640.21M	839.31M	534.13M	644.26M
Total Debt	1.16B	1.17B	1.40B	1.05B	1.01B
Total Liabilities	3.34B	2.98B	3.04B	2.56B	2.39B
Stockholders Equity	1.09B	1.05B	916.41M	825.01M	776.31M
Cash Flow
Free Cash Flow	577.68M	455.08M	348.63M	184.14M	498.59M
Operating Cash Flow	619.22M	496.20M	387.39M	219.22M	535.18M
Investing Cash Flow	-56.93M	-75.75M	36.43M	-53.18M	-63.78M
Financing Cash Flow	-531.44M	-628.87M	-139.39M	-263.80M	-263.40M

Matrix Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9900.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 9900 is below the 20-day moving average (MA) of 10936.55, below the 50-day MA of 10074.98, and above the 200-day MA of 8654.48, indicating a bullish trend. The MACD of 591.22 indicates Negative momentum. The RSI at 82.02 is Negative, neither overbought nor oversold. The STOCH value of 96.56 is Negative, 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
ONE	77 Outperform	6.34B	26.60		2.52%	10.20%	25.17%
MTRX	76 Outperform	7.93B	28.37		2.85%	5.14%	18.71%
ABRA	71 Outperform	418.22M	29.53		―	―	―
Sector *	63 Neutral	$33.61B	6.06	-11.53%	1.82%	5.53%	-18.79%

Matrix Corporate Events

Matrix Sets Date for 2024 Financial Report Release and Investor Conference

Matrix has announced that it will publish its financial reports for the period ending December 31, 2024, on March 11, 2025, contingent upon audit completion and board approval. An investor conference will follow the report’s release, scheduled for the same day at the Tel Aviv Stock Exchange Visitor Center.