Matrix (MTRX) AI Stock Analysis

• Market Cap: 8.51B
• Dividend Yield: 2.52%
• Average Volume (3M): 89.59K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 1.05
• Revenue Growth: 8.82%
• EPS Growth: 14.25%
• Country: IL
• Employees: 11,570
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 122.50
• Shares Outstanding: 63,633,030
• 10 Day Avg. Volume: 80,136
• 30 Day Avg. Volume: 89,595
• PEG Ratio: 1.04
• Price to Book (P/B): 5.01
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 9.44
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: 15,304.00 ▲(30.58% Upside)

Matrix's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's robust profitability and effective cash flow management position it well in the software application industry. However, the high P/E ratio and overbought technical indicators suggest caution in the short term.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and the ability to capture new business opportunities, supporting long-term stability.

Cash Flow Management

Effective cash flow management enhances financial flexibility, allowing for strategic investments and resilience against economic fluctuations.

Profitability

Robust profitability reflects operational efficiency and the ability to maintain competitive pricing, supporting sustainable growth.

Negative Factors

Debt Reliance

High reliance on debt could pose financial risks, especially if interest rates rise or if cash flows are disrupted, impacting long-term stability.

Net Profit Margin

A relatively low net profit margin may limit reinvestment capabilities and shareholder returns, challenging long-term profitability.

Debt-to-Equity Ratio

While balanced, the debt-to-equity ratio requires careful monitoring to prevent over-leverage, which could constrain future growth opportunities.

Matrix Business Overview & Revenue Model

Company Description

Matrix (MTRX) is a leading provider of engineering and construction services, specializing in infrastructure projects across various sectors including transportation, energy, and water management. The company focuses on delivering innovative solutions that enhance efficiency and sustainability in construction practices. Its core services include project management, design, and construction of large-scale infrastructure projects, as well as maintenance and operational support for existing facilities.

How the Company Makes Money

Matrix generates revenue through several key streams, primarily by executing contracts for engineering and construction services. The company typically engages in fixed-price and cost-plus contracts, which provide predictable revenue based on project milestones and deliverables. Additionally, Matrix benefits from ongoing maintenance contracts that ensure a steady income stream after projects are completed. Significant partnerships with government agencies, municipalities, and private sector entities also contribute to its earnings, as they often lead to large-scale projects that require extensive engineering and construction expertise. Moreover, Matrix invests in research and development to innovate its service offerings, enhancing its competitiveness and driving future revenue growth.

Matrix Financial Statement Overview

Summary

Matrix exhibits strong financial health with consistent revenue growth, solid profitability, and effective cash flow management. While the company has a balanced debt-to-equity ratio, the reliance on debt financing requires careful monitoring. Overall, Matrix is well-positioned in the software application industry, with opportunities to enhance profitability and reduce leverage.

Income Statement

Matrix has demonstrated consistent revenue growth with a TTM growth rate of 2.09% and strong margins, including a gross profit margin of 15.04% and a net profit margin of 4.93%. The EBIT and EBITDA margins are also healthy at 7.95% and 11.30%, respectively. These figures indicate robust profitability and operational efficiency, although the net profit margin could be improved further.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 1.10, indicating a balanced approach to leveraging. The return on equity (ROE) is strong at 25.82%, reflecting efficient use of equity to generate profits. However, the equity ratio of 24.57% suggests a reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Matrix shows a positive free cash flow growth rate of 4.60% TTM, indicating healthy cash generation. The operating cash flow to net income ratio is 2.34, and the free cash flow to net income ratio is 0.93, both suggesting effective cash management. Continued focus on increasing free cash flow relative to net income would further strengthen the company's financial position.

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	2.93B	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: 11720.00
• 50DMA: Positive
• 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 11720 is below the 20-day moving average (MA) of 12988.50, below the 50-day MA of 12314.68, and above the 200-day MA of 10670.73, indicating a bullish trend. The MACD of 377.25 indicates Negative momentum. The RSI at 61.42 is Neutral, neither overbought nor oversold. The STOCH value of 58.84 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	75 Outperform	8.51B	28.69	―	2.52%	8.82%	14.25%
ONE	73 Outperform	6.03B	22.65	―	2.84%	14.11%	25.79%
ABRA	66 Neutral	504.16M	37.01	―	―	19.46%	-27.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRPD	53 Neutral	138.00M	―	―	―	1290.36%	-214.81%