Matrix (MTRX) AI Stock Analysis

• Market Cap: 6.50B
• Dividend Yield: 3.18%
• Average Volume (3M): 115.68K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.95
• Revenue Growth: 5.14%
• EPS Growth: 18.71%
• Country: IL
• Employees: 11,570
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 118.80
• Shares Outstanding: 63,622,555
• 10 Day Avg. Volume: 103,748
• 30 Day Avg. Volume: 115,681
• 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: 11,741.00 ▲(18.60%Upside)

Matrix's strong financial performance, driven by consistent revenue growth and efficient cost management, is the primary strength, complemented by positive technical indicators. The fair valuation further supports the stock, though it's important to monitor the overbought signals and increasing liabilities.

Matrix Business Overview & Revenue Model

Company Description

Matrix IT Ltd. provides information technology (IT) services worldwide. The company offers consulting services in the areas of customer experience, and supply chain and logistics; develops and implements customer relationship management solutions; operates a customer service center; and provides enterprise resource planning solutions to businesses. It also offers business intelligence, big data, and analytics solutions, as well as digitization services; and research and development, testing and automation, nearshore, offshore, training and implementation, and DevOps services. In addition, the company provides cloud solutions; develops data platforms; develops and supports integration platforms; and offers IT-as-a-Service. Further, it provides cyber security services; financial crime prevention and compliance solutions and services; and business continuity management and disaster recovery solutions. Additionally, the company offers customer facing, business excellence, defense, urban planning and environment, infrastructure and transport, healthcare, supply chain management, and innovation consulting services, as well as distributes software products. It serves healthcare, high-tech, public service, retail, finance, and defense sectors. The company was incorporated in 1989 and is headquartered in Herzliya, Israel.

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
	EBIT
450.07M	393.42M	500.55M	329.39M	289.13M
	EBITDA
627.13M	459.13M	654.80M	477.13M	413.90M
	Net Income Common Stockholders
272.42M	227.33M	334.67M	195.34M	172.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
668.50M	640.21M	839.31M	534.13M	644.26M
	Total Assets
4.48B	4.08B	4.00B	3.44B	3.22B
	Total Debt
1.16B	1.17B	1.40B	1.05B	1.01B
	Net Debt
489.39M	531.78M	563.46M	519.42M	370.56M
	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: Positive
• 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 9900 is below the 20-day moving average (MA) of 10155.00, above the 50-day MA of 9320.48, and above the 200-day MA of 8383.44, indicating a bullish trend. The MACD of 271.52 indicates Positive momentum. The RSI at 62.25 is Neutral, neither overbought nor oversold. The STOCH value of 34.50 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	76 Outperform	6.50B	23.23		3.18%	5.14%	18.71%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
NCSYF		$11.22B	24.88	13.40%	―	―	―
TASE	70 Outperform	5.34B	48.55		0.94%	15.68%	35.65%
ELCO	65 Neutral	4.37B	―		1.47%	9.65%	58.93%

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.