Matrix (MTRX) AI Stock Analysis

• Market Cap: ₪9.25B
• Dividend Yield: 2.41%
• Average Volume (3M): 89.59K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 1.02
• Revenue Growth: 8.82%
• EPS Growth: 14.25%
• Country: IL
• Employees: 11,570
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 127.00
• Shares Outstanding: 92,524,810
• 10 Day Avg. Volume: 80,136
• 30 Day Avg. Volume: 89,595
• PEG Ratio: 2.20
• Price to Book (P/B): 7.81
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 11.09
• 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: 60 Neutral
• Price Target: 11,099.00 ▼(-22.82% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is driven by solid financial performance, particularly strong free cash flow and steady revenue expansion. However, technicals are the main drag, with price below key longer-term moving averages and a strongly negative MACD indicating weak trend momentum. Valuation is supportive but not compelling, with a mid-20s P/E partly offset by a ~3.3% dividend yield.

Positive Factors

Strong free cash flow

Sustained high free cash flow provides durable internal funding for R&D, dividends, and debt reduction. FCF tracking at ~0.9x net income signals earnings quality and reduces reliance on external capital, improving long-term strategic flexibility and shareholder returns.

Consistent revenue expansion

Multi-year revenue expansion reflects ongoing product demand and market traction. Persistent top-line growth supports scale advantages, underpins future margin recovery potential, and demonstrates the company can maintain or grow its market position over a medium-term horizon.

Efficient capital deployment / strong ROE

Rising equity and strong ROE point to effective capital allocation and management execution. Efficient use of capital indicates the business can convert investments into returns, supporting sustainable shareholder value creation and resilience during industry cycles.

Negative Factors

Elevated leverage for a software company

Debt levels near parity with equity are high for a software business and reduce financial flexibility. Elevated leverage increases interest and refinancing risk, constrains ability to invest opportunistically, and amplifies downside if margins or cash flows weaken over the medium term.

Relatively low gross margin

Below-peer gross margins limit operating leverage and the ability to translate revenue growth into high incremental profits. Structurally lower gross margins make margins more sensitive to cost inflation and competitive pricing, complicating durable margin expansion prospects.

Cash flow volatility historically

Historical variability in cash generation weakens predictability for capital allocation, debt servicing and dividends. Even with current strong FCF, recurring volatility raises planning risk and could necessitate precautionary liquidity measures during downcycles.

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.

Matrix Financial Statement Overview

Summary

Fundamentals are solid, led by strong operating cash flow and free cash flow (with FCF closely tracking earnings), and continued TTM revenue expansion. Offsetting factors are a relatively low gross margin for software and a still-leveraged balance sheet (debt-to-equity just under 1.0), which reduces flexibility if profitability weakens.

Income Statement

TTM (Trailing-Twelve-Months) revenue rose to ~6.24B, showing continued top-line expansion versus 2024 and 2023, but growth has been uneven across years. Profitability is positive with operating and net margins holding around the mid-to-high single digits, though gross margin is relatively low for a software business and margins have not fully recovered to the stronger 2022 level—suggesting some pressure from costs and/or pricing mix.

Balance Sheet

Leverage is meaningful: TTM debt is slightly below equity (debt-to-equity just under 1.0), improving versus prior years when leverage was higher, but still elevated for a software profile. Equity has grown and returns on equity are strong, indicating efficient capital use; however, the balance sheet remains more debt-reliant than ideal, which can reduce flexibility if profitability softens.

Cash Flow

Cash generation is a clear strength: TTM operating cash flow (~835M) and free cash flow (~801M) are robust, with strong TTM free-cash-flow growth versus 2024. Free cash flow closely tracks reported earnings (free cash flow running at ~0.9x net income), supporting earnings quality; the main watch item is that cash flow metrics have fluctuated historically, indicating some volatility year-to-year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.24B	5.58B	5.23B	4.67B	4.36B
Gross Profit	863.10M	832.99M	764.18M	672.01M	621.40M
EBITDA	720.94M	627.13M	459.13M	654.80M	460.09M
Net Income	307.28M	272.42M	227.33M	334.67M	195.34M
Balance Sheet
Total Assets	4.61B	4.48B	4.08B	4.00B	3.44B
Cash, Cash Equivalents and Short-Term Investments	902.94M	668.50M	640.21M	839.31M	534.13M
Total Debt	1.12B	1.16B	1.17B	1.40B	1.05B
Total Liabilities	3.39B	3.34B	2.93B	3.04B	2.56B
Stockholders Equity	1.14B	1.09B	1.05B	916.41M	825.01M
Cash Flow
Free Cash Flow	800.80M	577.68M	455.08M	348.63M	184.14M
Operating Cash Flow	835.27M	619.22M	496.20M	387.39M	219.22M
Investing Cash Flow	-98.55M	-56.93M	-75.75M	36.43M	-53.18M
Financing Cash Flow	-468.38M	-531.44M	-628.87M	-139.39M	-263.80M

Matrix Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14380.00
• 50DMA: Positive
• 100DMA: 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 14380 is above the 20-day moving average (MA) of 13070.50, above the 50-day MA of 12352.75, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 380.05 indicates Negative momentum. The RSI at 63.25 is Neutral, neither overbought nor oversold. The STOCH value of 58.66 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
ONE	66 Neutral	₪4.60B	24.02	―	2.55%	14.11%	25.79%
ABRA	64 Neutral	₪458.27M	33.78	―	―	19.46%	-27.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MTRX	60 Neutral	₪9.25B	28.90	―	2.41%	8.82%	14.25%
PRPD	53 Neutral	₪162.55M	-2.47	―	―	1290.36%	-214.81%