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Matrix Service (MTRX)
:MTRX
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Matrix Service Company
(NASDAQ:MTRX)
Rating:64Neutral
Price Target:
$16.50
▲(12.70% Upside)
Matrix Service Company (MTRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$404.22M
Dividend YieldN/A
Average Volume (3M)127.57K
Price to Earnings (P/E)―
Beta (1Y)1.34
Revenue Growth-0.29%
EPS Growth-6.77%
CountryUS
Employees2,064
SectorIndustrials
Sector Strength73
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-0.12
Shares Outstanding27,610,498
10 Day Avg. Volume140,126
30 Day Avg. Volume127,567
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.45
Enterprise Value/Revenue0.25
Enterprise Value/Gross Profit4.13
Enterprise Value/Ebitda-11.56
Forecast
1Y Price Target
$16.50Price Target Upside12.70% Upside
Rating ConsensusHold
Number of Analyst Covering0
Matrix Service Company Business Overview & Revenue Model
Company DescriptionMatrix Service Company (MTRX) is a leading provider of engineering, fabrication, construction, and maintenance services to the energy and industrial markets. The company operates across various sectors, including oil, gas, power generation, and chemical industries, offering a broad range of solutions that encompass everything from project development and management to construction and maintenance services. Matrix Service Company is committed to delivering high-quality, safe, and cost-effective solutions that meet the diverse needs of its clients.
How the Company Makes MoneyMatrix Service Company generates revenue through its comprehensive suite of services, which includes engineering, procurement, fabrication, and construction (EPFC) services, as well as maintenance and repair solutions. The company serves major industries such as oil and gas, power generation, and chemicals, where it undertakes large-scale projects, often under long-term contracts. Key revenue streams include fees for project management, engineering and design services, fabrication of industrial components, and ongoing maintenance of client facilities. Significant partnerships with industry-leading companies and a strong reputation for safety and quality contribute to its consistent earnings, with project-based revenue being a major driver of its financial performance.
Matrix Service Company Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Sep 09, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with strong revenue growth and backlog but also highlighted significant challenges such as exiting a service line and revised revenue guidance due to macroeconomic uncertainties. The company is making strategic adjustments to improve its competitiveness and profitability.Q3-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue growth continued in the third quarter, increasing 21% to $200.2 million, compared to $166 million in the third quarter last year.
Record Backlog
The company grew backlog by nearly 8% sequentially to over $1.4 billion on $301 million of project awards, resulting in a book-to-bill of 1.5.
Improved Financial Performance
Adjusted EBITDA improved to breakeven in the quarter, compared to a loss of $10 million in the third quarter last year.
Utility and Power Infrastructure Segment Growth
Utility and Power Infrastructure segment revenue increased 27% to $58.7 million in the third quarter, benefiting from a higher volume of work associated with natural gas peak shaving projects.
Strong Cash Flow and Liquidity
Net cash provided by operating activities was $31.2 million during the third fiscal quarter and $76.8 million year-to-date, with available liquidity increased to $247.1 million.
Negative Updates
Exit from Northeast Transmission and Distribution Service Line
The company has begun the process of winding down its Northeast transmission and distribution service line due to competitive disadvantages and lack of sufficient awards.
Revised Revenue Guidance
The company revised its fiscal 2025 revenue guidance down by 10% to $770 million to $800 million due to the decision to exit the transmission and distribution business and macroeconomic uncertainties.
Net Loss in the Third Quarter
The company had a net loss of $3.4 million or $0.12 per share, compared to a net loss of $14.6 million or $0.53 per share in the third quarter of fiscal 2024.
Under-Recovery of Construction Overhead Costs
Despite improvement, the impact of under-recovered overhead decreased to 280 basis points, which is still affecting gross margins.
Company Guidance
During the Matrix Service Company conference call, the company revised its fiscal 2025 revenue guidance to $770 million to $800 million, a 10% reduction from previous estimates, primarily due to exiting the transmission and distribution business, which accounted for an estimated $50 million impact. The company reported a 21% increase in third-quarter revenue to $200.2 million, with significant contributions from the Storage and Terminal Solutions segment, which grew 77% to $96.1 million. The backlog increased by 8% sequentially to over $1.4 billion, driven by $301 million in project awards, resulting in a book-to-bill ratio of 1.5. Gross margin for the quarter improved to 6.4%, up from 3.4% in the prior year, as the impact of under-recovered construction overhead decreased to 280 basis points. The company aims to maintain a long-term gross margin target of 10% to 12% and is confident in achieving sustainable growth with an estimated $7 billion pipeline of project opportunities.Matrix Service Company Financial Statement Overview
Summary
Matrix Service Company's financial performance shows a mix of positive and negative aspects. The company exhibits strong cash flow management and a stable balance sheet, with significant growth in free cash flow. However, persistent negative net and operating margins indicate ongoing profitability challenges.Income Statement
Matrix Service Company has shown some improvement in its gross profit margin, moving from a negative margin in 2022 to a positive 5.9% in the TTM. However, net profit margins remain negative at -3.0%, indicating ongoing profitability challenges. Revenue growth is slightly positive, with a 2.0% increase in TTM revenue compared to the previous year. Despite these improvements, the company continues to report negative EBIT and EBITDA margins, reflecting operational inefficiencies.55
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio of 0.14, indicating low leverage and conservative financial management. Return on equity remains negative due to sustained net losses, but the equity ratio is solid at 24.6%, suggesting a stable capital structure. Overall, the balance sheet is relatively strong, though profitability issues persist.60
Neutral
Cash Flow
Matrix Service Company exhibits robust cash flow management, with significant growth in free cash flow, increasing by 78.3% from the previous period. The operating cash flow to net income ratio is strong, indicating effective conversion of earnings into cash. The free cash flow to net income ratio is also healthy, reflecting efficient cash generation despite net losses.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 742.41M | 728.21M | 795.02M | 707.78M | 673.40M | 1.10B |
| Gross Profit | 44.00M | 40.47M | 30.82M | -1.21M | 32.77M | 102.18M |
| EBITDA | -15.74M | -12.86M | -37.04M | -40.08M | -23.85M | -15.92M |
| Net Income | -22.57M | -24.98M | -52.36M | -63.90M | -31.22M | -33.07M |
Balance Sheet | ||||||
| Total Assets | 613.74M | 451.35M | 400.50M | 440.79M | 467.56M | 517.31M |
| Cash, Cash Equivalents and Short-Term Investments | 185.54M | 115.61M | 54.81M | 52.37M | 83.88M | 100.04M |
| Total Debt | 21.47M | 22.89M | 35.32M | 40.62M | 26.52M | 36.77M |
| Total Liabilities | 463.03M | 287.17M | 219.02M | 213.09M | 182.02M | 209.42M |
| Stockholders Equity | 150.71M | 164.18M | 181.48M | 227.71M | 285.54M | 307.89M |
Cash Flow | ||||||
| Free Cash Flow | 116.94M | 65.58M | 1.24M | -57.54M | -7.33M | 25.55M |
| Operating Cash Flow | 123.67M | 72.57M | 10.25M | -54.20M | -2.97M | 44.09M |
| Investing Cash Flow | -5.98M | -945.00K | -2.54M | 35.67M | -2.26M | -17.12M |
| Financing Cash Flow | -1.03M | -10.37M | -5.06M | 12.70M | -12.32M | -16.04M |
Matrix Service Company Technical Analysis
Neutral
14.64
Price Trends
14.54
Positive
13.33
Positive
13.17
Positive
Market Momentum
0.09
Positive
48.04
Neutral
21.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTRX, the sentiment is Neutral. The current price of 14.64 is below the 20-day moving average (MA) of 14.93, above the 50-day MA of 14.54, and above the 200-day MA of 13.17, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 21.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MTRX.
Matrix Service Company Risk Analysis
Matrix Service Company disclosed 31 risk factors in its most recent earnings report. Matrix Service Company reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Matrix Service Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $303.58M | 27.11 | 7.90% | ― | 15.85% | ― | |
70 Outperform | $165.01M | 57.85 | 5.24% | 0.61% | 9.52% | -88.22% | |
69 Neutral | $352.23M | 29.26 | 4.58% | ― | -9.91% | -25.58% | |
64 Neutral | $404.22M | ― | -14.26% | ― | -0.29% | -6.77% | |
64 Neutral | $10.73B | 15.65 | 7.61% | 2.01% | 2.80% | -14.92% | |
46 Neutral | $102.29M | ― | -679.42% | ― | -0.77% | 30.69% | |
41 Neutral | $217.53M | ― | -41.62% | ― | -23.35% | -49.27% |
* Industrials Sector Average
Performance Comparison
MTRX
Matrix Service Company
14.64
5.27
56.24%
ESOA
Energy Services of America
9.88
0.60
6.47%
ORN
Orion Group Holdings
7.64
1.21
18.82%
BBCP
Concrete Pumping Holdings
6.81
2.15
46.14%
SLND
Southland Holdings
4.09
0.51
14.25%
SHIM
Shimmick Corporation
2.89
0.08
2.85%
Matrix Service Company Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Matrix Service Company Announces Key Leadership Changes
Neutral
May 2, 2025
Matrix Service Company announced organizational changes effective May 5, 2025, promoting Shawn P. Payne to President Engineering & Construction to enhance business efficiency. Concurrently, Alan R. Updyke and Glyn A. Rodgers will depart the company as of April 30, 2025, with severance packages, marking a strategic shift without any disputes.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.