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Matrix Service Company (MTRX)
NASDAQ:MTRX
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Matrix Service Company
(NASDAQ:MTRX)
Rating:63Neutral
Price Target:
$14.50
▲(3.94%Upside)
Matrix Service Company (MTRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$376.33M
Dividend YieldN/A
Average Volume (3M)169.92K
Price to Earnings (P/E)―
Beta (1Y)1.27
Revenue Growth-0.29%
EPS Growth-6.77%
CountryUS
Employees2,064
SectorIndustrials
Sector Strength87
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-0.12
Shares Outstanding27,610,498
10 Day Avg. Volume219,905
30 Day Avg. Volume169,916
Financial Highlights & Ratios
PEG Ratio-0.51
Price to Book (P/B)2.57
Price to Sales (P/S)0.00
P/FCF Ratio3.28
Enterprise Value/Market Cap0.58
Enterprise Value/Revenue0.08
Enterprise Value/Gross Profit4.99
Enterprise Value/Ebitda-3.10
Forecast
1Y Price Target
$16.00Price Target Upside14.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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: 13.78%|
Next Earnings Date:Sep 15, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative developments. While there was significant revenue growth, improved financial performance, and a strong backlog, the decision to exit a business line and the reduction in revenue guidance due to macroeconomic uncertainties and project timing issues were notable challenges.Q3-2025 Updates
Positive Updates
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 in Storage and Terminal Solutions
Storage and Terminal Solutions accounted for $205 million of the quarterly awards, increasing backlog to $848 million, the highest level in the company's history.
Improved Financial Performance
Adjusted EBITDA improved to breakeven in the quarter, compared to a loss of $10 million in the third quarter last year. Net loss decreased to $3.4 million compared to $14.6 million the previous year.
Strong Liquidity Position
Available liquidity increased to $247.1 million, comprised of $185.5 million of unrestricted cash and $61.5 million of borrowing availability under the credit facility.
Negative Updates
Exit from Northeast Transmission and Distribution Service Line
The company began winding down its Northeast transmission and distribution service line due to competitive disadvantages and lack of sufficient awards, impacting full-year revenue by approximately $50 million.
Revised Revenue Guidance
Revenue guidance for fiscal 2025 was reduced by 10% to $770 million to $800 million due to exiting the transmission and distribution business and timing of project awards.
Under-Recovery of Construction Overhead Costs
The impact of under-recovered overhead decreased to 280 basis points but continues to affect gross margin.
Temporary Reduction in Process and Industrial Facilities Revenue
Revenue in the Process and Industrial Facilities segment decreased due to the completion of a large renewable diesel project.
Company Guidance
During the Matrix Service Company's third quarter fiscal 2025 earnings call, the company revised its fiscal year 2025 revenue guidance down by 10% to a range of $770 million to $800 million. This revision was attributed to the decision to exit the Northeast transmission and distribution service line, which impacted full-year revenue by approximately $50 million, and the timing delays in project awards due to macroeconomic uncertainties. Despite this, the company achieved a year-to-date book-to-bill ratio of 1.0 and anticipates maintaining this momentum, with projected quarter-over-quarter growth demonstrated by 20% to 25% growth in the second half of fiscal 2025 compared to the first half. Storage and Terminal Solutions accounted for $205 million of the quarterly awards, boosting backlog to $848 million, the highest in the company's history. The company also indicated a strong market outlook, supported by the U.S. Energy Information Administration's (EIA) projected 45% increase in U.S. LNG export demand and an 8% increase in demand on the 38 trillion cubic feet of natural gas over the next six years.Matrix Service Company Financial Statement Overview
Summary
Matrix Service Company shows strong cash flow management with a significant increase in free cash flow and a stable balance sheet with low leverage. However, persistent negative net and operating margins highlight ongoing profitability challenges, impacting the overall financial performance score.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 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 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
Positive
13.95
Price Trends
12.50
Positive
12.50
Positive
12.48
Positive
Market Momentum
0.40
Negative
68.67
Neutral
77.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTRX, the sentiment is Positive. The current price of 13.95 is above the 20-day moving average (MA) of 12.88, above the 50-day MA of 12.50, and above the 200-day MA of 12.48, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 68.67 is Neutral, neither overbought nor oversold. The STOCH value of 77.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTRX.
Matrix Service Company Risk Analysis
Matrix Service Company disclosed 30 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 (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $166.18M | 9.02 | 41.26% | 1.21% | 4.62% | 81.73% | |
71 Outperform | ¥255.26B | 12.94 | 8.49% | 3.09% | 6.34% | 12.95% | |
70 Outperform | $355.19M | 147.96 | 2.25% | ― | 15.58% | ― | |
64 Neutral | $326.74M | 27.36 | 4.58% | ― | -9.91% | -25.58% | |
63 Neutral | $376.33M | ― | -14.26% | ― | -0.29% | -6.77% | |
57 Neutral | $236.50M | ― | -53.62% | ― | -20.63% | -611.23% | |
52 Neutral | $70.91M | ― | -679.42% | ― | -18.08% | -217.13% |
* Industrials Sector Average
Performance Comparison
MTRX
Matrix Service Company
13.95
5.19
59.25%
ESOA
Energy Services of America
10.22
3.18
45.17%
ORN
Orion Group Holdings
9.07
0.42
4.86%
BBCP
Concrete Pumping Holdings
6.33
1.34
26.85%
SLND
Southland Holdings
4.39
0.29
7.07%
SHIM
Shimmick Corporation
1.93
0.30
18.40%
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.