Education
About Us
Working with TipRanks
Follow Us
MYR Group (MYRG)
NASDAQ:MYRG
Top Page
MYR Group
(NASDAQ:MYRG)
Rating:72Outperform
Price Target:―
MYR Group (MYRG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.57B
Dividend YieldN/A
Average Volume (3M)221.12K
Price to Earnings (P/E)75.9
Beta (1Y)1.76
Revenue Growth-7.33%
EPS Growth-57.86%
CountryUS
Employees8,500
SectorIndustrials
Sector Strength87
IndustryEngineering & Construction
Share Statistics
EPS (TTM)1.45
Shares Outstanding15,522,834
10 Day Avg. Volume183,089
30 Day Avg. Volume221,117
Financial Highlights & Ratios
PEG Ratio-11.68
Price to Book (P/B)2.75
Price to Sales (P/S)0.00
P/FCF Ratio17.06
Enterprise Value/Market Cap0.61
Enterprise Value/Revenue0.11
Enterprise Value/Gross Profit5.23
Enterprise Value/Ebitda3.23
Forecast
1Y Price Target
$157.00Price Target Upside-3.91% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering5
MYR Group Business Overview & Revenue Model
Company DescriptionMYR Group Inc., through its subsidiaries, provides electrical construction services in the United States and Canada. It operates in two segments, Transmission and Distribution, and Commercial and Industrial. The Transmission and Distribution segment offers a range of services on electric transmission and distribution networks, and substation facilities, including design, engineering, procurement, construction, upgrade, maintenance, and repair services with primary focus on construction, maintenance, and repair to customers in the electric utility industry; and services, including construction and maintenance of high voltage transmission lines, substations, and lower voltage underground and overhead distribution systems, renewable power facilities, and limited gas construction services, as well as emergency restoration services in response to hurricane, ice, or other storm related damages. This segment serves as a prime contractor to customers, such as investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners, and other contractors. The Commercial and Industrial segment provides a range of services, including design, installation, maintenance, and repair of commercial and industrial wiring; and installation of traffic networks, bridge, roadway, and tunnel lighting for airports, hospitals, data centers, hotels, stadiums, convention centers, renewable energy projects, manufacturing plants, processing facilities, waste-water treatment facilities, mining facilities, and transportation control and management systems. This segment serves general contractors, commercial and industrial facility owners, governmental agencies, and developers. The company was founded in 1891 and is headquartered in Henderson, Colorado.
How the Company Makes MoneyMYR Group makes money primarily through its contracts for electrical construction and maintenance services. In the Transmission and Distribution segment, the company generates revenue by constructing and maintaining high-voltage transmission lines, substations, and distribution systems for utility companies, which require ongoing infrastructure investments and upgrades. The Commercial & Industrial segment earns revenue from providing electrical contracting services for large-scale commercial and industrial projects, including data centers, manufacturing facilities, and renewable energy installations. MYR Group's revenue is driven by long-term contracts with utilities and private sector clients, and it benefits from a stable demand for energy infrastructure maintenance and upgrades. Strategic partnerships and a strong reputation in the industry also contribute significantly to the company's earnings.
MYR Group Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 33.58%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with notable achievements in revenue growth, increased free cash flow, and a strong backlog. However, challenges such as decreased T&D revenues, a higher effective tax rate, and increased expenses were also evident. The sentiment reflects a balance between positive financial performance and operational challenges.Q1-2025 Updates
Positive Updates
Increase in Overall Revenues and Profitability
First quarter 2025 revenues were $834 million, representing an increase of $18 million or 2.2% compared to the same period last year. Net income per diluted share increased by 29% compared to the same period last year.
Significant Improvement in Free Cash Flow
Free cash flow was $70 million compared to negative free cash flow of $18 million for the same period last year, reflecting increased operating cash flow and lower capital expenditures.
Strong Backlog and Market Opportunities
Total backlog as of March 31, 2025 was $2.64 billion, 9% higher than a year ago. The company is positioned to capture new opportunities in data centers, healthcare, industrial, and clean energy markets.
Positive Operating Income Margins
T&D operating income margin was 7.8% compared to 6.1% last year, and C&I operating income margin was 4.7% compared to 3.5% last year, due to favorable change orders and better-than-anticipated productivity.
Negative Updates
Decrease in Transmission and Distribution Revenues
First quarter T&D revenues were $462 million, a decrease of 5.8% compared to the same period last year, primarily due to continued selectivity on clean energy projects.
Higher Effective Tax Rate
The first quarter effective tax rate was 28.9% compared to 18% for the same period last year, primarily due to no stock compensation excess tax benefits in the first quarter of 2025.
Increased SG&A and Interest Expenses
First quarter 2025 SG&A expenses were $62.5 million, an increase of approximately $300,000 compared to the same period last year. Interest expense was $1.4 million, an increase of $300,000 due to higher average outstanding debt balances.
Company Guidance
During the MYR Group's First Quarter 2025 Earnings Results Conference Call, various key financial metrics were discussed, highlighting the company's performance and guidance. The first quarter of 2025 saw revenues of $834 million, marking a 2.2% increase from the previous year, with Transmission & Distribution (T&D) revenues generating $462 million, albeit a 5.8% decrease. Distribution projects contributed $192 million, while transmission accounted for $270 million. The Commercial & Industrial (C&I) segment posted revenues of $372 million, reflecting a 14.4% year-over-year increase. The company's gross margin rose to 11.6% from 10.6%, and T&D operating income margin improved to 7.8%, while C&I operating income margin increased to 4.7%. Net income reached $23 million, and net income per diluted share rose 29% to $1.45. Total backlog at the end of the quarter was $2.64 billion, with the T&D segment contributing $873 million and the C&I segment $1.77 billion. Operating cash flow surged to $83 million, and free cash flow turned positive at $70 million. Additionally, the company repurchased 639,000 shares, with $379 million in borrowing availability reported under the credit facility. The effective tax rate increased to 28.9%, and first-quarter EBITDA was $50 million. The company emphasized its focus on strategic growth and maintaining a strong financial position to capitalize on future opportunities.MYR Group Financial Statement Overview
Summary
MYR Group's financial performance is solid with consistent revenue growth and impressive cash flow conversion. However, declining gross profit margins present a challenge. The balance sheet remains stable with low leverage, though profitability on equity could be enhanced. Overall, the company shows robust financial health.Income Statement
MYR Group's income statement reveals a stable growth trajectory with a revenue growth rate of 0.54% from last year to TTM, following a 11.44% increase the year before. The company maintains healthy profitability, reflected by a net profit margin of 1.02% in the TTM period. However, the gross profit margin has shown a consistent decline from 11.37% in 2020 to 8.87% in the TTM. This suggests rising costs or pricing pressures. Despite these challenges, EBIT and EBITDA margins are holding steady, indicating operational efficiency improvements.75
Positive
Balance Sheet
The balance sheet reflects a strong equity base with a debt-to-equity ratio of 0.24 in TTM, suggesting prudent financial leverage. The equity ratio has slightly decreased over time, from 43.11% in 2020 to 36.04% in TTM, but MYR Group still maintains a solid equity position. Return on equity in TTM is lower at 6.31% compared to 2020's 13.69%, indicating reduced profitability on shareholder investment. Overall, the balance sheet shows stability with manageable debt levels, though profitability on equity could improve.70
Positive
Cash Flow
Cash flow analysis indicates robust cash generation, with operating cash flow to net income ratio at 4.70 in TTM, significantly improving from past years, highlighting strong cash conversion efficiency. Free cash flow growth rate is positive, with free cash flow to net income ratio at 2.87, suggesting effective capital expenditure management and strong cash generation relative to profits. The cash flow strength supports MYR Group's ability to fund operations and investments without relying heavily on external financing.78
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.38B | 3.36B | 3.64B | 3.01B | 2.50B | 2.25B | Gross Profit |
| 299.76M | 290.32M | 364.40M | 343.96M | 324.98M | 275.85M | EBIT |
| 62.59M | 54.08M | 129.09M | 114.91M | 118.56M | 86.55M | EBITDA |
| 112.52M | 118.21M | 189.08M | 170.70M | 161.67M | 130.19M | Net Income Common Stockholders |
| 34.63M | 30.26M | 90.99M | 83.38M | 85.01M | 58.76M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 10.90M | 3.46M | 24.90M | 51.04M | 82.09M | 22.67M | Total Assets |
| 1.52B | 1.57B | 1.58B | 1.40B | 1.12B | 995.86M | Total Debt |
| 132.17M | 119.99M | 73.61M | 74.55M | 25.50M | 52.08M | Net Debt |
| 121.28M | 116.53M | 48.71M | 23.51M | -56.59M | 29.41M | Total Liabilities |
| 973.39M | 973.70M | 927.54M | 838.66M | 601.99M | 566.57M | Stockholders Equity |
| 548.67M | 600.36M | 651.20M | 560.20M | 519.10M | 429.29M |
| Cash Flow | Free Cash Flow | ||||
| 99.49M | 11.18M | -13.72M | 90.43M | 84.87M | 130.81M | Operating Cash Flow |
| 162.71M | 87.11M | 71.02M | 167.48M | 137.23M | 175.17M | Investing Cash Flow |
| -54.20M | -67.21M | -79.13M | -185.73M | -49.30M | -40.93M | Financing Cash Flow |
| -100.48M | -39.96M | -18.37M | -9.27M | -28.09M | -124.30M |
MYR Group Technical Analysis
Positive
163.39
Price Trends
142.68
Positive
135.86
Positive
133.18
Positive
Market Momentum
5.08
Positive
60.71
Neutral
69.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MYRG, the sentiment is Positive. The current price of 163.39 is above the 20-day moving average (MA) of 161.86, above the 50-day MA of 142.68, and above the 200-day MA of 133.18, indicating a bullish trend. The MACD of 5.08 indicates Positive momentum. The RSI at 60.71 is Neutral, neither overbought nor oversold. The STOCH value of 69.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MYRG.
MYR Group Risk Analysis
MYR Group disclosed 32 risk factors in its most recent earnings report. MYR Group 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
MYR Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $3.06B | 31.49 | 30.48% | 0.68% | 45.08% | 158.43% | |
80 Outperform | $1.51B | 46.52 | 3.79% | ― | 8.65% | -22.72% | |
74 Outperform | $3.95B | 19.41 | 15.30% | 0.43% | 12.45% | 42.45% | |
72 Outperform | $2.57B | 75.94 | 5.71% | ― | -7.33% | -57.86% | |
71 Outperform | $3.08B | 20.30 | 32.91% | ― | 11.92% | 8.94% | |
66 Neutral | $4.51B | 12.22 | 5.40% | 3.63% | 4.14% | -12.01% | |
62 Neutral | $2.25B | ― | -12.28% | ― | 8.95% | -41.32% |
* Industrials Sector Average
Performance Comparison
MYRG
MYR Group
163.39
23.32
16.65%
AGX
Argan
218.17
140.80
181.98%
PRIM
Primoris Services
74.25
20.59
38.37%
TPC
Tutor Perini
42.08
20.86
98.30%
NVEE
NV5 Holdings
22.92
0.12
0.53%
ECG
Everus Construction Group, Inc.
59.54
9.54
19.08%
MYR Group Corporate Events
Business Operations and StrategyFinancial Disclosures
MYR Group Releases Q2 2025 Investor Presentation
Positive
May 5, 2025
On May 5, 2025, MYR Group Inc. released presentation materials on its website for use in investor meetings throughout the quarter ending June 30, 2025. These materials provide summary information about the company’s operations and financials, emphasizing its strong market position and growth prospects in the electrical construction industry. The announcement highlights MYR Group’s continued growth and strategic positioning to capitalize on opportunities in data centers, transportation, and clean energy, supported by a robust balance sheet and significant backlog in both its Transmission & Distribution (T&D) and Commercial & Industrial (C&I) segments.
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.