MYR Group (MYRG) AI Stock Analysis

• Market Cap: $2.94B
• Dividend Yield: N/A
• Average Volume (3M): 204.92K
• Price to Earnings (P/E): 40.3
• Beta (1Y): 1.86
• Revenue Growth: -3.80%
• EPS Growth: 62.94%
• Country: US
• Employees: 8,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.70
• Shares Outstanding: 15,522,834
• 10 Day Avg. Volume: 240,480
• 30 Day Avg. Volume: 204,919
• PEG Ratio: -1.22
• Price to Book (P/B): 4.08
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 219.18
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 8.07
• Enterprise Value/Ebitda: 17.00
• 1Y Price Target: $208.75
• Price Target Upside: 5.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: $203.00 ▲(2.21% Upside)

MYR Group's overall stock score reflects a strong earnings call performance and solid financial health, with significant improvements in cash flow and operational efficiency. However, the high P/E ratio and mixed technical indicators suggest caution. The absence of a dividend yield and increased costs are additional considerations.

Positive Factors

Revenue Growth

The consistent revenue growth, particularly in key segments, indicates strong market demand and effective execution of contracts, supporting long-term business expansion.

Cash Flow Strength

Improved cash flow generation enhances financial flexibility, allowing MYR Group to fund operations and investments without heavy reliance on external financing.

Strong Backlog

A growing backlog provides visibility into future revenues and indicates sustained demand for MYR Group's services, supporting long-term growth prospects.

Negative Factors

Rising Costs

Increasing costs can erode profitability and suggest potential challenges in project management, which may impact long-term margin sustainability.

SG&A Expense Increase

Rising SG&A expenses, driven by higher employee compensation, could pressure operating margins if not managed effectively, affecting long-term profitability.

Declining Gross Margins

A declining gross margin trend indicates potential pricing pressures or rising input costs, which could challenge profitability if not addressed.

MYR Group Business Overview & Revenue Model

Company Description

MYR 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 Money

MYR Group primarily generates revenue through its electrical contracting services, which are categorized into several key areas: utility services, commercial and industrial services, and renewable energy projects. The company's utility services include construction and maintenance of high-voltage transmission lines, substations, and distribution systems, which are vital for electric utilities. The commercial and industrial segment offers a range of electrical solutions for commercial facilities, including installation and maintenance. Furthermore, MYR Group has made significant inroads into the renewable energy sector, providing construction services for solar and wind projects. Revenue is primarily derived from contracts with utility companies, government entities, and private sector clients, often structured as fixed-price contracts or cost-plus contracts, allowing for predictable cash flows. Strategic partnerships with major utility providers and ongoing investments in training and technology enhance operational efficiency and safety, contributing positively to the company's earnings.

MYR Group Financial Statement Overview

Summary

MYR Group demonstrates a solid financial position with consistent revenue growth and operational efficiency. Declining gross profit margins suggest rising costs, but stable EBIT and EBITDA margins reflect effective cost management. The balance sheet is strong with low leverage, and cash flow performance is robust, highlighting improvements in cash generation and conversion efficiency.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.45B	3.36B	3.64B	3.01B	2.50B	2.25B
Gross Profit	363.85M	290.32M	364.40M	343.96M	324.98M	275.85M
EBITDA	172.78M	118.21M	189.08M	170.70M	161.67M	130.19M
Net Income	76.38M	30.26M	90.99M	83.38M	85.01M	58.76M
Balance Sheet
Total Assets	1.59B	1.57B	1.58B	1.40B	1.12B	995.86M
Cash, Cash Equivalents and Short-Term Investments	22.96M	3.46M	24.90M	51.04M	82.09M	22.67M
Total Debt	133.92M	119.99M	73.61M	74.55M	25.50M	52.08M
Total Liabilities	1.00B	973.70M	927.54M	838.66M	601.99M	566.57M
Stockholders Equity	583.23M	600.36M	651.20M	560.20M	519.10M	429.29M
Cash Flow
Free Cash Flow	129.85M	11.18M	-13.72M	90.43M	84.87M	130.81M
Operating Cash Flow	172.89M	87.11M	71.02M	167.48M	137.23M	175.17M
Investing Cash Flow	-35.52M	-67.21M	-79.13M	-185.73M	-49.30M	-40.93M
Financing Cash Flow	-94.65M	-39.96M	-18.37M	-9.27M	-28.09M	-124.30M

MYR Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 198.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 198.62 is above the 20-day moving average (MA) of 182.29, above the 50-day MA of 186.02, and above the 200-day MA of 155.68, indicating a bullish trend. The MACD of 1.94 indicates Negative momentum. The RSI at 63.89 is Neutral, neither overbought nor oversold. The STOCH value of 92.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MYRG.

MYR Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ECG	78 Outperform	4.25B	25.67	33.94%	―	21.87%	18.56%
AGX	75 Outperform	3.68B	31.07	29.81%	0.56%	29.16%	163.46%
GVA	74 Outperform	4.77B	36.32	12.45%	0.48%	7.18%	77.84%
MYRG	71 Outperform	$2.94B	40.28	12.56%	―	-3.80%	62.94%
AMRC	68 Neutral	1.83B	29.89	5.62%	―	22.85%	8.26%
TPC	63 Neutral	3.41B	-25.51	-11.16%	―	12.03%	-93.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

MYR Group Corporate Events

MYR Group Appoints Aurelie P. Richard to Board

On August 26, 2025, MYR Group Inc. announced the appointment of Aurelie P. Richard to its Board of Directors, filling the vacancy left by William D. Patterson’s retirement. Ms. Richard, who brings over thirty years of experience in finance and management, will also serve on the Board’s Audit Committee. Her extensive industry experience and strategic acumen are expected to contribute significantly to MYR Group’s growth strategy, enhancing its leadership and operational capabilities.

MYR Group Releases New Investor Presentation Materials

On August 8, 2025, MYR Group Inc. announced the posting of presentation materials on its investor relations website, which will be used in meetings with stakeholders throughout the quarter ending September 30, 2025. The materials highlight MYR Group’s strong financial position, with a significant backlog and revenue growth, and emphasize its strategic focus on data centers and transportation opportunities driven by reshoring and AI growth. The company is well-positioned to benefit from increasing demand in its core markets and plans to leverage its robust balance sheet to support organic growth and acquisitions.

MYR Group Announces Q2 2025 Financial Results

On July 30, 2025, MYR Group Inc. announced its second-quarter and first-half 2025 financial results, highlighting a significant increase in revenues and net income compared to the previous year. The company also revealed a new $75 million share repurchase program, replacing the previous program, to be funded through cash on hand and borrowings under its credit facility, indicating a strategic move to enhance shareholder value.