MYR Group (MYRG) AI Stock Analysis

• Market Cap: $2.55B
• Dividend Yield: N/A
• Average Volume (3M): 215.76K
• Price to Earnings (P/E): 73.8
• Beta (1Y): 1.76
• Revenue Growth: -7.33%
• EPS Growth: -57.86%
• Country: US
• Employees: 8,500
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): 1.45
• Shares Outstanding: 15,522,834
• 10 Day Avg. Volume: 209,975
• 30 Day Avg. Volume: 215,757
• PEG Ratio: 4.05
• Price to Book (P/B): 4.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.28
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 8.46
• Enterprise Value/Ebitda: 5.23
• 1Y Price Target: $151.50
• Price Target Upside: -3.55% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 72 Outperform
• Price Target: ―

MYR Group exhibits strong financial health with consistent revenue growth and notable cash flow strength. The technical analysis shows positive momentum but warns of overbought conditions. Despite a high valuation, the company's robust earnings call and strategic corporate events support a favorable outlook. Overall, MYR Group presents a balanced investment case with growth potential tempered by valuation concerns.

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 generates revenue through its comprehensive suite of electrical construction services. The company's primary revenue streams come from its two main segments: Transmission and Distribution (T&D) and Commercial and Industrial (C&I). In the T&D segment, MYR Group provides services for the construction and maintenance of high-voltage transmission lines, substations, and distribution systems. This involves contracts with utility companies, independent power producers, and other energy firms. In the C&I segment, the company offers electrical construction and maintenance services for commercial buildings, industrial facilities, and infrastructure projects, often partnering with general contractors and private developers. MYR Group's revenue is influenced by its ability to secure contracts, the scale and duration of projects, and its reputation for reliability and safety. Additionally, the company benefits from trends in renewable energy and infrastructure development, which drive demand for its services.

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.

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
3.38B	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
3.91M	3.46M	24.90M	51.04M	82.09M	22.67M
	Total Assets
1.58B	1.57B	1.58B	1.40B	1.12B	995.86M
	Total Debt
78.47M	119.99M	73.61M	74.55M	25.50M	52.08M
	Net Debt
74.56M	116.53M	48.71M	23.51M	-56.59M	29.41M
	Total Liabilities
919.77M	973.70M	927.54M	838.66M	601.99M	566.57M
	Stockholders Equity
663.72M	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

• Technical Analysis Sentiment: Positive
• Last Price: 157.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 157.07 is above the 20-day moving average (MA) of 151.49, above the 50-day MA of 130.33, and above the 200-day MA of 128.68, indicating a bullish trend. The MACD of 10.25 indicates Positive momentum. The RSI at 63.81 is Neutral, neither overbought nor oversold. The STOCH value of 50.78 is Neutral, 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
AGX	83 Outperform	$2.69B	32.05	26.59%	0.74%	52.47%	161.32%
NVEE	80 Outperform	$1.45B	45.25	3.79%	―	8.65%	-22.72%
PRIM	74 Outperform	$4.04B	19.83	15.30%	0.38%	12.45%	42.45%
MYRG	72 Outperform	$2.55B	73.84	5.71%	―	-7.33%	-57.86%
ECG	71 Outperform	$2.93B	19.27	32.91%	―	11.92%	8.94%
Sector *	64 Neutral	$4.39B	11.81	5.17%	249.38%	3.98%	-12.17%
TPC	63 Neutral	$1.92B	―	-12.28%	―	8.95%	-41.32%

MYR Group Corporate Events

MYR Group Releases Q2 2025 Investor Presentation

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.

MYR Group Highlights Strong Growth and Strategic Outlook

On March 7, 2025, MYR Group Inc. released presentation materials for the investment community, highlighting its financial performance and strategic outlook. The company reported strong growth in both its T&D and C&I segments, driven by increased investments in data centers, transportation, and clean energy. MYR Group’s robust financial position, with significant credit availability, supports its growth initiatives and potential acquisitions. The company is well-positioned to benefit from trends like reshoring of manufacturing and rising electricity demand, maintaining its status as a market leader in electrical construction.