Matrix Service Stock Analysis, Valuation (NASDAQ:MTRX)

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$16.25 $0.05 (0.31%) MTRX stock closing price Apr 19, 2018 (Closing)
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Matrix Service
Updated on : Apr 19, 2018
previous close
MTRX 16.3 (0%)
S&P 500 2693.1 (0%)
Closing Price On: Apr 19, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Oil Field Machines and equipment
Sector :
Oils-Energy
5 Quarter Revenue
Revenue Growth
2018-Q2
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-0.5%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Debt/Equity Ratio
Debt:
50.9M
Debt/Equity Ratio:
 0.15
Compared to the industry
Cash Flow
Operating cash flow:
$22.8M
Net Income:
$4.5M
PROS      CONS
Low Debt Burden
FCF Margin
PS Valuation
Recent Growth
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
MTRX PS :
0.4
Industry PS :
1.8
Sector:   Oils-Energy.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-1.2%
Return on Equity:
-2%
Free Cash Flow Margin:
7.3%
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Matrix Service Stock Analysis

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Investors can watch the Amigobulls Matrix Service stock analysis video here. This is our analyst opinion covering the buy and sell arguments for MTRX stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Matrix Service Co Stock Rating 2.3/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for MTRX stock analysis. Matrix Service valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at Matrix Service stock rating which is indicative of the company's financial performance.

Should you buy MTRX stock?

  • Matrix Service has a lower debt burden than its peers in the Oils-Energy sector, with a debt/equity ratio of  0.15.
  • The lower PS ratio 0.4 for MTRX stock versus Oil Field Machines and equipment industry average of 1.8 is a positive for the company.
  • The company has a good Free Cash Flow (FCF) margin of 7.3%.

Should you sell MTRX stock?

  • Matrix Service sales declined by -9.5% year on year in 2018 Q2.
  • Over the last twelve months, Matrix Service posted an average operating loss margin of -0.5%.
  • Matrix Service posted an average Net loss of -0.6% in the last twelve months.
  • The lack of profits renders the PE ratio useless for MTRX stock.
  • The company has a negative Return on Invested Capital of -1.2%, which is a red flag.
  • Matrix Service has a negative return on equity of -2%. This indicates that the firm is inefficient at generating profits.

Comments on this video and Matrix Service stock

Amigobulls Matrix Service stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. The fundamentals of a company are vital to identify long-term investment opportunities.

Matrix Service revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.