Matrix Service Stock Analysis, Valuation (NASDAQ:MTRX)

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$19.2 $0.3 (1.54%) MTRX stock closing price Jul 20, 2018 (Closing)

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 2.1/5

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 0.03.
  • MTRX stock is trading at a favorable price to sales multiple of 0.5 as against the Oils-Energy sector average multiple of 1.8.
  • Matrix Service has a healthy FCF (Free Cash Flow) margin of 6.

Should you sell MTRX stock?

  • Matrix Service revenue saw a decline of -2.2% YoY in 2018-03.
  • Long term revenue growth of 5.3 over the past 5 years has been disappointing.
  • MTRX stock is trading at a PE ratio of 160, which is worse than the sector average multiple of 22.3.

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.