One-glance verdict
Undervalued
$30.14 our estimate vs market $10.02
Wall Street consensus: $16.00 (-46.9% lower than our fair-value estimate)
67% below our estimate, below the bear case
Fundamentals snapshot
Matrix Service Company
MTRX · NMS · Industrials · Engineering & Construction
Current price
$10.02
52-week range
$9.38 - $15.97
Market cap
$283.49M
Balance sheet
Healthy
0.79x Concerning
Net cash $203.51M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 13.6% last year.
- Reward Free cash flow was positive in 7/10 years.
- Risk Return on equity was -1.8% last year — the company lost money on shareholders' equity.
What this company does
Matrix Service Company
Matrix Service Company (MTRX) helps build and fix big industrial projects like power plants and storage tanks for energy companies. Most of their money comes from these big construction and repair jobs, which is important because it means they get paid for the work they do. This keeps their business running smoothly by bringing in steady income.
How the company got here
Matrix Service Company, founded in 1984, has grown into a significant player in the industrial services sector. The company's journey has been shaped by its focus on providing essential services to critical infrastructure, particularly within the energy markets. Over the years, it has expanded its capabilities and geographic reach, adapting to the evolving needs of its clients in areas like storage, power, and industrial processing. This strategic evolution has positioned Matrix Service Company as a key partner for companies undertaking large-scale projects and requiring ongoing maintenance for their vital assets.
What it actually does
Matrix Service Company offers a comprehensive suite of services for building and maintaining large-scale industrial facilities. Think of them as the specialized builders and repair crews for the massive structures that power our world, like giant storage tanks for oil and gas, power plants, and chemical processing facilities. They handle everything from the initial design and engineering to the actual construction, and then provide ongoing maintenance and repairs to keep these complex operations running smoothly and safely. Their work is crucial for the energy and industrial sectors, ensuring the infrastructure that supports our daily lives functions effectively.
Storage and Terminal Solutions
This part of Matrix Service Company focuses on building and maintaining facilities that store and handle liquids and gases, especially for the energy industry. This includes everything from massive tanks for oil, natural gas (LNG), and chemicals to specialized equipment for storing hydrogen and ammonia. They offer a full package, from designing and constructing these facilities to repairing and maintaining them, and even fabricating specialized parts like tank roofs and seals. This segment is a significant contributor to the company's overall business, serving the critical needs of energy storage and distribution.
Utility and Power Infrastructure
In this segment, Matrix Service Company works on projects related to power generation and the infrastructure that delivers electricity. This means they build, upgrade, and maintain power plants for various clients, including utility companies and data centers. They also provide services for systems that transmit and distribute power. Additionally, they are involved in constructing specialized facilities like LNG peak shaving plants, which help manage natural gas supply during high demand periods. This business line is vital for ensuring reliable energy supply and supporting the growing demand for power.
Process and Industrial Facilities
This segment of Matrix Service Company tackles a broad range of engineering, construction, and maintenance projects for heavy industrial and energy transition markets. This includes work in areas like midstream and downstream energy, chemicals, mining, and the production of renewable fuels and hydrogen. They also engineer and build highly specialized infrastructure, such as the complex thermal vacuum test chambers used in the aerospace and defense industries. This diverse segment highlights the company's adaptability to various industrial needs, including those in emerging energy sectors.
What management is betting on now
Matrix Service Company's management is focused on leveraging its expertise in critical infrastructure to capitalize on evolving market demands. A key priority is expanding its services within the energy transition, supporting projects related to renewable fuels, hydrogen, and advanced energy storage solutions. They are also emphasizing growth in their utility and power infrastructure segment, aiming to support the modernization and expansion of power grids and data centers. By focusing on these areas, the company aims to secure its position as a vital partner in both traditional energy markets and the developing landscape of sustainable energy.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$9.97M
FY2025 Q2
$32.68M
FY2025 Q3
$28.68M
FY2025 Q4
$38.45M
FY2026 Q1
$-27.91M
FY2026 Q2
$6.28M
FY2026 Q3
$33.24M
FY2026 Q4
$-10.19M
Revenue
$244.53M
Net income
$1.14M
Diluted EPS
0.04
Operating cash flow
$-8.81M
Free cash flow
$-10.19M
Fetching…
Sources
Revenue
$206.71M
Net income
$835.00K
Diluted EPS
0.03
Operating cash flow
$34.16M
Free cash flow
$33.24M
Fetching…
Sources
Revenue
$210.51M
Net income
$-894.00K
Diluted EPS
-0.03
Operating cash flow
$7.45M
Free cash flow
$6.28M
Fetching…
Sources
Revenue
$211.88M
Net income
$-3.66M
Diluted EPS
-0.13
Operating cash flow
$-25.90M
Free cash flow
$-27.91M
Fetching…
Sources
Revenue
$216.38M
Net income
$-11.27M
Diluted EPS
-0.41
Operating cash flow
$40.71M
Free cash flow
$38.45M
Fetching…
Sources
Revenue
$200.16M
Net income
$-3.43M
Diluted EPS
-0.12
Operating cash flow
$31.25M
Free cash flow
$28.68M
Fetching…
Sources
Revenue
$187.17M
Net income
$-5.53M
Diluted EPS
-0.20
Operating cash flow
$33.60M
Free cash flow
$32.68M
Fetching…
Sources
Revenue
$165.58M
Net income
$-9.22M
Diluted EPS
-0.33
Operating cash flow
$11.92M
Free cash flow
$9.97M
Fetching…
Sources
Is it cheap or expensive?
Fair value $30.14 vs current price $10.02
Wall Street consensus is the average analyst price target: $16.00 (-46.9% lower than our fair-value estimate).
Our most-likely fair value is $30.14 a share — about 200.8% above today's price of $10.02, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $203.5M - more cash than debt. Interest coverage 0.8x.
Net debt
$-203.51M
Interest coverage
0.79x
Matrix Service Company's profit covers its interest bill about 0.8 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
MTRX
BASELINE
Matrix Service Company
Total debt $19.46M Interest coverage 0.79x This is the baseline the peer rows are being compared against.
Total debt $6.60B Interest coverage 6.07x +669% vs MTRX Carries about 7.7x more debt cushion than MTRX.
Total debt $1.07B Interest coverage -6.40x -100% vs MTRX This peer has almost no interest-payment cushion compared with MTRX.
Total debt $2.80B Interest coverage 3.59x +355% vs MTRX Carries about 4.6x more debt cushion than MTRX.
Total debt $548.03M Interest coverage 130.49x +16,429% vs MTRX Carries about 165.3x more debt cushion than MTRX.
Total debt $4.05B Interest coverage 5.92x +650% vs MTRX Carries about 7.5x more debt cushion than MTRX.
What you should know
The case for and against MTRX
2 Rewards
1 Risk
Rewards
-
Revenue grew 13.6% last year.
-
Free cash flow was positive in 7/10 years.
Risks
-
Return on equity was -1.8% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
14.42x
P/B
1.99x
P/S
0.32x
EV/EBITDA
9.35x
PEG ratio
0.96x
Profitability
How much profit each dollar creates
Gross margin
7.3%
Operating margin
0.9%
Net margin
-0.3%
ROE
-1.8%
ROA
-0.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.14x
Current ratio
0.98x
Quick ratio
0.96x
Total debt
$19.46M
Total cash
$222.97M
Growth
How the business has been compounding
Revenue TTM
$873.63M
Revenue 5Y CAGR
5.4%
EPS TTM
-0.09
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$6.91M
Free CF TTM
$1.42M
FCF margin
0.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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