One-glance verdict
Within fair range
$352.26 our estimate vs market $276.43
Wall Street consensus: $412.00 (17.0% higher than our fair-value estimate)
22% below our estimate
Fundamentals snapshot
MYR Group Inc.
MYRG · NMS · Industrials · Engineering & Construction
Current price
$276.43
52-week range
$175.71 - $503.57
Market cap
$4.30B
Balance sheet
Healthy
28.79x Strong cushion
Net cash $70.77M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 9.5% last year.
- Reward Returns 24.7% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 8/10 years.
What this company does
MYR Group Inc.
MYR Group is a specialty construction company that builds, maintains, and repairs the electrical systems that power our homes and businesses, primarily working for utility companies on the power grid. Their services are crucial as the country modernizes its aging electrical network and builds new infrastructure for renewable energy and electric vehicles.
How the company got here
MYR Group's story starts way back in 1891 with a company that helped bring electricity to American homes and build the early electrical grid. The modern MYR Group was formed in 1995 as a holding company (a parent company that owns other companies) for several established electrical contractors. Over the years, it has grown by acquiring other electrical construction firms across the United States and Canada. This strategy of buying other companies has allowed it to expand into new regions and offer a wider range of services.
What it actually does
Think of MYR Group as a highly specialized construction company that focuses on everything electrical. They don't manufacture light bulbs or power plants, but they build and maintain the critical infrastructure that gets electricity to our homes, businesses, and communities. This includes services like building and repairing the high-voltage power lines you see along the highway, as well as the electrical wiring inside large buildings like hospitals and data centers. They are hired by utility companies, developers, and large facility owners to manage these complex electrical projects safely and on schedule.
Transmission and Distribution
This is the company's largest business segment and deals with the big power lines and equipment that move electricity over long distances and distribute it to local areas. Their crews build, upgrade, and repair high-voltage transmission lines, substations (the switching stations in the power grid), and the overhead and underground wires that bring power to neighborhoods. A key part of this business is also emergency restoration services, helping to get the power back on after storms or other disasters. Their main customers are electric utility companies, both large and small.
Commercial and Industrial
This part of the business focuses on the electrical systems inside and around large buildings and facilities. This includes wiring for places like airports, data centers, hospitals, and factories, as well as installing roadway lighting and traffic signals. They also work on clean energy projects like installing electric vehicle charging stations. In this segment, they are often hired as a specialty subcontractor (a company hired by the main construction manager to do a specific part of a project) by general contractors or directly by the property owners.
What management is betting on now
The company is focused on taking advantage of the increasing demand for electricity and the transition to cleaner energy sources. This includes work on renewable energy projects and strengthening the power grid to handle new sources of energy and be more reliable. They are also capitalizing on government investments in infrastructure, which are expected to fund projects like upgrading highways and public facilities. Management believes that by focusing on these areas of growth, they can continue to increase their revenue (the total amount of money the company brings in from sales).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$17.95M
FY2024 Q4
$8.81M
FY2025 Q1
$70.22M
FY2025 Q2
$11.64M
FY2025 Q3
$65.41M
FY2025 Q4
$84.92M
FY2026 Q1
$68.62M
FY2026 Q2
$-25.59M
Revenue
$1.08B
Net income
$49.85M
Diluted EPS
3.17
Operating cash flow
$3.33M
Free cash flow
$-25.59M
Fetching…
Sources
Revenue
$1.00B
Net income
$46.80M
Diluted EPS
2.99
Operating cash flow
$84.75M
Free cash flow
$68.62M
Fetching…
Sources
Revenue
$973.54M
Net income
$36.55M
Diluted EPS
2.33
Operating cash flow
$114.83M
Free cash flow
$84.92M
Fetching…
Sources
Revenue
$950.40M
Net income
$32.09M
Diluted EPS
2.05
Operating cash flow
$95.59M
Free cash flow
$65.41M
Fetching…
Sources
Revenue
$900.33M
Net income
$26.47M
Diluted EPS
1.70
Operating cash flow
$32.86M
Free cash flow
$11.64M
Fetching…
Sources
Revenue
$833.62M
Net income
$23.31M
Diluted EPS
1.45
Operating cash flow
$83.29M
Free cash flow
$70.22M
Fetching…
Sources
Revenue
$829.79M
Net income
$15.95M
Diluted EPS
0.97
Operating cash flow
$21.12M
Free cash flow
$8.81M
Fetching…
Sources
Revenue
$888.04M
Net income
$10.65M
Diluted EPS
0.65
Operating cash flow
$35.62M
Free cash flow
$17.95M
Fetching…
Sources
Is it cheap or expensive?
Fair value $352.26 vs current price $276.43
Wall Street consensus is the average analyst price target: $412.00 (17.0% higher than our fair-value estimate).
Our most-likely fair value is $352.26 a share — about 27.4% away from today's price of $276.43, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $70.8M - more cash than debt. Interest coverage 28.8x.
Net debt
$-70.77M
Interest coverage
28.79x
MYR Group Inc.'s profit covers its interest bill about 28.8 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
MYRG
BASELINE
MYR Group Inc.
Total debt $67.10M Interest coverage 28.79x This is the baseline the peer rows are being compared against.
Total debt $6.60B Interest coverage 6.07x -79% vs MYRG Carries about 4.7x less debt cushion than MYRG.
Total debt $3.24B Interest coverage 3.77x -87% vs MYRG Carries about 7.6x less debt cushion than MYRG.
Total debt $548.03M Interest coverage 130.49x +353% vs MYRG Carries about 4.5x more debt cushion than MYRG.
Total debt $1.28B Interest coverage 14.42x -50% vs MYRG Carries about 2.0x less debt cushion than MYRG.
Total debt $369.91M Interest coverage 188.03x +553% vs MYRG Carries about 6.5x more debt cushion than MYRG.
What you should know
The case for and against MYRG
3 Rewards
0 Risks
Rewards
-
Revenue grew 9.5% last year.
-
Returns 24.7% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
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)
26.25x
Forward P/E
18.97x
P/B
5.70x
P/S
1.07x
EV/EBITDA
14.28x
PEG ratio
3.41x
Profitability
How much profit each dollar creates
Gross margin
12.5%
Operating margin
6.2%
Net margin
4.1%
ROE
24.7%
ROA
8.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.09x
Current ratio
1.40x
Quick ratio
1.34x
Total debt
$67.10M
Total cash
$137.87M
Growth
How the business has been compounding
Revenue TTM
$4.01B
Revenue 5Y CAGR
10.0%
EPS TTM
10.53
EPS 5Y CAGR
15.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$298.49M
Free CF TTM
$232.19M
FCF margin
5.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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