Matrix Story

<div class='circular--portrait' style='background:#000000;color: #f2f2f2;font-size:4em;'>MS</div>
Matrix Service Current Ratio is fairly stable at the moment as compared to the past year. Matrix Service reported Current Ratio of 1.36 in 2019. EBITDA Margin is likely to rise to 0.0379 in 2020, whereas Net Income Per Employee is likely to drop 5,990 in 2020. Today's short post will break down Matrix Service as your potential position. We will inspect the question of why investors should continue to be confident in Matrix Service outlook.
Published over three weeks ago
View all stories for Matrix Service | View All Stories
Matrix Service (NASDAQ:MTRX) is to drop even more in October
The company secures a Beta (Market Risk) of 0.3875, which conveys possible diversification benefits within a given portfolio. Let's try to break down what Matrix's beta means in this case. As returns on the market increase, Matrix Service returns are expected to increase less than the market. However, during the bear market, the loss on holding Matrix Service will be expected to be smaller as well. Even though it is essential to pay attention to Matrix Service price patterns, it is always good to be careful when utilizing equity historical price patterns. Our philosophy towards estimating any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Matrix Service exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Matrix Service has an expected return of -0.28%. Please be advised to verify Matrix Service total risk alpha, downside variance, as well as the relationship between the Downside Variance and daily balance of power to decide if Matrix Service stock performance from the past will be repeated at some point in the near future.

How important is Matrix Service's Liquidity

Matrix Service financial leverage refers to using borrowed capital as a funding source to finance Matrix Service ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Matrix Service financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Matrix Service's total debt and its cash.

How Matrix utilizes its cash?

To perform a cash flow analysis of Matrix Service, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Matrix Service is receiving and how much cash it distributes out in a given period. The Matrix Service cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Matrix Service Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Matrix Service reported Net Cash Flow from Operations of 44.09 Million in 2019

Payment of 3026 shares by Updyke Alan R of Matrix Service subject to Rule 16b-3

Legal trades by Matrix Service insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Matrix insider trading alert for payment of common stock by Updyke Alan R, Chief Operating Officer, on 31st of August 2020. This event was filed by Matrix Service Co with SEC on 2020-08-31. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for Matrix Service

Matrix Service exhibits very low volatility with skewness of -0.17 and kurtosis of 0.3. However, we advise investors to further study Matrix Service technical indicators to make sure all market info is available and is reliable.

Returns Breakdown

Return on Investment13.39
Return on Assets0.0392
Return on Equity0.0673
Return Capital0.2
Return on Sales0.0246

How will Matrix investors react to the next slide?

Total Risk Alpha just dropped to -0.58, may suggest upcoming price decrease. Matrix Service exhibits very low volatility with skewness of -0.17 and kurtosis of 0.3. However, we advise investors to further study Matrix Service technical indicators to make sure all market info is available and is reliable.

Our Bottom Line On Matrix Service

While many other companies in the oil & gas equipment & services industry are either recovering or due for a correction, Matrix may not be as strong as the others in terms of longer-term growth potentials. In closing, as of the 1st of September 2020, we believe that at this point, Matrix Service is undervalued with low odds of financial turmoil within the next 2 years. Our up-to-date buy-hold-sell advice on the company is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Matrix Service. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com