Matrix Story

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MTRX -- USA Stock  

USD 8.24  0.09  1.10%

Matrix Service is scheduled to announce its earnings today. The next earnings report is expected on the 4th of November 2020. 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. As many passive investors are finally getting excited about energy space, Matrix Service could be a good starting point.
Published over three weeks ago
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Will Matrix Service (NASDAQ:MTRX) debt increase in October 2020?
The entity currently holds 40.19 M in liabilities with Debt to Equity (D/E) ratio of 0.13, which may suggest Matrix Service is not taking enough advantage from borrowing. The firm has a current ratio of 1.63, which is within standard range for the sector. We provide investment recommendation to complement the last-minute expert consensus on Matrix Service. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time.
Matrix Service financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Matrix Service, including all of Matrix Service's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Matrix Service assets, the company is considered highly leveraged. Understanding the composition and structure of overall Matrix Service debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Matrix Total Debt

Matrix Service liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Matrix Service has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Matrix Service balance sheet include debt obligations and money owed to different Matrix Service vendors, workers, and loan providers. Below is the chart of Matrix main long-term debt accounts currently reported on its balance sheet.
You can use Matrix Service financial leverage analysis tool to get a better grip on understanding its financial position

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.

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

The current Matrix Service price slide may encourage investors to take a closer look at the firm as it closed today at a share price of 8.61 on 148,955 in trading volume. The company executives were unable to exploit market volatilities in August. However, diversifying your overall positions with Matrix Service can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.05. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Matrix Service partners.

Asset Breakdown

223.4 M
Assets Non Current
115 M
Goodwill
437.7 M
Current Assets
Total Assets661.11 Million
Current Assets437.75 Million
Assets Non Current223.37 Million
Goodwill114.95 Million
Tax Assets2.51 Million

Another small slide for Matrix Service

Matrix Service current mean deviation rises over 3.21. As of the 2nd of September, Matrix Service secures the risk adjusted performance of (0.07), and Mean Deviation of 3.21. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Matrix Service, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for Matrix Service, which can be compared to its peers in the industry. Please verify Matrix Service information ratio and downside variance to decide if Matrix Service is priced some-what accurately, providing market reflects its recent price of 8.78 per share. Given that Matrix Service has jensen alpha of (0.27), we recommend you to check Matrix Service's last-minute market performance to make sure the company can sustain itself at a future point.

While some other firms in the oil & gas equipment & services industry are either recovering or due for a correction, Matrix Service may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 2nd of September 2020, we see that Matrix Service slowly supersedes the market. The company is undervalued with low odds of financial distress within the next 24 months. Our actual 30 days 'Buy-vs-Sell' recommendation on the company is 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.

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