Stock In Focus – TAM Stock Screener – Matrix Service Co (NASDAQ: MTRX)

As part of a new series here at The Acquirer’s Multiple, we’re providing a new feature called ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.

One of the cheapest stocks in our Stock Screeners is Matrix Service Co (NASDAQ: MTRX).

Matrix Service Co is an engineering and construction provider for large industrial projects, primarily in the oil and gas, power, petrochemical, industrial, mining, and minerals markets. It offers engineering, fabrication, construction, and maintenance services, operating across four segments. Its Electrical infrastructure segment constructs and maintains a variety of power generation facilities. Its Oil, gas, and chemical segment offers construction and maintenance for oil and gas refining and petrochemical facilities. The entity provides construction services for petroleum storage tanks in its Storage solutions segment, and it also has an Industrial segment. It derives key revenue from the Storage solutions segment. The company has operations in the US, Canada, and other countries.

A quick look at Matrix Service Co’s share price history (below) over the past twelve months shows that the price is down 55%. Here’s why the company is undervalued.

Summary

Market Cap: $233 Million

Enterprise Value: $185 Million

Operating Earnings*

Operating Earnings: $34 Million

Acquirer’s Multiple

Acquirer’s Multiple: 5.49

Free Cash Flow (TTM)

Free Cash Flow: $51 Million

FCF/EV Yield:

FCF/EV Yield: 27%

Other Indicators

Piotroski F-Score: 5

Altman Z-Score: 3.62

Beneish M-Score: -3.22