Should we be acquiring Amazon or Matrix Service?


USD 5.54  0.42  8.20%   

This article will break down few interesting ideas for the current Matrix Service investors and investors who consider a position in the company. We will inspect if investors should continue to be optimistic for the company outlook.
Published over a month ago
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By analyzing existing basic indicators between Matrix Service and Amazon, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Amazon with a short position in Matrix Service. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Matrix Service has an asset utilization ratio of 120.71 percent. This suggests that the company is making $1.21 for each dollar of assets. An increasing asset utilization means that Matrix Service is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Matrix or Regency is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Matrix Service's Liquidity

Matrix Service financial leverage refers to using borrowed capital as a funding source to finance Matrix Service Co 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.

Correlation Between Matrix and Regency Centers

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Matrix Service together with similar or unrelated positions with a negative correlation. For example, you can also add Regency Centers to your portfolio. If Regency Centers is not perfectly correlated to Matrix Service it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Matrix Service, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between MTRX and REG for more information.

Matrix Service exotic insider transaction detected

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 general transaction of restricted stock units by Payne Shawn P, President Matrix Service, on 7th of September 2022. This event was filed by Matrix Service Co with SEC on 2022-09-07. Initial filing of beneficial ownership - SEC Form 3 [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.

A Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Matrix Service revenue. Based on the latest financial disclosure, Matrix Service reported 681.96 M of revenue. This is 80.51% lower than that of the Industrials sector and 87.86% lower than that of the Engineering & Construction industry. The revenue for all United States stocks is 92.77% higher than that of Matrix Service. As for Amazon we see revenue of 485.9 B, which is much higher than that of the Engineering & Construction

485.9 B
MTRX681.96 Million0.14
Sector3.5 Billion0.71
AMZN485.9 Billion99.15

Can Matrix Service build up on the current rise?

Matrix Service market risk adjusted performance is up to -0.01. Matrix Service exhibits very low volatility with skewness of 0.49 and kurtosis of 3.58. However, we advise investors to further study Matrix Service technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Matrix Service's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Matrix Service's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Matrix Service

While other entities within the engineering & construction industry are still a little expensive, even after the recent corrections, Matrix Service may offer a potential longer-term growth to investors. On the whole, as of the 6th of October 2022, our actual 90 days buy-sell recommendation on the company is Cautious Hold. We believe Matrix Service is undervalued with low probability of distress for the next two years.

Editorial Staff

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 Vlad Skutelnik do not own shares of Matrix Service Co. Please refer to our Terms of Use for any information regarding our disclosure principles.

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