MATTR CORP (MATR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MATR - CA57722Y1025 - Common Stock
8.24 CAD
-0.07 (-0.84%)
We assign a fundamental rating of 3 out of 10 to MATR. MATR was compared to 27 industry peers in the Energy Equipment & Services industry. MATR has a bad profitability rating. Also its financial health evaluation is rather negative. MATR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- MATR had positive earnings in the past year.
- In the past year MATR had a positive cash flow from operations.
- In the past 5 years MATR reported 4 times negative net income.
- MATR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 2.16%, MATR perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
- MATR's Return On Equity of 4.67% is on the low side compared to the rest of the industry. MATR is outperformed by 62.96% of its industry peers.
- MATR's Return On Invested Capital of 3.30% is on the low side compared to the rest of the industry. MATR is outperformed by 77.78% of its industry peers.
- MATR had an Average Return On Invested Capital over the past 3 years of 4.56%. This is significantly below the industry average of 169.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 4.67% | ||
| ROIC | 3.3% |
ROA(3y)1.55%
ROA(5y)-3.39%
ROE(3y)2.38%
ROE(5y)-7.62%
ROIC(3y)4.56%
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 3.08%, MATR is in line with its industry, outperforming 40.74% of the companies in the same industry.
- The Operating Margin of MATR (5.54%) is worse than 70.37% of its industry peers.
- In the last couple of years the Operating Margin of MATR has grown nicely.
- With a decent Gross Margin value of 24.78%, MATR is doing good in the industry, outperforming 62.96% of the companies in the same industry.
- MATR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.54% | ||
| PM (TTM) | 3.08% | ||
| GM | 24.78% |
OM growth 3Y57.68%
OM growth 5Y48.49%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.01%
GM growth 5Y-0.8%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MATR is destroying value.
- MATR has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, MATR has less shares outstanding
- The debt/assets ratio for MATR is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.27, we must say that MATR is in the distress zone and has some risk of bankruptcy.
- MATR has a worse Altman-Z score (1.27) than 66.67% of its industry peers.
- The Debt to FCF ratio of MATR is 176.37, which is on the high side as it means it would take MATR, 176.37 years of fcf income to pay off all of its debts.
- MATR has a Debt to FCF ratio of 176.37. This is in the lower half of the industry: MATR underperforms 62.96% of its industry peers.
- MATR has a Debt/Equity ratio of 0.79. This is a neutral value indicating MATR is somewhat dependend on debt financing.
- MATR has a worse Debt to Equity ratio (0.79) than 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 176.37 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.5
WACC6.63%
2.3 Liquidity
- A Current Ratio of 1.87 indicates that MATR should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.87, MATR is in line with its industry, outperforming 55.56% of the companies in the same industry.
- MATR has a Quick Ratio of 1.02. This is a normal value and indicates that MATR is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.02, MATR perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
- MATR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.10%, which is quite impressive.
- MATR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.89% yearly.
- The Revenue for MATR has decreased by -28.60% in the past year. This is quite bad
- Measured over the past years, MATR shows a decrease in Revenue. The Revenue has been decreasing by -9.88% on average per year.
EPS 1Y (TTM)36.1%
EPS 3YN/A
EPS 5Y-10.89%
EPS Q2Q%-78.26%
Revenue 1Y (TTM)-28.6%
Revenue growth 3Y-8.16%
Revenue growth 5Y-9.88%
Sales Q2Q%39.19%
3.2 Future
- The Earnings Per Share is expected to grow by 17.20% on average over the next years. This is quite good.
- MATR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.70% yearly.
EPS Next Y-35.5%
EPS Next 2Y-0.05%
EPS Next 3Y17.2%
EPS Next 5YN/A
Revenue Next Year39.11%
Revenue Next 2Y19.88%
Revenue Next 3Y14.35%
Revenue Next 5Y10.7%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- MATR is valuated correctly with a Price/Earnings ratio of 16.82.
- MATR's Price/Earnings ratio is in line with the industry average.
- MATR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.82.
- Based on the Price/Forward Earnings ratio of 12.13, the valuation of MATR can be described as correct.
- Based on the Price/Forward Earnings ratio, MATR is valued a bit cheaper than the industry average as 62.96% of the companies are valued more expensively.
- MATR is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 12.13 |
4.2 Price Multiples
- 77.78% of the companies in the same industry are cheaper than MATR, based on the Enterprise Value to EBITDA ratio.
- MATR's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. MATR is more expensive than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 144.71 | ||
| EV/EBITDA | 8.51 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as MATR's earnings are expected to grow with 17.20% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.05%
EPS Next 3Y17.2%
5. Dividend
5.1 Amount
- No dividends for MATR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
MATTR CORP / MATR.CA FAQ
What is the fundamental rating for MATR stock?
ChartMill assigns a fundamental rating of 3 / 10 to MATR.CA.
Can you provide the valuation status for MATTR CORP?
ChartMill assigns a valuation rating of 3 / 10 to MATTR CORP (MATR.CA). This can be considered as Overvalued.
What is the profitability of MATR stock?
MATTR CORP (MATR.CA) has a profitability rating of 3 / 10.
What is the valuation of MATTR CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MATTR CORP (MATR.CA) is 16.82 and the Price/Book (PB) ratio is 0.66.