MTZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 industry peers in the Construction & Engineering industry. MTZ has only an average score on both its financial health and profitability. MTZ is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year MTZ was profitable.
MTZ had a positive operating cash flow in the past year.
MTZ had positive earnings in 4 of the past 5 years.
MTZ had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of MTZ (3.42%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 10.64%, MTZ is in line with its industry, outperforming 52.73% of the companies in the same industry.
MTZ's Return On Invested Capital of 7.76% is fine compared to the rest of the industry. MTZ outperforms 63.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MTZ is significantly below the industry average of 15.97%.
The 3 year average ROIC (4.07%) for MTZ is below the current ROIC(7.76%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	3.42%
ROE	10.64%
ROIC	7.76%

ROA(3y)0.55%

ROA(5y)2.49%

ROE(3y)1.65%

ROE(5y)6.81%

ROIC(3y)4.07%

ROIC(5y)5.8%

1.3 Margins

MTZ has a Profit Margin of 2.41%. This is comparable to the rest of the industry: MTZ outperforms 45.45% of its industry peers.
In the last couple of years the Profit Margin of MTZ has declined.
MTZ's Operating Margin of 4.58% is in line compared to the rest of the industry. MTZ outperforms 47.27% of its industry peers.
MTZ's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 12.54%, MTZ is doing worse than 61.82% of the companies in the same industry.
In the last couple of years the Gross Margin of MTZ has declined.

		Industry Rank	Sector Rank
OM	4.58%
PM (TTM)	2.41%
GM	12.54%

OM growth 3Y-13.4%

OM growth 5Y-12.87%

PM growth 3Y-31.6%

PM growth 5Y-24.69%

GM growth 3Y-2.72%

GM growth 5Y-3.06%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MTZ is destroying value.
MTZ has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, MTZ has more shares outstanding
MTZ has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.90 indicates that MTZ is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.90, MTZ is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
The Debt to FCF ratio of MTZ is 5.66, which is a neutral value as it means it would take MTZ, 5.66 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MTZ (5.66) is comparable to the rest of the industry.
MTZ has a Debt/Equity ratio of 0.71. This is a neutral value indicating MTZ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, MTZ is in line with its industry, outperforming 52.73% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.71
Debt/FCF	5.66
Altman-Z	3.9

ROIC/WACC0.74

WACC10.53%

2.3 Liquidity

A Current Ratio of 1.33 indicates that MTZ should not have too much problems paying its short term obligations.
MTZ has a Current ratio (1.33) which is comparable to the rest of the industry.
MTZ has a Quick Ratio of 1.30. This is a normal value and indicates that MTZ is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.30, MTZ perfoms like the industry average, outperforming 54.55% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.33
Quick Ratio	1.3

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

MTZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 89.74%, which is quite impressive.
The Earnings Per Share has been decreasing by -5.63% on average over the past years.
Looking at the last year, MTZ shows a quite strong growth in Revenue. The Revenue has grown by 12.99% in the last year.
MTZ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.36% yearly.

EPS 1Y (TTM)89.74%

EPS 3Y-11.15%

EPS 5Y-5.63%

EPS Q2Q%52.15%

Revenue 1Y (TTM)12.99%

Revenue growth 3Y15.66%

Revenue growth 5Y11.36%

Sales Q2Q%21.97%

3.2 Future

The Earnings Per Share is expected to grow by 29.50% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.96% on average over the next years. This is quite good.

EPS Next Y66.37%

EPS Next 2Y45.36%

EPS Next 3Y37.11%

EPS Next 5Y29.5%

Revenue Next Year15.13%

Revenue Next 2Y12.6%

Revenue Next 3Y11.44%

Revenue Next 5Y9.96%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 40.62, which means the current valuation is very expensive for MTZ.
Compared to the rest of the industry, the Price/Earnings ratio of MTZ is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MTZ to the average of the S&P500 Index (28.30), we can say MTZ is valued slightly more expensively.
A Price/Forward Earnings ratio of 29.18 indicates a quite expensive valuation of MTZ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTZ is on the same level as its industry peers.
MTZ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	40.62
Fwd PE	29.18

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MTZ is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTZ is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	45.55
EV/EBITDA	20.22

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MTZ's earnings are expected to grow with 37.11% in the coming years.