We assign a fundamental rating of 5 out of 10 to MTZ. MTZ was compared to 55 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of MTZ get a neutral evaluation. Nothing too spectacular is happening here. MTZ is not priced too expensively while it is growing strongly. 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

MTZ had positive earnings in the past year.
MTZ had a positive operating cash flow in the past year.
MTZ had positive earnings in 4 of the past 5 years.
In the past 5 years MTZ always reported a positive cash flow from operatings.

1.2 Ratios

MTZ's Return On Assets of 3.42% is in line compared to the rest of the industry. MTZ outperforms 52.73% of its industry peers.
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 has a Return On Invested Capital of 7.76%. This is in the better half 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 last Return On Invested Capital (7.76%) for MTZ is above the 3 year average (4.07%), which is a sign of increasing profitability.

		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

The Profit Margin of MTZ (2.41%) is comparable to the rest of the industry.
MTZ's Profit Margin has declined in the last couple of years.
MTZ has a Operating Margin of 4.58%. This is comparable 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.
MTZ has a worse Gross Margin (12.54%) than 61.82% of its industry peers.
MTZ's Gross Margin has declined in the last couple of years.

		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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MTZ is destroying value.
MTZ has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for MTZ has been increased compared to 5 years ago.
Compared to 1 year ago, MTZ has an improved debt to assets ratio.

2.2 Solvency

MTZ has an Altman-Z score of 3.90. This indicates that MTZ is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.90, MTZ is doing good in the industry, outperforming 63.64% of the companies in the same industry.
MTZ has a debt to FCF ratio of 5.66. This is a neutral value as MTZ would need 5.66 years to pay back of all of its debts.
MTZ has a Debt to FCF ratio (5.66) which is in line with its industry peers.
A Debt/Equity ratio of 0.71 indicates that MTZ is somewhat dependend on debt financing.
MTZ has a Debt to Equity ratio (0.71) which is in line with its industry peers.

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

ROIC/WACC0.76

WACC10.15%

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 in line with its industry peers.
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.
MTZ has a Quick ratio (1.30) which is in line with its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.33
Quick Ratio	1.3

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WACC

Debt/Equity

How to determine the health of a company

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.
MTZ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.99%.
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

MTZ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.50% yearly.
MTZ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.96% yearly.

EPS Next Y66.37%

EPS Next 2Y45.41%

EPS Next 3Y36.96%

EPS Next 5Y29.5%

Revenue Next Year15.13%

Revenue Next 2Y12.61%

Revenue Next 3Y11.48%

Revenue Next 5Y9.96%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 41.31, 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 (27.32), we can say MTZ is valued expensively.
MTZ is valuated quite expensively with a Price/Forward Earnings ratio of 29.66.
Based on the Price/Forward Earnings ratio, MTZ is valued a bit cheaper than 61.82% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.32. MTZ is valued slightly more expensive when compared to this.

		Industry Rank	Sector Rank
PE	41.31
Fwd PE	29.66

4.2 Price Multiples

MTZ's Enterprise Value to EBITDA ratio is in line with the industry average.
MTZ's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	46.32
EV/EBITDA	20.18

4.3 Compensation for Growth

MTZ's 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 36.96% in the coming years.