John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Short-Term Lumpy Results Provide Long-Term Opportunity In MYR Group

Key takeaways

  • MYR Group (NASDAQ:MYRG) trades at an attractive multiple as a recent revenue decline and misplaced concern over headwinds facing its utility customers resulted in investors beginning to question the growth story.
  • However the intermediate to long term outlook remains positive due to the dual demand drivers of expected upgrades to the aging electric infrastructure and shift towards renewable energy.
  • Moreover, MYRG receives little recognition for the significant margin expansion, free cash flow growth or high tangible book value.

Company overview

MYRG is a specialty contractor serving the domestic electrical infrastructure market through two segments:

The transmission and distribution (T&D) segment provides services on electric networks and substation facilities including design, engineering, procurement, construction, upgrade, maintenance and...

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