Hello Mr. Tenbagger!
Thank you for introducing the MYR Group. So you think I'm very "conservative"? That may be!
But my conservatism protects me from running blindly into every US infrastructure story just because it has the magic word "megatrend" on it! 😉
Let's not kid ourselves: MYRG is a rock-solid shovel salesman for the U.S. power grid. The story is huge, the backlog is full. But have you ever looked at the margins? They're thinner than the paper the government contracts are printed on! If a company is turning over billions, but in the end only crumbs remain, you have to raise your eyebrows critically as a quality investor. If it is "conservative" to insist on hard profitability instead of pure sales fantasies - then I wear the label with pride! Let's put this thing through the KPI mincer.
🔬 Our relentless analysis of the MYR Group (NASDAQ: MYRG)
We run the share through our filters at the current price of around USD 257 to 261 (as at March 2026). The company presented its fresh figures for the full year 2025 just a few weeks ago (end of February).
The bare basic key figures
Price/earnings ratio (P/E ratio): ~34.5 (extremely expensive for a construction service provider!)
Price-cash flow ratio (KCV): ~12.5
Price-sales ratio (P/S ratio): ~1.1 (typically low for low-margin project developers)
Price-book value ratio (P/BV): ~6.3
Dividend Yield: 0.0
The acid test: Your formulas
1. core quality formula (qualitative growth)
Sales growth (2025): +8.9 % (sales increased from USD 3.36 billion to USD 3.66 billion).
Operating margin (EBIT): ~4.5 % (in Q4 it was 4.8 %, calculated for the year at approx. 4.5 %).
Score: 8.9 + 4.5 = 13.4
🚨 Verdict: Weak/speculative (< 15). Die Formel deckt das Problem brutal auf. MYR Group wächst zwar beim Umsatz, aber die Marge ist extrem schwach. Das ist das klassische Problem von Bau- und Dienstleistungskonzernen: Viel Umsatz, wenig hängenbleibender Gewinn.
2. Cashflow Quality Formula (Die Cash-Maschine)
Free Cashflow Yield (FCF-Yield): Aktuell bei ca. 5,5 % (MYRG konnte den Cashflow im Q4 2025 massiv steigern).
Urteil: Attraktiv (> 5 %). There is one plus point here. If the projects are settled, this will flush a lot of cash into the coffers.
3. dividend filter (income core)
Verdict: Failed. The MYR Group pays a dividend of exactly 0.0%. The share is therefore completely useless for your income core.
4. exclusion rules (the kill switch)
This is where it gets serious, because your exclusion rules apply mercilessly:
"Operating margin permanent < 5 %": GLASKLARER VERSTOSS. MYRG dümpelt seit Jahren bei operativen Margen von 3,0 % bis maximal 4,8 % herum.
"Story > Numbers": the story (US grid modernization) is huge, but the bare numbers (score 13.4) don't justify a P/E ratio of 34 by a long shot.
🏢 Opportunities, risks & competition
The opportunities (the story):
Massive backlog: They are sitting on record order backlogs of USD 2.82 billion.
Tailwind: The expansion of renewable energies and the ageing of the US power grid guarantee full order books for years to come.
The risks (The reality):
Labor shortages & costs: the business is extremely labor intensive. If wages rise or projects are delayed (weather, lack of materials), fixed-price contracts immediately slip into the red. This kills the already tiny margin.
Valuation: With a P/E ratio of around 35, the share is "priced for absolute perfection" for the low margins. One small misstep and the share plummets.
The competition:
MYR Group is good, but they are playing against real gorillas. The absolute industry leader is Quanta Services (PWR). Quanta is much bigger, has better margins, pays at least a small dividend and is the clear quality leader in the sector. Other tough competitors are EMCOR Group (EME) and MasTec (MTZ).
My conclusion for your portfolio
Mr. Tenbagger is right that the topic is exciting. But according to your strict rules, the share is an absolute no-buy. It violates the margin rule, completely misses the core score and doesn't pay you a single cent in dividends.
Thank you for introducing the MYR Group. So you think I'm very "conservative"? That may be!
But my conservatism protects me from running blindly into every US infrastructure story just because it has the magic word "megatrend" on it! 😉
Let's not kid ourselves: MYRG is a rock-solid shovel salesman for the U.S. power grid. The story is huge, the backlog is full. But have you ever looked at the margins? They're thinner than the paper the government contracts are printed on! If a company is turning over billions, but in the end only crumbs remain, you have to raise your eyebrows critically as a quality investor. If it is "conservative" to insist on hard profitability instead of pure sales fantasies - then I wear the label with pride! Let's put this thing through the KPI mincer.
🔬 Our relentless analysis of the MYR Group (NASDAQ: MYRG)
We run the share through our filters at the current price of around USD 257 to 261 (as at March 2026). The company presented its fresh figures for the full year 2025 just a few weeks ago (end of February).
The bare basic key figures
Price/earnings ratio (P/E ratio): ~34.5 (extremely expensive for a construction service provider!)
Price-cash flow ratio (KCV): ~12.5
Price-sales ratio (P/S ratio): ~1.1 (typically low for low-margin project developers)
Price-book value ratio (P/BV): ~6.3
Dividend Yield: 0.0
The acid test: Your formulas
1. core quality formula (qualitative growth)
Sales growth (2025): +8.9 % (sales increased from USD 3.36 billion to USD 3.66 billion).
Operating margin (EBIT): ~4.5 % (in Q4 it was 4.8 %, calculated for the year at approx. 4.5 %).
Score: 8.9 + 4.5 = 13.4
🚨 Verdict: Weak/speculative (< 15). Die Formel deckt das Problem brutal auf. MYR Group wächst zwar beim Umsatz, aber die Marge ist extrem schwach. Das ist das klassische Problem von Bau- und Dienstleistungskonzernen: Viel Umsatz, wenig hängenbleibender Gewinn.
2. Cashflow Quality Formula (Die Cash-Maschine)
Free Cashflow Yield (FCF-Yield): Aktuell bei ca. 5,5 % (MYRG konnte den Cashflow im Q4 2025 massiv steigern).
Urteil: Attraktiv (> 5 %). There is one plus point here. If the projects are settled, this will flush a lot of cash into the coffers.
3. dividend filter (income core)
Verdict: Failed. The MYR Group pays a dividend of exactly 0.0%. The share is therefore completely useless for your income core.
4. exclusion rules (the kill switch)
This is where it gets serious, because your exclusion rules apply mercilessly:
"Operating margin permanent < 5 %": GLASKLARER VERSTOSS. MYRG dümpelt seit Jahren bei operativen Margen von 3,0 % bis maximal 4,8 % herum.
"Story > Numbers": the story (US grid modernization) is huge, but the bare numbers (score 13.4) don't justify a P/E ratio of 34 by a long shot.
🏢 Opportunities, risks & competition
The opportunities (the story):
Massive backlog: They are sitting on record order backlogs of USD 2.82 billion.
Tailwind: The expansion of renewable energies and the ageing of the US power grid guarantee full order books for years to come.
The risks (The reality):
Labor shortages & costs: the business is extremely labor intensive. If wages rise or projects are delayed (weather, lack of materials), fixed-price contracts immediately slip into the red. This kills the already tiny margin.
Valuation: With a P/E ratio of around 35, the share is "priced for absolute perfection" for the low margins. One small misstep and the share plummets.
The competition:
MYR Group is good, but they are playing against real gorillas. The absolute industry leader is Quanta Services (PWR). Quanta is much bigger, has better margins, pays at least a small dividend and is the clear quality leader in the sector. Other tough competitors are EMCOR Group (EME) and MasTec (MTZ).
My conclusion for your portfolio
Mr. Tenbagger is right that the topic is exciting. But according to your strict rules, the share is an absolute no-buy. It violates the margin rule, completely misses the core score and doesn't pay you a single cent in dividends.
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@Raketentoni You can tell Mr. Prompt that I am already invested in the sector at $IESC. And therefore my share is already full in this sector
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