MYR Group, Inc.
MYRG
$271.75
-6.70%
MYR Group, Inc. is a U.S.-based holding company that provides specialty electrical construction services through its subsidiaries, primarily serving electric utility, commercial, and industrial markets in the United States and Canada. The company operates through two segments: Transmission and Distribution (T&D) and Commercial and Industrial (C&I), with T&D being the primary revenue driver. As a key player in the electrical construction industry, MYR Group benefits from the ongoing grid modernization and infrastructure spending, positioning itself as a specialist in high-voltage transmission and substation projects. The current investor narrative centers on the company's robust growth trajectory, driven by increased demand for grid reliability and renewable energy integration, as well as recent strategic acquisitions like Valley Electric and Comet Electric to expand its market reach. However, the stock has experienced significant volatility recently, with a sharp pullback from its highs, prompting debate about valuation sustainability and near-term execution risks.…
MYRG
MYR Group, Inc.
$271.75
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Investment Opinion: Should I buy MYRG Today?
Based on the analysis, MYR Group is rated a 'Buy' with a thesis that the company's strong revenue growth, improving margins, and strategic acquisitions will drive earnings expansion, making the stock undervalued at current levels. The average analyst target of $392.50 implies a 33.3% upside, and the consensus recommendation is 'Buy'. Key supporting data includes a 20% YoY revenue growth in Q1 2026, a forward PE of 20.2x, a PEG ratio of 0.09, and a net margin improvement to 4.7% in Q1 2026. The company also has a healthy current ratio of 1.33 and positive free cash flow of $230.6M TTM, indicating financial stability.
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MYRG 12-Month Price Forecast
The AI assessment is bullish on MYRG, driven by strong revenue growth, improving margins, and a low PEG ratio. The stock's recent correction provides an attractive entry point, with the average analyst target implying significant upside. However, the medium confidence reflects the risks of margin compression and integration challenges. If the company delivers on its growth promises and maintains margins, the stock could re-rate higher; otherwise, it may face further downside. Key factors to monitor are quarterly earnings, margin trends, and the success of acquisitions.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on MYR Group, Inc.'s 12-month outlook, with a consensus price target around $412.00 and implied upside of +51.6% versus the current price.
Average Target
$412.00
0 analysts
Implied Upside
+51.6%
vs. current price
Analyst Count
—
covering this stock
Price Range
$375 - $445
Analyst target range
The target price range spans from a low of $295.00 to a high of $445.00, with the average at $392.50. The high target of $445 implies a 51.1% upside from the current price, suggesting that some analysts see significant potential from the company's expansion into new markets and the ongoing electrification trend. The low target of $295 is just slightly above the current price, indicating that even the most bearish analyst sees limited downside, likely reflecting the company's strong fundamentals and backlog. The spread between the low and high targets is approximately 50.8%, which is relatively wide, indicating elevated uncertainty about the pace of margin recovery and the integration of recent acquisitions. However, the recent ratings actions have been stable, with no downgrades in the past few months, suggesting that analysts are maintaining their positive outlook despite the recent stock price decline.
Bulls vs Bears: MYRG Investment Factors
MYR Group presents a compelling growth story with strong revenue acceleration, improving margins, and strategic acquisitions, but the stock is currently in a deep correction from its highs. The bull case is supported by a low PEG ratio, analyst upside, and robust demand for grid infrastructure, while the bear case highlights valuation concerns, thin margins, and integration risks. The most important tension is whether the company can sustain its 20% revenue growth and margin expansion to justify the forward PE of 20x, especially given the recent volatility. If growth continues, the stock is undervalued; if it falters, the stock could see further downside. Currently, the bull case has stronger evidence, but the risk of execution missteps remains significant.
Bullish
- Strong Revenue Growth: Q1 2026 revenue grew 20% YoY to $1,000.38M, with sequential acceleration from $900.33M in Q2 2025 to $973.54M in Q4 2025. This consistent double-digit growth is driven by grid modernization and renewable integration, positioning MYRG to capitalize on infrastructure spending.
- Low PEG Ratio: The PEG ratio of 0.09 is extremely low, implying the stock is undervalued relative to its growth prospects. With forward PE of 20.2x and estimated EPS growth of ~24.34, the market is pricing in substantial earnings expansion, yet the PEG suggests room for upside.
- Analyst Upside Potential: The average analyst target of $392.50 implies a 33.3% upside from the current price of $294.42, while the high target of $445 suggests a 51.1% upside. With a 'Buy' recommendation from 6 analysts, the consensus is bullish on MYRG's growth trajectory.
- Strategic Acquisitions: The recent agreement to acquire Valley Electric and Comet Electric is a strategic move to expand market reach and accelerate growth. This aligns with the company's focus on grid reliability and renewable integration, potentially enhancing revenue and backlog.
Bearish
- High Valuation Multiple: The trailing PE of 28.86x is elevated compared to the broader market, and the forward PE of 20.2x still implies a premium. If earnings growth disappoints, the stock could face multiple compression, especially given the recent -41.25% max drawdown.
- Recent Price Volatility: The stock has fallen 36.7% over the past 3 months, from a high of $503.57 to $294.42, and is down 14.97% in the last month. This volatility suggests investor uncertainty about near-term execution and market conditions.
- Thin Gross Margin: Gross margin is only 11.45%, which is low for a construction company. This leaves little room for cost overruns or pricing pressure, and any increase in material or labor costs could significantly impact profitability.
- Dependence on Infrastructure Spending: MYRG's revenue is heavily tied to utility and infrastructure projects, which are subject to government funding cycles and regulatory approvals. A slowdown in grid modernization spending could directly impact backlog and revenue growth.
MYRG Technical Analysis
MYR Group has exhibited a powerful long-term uptrend over the past year, with the stock price up 53.72% over the trailing twelve months, significantly outperforming the S&P 500's 18.56% gain. However, the current price of $294.42 sits near the lower end of its 52-week range, at approximately 58.5% of the range (calculated as (294.42 - 171.51) / (503.57 - 171.51) = 0.585), indicating a substantial correction from the peak. This positioning suggests that while the long-term trend remains bullish, the stock is currently in a deep pullback, potentially offering a value opportunity if fundamentals remain intact, but also posing a risk of further downside if the correction deepens.
Beta
1.31
1.31x market volatility
Max Drawdown
-45.8%
Largest decline past year
52-Week Range
$172-$504
Price range past year
Annual Return
+54.7%
Cumulative gain past year
| Period | MYRG Return | S&P 500 |
|---|---|---|
| 1m | -18.7% | -2.0% |
| 3m | -39.2% | +1.4% |
| 6m | +1.9% | +15.0% |
| 1y | +54.7% | +15.7% |
| ytd | +19.9% | +11.6% |
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MYRG Fundamental Analysis
MYR Group's revenue trajectory has been robust, with the most recent quarter (Q1 2026) reporting revenue of $1,000.38 million, a 20% year-over-year increase from $833.62 million in Q1 2025. This growth is part of a multi-quarter trend of accelerating revenue, with sequential increases from $900.33 million in Q2 2025 to $950.40 million in Q3 2025, and $973.54 million in Q4 2025, before jumping to over $1 billion in Q1 2026. The growth is driven by strong demand in both segments, with the T&D segment contributing $674.76 million and C&I contributing $1,852.09 million (though the latter appears to be an annual figure, not quarterly, indicating a strong C&I business). The consistent double-digit growth underscores the company's ability to capitalize on infrastructure spending and grid modernization trends, which should support continued expansion.
Quarterly Revenue
$1.0B
2026-03
Revenue YoY Growth
+20.0%
YoY Comparison
Gross Margin
13.3%
Latest Quarter
Free Cash Flow
$230591999.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is MYRG Overvalued?
Given that MYR Group is profitable, the primary valuation metric selected is the price-to-earnings (PE) ratio. The trailing PE is 28.86x, while the forward PE is 20.20x, indicating that the market expects significant earnings growth in the coming year. The gap between trailing and forward PE suggests that the market is pricing in a substantial improvement in profitability, likely driven by continued revenue growth and margin expansion. The PEG ratio of 0.09 (based on estimated EPS growth) is extremely low, implying that the stock may be undervalued relative to its growth prospects, though this ratio should be interpreted with caution as it relies on analyst estimates that may be optimistic.
PE
28.9x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 16x~27x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
14.4x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks include a moderate debt-to-equity ratio of 0.157, which is manageable, but the company's thin gross margin of 11.45% leaves little buffer for cost inflation. The net margin of 3.24% is low, and any increase in material or labor costs could compress profitability. Additionally, the company's reliance on a few large contracts in the T&D segment creates revenue concentration risk, as a delay or cancellation could significantly impact earnings. The recent -41.25% max drawdown highlights the stock's sensitivity to earnings disappointments, and the beta of 1.337 indicates higher volatility than the market, amplifying both upside and downside moves.
FAQ
The key risks for MYRG include: 1) Financial risk from thin gross margins (11.45%) and low net margins (3.24%), which make earnings sensitive to cost inflation. 2) Market risk from high beta (1.337), meaning the stock is more volatile than the market, and the recent -41% drawdown shows the potential for large losses. 3) Competitive risk from larger construction firms that could underbid on projects, pressuring margins. 4) Company-specific risk from integration of acquisitions, which could fail to deliver expected synergies. The most severe risk is a combination of margin compression and a slowdown in infrastructure spending, which could drive the stock to the 52-week low of $171.51, a -42% downside.
The 12-month forecast for MYRG is bullish, with a base case target of $392.50 (33% upside) and a bull case target of $445 (51% upside), with a 30% probability. The base case, with a 50% probability, assumes continued 20% revenue growth and stable margins. The bear case, with a 20% probability, targets $171.51 (42% downside) if execution fails. The most likely scenario is the base case, driven by strong demand for grid infrastructure and successful integration of acquisitions. Investors should monitor quarterly earnings for signs of margin expansion or contraction.
MYRG appears undervalued based on its PEG ratio of 0.09, which is well below the typical threshold of 1, indicating that the stock is cheap relative to its expected earnings growth. The forward PE of 20.2x is reasonable for a company growing revenue at 20%, and the trailing PE of 28.86x reflects past earnings. Compared to the broader market, the stock is trading at a premium, but the growth prospects justify it. The market is pricing in significant earnings growth, and if MYRG meets these expectations, the stock is undervalued. However, if growth decelerates, the valuation could be seen as stretched.
MYRG is a good buy for investors with a growth-oriented portfolio and a medium-to-long-term horizon. The stock offers a 33% upside to the average analyst target of $392.50, and the PEG ratio of 0.09 suggests it is undervalued relative to its growth. However, the recent -41% drawdown highlights the risk of volatility, and the thin gross margin of 11.45% means any cost overruns could hurt earnings. For investors comfortable with these risks, the current price of $294.42 provides an attractive entry point, especially if the company continues to deliver 20% revenue growth.
MYRG is more suitable for long-term investment, given its growth trajectory and the secular tailwinds of grid modernization. The stock's beta of 1.337 indicates higher volatility, making it less ideal for short-term trading unless one can tolerate significant swings. The company's earnings visibility is supported by a strong backlog, but the thin margins and acquisition risks suggest a holding period of at least 2-3 years to allow for growth to compound. For short-term traders, the recent volatility offers opportunities, but the risk of further downside is high. Long-term investors can benefit from the 20% revenue growth and potential margin expansion, making it a compelling growth stock for a diversified portfolio.