It's not too hard to make money investing in companies that make
things, but successful investing in companies that build things has
proven quite a bit more challenging. Not only is there rampant
competition in engineering & construction (E&C) to keep a lid on
prices, but many a contractor has run into trouble with cost overruns.
All told, this is a sector where the relative few companies that earn
decent (or good) returns on capital are more than offset by those who
fall short - in other words, this is a sector where picking the right
company/stock matters.
Maybe Matrix Service (MTRX)
is one of those better picks. The company's recent ROICs haven't been
super, but nor have they been terrible. What's more, management seems to
have a cogent vision for not only growing the business, but doing so in
a profitable way.
Please read more here:
Matrix Looks To Multiple Growth Opportunities And Better Margins
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