MYR Group (MYRG) Profit Margin Rise Reinforces Bullish Narratives on Earnings Turnaround

Simply Wall St.10-31

MYR Group (MYRG) delivered a sharp turnaround in profitability with net profit margins rising to 2.8%, up from 1.1% a year prior, and annual earnings growth surging 155.1% compared to a 5-year average...

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Looking forward, analysts expect earnings for the company to increase at an annual rate of 14.6%, alongside 7.2% revenue growth per year. The current P/E ratio of 33.9x sits slightly below industry averages. These results highlight an encouraging improvement in margins...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"BLSH":"Bullish","MYRG":"MYR Group"},"translate_title":"马币集团(MYRG)利润率上升强化了对盈利好转的看涨叙述","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MYRG":1.5,"BLSH":1.5},"content_text":"MYR Group (MYRG) delivered a sharp turnaround in profitability with net profit margins rising to 2.8%, up from 1.1% a year prior, and annual earnings growth surging 155.1% compared to a 5-year average decline of 2.8% per year. Looking forward, analysts expect earnings for the company to increase at an annual rate of 14.6%, alongside 7.2% revenue growth per year. The current P/E ratio of 33.9x sits slightly below industry averages. These results highlight an encouraging improvement in margins and earnings quality even as the stock currently trades well above its estimated fair value based on discounted cash flow. See our full analysis for MYR Group. The next section examines how these headline results compare with the widely followed narratives around MYR Group. Some assumptions will be confirmed, while others might be put to the test. See what the community is saying about MYR Group NasdaqGS:MYRG Revenue & Expenses Breakdown as at Oct 2025 AdvertisementMargins Pushed Higher by Project Mix  MYR Group’s net profit margin improved to 2.8% from 1.1% a year prior, indicating substantial gains in operational efficiency driven by a better mix of higher-margin segments like battery storage and data center work. Consensus narrative highlights that expanding multi-year utility contracts and a focus on electrification have supported both margin expansion and revenue visibility.\n     Key contracts with companies like Xcel Energy are strengthening backlog stability, directly contributing to steady margin improvement beyond historic norms. Strategic investments in skilled workforce and acquisitions are intended to further sustain this margin momentum, according to analysts.   Consensus narrative notes that further margin growth could be at risk from rising labor costs and shrinking renewables exposure. However, current trends heavily support the view that operational adjustments are having a positive impact. To see how analysts connect these margin gains to long-term growth potential, check the complete Consensus Narrative for details on the bigger picture. 📊 Read the full MYR Group Consensus Narrative.  Forecasted Growth Trails Broader Market  MYR Group is projected to deliver annual earnings growth of 14.6% and revenue growth of 7.2%. Both figures trail the US market expectations of 15.7% for earnings and 10.3% for revenue. Consensus narrative points out that while steady top-line growth is supported by recurring utility contracts and the electrification push, the comparatively slower expansion raises questions about MYR Group’s ability to match or exceed sector-wide growth.\n     The forecasted rise in profit margins from 2.2% to 3.6% by 2028 reflects measured, not outsized, earnings improvements relative to broader industry peers. Analysts anticipate a reduction in shares outstanding by 3.72% per year, which could enhance per-share results even if topline growth lags the market.    Persistent Gap to DCF Fair Value Despite ‘Cheap’ Multiples  At a current share price of $213.53, MYR Group trades well above its DCF fair value of $42.78. Its P/E ratio of 33.9x stands slightly below both the US construction industry average (35.4x) and its peer group (35.3x). Consensus narrative emphasizes that although valuation multiples appear attractive compared to peers, the stark disconnect between price and DCF fair value implies that the market is pricing in aggressive future growth and margin expansion.\n     Analysts’ price target of $223.75 is only moderately above today’s price, suggesting limited upside if DCF assumptions are correct or industry conditions soften. This tension between market optimism and fair value models means investors should be cautious about assuming current price is a bargain purely on relative multiples.     Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for MYR Group on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. Have your insights led you to a different conclusion? Take just a few minutes to shape your own view and share it with the community. Do it your way A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding MYR Group. Explore Alternatives MYR Group’s stock trades far above its calculated fair value. This raises concerns that future growth and margin improvements may not justify its current premium. If you’re searching for stocks with more attractive pricing and upside, check out these 848 undervalued stocks based on cash flows to discover companies trading well below their intrinsic value today.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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