I also tend to think of my largest holding in Energy, Matrix Service (NASDAQ:MTRX), as more of an industrial engineering and construction company than a pure play energy business. Given that view, my weighting looks even smaller to me.
Matrix is has a sizable exposure to energy, but it also serves a number of other industries, such electrical power. In addition, its exposure to energy is focused on large-scale construction projects, such as above-ground storage tanks, and on engineering, retrofitting, maintenance, cleaning, and other services.
So while it often trades in tandem with oil and gas price sentiment, its business is not as directly tied to commodity price swings the way, for example, an exploration & production or rig services companies would be. I see it as a large-scale construction company.
Its stock has been down with the decline in oil prices and a series of write offs it did for project overruns. However, the company has a strong backlog of business in both infrastructure and physical plant projects that I think will help investors ultimately recognize the value of this company.
From Royce Funds Commentary: An Encouraging Market Turn for a Disciplined Contrarian.
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