MATSON INC (MATX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MATX - US57686G1058 - Common Stock
158.87 USD
-0.07 (-0.04%)
158.87 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to MATX. MATX was compared to 35 industry peers in the Marine Transportation industry. MATX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MATX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year MATX was profitable.
- MATX had a positive operating cash flow in the past year.
- In the past 5 years MATX has always been profitable.
- In the past 5 years MATX always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 9.34%, MATX belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 15.98%, MATX belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 9.60%, MATX belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for MATX is significantly above the industry average of 7.59%.
- The 3 year average ROIC (15.04%) for MATX is well above the current ROIC(9.60%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.34% | ||
| ROE | 15.98% | ||
| ROIC | 9.6% |
ROA(3y)13.95%
ROA(5y)14.72%
ROE(3y)25.55%
ROE(5y)30.47%
ROIC(3y)15.04%
ROIC(5y)16.56%
1.3 Margins
- MATX has a Profit Margin of 12.70%. This is in the better half of the industry: MATX outperforms 68.57% of its industry peers.
- MATX's Profit Margin has improved in the last couple of years.
- MATX has a Operating Margin of 14.48%. This is comparable to the rest of the industry: MATX outperforms 57.14% of its industry peers.
- In the last couple of years the Operating Margin of MATX has grown nicely.
- MATX's Gross Margin of 23.29% is on the low side compared to the rest of the industry. MATX is outperformed by 71.43% of its industry peers.
- MATX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.48% | ||
| PM (TTM) | 12.7% | ||
| GM | 23.29% |
OM growth 3Y-17.57%
OM growth 5Y26.84%
PM growth 3Y-16.16%
PM growth 5Y29.97%
GM growth 3Y-10.46%
GM growth 5Y11.13%
2. Health
2.1 Basic Checks
- MATX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for MATX has been reduced compared to 1 year ago.
- The number of shares outstanding for MATX has been reduced compared to 5 years ago.
- The debt/assets ratio for MATX has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.34 indicates that MATX is not in any danger for bankruptcy at the moment.
- MATX has a better Altman-Z score (3.34) than 82.86% of its industry peers.
- The Debt to FCF ratio of MATX is 2.25, which is a good value as it means it would take MATX, 2.25 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of MATX (2.25) is better than 85.71% of its industry peers.
- MATX has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
- MATX has a Debt to Equity ratio of 0.12. This is in the better half of the industry: MATX outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 2.25 | ||
| Altman-Z | 3.34 |
ROIC/WACC1.16
WACC8.29%
2.3 Liquidity
- MATX has a Current Ratio of 0.83. This is a bad value and indicates that MATX is not financially healthy enough and could expect problems in meeting its short term obligations.
- MATX has a Current ratio of 0.83. This is amonst the worse of the industry: MATX underperforms 80.00% of its industry peers.
- A Quick Ratio of 0.83 indicates that MATX may have some problems paying its short term obligations.
- MATX has a Quick ratio of 0.83. This is amonst the worse of the industry: MATX underperforms 80.00% of its industry peers.
- The current and quick ratio evaluation for MATX is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- MATX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.32%, which is quite good.
- The Earnings Per Share has been growing by 48.87% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 1.88% in the past year.
- The Revenue has been growing by 9.21% on average over the past years. This is quite good.
EPS 1Y (TTM)9.32%
EPS 3Y-13.4%
EPS 5Y48.87%
EPS Q2Q%-28.01%
Revenue 1Y (TTM)1.88%
Revenue growth 3Y-4.47%
Revenue growth 5Y9.21%
Sales Q2Q%-8.51%
3.2 Future
- The Earnings Per Share is expected to decrease by -3.77% on average over the next years.
- The Revenue is expected to grow by 1.86% on average over the next years.
EPS Next Y-12.06%
EPS Next 2Y-10.81%
EPS Next 3Y-3.77%
EPS Next 5YN/A
Revenue Next Year-1.25%
Revenue Next 2Y0.72%
Revenue Next 3Y1.86%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.09, the valuation of MATX can be described as correct.
- 65.71% of the companies in the same industry are more expensive than MATX, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of MATX to the average of the S&P500 Index (27.25), we can say MATX is valued rather cheaply.
- A Price/Forward Earnings ratio of 14.22 indicates a correct valuation of MATX.
- MATX's Price/Forward Earnings is on the same level as the industry average.
- MATX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.09 | ||
| Fwd PE | 14.22 |
4.2 Price Multiples
- MATX's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as MATX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.81 | ||
| EV/EBITDA | 9.5 |
4.3 Compensation for Growth
- The excellent profitability rating of MATX may justify a higher PE ratio.
- A cheap valuation may be justified as MATX's earnings are expected to decrease with -3.77% in the coming years.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-10.81%
EPS Next 3Y-3.77%
5. Dividend
5.1 Amount
- MATX has a yearly dividend return of 0.90%, which is pretty low.
- Compared to an average industry Dividend Yield of 5.57, MATX has a dividend in line with its industry peers.
- With a Dividend Yield of 0.90, MATX pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
- On average, the dividend of MATX grows each year by 8.87%, which is quite nice.
- MATX has paid a dividend for at least 10 years, which is a reliable track record.
- MATX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.87%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- 10.47% of the earnings are spent on dividend by MATX. This is a low number and sustainable payout ratio.
DP10.47%
EPS Next 2Y-10.81%
EPS Next 3Y-3.77%
MATSON INC / MATX FAQ
What is the ChartMill fundamental rating of MATSON INC (MATX) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MATX.
What is the valuation status for MATX stock?
ChartMill assigns a valuation rating of 4 / 10 to MATSON INC (MATX). This can be considered as Fairly Valued.
How profitable is MATSON INC (MATX) stock?
MATSON INC (MATX) has a profitability rating of 8 / 10.
Can you provide the financial health for MATX stock?
The financial health rating of MATSON INC (MATX) is 7 / 10.
How sustainable is the dividend of MATSON INC (MATX) stock?
The dividend rating of MATSON INC (MATX) is 5 / 10 and the dividend payout ratio is 10.47%.