MATSON INC (MATX) Stock Fundamental Analysis
NYSE:MATX - New York Stock Exchange, Inc. - US57686G1058 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to MATX. MATX was compared to 32 industry peers in the Marine Transportation industry. MATX gets an excellent profitability rating and is at the same time showing great financial health properties. MATX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MATX was profitable.
In the past year MATX had a positive cash flow from operations.
MATX had positive earnings in each of the past 5 years.
In the past 5 years MATX always reported a positive cash flow from operatings.
1.2 Ratios
MATX has a Return On Assets of 10.37%. This is in the better half of the industry: MATX outperforms 78.13% of its industry peers.
MATX's Return On Equity of 17.96% is amongst the best of the industry. MATX outperforms 84.38% of its industry peers.
MATX has a Return On Invested Capital of 10.89%. This is amongst the best in the industry. MATX outperforms 81.25% of its industry peers.
MATX had an Average Return On Invested Capital over the past 3 years of 15.04%. This is significantly above the industry average of 8.13%.
The last Return On Invested Capital (10.89%) for MATX is well below the 3 year average (15.04%), which needs to be investigated, but indicates that MATX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.37% | ||
| ROE | 17.96% | ||
| ROIC | 10.89% |
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
Looking at the Profit Margin, with a value of 13.92%, MATX is in line with its industry, outperforming 46.88% of the companies in the same industry.
MATX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.14%, MATX is in line with its industry, outperforming 43.75% of the companies in the same industry.
In the last couple of years the Operating Margin of MATX has grown nicely.
MATX has a worse Gross Margin (25.01%) than 81.25% of its industry peers.
In the last couple of years the Gross Margin of MATX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.14% | ||
| PM (TTM) | 13.92% | ||
| GM | 25.01% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, MATX has less shares outstanding
The number of shares outstanding for MATX has been reduced compared to 5 years ago.
Compared to 1 year ago, MATX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.99 indicates that MATX is not in any danger for bankruptcy at the moment.
MATX has a Altman-Z score of 2.99. This is amongst the best in the industry. MATX outperforms 90.63% of its industry peers.
MATX has a debt to FCF ratio of 0.85. This is a very positive value and a sign of high solvency as it would only need 0.85 years to pay back of all of its debts.
MATX has a better Debt to FCF ratio (0.85) than 87.50% of its industry peers.
MATX has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MATX (0.13) is better than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.3
WACC8.4%
2.3 Liquidity
MATX has a Current Ratio of 1.09. This is a normal value and indicates that MATX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MATX (1.09) is worse than 65.63% of its industry peers.
A Quick Ratio of 1.09 indicates that MATX should not have too much problems paying its short term obligations.
MATX has a Quick ratio (1.09) which is in line with its industry peers.
MATX does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 79.01% over the past year.
MATX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.87% yearly.
MATX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.57%.
The Revenue has been growing by 9.21% on average over the past years. This is quite good.
EPS 1Y (TTM)79.01%
EPS 3Y-13.4%
EPS 5Y48.87%
EPS Q2Q%109.62%
Revenue 1Y (TTM)10.57%
Revenue growth 3Y-4.47%
Revenue growth 5Y9.21%
Sales Q2Q%8.3%
3.2 Future
The Earnings Per Share is expected to decrease by -8.46% on average over the next years.
The Revenue is expected to decrease by -0.15% on average over the next years.
EPS Next Y-40.36%
EPS Next 2Y-18.39%
EPS Next 3Y-8.46%
EPS Next 5YN/A
Revenue Next Year-6.99%
Revenue Next 2Y-1.84%
Revenue Next 3Y-0.15%
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
The Price/Earnings ratio is 7.30, which indicates a rather cheap valuation of MATX.
MATX's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.91. MATX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.85, the valuation of MATX can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MATX is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of MATX to the average of the S&P500 Index (21.85), we can say MATX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MATX is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, MATX is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.95 | ||
| EV/EBITDA | 5.35 |
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 -8.46% in the coming years.
PEG (NY)N/A
PEG (5Y)0.15
EPS Next 2Y-18.39%
EPS Next 3Y-8.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, MATX has a reasonable but not impressive dividend return.
In the last 3 months the price of MATX has falen by -22.47%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MATX's Dividend Yield is comparable with the industry average which is at 9.24.
With a Dividend Yield of 1.17, MATX pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
On average, the dividend of MATX grows each year by 8.87%, which is quite nice.
MATX has been paying a dividend for at least 10 years, so it has a reliable track record.
MATX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.87%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
MATX pays out 9.40% of its income as dividend. This is a sustainable payout ratio.
DP9.4%
EPS Next 2Y-18.39%
EPS Next 3Y-8.46%
110.79
-0.29 (-0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners87.73%
Inst Owner Change-0.09%
Ins Owners1.81%
Ins Owner Change5.53%
Market Cap3.64B
Analysts82
Price Target146.2 (31.96%)
Short Float %5.7%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend1.33
Dividend Growth(5Y)8.87%
DP9.4%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.56%
Min EPS beat(2)11.43%
Max EPS beat(2)21.7%
EPS beat(4)3
Avg EPS beat(4)9.8%
Min EPS beat(4)-1.96%
Max EPS beat(4)21.7%
EPS beat(8)7
Avg EPS beat(8)12.52%
EPS beat(12)9
Avg EPS beat(12)9.55%
EPS beat(16)13
Avg EPS beat(16)15.69%
Revenue beat(2)1
Avg Revenue beat(2)0.07%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)2.47%
Revenue beat(4)1
Avg Revenue beat(4)-1%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)2.47%
Revenue beat(8)3
Avg Revenue beat(8)0.07%
Revenue beat(12)4
Avg Revenue beat(12)-0.19%
Revenue beat(16)8
Avg Revenue beat(16)3.38%
PT rev (1m)-14.43%
PT rev (3m)-8.99%
EPS NQ rev (1m)-1.59%
EPS NQ rev (3m)24.69%
EPS NY rev (1m)-28.69%
EPS NY rev (3m)-20.86%
Revenue NQ rev (1m)-2.9%
Revenue NQ rev (3m)3.15%
Revenue NY rev (1m)-7.63%
Revenue NY rev (3m)-5.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 11.85 | ||
| P/S | 1.06 | ||
| P/FCF | 7.95 | ||
| P/OCF | 4.74 | ||
| P/B | 1.37 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 5.35 |
EPS(TTM)15.18
EY13.7%
EPS(NY)9.35
Fwd EY8.44%
FCF(TTM)13.94
FCFY12.58%
OCF(TTM)23.39
OCFY21.11%
SpS104.23
BVpS80.78
TBVpS65.94
PEG (NY)N/A
PEG (5Y)0.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.37% | ||
| ROE | 17.96% | ||
| ROCE | 13.69% | ||
| ROIC | 10.89% | ||
| ROICexc | 11.66% | ||
| ROICexgc | 13.39% | ||
| OM | 16.14% | ||
| PM (TTM) | 13.92% | ||
| GM | 25.01% | ||
| FCFM | 13.38% |
ROA(3y)13.95%
ROA(5y)14.72%
ROE(3y)25.55%
ROE(5y)30.47%
ROIC(3y)15.04%
ROIC(5y)16.56%
ROICexc(3y)16.03%
ROICexc(5y)17.75%
ROICexgc(3y)18.63%
ROICexgc(5y)21.22%
ROCE(3y)18.9%
ROCE(5y)20.81%
ROICexcg growth 3Y-30.16%
ROICexcg growth 5Y23.61%
ROICexc growth 3Y-28.69%
ROICexc growth 5Y26.44%
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%
F-Score9
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.85 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 202.55% | ||
| Cap/Sales | 9.06% | ||
| Interest Coverage | 93.61 | ||
| Cash Conversion | 108.85% | ||
| Profit Quality | 96.07% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 2.99 |
F-Score9
WACC8.4%
ROIC/WACC1.3
Cap/Depr(3y)174.66%
Cap/Depr(5y)186.14%
Cap/Sales(3y)7.32%
Cap/Sales(5y)7.66%
Profit Quality(3y)94.67%
Profit Quality(5y)95.61%
High Growth Momentum
Growth
EPS 1Y (TTM)79.01%
EPS 3Y-13.4%
EPS 5Y48.87%
EPS Q2Q%109.62%
EPS Next Y-40.36%
EPS Next 2Y-18.39%
EPS Next 3Y-8.46%
EPS Next 5YN/A
Revenue 1Y (TTM)10.57%
Revenue growth 3Y-4.47%
Revenue growth 5Y9.21%
Sales Q2Q%8.3%
Revenue Next Year-6.99%
Revenue Next 2Y-1.84%
Revenue Next 3Y-0.15%
Revenue Next 5YN/A
EBIT growth 1Y62.16%
EBIT growth 3Y-21.26%
EBIT growth 5Y38.52%
EBIT Next Year22.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y74.63%
FCF growth 3Y-11.43%
FCF growth 5YN/A
OCF growth 1Y50.4%
OCF growth 3Y-7.94%
OCF growth 5Y25.28%