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. Both the health and profitability get an excellent rating, making MATX a very profitable company, without any liquidiy or solvency issues. MATX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MATX had positive earnings in the past year.
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.
With an excellent Return On Equity value of 17.96%, MATX belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
MATX's Return On Invested Capital of 10.89% is amongst the best of the industry. MATX outperforms 81.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MATX is significantly above the industry average of 8.27%.
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
MATX's Profit Margin of 13.92% is in line compared to the rest of the industry. MATX outperforms 43.75% of its industry peers.
In the last couple of years the Profit Margin of MATX has grown nicely.
MATX's Operating Margin of 16.14% is in line compared to the rest of the industry. MATX outperforms 40.63% of its industry peers.
MATX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 25.01%, MATX is doing worse than 81.25% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MATX is creating value.
The number of shares outstanding for MATX has been reduced compared to 1 year ago.
Compared to 5 years ago, MATX has less shares outstanding
Compared to 1 year ago, MATX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.97 indicates that MATX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.97, MATX belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
The Debt to FCF ratio of MATX is 0.85, which is an excellent value as it means it would take MATX, only 0.85 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.85, MATX belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
MATX has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.13, MATX belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.35
WACC8.05%
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.
With a Current ratio value of 1.09, MATX is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
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 of 1.09. This is comparable to the rest of the industry: MATX outperforms 43.75% of 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
MATX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.54%, which is quite impressive.
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 grown by 10.57% in the past year. This is quite good.
MATX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.21% yearly.
EPS 1Y (TTM)67.54%
EPS 3Y-13.4%
EPS 5Y48.87%
EPS Q2Q%113.48%
Revenue 1Y (TTM)10.57%
Revenue growth 3Y-4.47%
Revenue growth 5Y9.21%
Sales Q2Q%12.85%
3.2 Future
Based on estimates for the next years, MATX will show a very negative growth in Earnings Per Share. The EPS will decrease by -17.45% on average per year.
The Revenue is expected to decrease by -0.29% on average over the next years.
EPS Next Y-16.36%
EPS Next 2Y-17.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.7%
Revenue Next 2Y-0.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 7.85 indicates a rather cheap valuation of MATX.
MATX's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.85, MATX is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.38, the valuation of MATX can be described as very reasonable.
MATX's Price/Forward Earnings is on the same level as the industry average.
MATX is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.85 | ||
| Fwd PE | 9.38 |
4.2 Price Multiples
MATX's Enterprise Value to EBITDA is on the same level as the industry average.
MATX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MATX is cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.9 | ||
| EV/EBITDA | 5.25 |
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 -17.45% in the coming years.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-17.45%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MATX has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of MATX has falen by -22.33%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 10.39, MATX has a dividend in line with its industry peers.
With a Dividend Yield of 1.31, MATX pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
The dividend of MATX is nicely growing with an annual growth rate of 8.87%!
MATX has been paying a dividend for at least 10 years, so it has 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
9.40% of the earnings are spent on dividend by MATX. This is a low number and sustainable payout ratio.
DP9.4%
EPS Next 2Y-17.45%
EPS Next 3YN/A
110.17
+1.08 (+0.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners87.73%
Inst Owner Change0.55%
Ins Owners1.81%
Ins Owner Change4.07%
Market Cap3.62B
Analysts80
Price Target170.85 (55.08%)
Short Float %5.98%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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)0%
PT rev (3m)11.3%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)33.2%
EPS NY rev (1m)-3.49%
EPS NY rev (3m)15.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.85 | ||
| Fwd PE | 9.38 | ||
| P/S | 1.06 | ||
| P/FCF | 7.9 | ||
| P/OCF | 4.71 | ||
| P/B | 1.36 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 5.25 |
EPS(TTM)14.04
EY12.74%
EPS(NY)11.74
Fwd EY10.66%
FCF(TTM)13.94
FCFY12.65%
OCF(TTM)23.39
OCFY21.23%
SpS104.23
BVpS80.78
TBVpS65.94
PEG (NY)N/A
PEG (5Y)0.16
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 | 2.97 |
F-Score9
WACC8.05%
ROIC/WACC1.35
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)67.54%
EPS 3Y-13.4%
EPS 5Y48.87%
EPS Q2Q%113.48%
EPS Next Y-16.36%
EPS Next 2Y-17.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.57%
Revenue growth 3Y-4.47%
Revenue growth 5Y9.21%
Sales Q2Q%12.85%
Revenue Next Year0.7%
Revenue Next 2Y-0.29%
Revenue Next 3YN/A
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%