MARTEN TRANSPORT LTD (MRTN) Stock Fundamental Analysis
NASDAQ:MRTN - Nasdaq - US5730751089 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MRTN. MRTN was compared to 40 industry peers in the Ground Transportation industry. While MRTN has a great health rating, its profitability is only average at the moment. MRTN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
MRTN had positive earnings in the past year.
In the past year MRTN had a positive cash flow from operations.
Each year in the past 5 years MRTN has been profitable.
In the past 5 years MRTN always reported a positive cash flow from operatings.
1.2 Ratios
MRTN has a Return On Assets (2.78%) which is in line with its industry peers.
MRTN has a Return On Equity (3.51%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.40%, MRTN is in line with its industry, outperforming 45.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MRTN is in line with the industry average of 7.92%.
The 3 year average ROIC (6.79%) for MRTN is well above the current ROIC(2.40%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 3.51% | ||
| ROIC | 2.4% |
ROA(3y)7.11%
ROA(5y)7.9%
ROE(3y)9.49%
ROE(5y)10.56%
ROIC(3y)6.79%
ROIC(5y)7.57%
1.3 Margins
The Profit Margin of MRTN (2.79%) is comparable to the rest of the industry.
MRTN's Profit Margin has declined in the last couple of years.
MRTN has a Operating Margin (2.93%) which is in line with its industry peers.
MRTN's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 31.72%, MRTN is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MRTN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.93% | ||
| PM (TTM) | 2.79% | ||
| GM | 31.72% |
OM growth 3Y-33.12%
OM growth 5Y-18.27%
PM growth 3Y-31.71%
PM growth 5Y-17.35%
GM growth 3Y-2.3%
GM growth 5Y-1.52%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MRTN is destroying value.
Compared to 1 year ago, MRTN has about the same amount of shares outstanding.
MRTN has less shares outstanding than it did 5 years ago.
There is no outstanding debt for MRTN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
MRTN has an Altman-Z score of 5.50. This indicates that MRTN is financially healthy and has little risk of bankruptcy at the moment.
MRTN has a Altman-Z score of 5.50. This is amongst the best in the industry. MRTN outperforms 87.50% of its industry peers.
MRTN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.5 |
ROIC/WACC0.25
WACC9.6%
2.3 Liquidity
A Current Ratio of 1.48 indicates that MRTN should not have too much problems paying its short term obligations.
MRTN has a Current ratio of 1.48. This is in the better half of the industry: MRTN outperforms 80.00% of its industry peers.
MRTN has a Quick Ratio of 1.48. This is a normal value and indicates that MRTN is financially healthy and should not expect problems in meeting its short term obligations.
MRTN's Quick ratio of 1.48 is fine compared to the rest of the industry. MRTN outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The earnings per share for MRTN have decreased strongly by -61.97% in the last year.
MRTN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.56% yearly.
Looking at the last year, MRTN shows a very negative growth in Revenue. The Revenue has decreased by -13.47% in the last year.
MRTN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.71% yearly.
EPS 1Y (TTM)-61.97%
EPS 3Y-31.11%
EPS 5Y-14.56%
EPS Q2Q%-58.33%
Revenue 1Y (TTM)-13.47%
Revenue growth 3Y-0.34%
Revenue growth 5Y2.71%
Sales Q2Q%-10.62%
3.2 Future
Based on estimates for the next years, MRTN will show a very strong growth in Earnings Per Share. The EPS will grow by 24.90% on average per year.
The Revenue is expected to grow by 1.52% on average over the next years.
EPS Next Y-4%
EPS Next 2Y24.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.79%
Revenue Next 2Y1.52%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MRTN is valuated quite expensively with a Price/Earnings ratio of 49.67.
Compared to the rest of the industry, the Price/Earnings ratio of MRTN is on the same level as its industry peers.
MRTN is valuated expensively when we compare the Price/Earnings ratio to 26.70, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.28, which means the current valuation is very expensive for MRTN.
MRTN's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MRTN to the average of the S&P500 Index (22.49), we can say MRTN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.67 | ||
| Fwd PE | 25.28 |
4.2 Price Multiples
MRTN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MRTN is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.45 |
4.3 Compensation for Growth
A more expensive valuation may be justified as MRTN's earnings are expected to grow with 24.90% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y24.9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MRTN has a Yearly Dividend Yield of 1.74%. Purely for dividend investing, there may be better candidates out there.
MRTN's Dividend Yield is rather good when compared to the industry average which is at 1.52. MRTN pays more dividend than 82.50% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, MRTN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
The dividend of MRTN decreases each year by -14.12%.
MRTN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of MRTN decreased recently.
Dividend Growth(5Y)-14.12%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
MRTN pays out 72.58% of its income as dividend. This is not a sustainable payout ratio.
DP72.58%
EPS Next 2Y24.9%
EPS Next 3YN/A
13.41
-0.22 (-1.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners71.95%
Inst Owner Change1.22%
Ins Owners22.93%
Ins Owner Change0.41%
Market Cap1.09B
Analysts80
Price Target15.81 (17.9%)
Short Float %1.98%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend0.24
Dividend Growth(5Y)-14.12%
DP72.58%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.11%
Min EPS beat(2)-22.6%
Max EPS beat(2)14.38%
EPS beat(4)1
Avg EPS beat(4)-6.9%
Min EPS beat(4)-22.6%
Max EPS beat(4)14.38%
EPS beat(8)2
Avg EPS beat(8)-7.43%
EPS beat(12)4
Avg EPS beat(12)-1.75%
EPS beat(16)6
Avg EPS beat(16)-0.2%
Revenue beat(2)0
Avg Revenue beat(2)-3.36%
Min Revenue beat(2)-3.43%
Max Revenue beat(2)-3.28%
Revenue beat(4)0
Avg Revenue beat(4)-4.16%
Min Revenue beat(4)-6.85%
Max Revenue beat(4)-3.09%
Revenue beat(8)0
Avg Revenue beat(8)-4.45%
Revenue beat(12)2
Avg Revenue beat(12)-1.38%
Revenue beat(16)3
Avg Revenue beat(16)-1.24%
PT rev (1m)-8.82%
PT rev (3m)-12.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)-4.13%
Revenue NY rev (3m)-5.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.67 | ||
| Fwd PE | 25.28 | ||
| P/S | 1.13 | ||
| P/FCF | N/A | ||
| P/OCF | 8.11 | ||
| P/B | 1.42 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 7.45 |
EPS(TTM)0.27
EY2.01%
EPS(NY)0.53
Fwd EY3.96%
FCF(TTM)-1.21
FCFYN/A
OCF(TTM)1.65
OCFY12.34%
SpS11.83
BVpS9.42
TBVpS9.42
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 3.51% | ||
| ROCE | 3.23% | ||
| ROIC | 2.4% | ||
| ROICexc | 2.45% | ||
| ROICexgc | 2.45% | ||
| OM | 2.93% | ||
| PM (TTM) | 2.79% | ||
| GM | 31.72% | ||
| FCFM | N/A |
ROA(3y)7.11%
ROA(5y)7.9%
ROE(3y)9.49%
ROE(5y)10.56%
ROIC(3y)6.79%
ROIC(5y)7.57%
ROICexc(3y)7.36%
ROICexc(5y)8.21%
ROICexgc(3y)7.36%
ROICexgc(5y)8.21%
ROCE(3y)9.12%
ROCE(5y)10.16%
ROICexcg growth 3Y-37.13%
ROICexcg growth 5Y-19.67%
ROICexc growth 3Y-37.13%
ROICexc growth 5Y-19.67%
OM growth 3Y-33.12%
OM growth 5Y-18.27%
PM growth 3Y-31.71%
PM growth 5Y-17.35%
GM growth 3Y-2.3%
GM growth 5Y-1.52%
F-Score4
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 196.75% | ||
| Cap/Sales | 24.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 5.5 |
F-Score4
WACC9.6%
ROIC/WACC0.25
Cap/Depr(3y)180.36%
Cap/Depr(5y)176.4%
Cap/Sales(3y)19.81%
Cap/Sales(5y)19.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-61.97%
EPS 3Y-31.11%
EPS 5Y-14.56%
EPS Q2Q%-58.33%
EPS Next Y-4%
EPS Next 2Y24.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-13.47%
Revenue growth 3Y-0.34%
Revenue growth 5Y2.71%
Sales Q2Q%-10.62%
Revenue Next Year-3.79%
Revenue Next 2Y1.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-63.05%
EBIT growth 3Y-33.35%
EBIT growth 5Y-16.06%
EBIT Next Year390.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-29.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-17.99%
OCF growth 3Y-7.66%
OCF growth 5Y-2.94%