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. MRTN has an excellent financial health rating, but there are some minor concerns on its profitability. MRTN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year MRTN was profitable.
In the past year MRTN had a positive cash flow from operations.
MRTN had positive earnings in each of the past 5 years.
Each year in the past 5 years MRTN had a positive operating cash flow.
1.2 Ratios
MRTN has a Return On Assets of 2.20%. This is comparable to the rest of the industry: MRTN outperforms 47.50% of its industry peers.
MRTN has a Return On Equity (2.82%) which is in line with its industry peers.
The Return On Invested Capital of MRTN (1.82%) is worse than 60.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MRTN is in line with the industry average of 8.58%.
The last Return On Invested Capital (1.82%) for MRTN is well below the 3 year average (6.79%), which needs to be investigated, but indicates that MRTN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 2.82% | ||
| ROIC | 1.82% |
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 (2.31%) is comparable to the rest of the industry.
MRTN's Profit Margin has declined in the last couple of years.
MRTN's Operating Margin of 2.28% is on the low side compared to the rest of the industry. MRTN is outperformed by 60.00% of its industry peers.
MRTN's Operating Margin has declined in the last couple of years.
MRTN's Gross Margin of 31.98% is on the low side compared to the rest of the industry. MRTN is outperformed by 62.50% of its industry peers.
In the last couple of years the Gross Margin of MRTN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.28% | ||
| PM (TTM) | 2.31% | ||
| GM | 31.98% |
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
MRTN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MRTN has about the same amount of shares outstanding.
The number of shares outstanding for MRTN has been reduced compared to 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
An Altman-Z score of 4.99 indicates that MRTN is not in any danger for bankruptcy at the moment.
MRTN's Altman-Z score of 4.99 is amongst the best of 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 | 4.99 |
ROIC/WACC0.19
WACC9.62%
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 77.50% of its industry peers.
A Quick Ratio of 1.48 indicates that MRTN should not have too much problems paying its short term obligations.
MRTN has a better Quick ratio (1.48) than 77.50% 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.
Measured over the past years, MRTN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.56% on average per year.
MRTN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.47%.
Measured over the past years, MRTN shows a small growth in Revenue. The Revenue has been growing by 2.71% on average per year.
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
The Earnings Per Share is expected to grow by 24.90% on average over the next years. This is a very strong growth
MRTN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.52% yearly.
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
With a Price/Earnings ratio of 47.59, MRTN can be considered very expensive at the moment.
60.00% of the companies in the same industry are cheaper than MRTN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MRTN to the average of the S&P500 Index (27.46), we can say MRTN is valued expensively.
The Price/Forward Earnings ratio is 24.23, which indicates a rather expensive current valuation of MRTN.
The rest of the industry has a similar Price/Forward Earnings ratio as MRTN.
MRTN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.59 | ||
| Fwd PE | 24.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRTN is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.21 |
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 1.88%. 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 1.53. MRTN pays more dividend than 85.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, MRTN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
The dividend of MRTN decreases each year by -14.12%.
MRTN has been paying a dividend for at least 10 years, so it has a reliable track record.
MRTN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-14.12%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
MRTN pays out 90.45% of its income as dividend. This is not a sustainable payout ratio.
DP90.45%
EPS Next 2Y24.9%
EPS Next 3YN/A
12.85
+0.1 (+0.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners72.06%
Inst Owner Change-0.05%
Ins Owners22.94%
Ins Owner Change0.41%
Market Cap1.05B
Analysts80
Price Target15.81 (23.04%)
Short Float %1.52%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Yearly Dividend0.24
Dividend Growth(5Y)-14.12%
DP90.45%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.21%
Min EPS beat(2)-1.96%
Max EPS beat(2)14.38%
EPS beat(4)1
Avg EPS beat(4)-5.92%
Min EPS beat(4)-22.6%
Max EPS beat(4)14.38%
EPS beat(8)1
Avg EPS beat(8)-7.73%
EPS beat(12)3
Avg EPS beat(12)-4.05%
EPS beat(16)5
Avg EPS beat(16)-0.81%
Revenue beat(2)0
Avg Revenue beat(2)-3.44%
Min Revenue beat(2)-3.61%
Max Revenue beat(2)-3.28%
Revenue beat(4)0
Avg Revenue beat(4)-3.35%
Min Revenue beat(4)-3.61%
Max Revenue beat(4)-3.09%
Revenue beat(8)0
Avg Revenue beat(8)-4.19%
Revenue beat(12)1
Avg Revenue beat(12)-2.32%
Revenue beat(16)3
Avg Revenue beat(16)-1.33%
PT rev (1m)0%
PT rev (3m)-8.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.59 | ||
| Fwd PE | 24.23 | ||
| P/S | 1.12 | ||
| P/FCF | N/A | ||
| P/OCF | 8.36 | ||
| P/B | 1.36 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 7.21 |
EPS(TTM)0.27
EY2.1%
EPS(NY)0.53
Fwd EY4.13%
FCF(TTM)-1.18
FCFYN/A
OCF(TTM)1.54
OCFY11.96%
SpS11.5
BVpS9.41
TBVpS9.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 2.82% | ||
| ROCE | 2.45% | ||
| ROIC | 1.82% | ||
| ROICexc | 1.91% | ||
| ROICexgc | 1.91% | ||
| OM | 2.28% | ||
| PM (TTM) | 2.31% | ||
| GM | 31.98% | ||
| 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 Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 189.07% | ||
| Cap/Sales | 23.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.36% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 4.99 |
F-Score4
WACC9.62%
ROIC/WACC0.19
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-66.48%
EBIT growth 3Y-33.35%
EBIT growth 5Y-16.06%
EBIT Next Year348.95%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-592.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-45.23%
OCF growth 3Y-7.66%
OCF growth 5Y-2.94%