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MULLEN GROUP LTD (MTL.CA) Stock Fundamental Analysis

TSX:MTL - Toronto Stock Exchange - CA6252841045 - Common Stock - Currency: CAD

14.15  -0.04 (-0.28%)

Fundamental Rating

6

Taking everything into account, MTL scores 6 out of 10 in our fundamental rating. MTL was compared to 6 industry peers in the Ground Transportation industry. While MTL has a great profitability rating, there are some minor concerns on its financial health. MTL has a bad growth rate and is valued cheaply. Finally MTL also has an excellent dividend rating. This makes MTL very considerable for value and dividend investing!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year MTL was profitable.
MTL had a positive operating cash flow in the past year.
In the past 5 years MTL has always been profitable.
Each year in the past 5 years MTL had a positive operating cash flow.
MTL.CA Yearly Net Income VS EBIT VS OCF VS FCFMTL.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M

1.2 Ratios

MTL's Return On Assets of 4.77% is fine compared to the rest of the industry. MTL outperforms 66.67% of its industry peers.
The Return On Equity of MTL (12.11%) is better than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.20%, MTL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MTL is in line with the industry average of 7.71%.
Industry RankSector Rank
ROA 4.77%
ROE 12.11%
ROIC 7.2%
ROA(3y)6.14%
ROA(5y)5.25%
ROE(3y)12.82%
ROE(5y)10.7%
ROIC(3y)7.79%
ROIC(5y)6.33%
MTL.CA Yearly ROA, ROE, ROICMTL.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15

1.3 Margins

MTL has a better Profit Margin (6.18%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of MTL has grown nicely.
MTL has a Operating Margin of 10.14%. This is in the better half of the industry: MTL outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of MTL has grown nicely.
MTL has a Gross Margin (37.96%) which is comparable to the rest of the industry.
MTL's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 10.14%
PM (TTM) 6.18%
GM 37.96%
OM growth 3Y11.34%
OM growth 5Y6.18%
PM growth 3Y7.63%
PM growth 5YN/A
GM growth 3Y-1.38%
GM growth 5Y5.67%
MTL.CA Yearly Profit, Operating, Gross MarginsMTL.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MTL is still creating some value.
MTL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MTL has been reduced compared to 5 years ago.
Compared to 1 year ago, MTL has a worse debt to assets ratio.
MTL.CA Yearly Shares OutstandingMTL.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
MTL.CA Yearly Total Debt VS Total AssetsMTL.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

2.2 Solvency

MTL has an Altman-Z score of 1.75. This is a bad value and indicates that MTL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.75, MTL is doing worse than 66.67% of the companies in the same industry.
MTL has a debt to FCF ratio of 5.76. This is a neutral value as MTL would need 5.76 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.76, MTL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.92 indicates that MTL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.92, MTL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.92
Debt/FCF 5.76
Altman-Z 1.75
ROIC/WACC0.93
WACC7.78%
MTL.CA Yearly LT Debt VS Equity VS FCFMTL.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.3 Liquidity

MTL has a Current Ratio of 1.62. This is a normal value and indicates that MTL is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.62, MTL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MTL has a Quick Ratio of 1.52. This is a normal value and indicates that MTL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.52, MTL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.62
Quick Ratio 1.52
MTL.CA Yearly Current Assets VS Current LiabilitesMTL.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

3

3. Growth

3.1 Past

MTL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.30%.
Measured over the past years, MTL shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.92% on average per year.
MTL shows a decrease in Revenue. In the last year, the revenue decreased by -0.49%.
MTL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.61% yearly.
EPS 1Y (TTM)-23.3%
EPS 3Y32.33%
EPS 5Y24.92%
EPS Q2Q%-2.38%
Revenue 1Y (TTM)-0.49%
Revenue growth 3Y19.66%
Revenue growth 5Y9.61%
Sales Q2Q%5.57%

3.2 Future

Based on estimates for the next years, MTL will show a decrease in Earnings Per Share. The EPS will decrease by -0.73% on average per year.
Based on estimates for the next years, MTL will show a small growth in Revenue. The Revenue will grow by 5.75% on average per year.
EPS Next Y-11.19%
EPS Next 2Y-5.78%
EPS Next 3Y-0.73%
EPS Next 5YN/A
Revenue Next Year0.74%
Revenue Next 2Y3.47%
Revenue Next 3Y3.25%
Revenue Next 5Y5.75%

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.
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.
MTL.CA Yearly Revenue VS EstimatesMTL.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B 2B 2.5B
MTL.CA Yearly EPS VS EstimatesMTL.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5

7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.48, which indicates a very decent valuation of MTL.
Compared to the rest of the industry, the Price/Earnings ratio of MTL indicates a rather cheap valuation: MTL is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MTL to the average of the S&P500 Index (29.39), we can say MTL is valued rather cheaply.
A Price/Forward Earnings ratio of 10.92 indicates a reasonable valuation of MTL.
100.00% of the companies in the same industry are more expensive than MTL, based on the Price/Forward Earnings ratio.
MTL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.38.
Industry RankSector Rank
PE 10.48
Fwd PE 10.92
MTL.CA Price Earnings VS Forward Price EarningsMTL.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MTL is valued cheaper than 100.00% of the companies in the same industry.
MTL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MTL is cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.83
EV/EBITDA 6.48
MTL.CA Per share dataMTL.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

MTL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y-5.78%
EPS Next 3Y-0.73%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.83%, MTL is a good candidate for dividend investing.
MTL's Dividend Yield is rather good when compared to the industry average which is at 3.23. MTL pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, MTL pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.83%

5.2 History

The dividend of MTL has a limited annual growth rate of 4.28%.
MTL has paid a dividend for at least 10 years, which is a reliable track record.
MTL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.28%
Div Incr Years3
Div Non Decr Years3
MTL.CA Yearly Dividends per shareMTL.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

MTL pays out 52.32% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of MTL has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP52.32%
EPS Next 2Y-5.78%
EPS Next 3Y-0.73%
MTL.CA Yearly Income VS Free CF VS DividendMTL.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M 150M
MTL.CA Dividend Payout.MTL.CA Dividend Payout, showing the Payout Ratio.MTL.CA Dividend Payout.PayoutRetained Earnings

MULLEN GROUP LTD

TSX:MTL (2/11/2025, 7:00:00 PM)

14.15

-0.04 (-0.28%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)10-24 2024-10-24/bmo
Earnings (Next)02-13 2025-02-13/amc
Inst Owners27.19%
Inst Owner ChangeN/A
Ins Owners6.39%
Ins Owner ChangeN/A
Market Cap1.24B
Analysts77.14
Price Target19.38 (36.96%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.83%
Yearly Dividend0.72
Dividend Growth(5Y)4.28%
DP52.32%
Div Incr Years3
Div Non Decr Years3
Ex-Date01-31 2025-01-31 (0.07)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.15%
Min EPS beat(2)11.98%
Max EPS beat(2)26.32%
EPS beat(4)2
Avg EPS beat(4)4.33%
Min EPS beat(4)-18.84%
Max EPS beat(4)26.32%
EPS beat(8)6
Avg EPS beat(8)20.68%
EPS beat(12)8
Avg EPS beat(12)21.65%
EPS beat(16)10
Avg EPS beat(16)17.94%
Revenue beat(2)1
Avg Revenue beat(2)0.38%
Min Revenue beat(2)-0.01%
Max Revenue beat(2)0.77%
Revenue beat(4)1
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-7.98%
Max Revenue beat(4)0.77%
Revenue beat(8)3
Avg Revenue beat(8)-0.95%
Revenue beat(12)6
Avg Revenue beat(12)1.06%
Revenue beat(16)9
Avg Revenue beat(16)0.95%
PT rev (1m)0.53%
PT rev (3m)4.83%
EPS NQ rev (1m)-2.31%
EPS NQ rev (3m)1.19%
EPS NY rev (1m)-0.96%
EPS NY rev (3m)-0.96%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
Industry RankSector Rank
PE 10.48
Fwd PE 10.92
P/S 0.62
P/FCF 5.83
P/OCF 4.28
P/B 1.22
P/tB 2.3
EV/EBITDA 6.48
EPS(TTM)1.35
EY9.54%
EPS(NY)1.3
Fwd EY9.16%
FCF(TTM)2.43
FCFY17.14%
OCF(TTM)3.3
OCFY23.35%
SpS22.69
BVpS11.57
TBVpS6.15
PEG (NY)N/A
PEG (5Y)0.42
Profitability
Industry RankSector Rank
ROA 4.77%
ROE 12.11%
ROCE 9.61%
ROIC 7.2%
ROICexc 8.62%
ROICexgc 11.82%
OM 10.14%
PM (TTM) 6.18%
GM 37.96%
FCFM 10.69%
ROA(3y)6.14%
ROA(5y)5.25%
ROE(3y)12.82%
ROE(5y)10.7%
ROIC(3y)7.79%
ROIC(5y)6.33%
ROICexc(3y)7.81%
ROICexc(5y)6.45%
ROICexgc(3y)10.71%
ROICexgc(5y)8.65%
ROCE(3y)10.76%
ROCE(5y)8.67%
ROICexcg growth 3Y34.62%
ROICexcg growth 5Y17.65%
ROICexc growth 3Y30.28%
ROICexc growth 5Y15.23%
OM growth 3Y11.34%
OM growth 5Y6.18%
PM growth 3Y7.63%
PM growth 5YN/A
GM growth 3Y-1.38%
GM growth 5Y5.67%
F-Score6
Asset Turnover0.77
Health
Industry RankSector Rank
Debt/Equity 0.92
Debt/FCF 5.76
Debt/EBITDA 2.86
Cap/Depr 61.42%
Cap/Sales 3.88%
Interest Coverage 5.54
Cash Conversion 88.55%
Profit Quality 173.05%
Current Ratio 1.62
Quick Ratio 1.52
Altman-Z 1.75
F-Score6
WACC7.78%
ROIC/WACC0.93
Cap/Depr(3y)73.29%
Cap/Depr(5y)70.33%
Cap/Sales(3y)4.59%
Cap/Sales(5y)5.06%
Profit Quality(3y)140.57%
Profit Quality(5y)160.62%
High Growth Momentum
Growth
EPS 1Y (TTM)-23.3%
EPS 3Y32.33%
EPS 5Y24.92%
EPS Q2Q%-2.38%
EPS Next Y-11.19%
EPS Next 2Y-5.78%
EPS Next 3Y-0.73%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.49%
Revenue growth 3Y19.66%
Revenue growth 5Y9.61%
Sales Q2Q%5.57%
Revenue Next Year0.74%
Revenue Next 2Y3.47%
Revenue Next 3Y3.25%
Revenue Next 5Y5.75%
EBIT growth 1Y-5.1%
EBIT growth 3Y33.23%
EBIT growth 5Y16.38%
EBIT Next Year54.96%
EBIT Next 3Y19.29%
EBIT Next 5Y16.86%
FCF growth 1Y42.87%
FCF growth 3Y3.15%
FCF growth 5Y35.75%
OCF growth 1Y26.83%
OCF growth 3Y7.18%
OCF growth 5Y14.49%