MULLEN GROUP LTD (MTL.CA) Stock Fundamental Analysis
TSX:MTL - Toronto Stock Exchange - CA6252841045 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to MTL. MTL was compared to 6 industry peers in the Ground Transportation industry. MTL has an excellent financial health rating, but there are some minor concerns on its profitability. MTL may be a bit undervalued, certainly considering the very reasonable score on growth Finally MTL also has an excellent dividend rating. These ratings could make MTL a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
MTL had positive earnings in the past year.
MTL had a positive operating cash flow in the past year.
MTL had positive earnings in each of the past 5 years.
MTL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.62%, MTL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
MTL has a Return On Equity of 10.64%. This is in the better half of the industry: MTL outperforms 66.67% of its industry peers.
The Return On Invested Capital of MTL (6.58%) is better than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MTL is in line with the industry average of 7.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 10.64% | ||
| ROIC | 6.58% |
ROA(3y)6.49%
ROA(5y)5.39%
ROE(3y)13.79%
ROE(5y)11.33%
ROIC(3y)8.41%
ROIC(5y)6.76%
1.3 Margins
MTL has a Profit Margin of 5.33%. This is in the better half of the industry: MTL outperforms 66.67% of its industry peers.
MTL's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 9.30%, MTL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of MTL has grown nicely.
MTL has a worse Gross Margin (38.06%) than 66.67% of its industry peers.
MTL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.3% | ||
| PM (TTM) | 5.33% | ||
| GM | 38.06% |
OM growth 3Y10.27%
OM growth 5Y6.39%
PM growth 3Y4.8%
PM growth 5Y-0.01%
GM growth 3Y2.31%
GM growth 5Y-0.08%
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.
Compared to 1 year ago, MTL has less shares outstanding
Compared to 5 years ago, MTL has less shares outstanding
MTL has a worse debt/assets ratio than last year.
2.2 Solvency
MTL has an Altman-Z score of 1.95. This is not the best score and indicates that MTL is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of MTL (1.95) is worse than 66.67% of its industry peers.
MTL has a debt to FCF ratio of 4.30. This is a neutral value as MTL would need 4.30 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.30, MTL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
MTL has a Debt/Equity ratio of 0.94. This is a neutral value indicating MTL is somewhat dependend on debt financing.
MTL's Debt to Equity ratio of 0.94 is fine compared to the rest of the industry. MTL outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.82
WACC8.07%
2.3 Liquidity
A Current Ratio of 2.26 indicates that MTL has no problem at all paying its short term obligations.
MTL has a better Current ratio (2.26) than 100.00% of its industry peers.
A Quick Ratio of 2.05 indicates that MTL has no problem at all paying its short term obligations.
MTL has a Quick ratio of 2.05. This is amongst the best in the industry. MTL outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
MTL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.77%.
The Earnings Per Share has been growing by 12.44% on average over the past years. This is quite good.
MTL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.28%.
MTL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.24% yearly.
EPS 1Y (TTM)-13.77%
EPS 3Y18.25%
EPS 5Y12.44%
EPS Q2Q%-20%
Revenue 1Y (TTM)3.28%
Revenue growth 3Y10.42%
Revenue growth 5Y9.24%
Sales Q2Q%7.46%
3.2 Future
MTL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.97% yearly.
MTL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.86% yearly.
EPS Next Y2.86%
EPS Next 2Y6.13%
EPS Next 3Y4.97%
EPS Next 5YN/A
Revenue Next Year7.44%
Revenue Next 2Y6.7%
Revenue Next 3Y5.37%
Revenue Next 5Y5.86%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 12.08 indicates a correct 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.
MTL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.28.
With a Price/Forward Earnings ratio of 10.29, the valuation of MTL can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTL indicates a rather cheap valuation: MTL is cheaper than 100.00% of the companies listed in the same industry.
MTL is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTL is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MTL is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.43 | ||
| EV/EBITDA | 6.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MTL does not grow enough to justify the current Price/Earnings ratio.
MTL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.22
PEG (5Y)0.97
EPS Next 2Y6.13%
EPS Next 3Y4.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.94%, MTL is a good candidate for dividend investing.
MTL's Dividend Yield is rather good when compared to the industry average which is at 3.45. MTL pays more dividend than 83.33% of the companies in the same industry.
MTL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.94% |
5.2 History
The dividend of MTL has a limited annual growth rate of 4.83%.
MTL has been paying a dividend for at least 10 years, so it has a reliable track record.
MTL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.83%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
MTL pays out 64.32% of its income as dividend. This is not a sustainable payout ratio.
MTL's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP64.32%
EPS Next 2Y6.13%
EPS Next 3Y4.97%
TSX:MTL (7/2/2025, 7:00:00 PM)
14.37
+0.18 (+1.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners25.66%
Inst Owner ChangeN/A
Ins Owners6.79%
Ins Owner ChangeN/A
Market Cap1.25B
Analysts78.67
Price Target17.02 (18.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.94% |
Yearly Dividend0.76
Dividend Growth(5Y)4.83%
DP64.32%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-24.86%
Min EPS beat(2)-27.59%
Max EPS beat(2)-22.13%
EPS beat(4)2
Avg EPS beat(4)-2.85%
Min EPS beat(4)-27.59%
Max EPS beat(4)26.32%
EPS beat(8)4
Avg EPS beat(8)0.83%
EPS beat(12)7
Avg EPS beat(12)16.2%
EPS beat(16)9
Avg EPS beat(16)14.54%
Revenue beat(2)0
Avg Revenue beat(2)-3.31%
Min Revenue beat(2)-4.92%
Max Revenue beat(2)-1.71%
Revenue beat(4)1
Avg Revenue beat(4)-1.47%
Min Revenue beat(4)-4.92%
Max Revenue beat(4)0.77%
Revenue beat(8)2
Avg Revenue beat(8)-1.95%
Revenue beat(12)4
Avg Revenue beat(12)-0.36%
Revenue beat(16)8
Avg Revenue beat(16)0.67%
PT rev (1m)1.41%
PT rev (3m)-8.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.72%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 10.29 | ||
| P/S | 0.62 | ||
| P/FCF | 5.43 | ||
| P/OCF | 4.22 | ||
| P/B | 1.24 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | 6.44 |
EPS(TTM)1.19
EY8.28%
EPS(NY)1.4
Fwd EY9.72%
FCF(TTM)2.65
FCFY18.43%
OCF(TTM)3.41
OCFY23.7%
SpS23.17
BVpS11.59
TBVpS6.04
PEG (NY)4.22
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 10.64% | ||
| ROCE | 8.94% | ||
| ROIC | 6.58% | ||
| ROICexc | 7.02% | ||
| ROICexgc | 9.3% | ||
| OM | 9.3% | ||
| PM (TTM) | 5.33% | ||
| GM | 38.06% | ||
| FCFM | 11.43% |
ROA(3y)6.49%
ROA(5y)5.39%
ROE(3y)13.79%
ROE(5y)11.33%
ROIC(3y)8.41%
ROIC(5y)6.76%
ROICexc(3y)8.57%
ROICexc(5y)6.92%
ROICexgc(3y)11.66%
ROICexgc(5y)9.33%
ROCE(3y)11.65%
ROCE(5y)9.38%
ROICexcg growth 3Y15.78%
ROICexcg growth 5Y11.91%
ROICexc growth 3Y16.67%
ROICexc growth 5Y10.72%
OM growth 3Y10.27%
OM growth 5Y6.39%
PM growth 3Y4.8%
PM growth 5Y-0.01%
GM growth 3Y2.31%
GM growth 5Y-0.08%
F-Score6
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 4.3 | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 48.26% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 4.15 | ||
| Cash Conversion | 91.46% | ||
| Profit Quality | 214.61% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 2.05 | ||
| Altman-Z | 1.95 |
F-Score6
WACC8.07%
ROIC/WACC0.82
Cap/Depr(3y)71.56%
Cap/Depr(5y)67.74%
Cap/Sales(3y)4.25%
Cap/Sales(5y)4.6%
Profit Quality(3y)147.53%
Profit Quality(5y)174.22%
High Growth Momentum
Growth
EPS 1Y (TTM)-13.77%
EPS 3Y18.25%
EPS 5Y12.44%
EPS Q2Q%-20%
EPS Next Y2.86%
EPS Next 2Y6.13%
EPS Next 3Y4.97%
EPS Next 5YN/A
Revenue 1Y (TTM)3.28%
Revenue growth 3Y10.42%
Revenue growth 5Y9.24%
Sales Q2Q%7.46%
Revenue Next Year7.44%
Revenue Next 2Y6.7%
Revenue Next 3Y5.37%
Revenue Next 5Y5.86%
EBIT growth 1Y-6.46%
EBIT growth 3Y21.77%
EBIT growth 5Y16.22%
EBIT Next Year64.46%
EBIT Next 3Y22.94%
EBIT Next 5Y15.7%
FCF growth 1Y23.2%
FCF growth 3Y20.06%
FCF growth 5Y18.7%
OCF growth 1Y6.5%
OCF growth 3Y14.36%
OCF growth 5Y11.65%