MATSON INC (MATX) Stock Fundamental Analysis
NYSE:MATX - New York Stock Exchange, Inc. - US57686G1058 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to MATX. MATX was compared to 29 industry peers in the Marine Transportation industry. MATX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MATX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MATX had positive earnings in the past year.
MATX had a positive operating cash flow in the past year.
In the past 5 years MATX has always been profitable.
MATX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MATX's Return On Assets of 9.25% is fine compared to the rest of the industry. MATX outperforms 67.86% of its industry peers.
The Return On Equity of MATX (16.07%) is better than 71.43% of its industry peers.
The Return On Invested Capital of MATX (9.56%) is better than 78.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MATX is significantly above the industry average of 8.54%.
The last Return On Invested Capital (9.56%) for MATX is well below the 3 year average (21.04%), which needs to be investigated, but indicates that MATX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.25% | ||
| ROE | 16.07% | ||
| ROIC | 9.56% |
ROA(3y)18.87%
ROA(5y)13.23%
ROE(3y)38.1%
ROE(5y)28.93%
ROIC(3y)21.04%
ROIC(5y)15.02%
1.3 Margins
MATX's Profit Margin of 12.37% is on the low side compared to the rest of the industry. MATX is outperformed by 64.29% of its industry peers.
MATX's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 14.05%, MATX is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
MATX's Operating Margin has improved in the last couple of years.
MATX has a Gross Margin of 22.97%. This is amonst the worse of the industry: MATX underperforms 82.14% of its industry peers.
MATX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.05% | ||
| PM (TTM) | 12.37% | ||
| GM | 22.97% |
OM growth 3Y1.08%
OM growth 5Y14.01%
PM growth 3Y5.82%
PM growth 5Y14.38%
GM growth 3Y0.1%
GM growth 5Y5.2%
2. Health
2.1 Basic Checks
MATX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
MATX has less shares outstanding than it did 1 year ago.
MATX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MATX has been reduced compared to a year ago.
2.2 Solvency
MATX has an Altman-Z score of 3.33. This indicates that MATX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.33, MATX belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
MATX has a debt to FCF ratio of 0.87. This is a very positive value and a sign of high solvency as it would only need 0.87 years to pay back of all of its debts.
The Debt to FCF ratio of MATX (0.87) is better than 89.29% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that MATX is not too dependend on debt financing.
MATX's Debt to Equity ratio of 0.14 is amongst the best of the industry. MATX outperforms 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | 3.33 |
ROIC/WACC1.13
WACC8.42%
2.3 Liquidity
MATX has a Current Ratio of 1.13. This is a normal value and indicates that MATX is financially healthy and should not expect problems in meeting its short term obligations.
MATX has a worse Current ratio (1.13) than 71.43% of its industry peers.
A Quick Ratio of 1.13 indicates that MATX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.13, MATX is doing worse than 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
MATX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.16%, which is quite impressive.
MATX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.78% yearly.
The Revenue has been growing slightly by 6.86% in the past year.
MATX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.84% yearly.
EPS 1Y (TTM)38.16%
EPS 3Y23.58%
EPS 5Y27.78%
EPS Q2Q%73.24%
Revenue 1Y (TTM)6.86%
Revenue growth 3Y9.1%
Revenue growth 5Y6.84%
Sales Q2Q%16.25%
3.2 Future
The Earnings Per Share is expected to grow by 7.43% on average over the next years.
The Revenue is expected to grow by 3.15% on average over the next years.
EPS Next Y62.13%
EPS Next 2Y12.37%
EPS Next 3Y7.43%
EPS Next 5YN/A
Revenue Next Year11.29%
Revenue Next 2Y4.4%
Revenue Next 3Y3.15%
Revenue Next 5YN/A
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
The Price/Earnings ratio is 11.89, which indicates a very decent valuation of MATX.
MATX's Price/Earnings ratio is a bit more expensive when compared to the industry. MATX is more expensive than 67.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. MATX is valued rather cheaply when compared to this.
MATX is valuated correctly with a Price/Forward Earnings ratio of 13.51.
Based on the Price/Forward Earnings ratio, MATX is valued a bit more expensive than the industry average as 60.71% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.68. MATX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 13.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MATX is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
MATX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.34 | ||
| EV/EBITDA | 7.89 |
4.3 Compensation for Growth
MATX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of MATX may justify a higher PE ratio.
PEG (NY)0.19
PEG (5Y)0.43
EPS Next 2Y12.37%
EPS Next 3Y7.43%
5. Dividend
5.1 Amount
MATX has a yearly dividend return of 0.95%, which is pretty low.
MATX's Dividend Yield is comparable with the industry average which is at 14.52.
Compared to an average S&P500 Dividend Yield of 2.29, MATX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
On average, the dividend of MATX grows each year by 8.90%, which is quite nice.
MATX has paid a dividend for at least 10 years, which is a reliable track record.
MATX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.9%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
10.88% of the earnings are spent on dividend by MATX. This is a low number and sustainable payout ratio.
MATX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP10.88%
EPS Next 2Y12.37%
EPS Next 3Y7.43%
142.9
+0.08 (+0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners87.73%
Inst Owner Change2.77%
Ins Owners1.81%
Ins Owner Change3.39%
Market Cap4.75B
Analysts80
Price Target160.65 (12.42%)
Short Float %3.71%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend1.27
Dividend Growth(5Y)8.9%
DP10.88%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.87%
Min EPS beat(2)8.05%
Max EPS beat(2)21.7%
EPS beat(4)3
Avg EPS beat(4)10.9%
Min EPS beat(4)-1.96%
Max EPS beat(4)21.7%
EPS beat(8)7
Avg EPS beat(8)11.7%
EPS beat(12)9
Avg EPS beat(12)14.54%
EPS beat(16)13
Avg EPS beat(16)15.38%
Revenue beat(2)0
Avg Revenue beat(2)-1.69%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-1.04%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)5.43%
Revenue beat(8)2
Avg Revenue beat(8)-0.48%
Revenue beat(12)4
Avg Revenue beat(12)2.7%
Revenue beat(16)8
Avg Revenue beat(16)3.41%
PT rev (1m)4.65%
PT rev (3m)3.17%
EPS NQ rev (1m)4.59%
EPS NQ rev (3m)17.59%
EPS NY rev (1m)0%
EPS NY rev (3m)10.22%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 13.51 | ||
| P/S | 1.43 | ||
| P/FCF | 10.34 | ||
| P/OCF | 6.74 | ||
| P/B | 1.86 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 7.89 |
EPS(TTM)12.02
EY8.41%
EPS(NY)10.58
Fwd EY7.4%
FCF(TTM)13.82
FCFY9.67%
OCF(TTM)21.21
OCFY14.84%
SpS99.98
BVpS76.99
TBVpS62.18
PEG (NY)0.19
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.25% | ||
| ROE | 16.07% | ||
| ROCE | 12.07% | ||
| ROIC | 9.56% | ||
| ROICexc | 10.27% | ||
| ROICexgc | 11.9% | ||
| OM | 14.05% | ||
| PM (TTM) | 12.37% | ||
| GM | 22.97% | ||
| FCFM | 13.82% |
ROA(3y)18.87%
ROA(5y)13.23%
ROE(3y)38.1%
ROE(5y)28.93%
ROIC(3y)21.04%
ROIC(5y)15.02%
ROICexc(3y)22.75%
ROICexc(5y)16.06%
ROICexgc(3y)27.13%
ROICexgc(5y)19.37%
ROCE(3y)26.58%
ROCE(5y)18.97%
ROICexcg growth 3Y-7.02%
ROICexcg growth 5Y5.36%
ROICexc growth 3Y-3.99%
ROICexc growth 5Y8.74%
OM growth 3Y1.08%
OM growth 5Y14.01%
PM growth 3Y5.82%
PM growth 5Y14.38%
GM growth 3Y0.1%
GM growth 5Y5.2%
F-Score9
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.87 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 162.65% | ||
| Cap/Sales | 7.4% | ||
| Interest Coverage | 68.6 | ||
| Cash Conversion | 114.09% | ||
| Profit Quality | 111.71% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 3.33 |
F-Score9
WACC8.42%
ROIC/WACC1.13
Cap/Depr(3y)186.93%
Cap/Depr(5y)207.44%
Cap/Sales(3y)7.06%
Cap/Sales(5y)8.67%
Profit Quality(3y)86.32%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)38.16%
EPS 3Y23.58%
EPS 5Y27.78%
EPS Q2Q%73.24%
EPS Next Y62.13%
EPS Next 2Y12.37%
EPS Next 3Y7.43%
EPS Next 5YN/A
Revenue 1Y (TTM)6.86%
Revenue growth 3Y9.1%
Revenue growth 5Y6.84%
Sales Q2Q%16.25%
Revenue Next Year11.29%
Revenue Next 2Y4.4%
Revenue Next 3Y3.15%
Revenue Next 5YN/A
EBIT growth 1Y29.22%
EBIT growth 3Y10.27%
EBIT growth 5Y21.81%
EBIT Next Year119.45%
EBIT Next 3Y20.24%
EBIT Next 5YN/A
FCF growth 1Y-64.56%
FCF growth 3Y3.34%
FCF growth 5YN/A
OCF growth 1Y-53.14%
OCF growth 3Y5.9%
OCF growth 5Y10.85%