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 41 industry peers in the Ground Transportation industry. MRTN has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, MRTN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MRTN was profitable.
MRTN had a positive operating cash flow in the past year.
In the past 5 years MRTN has always been profitable.
MRTN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MRTN (2.78%) is comparable to the rest of the industry.
MRTN has a Return On Equity of 3.51%. This is comparable to the rest of the industry: MRTN outperforms 46.34% of its industry peers.
The Return On Invested Capital of MRTN (2.40%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for MRTN is in line with the industry average of 7.87%.
The last Return On Invested Capital (2.40%) 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 | 2.78% | ||
| 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
MRTN's Profit Margin of 2.79% is in line compared to the rest of the industry. MRTN outperforms 46.34% of its industry peers.
In the last couple of years the Profit Margin of MRTN has declined.
MRTN's Operating Margin of 2.93% is on the low side compared to the rest of the industry. MRTN is outperformed by 60.98% of its industry peers.
In the last couple of years the Operating Margin of MRTN has declined.
MRTN has a Gross Margin of 31.72%. This is in the lower half of the industry: MRTN underperforms 63.41% of its industry peers.
MRTN's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MRTN 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
MRTN has an Altman-Z score of 5.41. This indicates that MRTN is financially healthy and has little risk of bankruptcy at the moment.
MRTN has a Altman-Z score of 5.41. This is amongst the best in the industry. MRTN outperforms 87.80% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.41 |
ROIC/WACC0.26
WACC9.17%
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 78.05% 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 Quick ratio of 1.48. This is amongst the best in the industry. MRTN outperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
MRTN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -61.97%.
The earnings per share for MRTN have been decreasing by -14.56% on average. This is quite bad
The Revenue for MRTN has decreased by -14.83% in the past year. This is quite bad
The Revenue has been growing slightly by 2.71% on average over the past years.
EPS 1Y (TTM)-61.97%
EPS 3Y-31.11%
EPS 5Y-14.56%
EPS Q2Q%-58.33%
Revenue 1Y (TTM)-14.83%
Revenue growth 3Y-0.34%
Revenue growth 5Y2.71%
Sales Q2Q%-10.62%
3.2 Future
MRTN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.90% yearly.
The Revenue is expected to grow by 4.74% on average over the next years.
EPS Next Y-4%
EPS Next 2Y24.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.36%
Revenue Next 2Y4.74%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 49.22, the valuation of MRTN can be described as expensive.
60.98% of the companies in the same industry are cheaper than MRTN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.63, MRTN is valued quite expensively.
With a Price/Forward Earnings ratio of 25.06, MRTN can be considered very expensive at the moment.
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 more expensive than the S&P500 average which is at 20.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.22 | ||
| Fwd PE | 25.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRTN is valued a bit cheaper than 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.24 |
4.3 Compensation for Growth
MRTN's earnings are expected to grow with 24.90% in the coming years. This may justify a more expensive valuation.
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 1.81%. Purely for dividend investing, there may be better candidates out there.
MRTN's Dividend Yield is a higher than the industry average which is at 1.70.
Compared to the average S&P500 Dividend Yield of 2.51, MRTN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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.
The dividend of MRTN decreased recently.
Dividend Growth(5Y)-14.12%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
72.58% of the earnings are spent on dividend by MRTN. This is not a sustainable payout ratio.
DP72.58%
EPS Next 2Y24.9%
EPS Next 3YN/A
13.29
+0.03 (+0.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners71.95%
Inst Owner Change0.03%
Ins Owners22.93%
Ins Owner Change-0.02%
Market Cap1.08B
Analysts80
Price Target17.34 (30.47%)
Short Float %1.69%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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)0%
PT rev (3m)-5.56%
EPS NQ rev (1m)-16.67%
EPS NQ rev (3m)-23.08%
EPS NY rev (1m)-19.33%
EPS NY rev (3m)-37.66%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)-5.63%
Revenue NY rev (1m)-0.91%
Revenue NY rev (3m)-3.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.22 | ||
| Fwd PE | 25.06 | ||
| P/S | 1.12 | ||
| P/FCF | N/A | ||
| P/OCF | 8.03 | ||
| P/B | 1.41 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 7.24 |
EPS(TTM)0.27
EY2.03%
EPS(NY)0.53
Fwd EY3.99%
FCF(TTM)-1.21
FCFYN/A
OCF(TTM)1.65
OCFY12.45%
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 | 5.41 |
F-Score4
WACC9.17%
ROIC/WACC0.26
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)-14.83%
Revenue growth 3Y-0.34%
Revenue growth 5Y2.71%
Sales Q2Q%-10.62%
Revenue Next Year0.36%
Revenue Next 2Y4.74%
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%