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Matson (MATX)
NYSE:MATX
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Matson
(NYSE:MATX)
Rating:74Outperform
Price Target:
$126.00
▲(12.37%Upside)
Positive Factors
Earnings Potential
Matson offers a stable domestic revenue stream with optionality on the international Transpacific trade, which could see rates surprise higher.
Financial Performance
Matson's balance sheet transformed since 2020, boosting capital rewards, with a net cash position of $519 million and reduced share count by 25%.
Market Position
Matson capturing outsized earnings in stronger international markets with downside support in its US business due to premium rates from expedited services.
Negative Factors
Market Conditions
Lower US import volumes already reflected in spot rates, setting up a potential positive surprise as the peak season approaches despite economic uncertainty.
Matson (MATX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.68B
Dividend Yield1.21%
Average Volume (3M)348.24K
Price to Earnings (P/E)7.4
Beta (1Y)0.94
Revenue Growth11.88%
EPS Growth80.21%
CountryUS
Employees4,356
SectorIndustrials
Sector Strength89
IndustryMarine Shipping
Share Statistics
EPS (TTM)2.18
Shares Outstanding32,644,844
10 Day Avg. Volume336,902
30 Day Avg. Volume348,242
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.06
Price to Sales (P/S)0.00
P/FCF Ratio2.30
Enterprise Value/Market Cap0.73
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit3.00
Enterprise Value/Ebitda0.95
Forecast
1Y Price Target
$135.25Price Target Upside20.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Matson Business Overview & Revenue Model
Company DescriptionMatson, Inc. (MATX) is a leading provider of ocean transportation and logistics services. Headquartered in Honolulu, Hawaii, the company operates primarily in the Pacific region, offering shipping services that connect the U.S. mainland with Hawaii, Alaska, Guam, Micronesia, and various Pacific islands. Matson's core services include container shipping, freight transportation, and logistics solutions, serving a diverse range of customers, including retailers, manufacturers, and governmental agencies.
How the Company Makes MoneyMatson makes money primarily through its ocean transportation and logistics services. Its revenue model is centered around the fees it charges for shipping freight across its established routes in the Pacific. The company operates a fleet of container ships and provides related logistics services, such as warehousing, distribution, and supply chain management, which generate additional income streams. Key revenue streams include shipping contracts with large retailers and government entities, as well as spot market shipping. Matson's strategic partnerships and investments in port facilities and technology also enhance its operational efficiency, contributing to its earnings by reducing costs and improving service quality.
Matson Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: 2.24%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant achievements in operating income and new service expansions offset by substantial challenges in China, logistics, and Guam. The company's outlook for 2025 is cautious due to ongoing global trade uncertainties.Q1-2025 Updates
Positive Updates
Increased Consolidated Operating Income
Consolidated operating income increased by $45.2 million year-over-year to $82.1 million, driven by significantly higher freight rates in China and a higher contribution from SSAT.
Hawaii and Alaska Volume Growth
Hawaii container volume increased by 3.2% year-over-year due to the dry docking of a competitor's vessel. Alaska's container volume increased by 4.8% year-over-year due to higher northbound volume.
New Direct Service in Vietnam
Matson announced a new direct service connecting Ho Chi Minh to their CLX and Mac Shanghai departures, highlighting their brand recognition in Asia.
Net Income and Earnings Per Share Increase
Net income increased by 100.3% year-over-year to $72.3 million, with diluted earnings per share increasing by 109.6% year-over-year to $2.18 per share.
Negative Updates
Decline in China Container Volume
Container volume in China declined approximately 30% year-over-year due to tariffs and global trade uncertainty.
Lower Logistics Operating Income
Logistics operating income decreased by $800,000 year-over-year, primarily due to a lower contribution from freight forwarding and transportation brokerage.
Guam Volume Decrease
Matson's container volume in Guam decreased 14.3% year-over-year, primarily due to lower demand from retail and food and beverage segments.
Lower 2025 Outlook
Matson lowered its 2025 outlook due to significant uncertainty regarding tariffs, global trade, and geopolitical factors.
Company Guidance
During Matson's First Quarter 2025 Financial Results Conference Call on May 5, 2025, key metrics and guidance were discussed. The first quarter saw a significant year-over-year increase in consolidated operating income, driven by higher freight rates in China and increased volumes in Hawaii and Alaska, partially offset by a decrease in Guam. However, logistics operating income was lower due to challenges in freight forwarding and transportation brokerage, despite a higher contribution from supply chain management. Looking ahead, Matson is lowering its 2025 outlook due to uncertainties related to tariffs, global trade, and geopolitical factors. Specifically, the company expects container volume and freight rates to be lower year-over-year in the second quarter and full year. In China, first-quarter freight rates were significantly higher, although container volume was 1.4% lower year-over-year. Notably, since new tariffs were implemented in April, Matson's container volume has decreased by approximately 30% year-over-year. In Hawaii, container volume increased by 3.2% due to a competitor's vessel dry docking, while Alaska saw a 4.8% increase. Conversely, Guam experienced a 14.3% decrease. The SSAT joint venture contributed $6.6 million in the first quarter, down by $6.2 million year-over-year. For 2025, Matson expects lower operating income in Ocean Transportation and Logistics compared to 2024, alongside expectations of $200 million in depreciation and amortization and $305 million in new vessel construction payments.Matson Financial Statement Overview
Summary
Matson demonstrates financial resilience with strong profitability and cash generation capabilities, despite revenue pressures in recent years. The balance sheet displays significant strength with improving leverage metrics. Overall, the company is well-positioned financially, with some challenges in sustaining revenue growth.Income Statement
Matson's revenue shows a downward trend from 2022 to 2024, with a slight recovery in TTM. Despite this, gross and net profit margins remain robust, reflecting efficient cost management. The EBIT and EBITDA margins are healthy, though there's a notable decline in revenue growth rate from previous high levels.75
Positive
Balance Sheet
The company's balance sheet is strong with a debt-to-equity ratio that has improved over time, indicating reduced leverage. Return on Equity (ROE) remains solid, showcasing effective utilization of shareholder's equity. The equity ratio is stable, reflecting a strong equity base relative to total assets.80
Positive
Cash Flow
Operating cash flow is consistently positive, providing a solid cash base. Free cash flow growth fluctuates but remains positive overall, indicating the company's capability to generate excess cash after capital expenditures. The ratios of operating cash flow and free cash flow to net income are favorable, highlighting efficient cash conversion.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.48B | 3.42B | 3.09B | 4.34B | 3.93B | 2.38B |
| Gross Profit | 896.90M | 855.90M | 623.90M | 1.53B | 1.37B | 479.00M |
| EBITDA | 774.90M | 916.00M | 690.50M | 1.68B | 1.45B | 494.30M |
| Net Income | 512.60M | 476.40M | 297.10M | 1.06B | 927.40M | 193.10M |
Balance Sheet | ||||||
| Total Assets | 4.53B | 4.73B | 4.29B | 4.33B | 3.69B | 2.90B |
| Cash, Cash Equivalents and Short-Term Investments | 122.00M | 266.80M | 134.00M | 249.80M | 282.40M | 14.40M |
| Total Debt | 706.00M | 749.00M | 725.00M | 910.70M | 1.06B | 1.00B |
| Total Liabilities | 1.89B | 1.94B | 1.89B | 2.03B | 2.03B | 1.94B |
| Stockholders Equity | 2.63B | 2.65B | 2.40B | 2.30B | 1.67B | 961.20M |
Cash Flow | ||||||
| Free Cash Flow | 565.40M | 457.70M | 262.10M | 1.06B | 658.80M | 237.50M |
| Operating Cash Flow | 820.20M | 767.80M | 510.50M | 1.27B | 984.10M | 429.80M |
| Investing Cash Flow | -406.50M | -336.10M | -338.20M | -729.30M | -323.40M | -177.00M |
| Financing Cash Flow | -319.90M | -301.20M | -289.70M | -576.60M | -392.70M | -261.50M |
Matson Technical Analysis
Positive
112.13
Price Trends
111.06
Positive
117.46
Negative
129.92
Negative
Market Momentum
0.31
Negative
53.61
Neutral
54.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MATX, the sentiment is Positive. The current price of 112.13 is above the 20-day moving average (MA) of 111.92, above the 50-day MA of 111.06, and below the 200-day MA of 129.92, indicating a neutral trend. The MACD of 0.31 indicates Negative momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 54.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MATX.
Matson Risk Analysis
Matson disclosed 31 risk factors in its most recent earnings report. Matson reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Matson Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.68B | 7.43 | 20.48% | 1.21% | 11.88% | 80.21% | |
74 Outperform | $2.09B | 9.03 | 11.09% | 1.12% | 25.60% | -9.32% | |
74 Outperform | $1.99B | 0.84 | 72.40% | 17.93% | 65.83% | ― | |
71 Outperform | $1.63B | 3.66 | 14.14% | 3.80% | 4.93% | -17.08% | |
70 Outperform | $6.57B | 23.12 | 8.95% | ― | 2.99% | 19.03% | |
63 Neutral | $1.59B | 14.04 | 6.06% | 2.51% | -7.73% | -39.13% | |
58 Neutral | HK$13.95B | 4.43 | -3.01% | 7.31% | 3.67% | -54.16% |
* Industrials Sector Average
Performance Comparison
MATX
Matson
112.13
-11.44
-9.26%
DAC
Danaos
87.34
3.48
4.15%
KEX
Kirby
117.05
-4.03
-3.33%
SBLK
Star Bulk Carriers
17.40
-4.92
-22.04%
GOGL
Golden Ocean Group
7.77
-4.38
-36.05%
ZIM
ZIM Integrated Shipping Services
15.86
5.20
48.78%
Matson Corporate Events
Executive/Board ChangesShareholder Meetings
Matson Shareholders Approve 2025 Incentive Compensation Plan
Neutral
Apr 28, 2025
On April 24, 2025, Matson, Inc. held its 2025 Annual Meeting of Shareholders where several key decisions were made. The shareholders approved the 2025 Incentive Compensation Plan, which allows for the issuance of 1,400,000 common shares, and ratified the appointment of Deloitte & Touche LLP as the independent accounting firm for the year ending December 31, 2025. Additionally, seven directors were elected to the board, and executive compensation was approved in an advisory vote.
Executive/Board Changes
Matson EVP Rusty Rolfe Announces Retirement
Neutral
Apr 28, 2025
On April 23, 2025, Rusty K. Rolfe, the Executive Vice President and President of Matson Logistics, announced his retirement from Matson, Inc., effective July 1, 2025. The company may enter into a Consulting Agreement with Mr. Rolfe to assist with the transition following his retirement.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.