Matson (MATX) AI Stock Analysis

• Market Cap: $3.12B
• Dividend Yield: 1.29%
• Average Volume (3M): 349.96K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 1.02
• Revenue Growth: 1.88%
• EPS Growth: 9.30%
• Country: US
• Employees: 4,356
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 4.24
• Shares Outstanding: 31,789,019
• 10 Day Avg. Volume: 389,057
• 30 Day Avg. Volume: 349,961
• PEG Ratio: 0.14
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 1.33
• P/FCF Ratio: 9.93
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 4.77
• Enterprise Value/Ebitda: 4.53
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $121.00 ▲(29.51% Upside)

Matson's overall stock score reflects a stable financial position with strong profitability and attractive valuation. However, challenges in revenue and cash flow growth, coupled with mixed technical signals and earnings call concerns, suggest a need for cautious optimism. The company's strategic positioning and financial resilience provide a solid foundation, but growth and market conditions require close attention.

Positive Factors

Strong Cash Flows

Strong cash flows indicate robust operational efficiency and financial health, enabling Matson to fund operations, invest in growth, and return capital to shareholders.

Low Leverage

Low leverage enhances financial stability, providing Matson with greater flexibility to navigate economic fluctuations and invest in strategic opportunities.

Positive U.S.-China Trade Deal Impact

The trade deal reduces operational uncertainties and costs, potentially boosting Matson's profitability and competitive position in the China service segment.

Negative Factors

Decline in Revenue Growth

A sharp decline in revenue growth can indicate weakening demand or competitive pressures, potentially impacting Matson's long-term market position and profitability.

Decreased Operating Income

Reduced operating income reflects challenges in core segments, which could strain profitability and limit resources for strategic investments.

Decline in China Service Volume

A decline in China service volume suggests competitive or market challenges, potentially affecting Matson's revenue and market share in a key growth region.

Matson Business Overview & Revenue Model

Company Description

Matson, Inc. (MATX) is a leading provider of ocean transportation and logistics services, primarily serving the Pacific region. The company operates through two main segments: Ocean Transportation and Logistics. Matson's core services include container shipping, terminal operations, and logistics solutions, catering mainly to the transportation of goods between the U.S. mainland and Hawaii, as well as to other Pacific islands. The company is known for its reliable service and commitment to customer satisfaction in the transportation of a wide range of cargo, including retail goods, food products, and industrial materials.

How the Company Makes Money

Matson generates revenue primarily through its Ocean Transportation segment, which accounts for a significant portion of its earnings. This segment derives income from the shipping of containerized freight, with revenue influenced by factors such as shipping volumes, freight rates, and fuel costs. The Logistics segment contributes additional revenue by providing integrated supply chain solutions, including transportation management, warehousing, and distribution services. Key revenue streams include contracts with large retail and food companies, as well as spot market transactions. Additionally, strategic partnerships with other logistics providers enhance service offerings and expand reach, bolstering Matson's competitive edge in the market.

Matson Financial Statement Overview

Summary

Matson's financial performance is stable with strong profitability and efficient operations. However, negative revenue and free cash flow growth rates highlight potential challenges. The company's low leverage and healthy return on equity are positive indicators, but pressure on margins and cash flow generation needs monitoring.

Income Statement

Matson's income statement shows a mixed performance. The TTM data reflects a decline in revenue growth rate at -2.36%, indicating a contraction compared to previous periods. Gross profit margin and net profit margin have decreased from 2024 to TTM, suggesting pressure on profitability. However, the company maintains a reasonable EBIT margin of 16.19% and EBITDA margin of 23.00% in TTM, indicating operational efficiency. Overall, while profitability metrics remain solid, the negative revenue growth is a concern.

Balance Sheet

The balance sheet of Matson is relatively strong with a low debt-to-equity ratio of 0.27 in TTM, reflecting prudent financial leverage. The return on equity (ROE) is healthy at 18.90%, indicating effective use of equity to generate profits. The equity ratio stands at 58.43%, showing a stable capital structure. Despite a slight increase in debt from 2024, the overall financial position remains stable and well-managed.

Cash Flow

Matson's cash flow statement reveals some challenges. The free cash flow growth rate is negative at -2.93% in TTM, indicating a decline in cash generation. The operating cash flow to net income ratio is slightly above 1, suggesting adequate cash flow generation relative to net income. However, the free cash flow to net income ratio of 0.77 indicates that a significant portion of net income is not translating into free cash flow. While cash flow from operations remains robust, the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.38B	3.42B	3.09B	4.34B	3.93B	2.38B
Gross Profit	787.80M	855.90M	623.90M	1.53B	1.37B	479.00M
EBITDA	830.80M	916.00M	690.50M	1.68B	1.45B	494.30M
Net Income	429.70M	476.40M	297.10M	1.06B	927.40M	193.10M
Balance Sheet
Total Assets	4.60B	4.60B	4.29B	4.33B	3.69B	2.90B
Cash, Cash Equivalents and Short-Term Investments	92.70M	266.80M	134.00M	249.80M	282.40M	14.40M
Total Debt	719.00M	749.00M	725.00M	910.70M	1.06B	1.00B
Total Liabilities	1.91B	1.94B	1.89B	2.03B	2.03B	1.94B
Stockholders Equity	2.69B	2.65B	2.40B	2.30B	1.67B	961.20M
Cash Flow
Free Cash Flow	334.90M	457.70M	262.10M	1.06B	658.80M	237.50M
Operating Cash Flow	542.80M	767.80M	510.50M	1.27B	984.10M	429.80M
Investing Cash Flow	-363.70M	-336.10M	-338.20M	-729.30M	-323.40M	-177.00M
Financing Cash Flow	-359.10M	-301.20M	-289.70M	-576.60M	-392.70M	-261.50M

Matson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 93.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 93.43 is below the 20-day moving average (MA) of 100.00, below the 50-day MA of 100.36, and below the 200-day MA of 111.95, indicating a neutral trend. The MACD of 3.14 indicates Negative momentum. The RSI at 65.51 is Neutral, neither overbought nor oversold. The STOCH value of 70.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MATX.

Matson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMRE	76 Outperform	$1.56B	5.49	14.98%	3.18%	-29.82%	-16.77%
DAC	73 Outperform	$1.73B	3.90	13.38%	3.57%	5.63%	-17.54%
KEX	73 Outperform	$5.99B	20.51	9.17%	―	1.59%	3.35%
MATX	71 Outperform	$3.12B	7.46	16.38%	1.29%	1.88%	9.30%
SBLK	66 Neutral	$2.15B	17.77	5.11%	4.21%	2.95%	-61.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ZIM	63 Neutral	$1.84B	0.92	59.06%	48.54%	43.57%	―

Matson Corporate Events

Matson Inc’s Earnings Call: Challenges and Resilience

Matson Inc’s recent earnings call painted a mixed picture, highlighting both operational challenges and financial resilience. The company faced significant hurdles, particularly in its China service and logistics segments, but also reported positive developments such as increased container volumes in Alaska, robust cash flows, and benefits from the U.S.-China trade deal. Despite the challenges in operating income and specific market segments, Matson emphasized its strategic positioning and financial strength.

Matson, Inc. Reports Decline in Q3 2025 Earnings

Matson, Inc., a prominent player in the ocean transportation and logistics sector, provides essential freight services across the Pacific, including expedited routes from China to the U.S. West Coast. In its third-quarter 2025 earnings report, Matson reported a decline in net income to $134.7 million from $199.1 million in the same period last year, with earnings per share also decreasing from $5.89 to $4.24. The company’s consolidated revenue fell to $880.1 million, primarily due to reduced freight rates and container volumes in its China service. Matson’s Ocean Transportation segment saw a notable decrease in operating income by 35%, attributed to lower demand in the Transpacific tradelane and reduced freight rates. However, the company experienced growth in container volumes in Hawaii and Alaska, while Guam and China saw declines. The Logistics segment also faced a downturn with a decrease in operating income by 11.7%, impacted by lower contributions from freight forwarding and supply chain management. Looking ahead, Matson anticipates a challenging fourth quarter with expectations of a 30% decrease in consolidated operating income compared to the previous year, although a recent trade agreement between the U.S. and China may provide some stability in the trading environment.

Matson Highlights Strategic Focus at Jefferies Conference

On September 3, 2025, Matson, Inc. presented an overview of the company at the Jefferies Industrials Conference in New York. The presentation highlighted Matson’s strong market positions in niche markets, its commitment to returning cash to shareholders, and its financial strength to invest in growth opportunities. The company also emphasized its unique network connecting the Pacific and its premium services, such as the China-to-Long Beach Express, which offer competitive advantages and high return on invested capital. The announcement underscores Matson’s strategic focus on expanding its service offerings and maintaining its leadership in the Pacific transportation and logistics industry.

The most recent analyst rating on (MATX) stock is a Buy with a $116.00 price target. To see the full list of analyst forecasts on Matson stock, see the MATX Stock Forecast page.