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Matson (MATX)
NYSE:MATX
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Matson
(NYSE:MATX)
71Outperform
Positive Factors
Domestic Revenue Stability
Matson offers a stable domestic revenue stream, with additional potential from international Transpacific trade rates possibly surprising higher.
Financial Performance
Matson's balance sheet transformation since 2020 has boosted capital rewards, with a net cash position of $519 million and reduced share count by 25%.
Shareholder Rewards
Matson has reduced its share count by 25% since 2020 and maintains a quarterly dividend, which has increased each year since inception.
Negative Factors
Market Conditions
Lower US import volumes are already reflected in spot rates, posing a challenge despite the potential for a positive surprise in peak season.
Matson (MATX) vs. S&P 500 (SPY)
Market Cap
$3.71B
Dividend Yield1.18%
Average Volume (3M)526.06K
Price to Earnings (P/E)8.1
Beta (1Y)0.75
Revenue Growth10.57%
EPS Growth68.82%
CountryUS
Employees4,356
SectorIndustrials
Sector Strength78
IndustryMarine Shipping
Share Statistics
EPS (TTM)N/A
Shares Outstanding32,831,207
10 Day Avg. Volume498,768
30 Day Avg. Volume526,061
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.35
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.87
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$153.33Price Target Upside35.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Matson Business Overview & Revenue Model
Company DescriptionMatson, Inc. (MATX) is a leading provider of ocean transportation and logistics services. Based in Honolulu, Hawaii, the company operates in the transportation and logistics sectors, offering a wide range of services including container shipping and freight services across the Pacific. Matson is particularly well-known for its operations in the U.S. domestic trade lanes, especially between the West Coast of the United States and Hawaii, Alaska, Guam, Micronesia, and select South Pacific islands. The company also provides logistics services such as warehousing, distribution, and freight forwarding.
How the Company Makes MoneyMatson generates revenue primarily through its Ocean Transportation and Logistics segments. In the Ocean Transportation segment, the company earns money by providing container shipping services, where it charges customers for transporting goods across the Pacific Ocean. This includes both domestic routes, such as from the U.S. mainland to Hawaii and Alaska, and international routes, including to Guam and other Pacific islands. The Logistics segment contributes to the company's revenue by offering services like freight forwarding, warehousing, and distribution, which help streamline customers' supply chains. Key revenue streams include shipping fees, fuel surcharges, and logistics service charges. Matson's earnings are influenced by factors such as shipping demand, fuel prices, and economic conditions in the regions it serves. The company also benefits from long-standing relationships and contracts with government and military clients, providing additional stability to its revenue streams.
Matson Financial Statement Overview
Summary
Matson demonstrates strong financial health with impressive revenue growth, solid profitability margins, and a strong balance sheet. The company shows effective leverage management and robust cash flow generation, despite some pressure on profitability and an increase in liabilities.Income Statement
Matson has shown strong revenue growth from 2023 to 2024, with a growth rate of 10.58%. The company maintains a high gross profit margin of 100% in 2024, indicating strong pricing power and cost management. However, the net profit margin decreased from 9.60% in 2022 to 13.92% in 2024, suggesting some pressure on profitability. The EBIT margin improved to 16.11% in 2024, reflecting efficient operations.―
Balance Sheet
The company's balance sheet is robust with a debt-to-equity ratio of 0.28, indicating a conservative leverage position. Return on equity in 2024 is 17.96%, showcasing effective use of equity to generate profits. The equity ratio stands at 66.54%, suggesting a solid equity base compared to total assets. However, the increase in total liabilities from previous years requires monitoring.78
Cash Flow
Matson's cash flow is strong, with a significant free cash flow growth of 207.50% from 2023 to 2024. The operating cash flow to net income ratio is healthy at 1.61 for 2024, indicating effective cash generation from operations. The free cash flow to net income ratio is a robust 1.61, highlighting strong cash conversion and liquidity position.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.42B | 3.09B | 4.34B | 3.93B | 2.38B | Gross Profit |
| 855.90M | 623.90M | 1.53B | 1.37B | 479.00M | EBIT |
| 551.30M | 340.60M | 1.35B | 1.19B | 280.30M | EBITDA |
| 893.70M | 690.50M | 1.68B | 1.45B | 494.30M | Net Income Common Stockholders |
| 476.40M | 297.10M | 1.06B | 927.40M | 193.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 266.80M | 134.00M | 249.80M | 282.40M | 14.40M | Total Assets |
| 4.60B | 4.29B | 4.33B | 3.69B | 2.90B | Total Debt |
| 749.00M | 725.00M | 504.60M | 614.70M | 744.80M | Net Debt |
| 482.20M | 591.00M | 254.80M | 332.30M | 730.40M | Total Liabilities |
| 1.94B | 1.89B | 2.03B | 2.03B | 1.94B | Stockholders Equity |
| 2.65B | 2.40B | 2.30B | 1.67B | 961.20M |
| Cash Flow | Free Cash Flow | |||
| 767.80M | 249.70M | 1.06B | 658.80M | 237.50M | Operating Cash Flow |
| 767.80M | 510.50M | 1.27B | 984.10M | 429.80M | Investing Cash Flow |
| -336.10M | -338.20M | -729.30M | -323.40M | -177.00M | Financing Cash Flow |
| -301.20M | -289.70M | -576.60M | -392.70M | -261.50M |
Matson Technical Analysis
Negative
113.14
Price Trends
121.50
Negative
130.74
Negative
134.76
Negative
Market Momentum
-3.45
Negative
53.44
Neutral
92.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MATX, the sentiment is Negative. The current price of 113.14 is above the 20-day moving average (MA) of 104.08, below the 50-day MA of 121.50, and below the 200-day MA of 134.76, indicating a neutral trend. The MACD of -3.45 indicates Negative momentum. The RSI at 53.44 is Neutral, neither overbought nor oversold. The STOCH value of 92.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.86B | 0.86 | 66.17% | 46.33% | 63.25% | ― | |
77 Outperform | $1.54B | 3.17 | 15.68% | 4.00% | 6.00% | -9.89% | |
72 Outperform | $1.76B | 5.36 | 14.71% | 14.24% | 33.31% | 62.94% | |
71 Outperform | $3.71B | 8.12 | 18.86% | 1.18% | 10.57% | 68.82% | |
71 Outperform | $1.56B | 7.01 | 11.68% | 13.43% | 9.33% | 98.70% | |
67 Neutral | $5.94B | 20.70 | 8.94% | ― | 2.99% | 19.03% | |
64 Neutral | $4.27B | 11.81 | 5.31% | 249.66% | 4.08% | -8.61% |
* Industrials Sector Average
Performance Comparison
MATX
Matson
113.14
2.56
2.32%
DAC
Danaos
82.47
6.45
8.48%
KEX
Kirby
104.48
-7.52
-6.71%
SBLK
Star Bulk Carriers
15.03
-7.51
-33.32%
GOGL
Golden Ocean Group
7.82
-5.24
-40.12%
ZIM
ZIM Integrated Shipping Services
15.41
6.74
77.74%
Matson Earnings Call Summary
Earnings Call Date:Feb 25, 2025
(Q4-2024)
| % Change Since: -19.97%|
Next Earnings Date:May 05, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong performance in the fourth quarter with significant growth in operating income and successful shareholder returns. However, challenges such as the impairment charge in the SSAT joint venture, volume declines in certain regions, and geopolitical uncertainties present some concerns.Q4-2024 Updates
Positive Updates
Strong Fourth Quarter Performance
Matson had a very strong fourth quarter, exceeding expectations with significant contributions from the China service, leading to a year-over-year increase in Ocean Transportation operating income and consolidated operating income.
Increased Operating Income
For the full year 2024, consolidated operating income increased by $208.5 million year-over-year, primarily driven by higher freight rates in China and a resilient U.S. economy.
Logistics Segment Growth
Logistics operating income increased year-over-year, primarily due to a higher contribution from supply chain management, with a full year 2024 operating income of $50.4 million.
Shareholder Returns
Matson returned approximately $243.9 million to shareholders via dividends and share repurchase in 2024.
Strong Economic Outlook for Alaska
The Alaska economy continues to show good economic growth with job growth across almost every industry, supporting volume growth expectations for 2025.
Negative Updates
Impairment Charge in SSAT Joint Venture
The SSAT joint venture recorded an impairment charge of $18.4 million related to the write-down of a terminal operating lease asset, reducing fourth quarter diluted earnings per share by $0.42.
Decline in Guam Container Volume
Matson's container volume in Guam decreased by 10% year-over-year in the fourth quarter of 2024, primarily due to lower demand from the retail and food and beverage segments.
Hawaii and Guam Economic Challenges
Hawaii's container volume decreased due to lower general demand, and Maui tourism remains significantly below prior levels. Additionally, Guam's economy faces lower general demand, impacting container volumes.
Potential Impact of Geopolitical Factors
The company's freight rates could be affected by geopolitical conditions, supply chain activity, and macroeconomic factors such as tariffs and the Red Sea situation.
Company Guidance
During Matson's Fourth Quarter 2024 Financial Results Conference Call, significant metrics and guidance were provided. For Q4 2024, Matson's consolidated operating income increased by $72.2 million year-over-year to $147.5 million, largely driven by higher freight rates in China and stronger logistics performance. The SSAT joint venture recorded an $18.4 million impairment charge, reducing diluted EPS by $0.42. Hawaii container volume decreased 1.7% in Q4 and 2.3% for the full year. China service volume rose 7.2% in Q4, with freight rates remaining elevated. For 2025, Matson expects container volumes in Hawaii to be stable, modest growth in Guam, and comparable volumes in Alaska. The company predicts full-year 2025 Ocean Transportation operating income will depend on geopolitical factors, with potential moderation if trade normalizes in the Red Sea. Logistics operating income is expected to be modestly lower due to challenging conditions. For 2025, Matson plans capital expenditures of $425 to $445 million, with significant investments in new vessel construction. The company also aims to continue its share repurchase program, having repurchased 1.6 million shares in 2024.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.
Spark’s Take on MATX Stock
According to Spark, TipRanks’ AI Analyst, MATX is a Outperform.
Matson’s strong financial performance and strategic corporate actions support a moderately positive outlook. However, technical indicators suggest caution due to bearish momentum. The stock’s low valuation and shareholder-friendly initiatives provide a buffer against market uncertainties, while geopolitical risks and operational challenges in specific regions require ongoing attention.
To see Spark’s full report on MATX stock, click here.
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.
Spark’s Take on MATX Stock
According to Spark, TipRanks’ AI Analyst, MATX is a Outperform.
Matson’s strong financial performance and strategic corporate actions support a moderately positive outlook. However, technical indicators suggest caution due to bearish momentum. The stock’s low valuation and shareholder-friendly initiatives provide a buffer against market uncertainties, while geopolitical risks and operational challenges in specific regions require ongoing attention.
To see Spark’s full report on MATX stock, click here.
Stock Buyback
Matson Expands Share Repurchase Program to 2027
Positive
Feb 27, 2025
On February 27, 2025, Matson, Inc., a prominent U.S. carrier in the Pacific, announced the addition of three million shares to its existing share repurchase program, extending the program to December 31, 2027. This decision follows the repurchase of 11.5 million shares since August 2021, aimed at returning excess cash to shareholders and enhancing long-term shareholder value. The repurchase will be conducted at the company’s discretion based on capital needs, market price, and conditions, with the possibility of suspension or discontinuation at any time.
Business Operations and Strategy
Matson to Present at Stifel Conference in Miami
Positive
Feb 11, 2025
On February 11, 2025, Matson, Inc. will present an overview of the company at the Stifel Transportation & Logistics Conference in Miami, Florida. The presentation materials will be available on Matson’s website on the same date. The company’s presentation will focus on its market position as a strong operator in the Pacific, emphasizing its fast transit and premium services, particularly in the China-to-Long Beach Express service. Matson highlights its financial strength, growth opportunities, and commitment to returning cash to shareholders, positioning itself as a world-class operator in niche markets.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.