Matson (MATX) AI Stock Analysis

• Market Cap: $3.36B
• Dividend Yield: 1.36%
• Average Volume (3M): 391.76K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.91
• Revenue Growth: 8.75%
• EPS Growth: 56.21%
• Country: US
• Employees: 4,356
• Sector: Industrials
• Sector Strength: 76
• Industry: Marine Shipping
• EPS (TTM): 2.92
• Shares Outstanding: 31,789,019
• 10 Day Avg. Volume: 352,702
• 30 Day Avg. Volume: 391,763
• 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: 1.26
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 4.81
• Enterprise Value/Ebitda: 4.72
• 1Y Price Target: $115.00
• Price Target Upside: 8.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: $116.00 ▲(9.11% Upside)

Matson's overall stock score reflects strong valuation and financial stability, tempered by technical weakness and mixed earnings performance. The company's low P/E ratio and solid balance sheet are key strengths, while declining revenue and cash flow growth, along with bearish technical indicators, present challenges.

Positive Factors

Capital Management

Matson's balance sheet transformed since 2020, boosting capital rewards, with a net cash position of $519 million and reduced share count by 25%.

Financial Performance

Matson's 2Q results are likely to be higher than initially expected.

Market Position

Matson is expected to outperform industry trends due to its growing Vietnam activities.

Negative Factors

Forecast Revision

Lowering estimates to reflect softer rates.

Freight Rates

Freight rates and volumes have softened further.

Market Conditions

Uncertainty on demand especially given a weak peak season thus far.

Matson Business Overview & Revenue Model

Company Description

Matson, Inc., together with its subsidiaries, provides ocean transportation and logistics services. The company's Ocean Transportation segment offers ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska, and Guam, as well as to other island economies in Micronesia. It primarily transports dry containers of mixed commodities, refrigerated commodities, packaged foods and beverages, building materials, automobiles, and household goods; livestock; seafood; general sustenance cargo; and garments, footwear, e-commerce, and other retail merchandise. This segment also operates an expedited service from China to Long Beach, California, and various islands in the South Pacific, as well as Okinawa, Japan; and provides container stevedoring, refrigerated cargo services, inland transportation, container equipment maintenance, and other terminal services to ocean carriers on the Hawaiian islands of Oahu, Hawaii, Maui, and Kauai, as well as in the Alaska locations of Anchorage, Kodiak, and Dutch Harbor. In addition, the company offers vessel management and container transshipment services. Its Logistics segment provides multimodal transportation brokerage services, including domestic and international rail intermodal, long-haul and regional highway trucking, specialized hauling, flat-bed and project, less-than-truckload, and expedited freight services; less-than-container load consolidation and freight forwarding services; warehousing and distribution services; supply chain management services, and non-vessel operating common carrier freight forwarding services. The company serves the U.S. military, freight forwarders, retailers, consumer goods, automobile manufacturers, and other customers. The company was formerly known as Alexander & Baldwin Holdings, Inc. and changed its name to Matson, Inc. in June 2012. Matson, Inc. was founded in 1882 and is headquartered in Honolulu, Hawaii.

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 demonstrates financial resilience with strong profitability and cash generation capabilities despite revenue pressures. The balance sheet displays significant strength with improving leverage metrics. Challenges remain 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.46B	3.42B	3.09B	4.34B	3.93B	2.38B
Gross Profit	876.50M	855.90M	623.90M	1.53B	1.37B	479.00M
EBITDA	892.20M	893.70M	690.50M	1.68B	1.45B	494.30M
Net Income	494.10M	476.40M	297.10M	1.06B	927.40M	193.10M
Balance Sheet
Total Assets	4.48B	4.60B	4.29B	4.33B	3.69B	2.90B
Cash, Cash Equivalents and Short-Term Investments	59.10M	266.80M	134.00M	249.80M	282.40M	14.40M
Total Debt	665.30M	749.00M	725.00M	910.70M	1.06B	1.00B
Total Liabilities	1.86B	1.94B	1.89B	2.03B	2.03B	1.94B
Stockholders Equity	2.62B	2.65B	2.40B	2.30B	1.67B	961.20M
Cash Flow
Free Cash Flow	432.90M	457.70M	262.10M	1.06B	658.80M	237.50M
Operating Cash Flow	617.90M	767.80M	510.50M	1.27B	984.10M	429.80M
Investing Cash Flow	-388.40M	-336.10M	-338.20M	-729.30M	-323.40M	-177.00M
Financing Cash Flow	-341.00M	-301.20M	-289.70M	-576.60M	-392.70M	-261.50M

Matson Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 106.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 106.31 is below the 20-day moving average (MA) of 106.92, below the 50-day MA of 109.13, and below the 200-day MA of 125.08, indicating a bearish trend. The MACD of -1.39 indicates Positive momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 29.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MATX.

Matson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAC	80 Outperform	$1.69B	3.79	13.38%	3.63%	5.63%	-17.54%
SBLK	74 Outperform	$2.10B	17.38	5.11%	7.75%	2.95%	-61.74%
ZIM	72 Outperform	$1.87B	0.80	59.06%	59.08%	43.57%	―
MATX	70 Outperform	$3.36B	7.14	19.70%	1.36%	8.75%	56.21%
GOGL	67 Neutral	$1.59B	14.04	6.06%	10.03%	-7.73%	-39.13%
KEX	63 Neutral	$5.50B	18.47	9.11%	―	2.45%	11.97%
Sector *	59 Neutral	C$7.28B	-0.89	4.17%	2.31%	9.14%	-34.12%

Matson Corporate Events

Matson Amends Credit Agreement with Bank of America

On July 23, 2025, Matson, Inc. entered into a Third Amended and Restated Credit Agreement with Bank of America, reducing its credit facility from $650 million to $550 million due to the nearly fully-funded status of its Aloha Class vessel build program and lower anticipated capital needs. The agreement includes amendments to covenants and terms, such as changes to the pricing grid and the elimination of the minimum consolidated interest coverage ratio financial covenant. Additionally, Matson amended its existing private placement facilities to align with these changes, reflecting strategic financial adjustments to support its long-term operational goals.