Matson (MATX) AI Stock Analysis

• Market Cap: $3.86B
• Dividend Yield: 1.13%
• Average Volume (3M): 342.15K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.01
• 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: 31,180,035
• 10 Day Avg. Volume: 450,817
• 30 Day Avg. Volume: 342,150
• 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: 0.97
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 4.77
• Enterprise Value/Ebitda: 4.53
• 1Y Price Target: $142.00
• Price Target Upside: 30.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 12.1
• Revenue Forecast (FY): $3.28B

• Rating: 77 Outperform
• Price Target: $131.00 ▲(20.03% Upside)

Matson's overall stock score reflects a solid financial foundation and positive technical indicators, suggesting potential for growth. However, challenges in revenue and free cash flow growth, as well as mixed earnings call insights, temper the outlook. The company's strategic initiatives and undervaluation provide a balanced investment opportunity.

Positive Factors

Strong Cash Flows

Strong cash flows indicate Matson's ability to fund operations and investments without relying heavily on external financing, supporting long-term growth.

Healthy Balance Sheet

A healthy balance sheet with low leverage enhances financial stability and flexibility, enabling Matson to navigate industry challenges effectively.

Strategic Positioning

Strategic positioning in key markets like the Pacific region strengthens Matson's competitive advantage and supports sustained market leadership.

Negative Factors

Decline in China Service Volume

A significant decline in China service volume reflects challenges in maintaining market share and revenue in a key segment, impacting overall growth.

Decreased Operating Income

A decrease in operating income suggests potential difficulties in cost management and profitability, which could hinder long-term financial performance.

Free Cash Flow Decline

A decline in free cash flow growth may limit Matson's ability to invest in growth opportunities and manage financial obligations, affecting future performance.

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 and logistics services. The company's key revenue streams include freight transportation for containerized cargo, which accounts for a significant portion of its earnings, particularly in the Hawaii and Alaska markets. Additionally, Matson earns income through logistics services that encompass inland transportation, warehousing, and distribution. The company has established strategic partnerships with various stakeholders, including shipping agents and logistics providers, enhancing its service offerings and expanding its market reach. Seasonal demand fluctuations, especially for goods transported to Hawaii, and contracts with government and commercial customers also play a crucial role in its revenue generation.

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: 109.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 109.14 is below the 20-day moving average (MA) of 117.88, above the 50-day MA of 107.66, and above the 200-day MA of 108.57, indicating a bullish trend. The MACD of 4.98 indicates Negative momentum. The RSI at 65.43 is Neutral, neither overbought nor oversold. The STOCH value of 56.29 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
DAC	81 Outperform	$1.74B	3.79	13.16%	3.64%	3.82%	-13.73%
MATX	77 Outperform	$3.86B	9.43	16.38%	1.13%	1.88%	9.30%
KEX	77 Outperform	$6.04B	20.67	9.17%	―	1.59%	3.35%
CMRE	76 Outperform	$1.88B	6.25	14.98%	2.94%	-29.82%	-16.77%
SBLK	67 Neutral	$2.16B	35.97	2.50%	1.59%	-13.87%	-82.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ZIM	62 Neutral	$2.53B	2.53	25.25%	20.35%	1.63%	-30.30%

Matson Corporate Events

Matson to Present at Stephens 2025 Investment Conference

Matson, Inc. announced its participation in the Stephens 2025 Annual Investment Conference in Nashville, Tennessee, on November 18, 2025, where it will present an overview of the company and respond to questions. The presentation will highlight Matson’s strategic positioning in the Pacific, its premium service offerings, and its financial strength, including a new vessel program and significant stock repurchases. These initiatives underscore Matson’s commitment to maintaining strong market positions and returning capital to shareholders, while leveraging growth opportunities in ocean transportation and logistics services.