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Martin Midstream Partners (MMLP)
NASDAQ:MMLP
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Martin Midstream
(NASDAQ:MMLP)
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Rating:47Neutral
Price Target:
$3.00
▲(14.50% Upside)
Martin Midstream's overall stock score is primarily impacted by its challenging financial performance, characterized by declining revenues and high leverage. The technical analysis indicates a bearish trend, while the valuation reflects significant risks due to negative earnings. The absence of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Long-term Contracts
Stable cash flow from long-term contracts enhances financial predictability and reduces exposure to volatile energy prices, supporting business sustainability.
Diversified Service Portfolio
A diversified service portfolio allows Martin Midstream to spread risk across different revenue streams, providing resilience against market volatility.
Credit Facility Extension
Extending the credit facility enhances financial stability and operational flexibility, allowing Martin Midstream to manage debt more effectively and plan for long-term growth.
Negative Factors
Declining Revenue
Declining revenue indicates challenges in maintaining market share and competitiveness, which can undermine long-term growth and profitability.
High Leverage
High leverage increases financial risk and limits the company's ability to invest in growth opportunities, potentially impacting long-term financial health.
Negative Equity
Negative equity suggests that liabilities exceed assets, posing a risk to financial stability and limiting the company's ability to secure additional financing.
Martin Midstream (MMLP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$115.60M
Dividend Yield0.77%
Average Volume (3M)19.33K
Price to Earnings (P/E)―
Beta (1Y)0.21
Revenue Growth-0.58%
EPS Growth-587.83%
CountryUS
Employees1,292
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)-0.21
Shares Outstanding39,055,084
10 Day Avg. Volume33,754
30 Day Avg. Volume19,328
Financial Highlights & Ratios
PEG Ratio-1.51
Price to Book (P/B)-1.94
Price to Sales (P/S)0.20
P/FCF Ratio21.98
Enterprise Value/Market Cap5.44
Enterprise Value/Revenue0.88
Enterprise Value/Gross Profit2.13
Enterprise Value/Ebitda6.87
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Martin Midstream Business Overview & Revenue Model
Company DescriptionMartin Midstream Partners L.P. (MMLP) is a diversified midstream company that provides a range of services to the petroleum and petrochemical industries. The company operates through various segments, including terminalling, transportation, and storage of petroleum products, as well as the production of sulfur and other specialty chemicals. Its core offerings encompass logistics services, storage facilities, and processing solutions, catering to both upstream and downstream sectors of the energy industry.
How the Company Makes MoneyMartin Midstream generates revenue primarily through the provision of logistics and storage services to oil and gas producers and refiners. Key revenue streams include terminalling fees from storing and handling petroleum products, transportation fees for moving products through pipelines and rail, and sales from sulfur and specialty chemical production. The company also benefits from long-term contracts with major customers, which provide stable cash flow. Partnerships with key industry players enhance its market position and contribute to consistent earnings, while a diversified service portfolio helps mitigate risks associated with fluctuating energy prices.
Martin Midstream Earnings Call Summary
Earnings Call Date:Oct 16, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there was notable outperformance in segments like Transportation and Sulfur Services, overall financial performance fell short of guidance due to increased expenses. The Specialty Products segment notably underperformed, reflecting economic challenges. However, the pending transaction with Martin Resource Management and strategic plans for debt reduction provide some positive outlook.Q3-2024 Updates
Positive Updates
Transportation Segment Outperformance
The transportation segment had an adjusted EBITDA of $11.6 million, exceeding guidance of $10.8 million. The Marine Transportation business also exceeded expectations with an adjusted EBITDA of $5.1 million compared to guidance of $4.4 million.
Sulfur Services Segment Success
Sulfur Services segment had an adjusted EBITDA of $4.2 million, surpassing guidance of $3.7 million. This was driven by strong sulfur production volumes, which were 12% greater than forecasted.
Pending Transaction with Martin Resource Management
A proposed transaction with Martin Resource Management Corporation is expected to deliver nearly $1 more per unit than the initial proposal, indicating a positive negotiation outcome for shareholders.
Negative Updates
Guidance Shortfall
Overall third quarter performance fell short of guidance by $1.3 million due to increased expenses related to long-term incentive plans, impacting multiple segments.
Specialty Products Segment Underperformance
Specialty Products segment had an adjusted EBITDA of $4.6 million, missing guidance by $1.9 million. This was attributed to weaker demand for packaged lubricants and grease, driven by the slowing U.S. economy.
Capital Expenditure and Debt Increase
Total long-term debt increased to $486.5 million, with a higher adjusted leverage ratio of 4.14x due to working capital needs and interest payments, though plans are in place to reduce leverage below 4x by year-end.
Company Guidance
During the MMLP Q3 2024 earnings call, the company provided detailed guidance on various metrics. Adjusted EBITDA for Q3 was reported at $25.1 million, falling short of the $26.4 million guidance due to a $1.4 million increase in long-term incentive plan expenses. Segment-wise, the Transportation segment outperformed with an adjusted EBITDA of $11.6 million against a $10.8 million forecast. Meanwhile, the Terminalling and Storage segment recorded $8.4 million, slightly missing the $9 million guidance due to a $0.6 million incentive charge. The Specialty Products segment underperformed, generating $4.6 million versus a $6.5 million guidance, primarily due to weak demand attributed to the slowing U.S. economy. Conversely, the Sulfur Services segment exceeded expectations with an adjusted EBITDA of $4.2 million, bolstered by a 12% higher daily sulfur production volume than forecast. Total long-term debt stood at $486.5 million, with a leverage ratio of 4.14x, and capital expenditures for the year are projected to be $57.4 million. Looking ahead, the company maintains its full-year 2024 adjusted EBITDA guidance at $116.1 million, with stable outlooks for the Marine and Sulfur Services divisions.Martin Midstream Financial Statement Overview
Summary
Martin Midstream faces significant financial challenges, with declining revenues, high leverage, and negative equity. Despite some improvement in cash flow, the financial position remains precarious due to ongoing losses and substantial debt levels.Income Statement
The income statement shows a declining revenue trend with a significant drop in the TTM period. Gross profit margin has decreased from previous years, indicating cost pressures. The company has consistently reported negative net income, reflecting challenges in achieving profitability. EBIT and EBITDA margins have also declined, suggesting operational inefficiencies.Balance Sheet
The balance sheet reveals a concerning negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is extremely high, reflecting significant leverage and potential risk. Return on equity is negative, further highlighting profitability challenges. The equity ratio is also negative, underscoring the company's reliance on debt financing.Cash Flow
Cash flow analysis shows some positive trends, with a notable increase in free cash flow in the TTM period. However, the operating cash flow to net income ratio indicates that cash generation is not sufficient to cover losses. The free cash flow to net income ratio is relatively healthy, suggesting some ability to generate cash despite net losses.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 713.26M | 707.62M | 797.96M | 1.02B | 882.43M | 672.14M |
| Gross Profit | 294.96M | 359.80M | 106.18M | 339.29M | 292.58M | 253.75M |
| EBITDA | 91.50M | 106.50M | 111.55M | 107.54M | 114.03M | 102.64M |
| Net Income | -20.59M | -5.08M | -4.44M | -10.33M | -211.00K | -6.77M |
Balance Sheet | ||||||
| Total Assets | 510.12M | 538.51M | 509.38M | 598.85M | 579.86M | 579.64M |
| Cash, Cash Equivalents and Short-Term Investments | 49.00K | 55.00K | 54.00K | 45.00K | 52.00K | 4.96M |
| Total Debt | 487.81M | 505.23M | 481.76M | 548.23M | 521.74M | 539.09M |
| Total Liabilities | 592.86M | 608.95M | 574.00M | 658.30M | 627.90M | 626.51M |
| Stockholders Equity | -82.73M | -71.88M | -66.18M | -61.11M | -49.92M | -48.78M |
Cash Flow | ||||||
| Free Cash Flow | 43.24M | 6.34M | 103.15M | -11.09M | 19.67M | 36.16M |
| Operating Cash Flow | 65.85M | 48.35M | 137.47M | 16.15M | 35.73M | 64.78M |
| Investing Cash Flow | -31.36M | -58.60M | -33.66M | -24.64M | -19.24M | 2.60M |
| Financing Cash Flow | -34.49M | 10.25M | -103.80M | 8.49M | -21.39M | -65.29M |
Martin Midstream Technical Analysis
Positive
2.62
Price Trends
2.63
Positive
2.85
Positive
2.94
Positive
Market Momentum
0.09
Negative
64.64
Neutral
89.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMLP, the sentiment is Positive. The current price of 2.62 is below the 20-day moving average (MA) of 2.64, below the 50-day MA of 2.63, and below the 200-day MA of 2.94, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 64.64 is Neutral, neither overbought nor oversold. The STOCH value of 89.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MMLP.
Martin Midstream Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $2.55B | 15.47 | ― | 9.78% | -1.78% | 9.32% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $1.20B | -56.42 | 12.40% | ― | -38.82% | 92.56% | |
62 Neutral | $1.45B | 20.39 | 11.24% | 6.93% | 4.10% | -36.72% | |
49 Neutral | $1.95B | -12.67 | -11.88% | 4.14% | -36.47% | -75.37% | |
47 Neutral | $115.60M | -5.74 | ― | 0.77% | -0.58% | -587.83% | |
47 Neutral | $483.56M | -7.91 | -1.23% | ― | 17.09% | 72.64% |
* Energy Sector Average
MMLP
Martin Midstream
2.99
-0.39
-11.54%
GEL
Genesis Energy
16.29
6.33
63.55%
GLP
Global Partners
43.46
-2.69
-5.83%
NGL
NGL Energy Partners
9.80
4.32
78.83%
SMC
Summit Midstream
26.44
-11.41
-30.15%
DKL
Delek Logistics
47.20
7.78
19.74%
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.