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Martin Midstream Partners (MMLP)
:MMLP
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Martin Midstream
(NASDAQ:MMLP)
Rating:41Neutral
Price Target:―
Martin Midstream (MMLP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$116.77M
Dividend Yield0.67%
Average Volume (3M)57.28K
Price to Earnings (P/E)33.6
Beta (1Y)0.40
Revenue Growth-2.03%
EPS Growth-348.43%
CountryUS
Employees1,292
SectorEnergy
Sector Strength45
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)-0.03
Shares Outstanding39,055,084
10 Day Avg. Volume28,694
30 Day Avg. Volume57,279
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)-1.67
Price to Sales (P/S)0.00
P/FCF Ratio44.35
Enterprise Value/Market Cap5.49
Enterprise Value/Revenue0.22
Enterprise Value/Gross Profit2.18
Enterprise Value/Ebitda1.09
Forecast
1Y Price Target
$4.00Price Target Upside33.78% Upside
Rating ConsensusHold
Number of Analyst Covering1
Martin Midstream Business Overview & Revenue Model
Company DescriptionMartin Midstream Partners L.P., together with its subsidiaries, engages in terminalling, processing, storage, and packaging of petroleum products and by-products primarily in the United States Gulf Coast region. The company's Terminalling and Storage segment owns or operates 15 marine shore-based terminal facilities and 13 specialty terminal facilities that provide storage, refining, blending, packaging, and handling services for producers and suppliers of petroleum products and by-products. This segment also offers land rental services to oil and gas companies, as well as storage and handling services for lubricants and fuels. Its Transportation segment operates a fleet of 570 tank trucks and 1,200 trailers; and 29 inland marine tank barges, 14 inland push boats, and 1 articulated offshore tug and barge unit to transport petroleum products and by-products, petrochemicals, and chemicals. The company's Sulfur Services segment processes molten sulfur into prilled or pelletized sulfur, which is used in the production of fertilizers and industrial chemicals. Its Natural Gas Liquids segment stores, distributes, and transports natural gas liquids for wholesale deliveries to refineries, industrial NGL users, and propane retailers, as well as owns approximately 2.1 million barrels of underground storage capacity for NGLs. Martin Midstream GP LLC serves as a general partner of the company. Martin Midstream Partners L.P. was incorporated in 2002 and is based in Kilgore, Texas.
How the Company Makes MoneyMartin Midstream makes money through its diversified operations across its four main segments. In the terminalling and storage segment, the company earns revenue by providing storage solutions for petroleum products and by operating terminal facilities. The natural gas services segment generates income through the gathering, processing, and marketing of natural gas and natural gas liquids. The sulfur services segment contributes to revenue by processing and marketing sulfur and sulfur-based products. Lastly, the marine transportation segment generates revenue by offering marine transport services for petroleum products and other bulk liquids. The company's earnings are also influenced by long-term contracts and partnerships with key players in the energy industry, providing stable and recurring income.
Martin Midstream Financial Statement Overview
Summary
Martin Midstream shows financial instability, with declining revenue and consistent net losses. The negative equity position and high leverage raise solvency concerns, despite some cash flow generation capabilities. The company faces challenges in improving profitability and financial health, requiring strategic adjustments for future stability.Income Statement
The income statement shows declining revenue over the past periods, with significant net losses. The gross profit margin is relatively high at 55.1% TTM, but net profit margin is negative due to persistent losses, impacting the overall profitability. Revenue growth has been inconsistent, with a decrease in recent periods.45
Neutral
Balance Sheet
The balance sheet is concerning, as shown by the negative stockholders' equity in the most recent TTM period. The debt-to-equity ratio is not meaningful due to negative equity, highlighting potential solvency issues. The equity ratio is negative, indicating liabilities exceed assets, posing financial stability risks.30
Negative
Cash Flow
Cash flow analysis reveals some strengths, with positive operating cash flow and free cash flow in the latest TTM period. However, the free cash flow growth is inconsistent, and the company's ability to generate cash flow relative to net income is limited due to ongoing losses.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 719.34M | 707.62M | 797.96M | 1.02B | 882.43M | 672.14M | Gross Profit |
| 294.06M | 359.80M | 106.18M | 339.29M | 292.58M | 253.75M | EBIT |
| 52.85M | 57.30M | 65.35M | 51.26M | 57.28M | 46.50M | EBITDA |
| 102.20M | 107.48M | 111.55M | 294.64M | 114.03M | 93.27M | Net Income Common Stockholders |
| -9.51M | -5.21M | -4.55M | -10.33M | -211.00K | -6.77M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 54.00K | 55.00K | 54.00K | 45.00K | 52.00K | 4.96M | Total Assets |
| 512.08M | 1.18B | 509.38M | 598.85M | 579.86M | 579.64M | Total Debt |
| 473.63M | 505.23M | 481.76M | 539.15M | 514.86M | 531.56M | Net Debt |
| 473.58M | 505.17M | 481.70M | 539.10M | 514.81M | 526.61M | Total Liabilities |
| 573.57M | 608.95M | 574.00M | 658.30M | 627.90M | 626.51M | Stockholders Equity |
| -61.50M | 570.86M | -66.18M | 510.41M | 816.00K | -46.87M |
| Cash Flow | Free Cash Flow | ||||
| 2.71M | 6.34M | 103.15M | -11.09M | 19.67M | 36.16M | Operating Cash Flow |
| 32.22M | 48.35M | 137.47M | 16.15M | 35.73M | 64.78M | Investing Cash Flow |
| -47.42M | -58.60M | -33.66M | -24.64M | -19.24M | 2.60M | Financing Cash Flow |
| 15.20M | 10.25M | -103.80M | 8.49M | -21.39M | -65.29M |
Martin Midstream Technical Analysis
Negative
2.99
Price Trends
3.13
Negative
3.34
Negative
3.58
Negative
Market Momentum
-0.01
Negative
47.85
Neutral
45.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMLP, the sentiment is Negative. The current price of 2.99 is above the 20-day moving average (MA) of 2.98, below the 50-day MA of 3.13, and below the 200-day MA of 3.58, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 45.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MMLP.
Martin Midstream Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $2.25B | 14.09 | 542.39% | 10.37% | -8.79% | 7.75% | |
65 Neutral | $1.72B | 16.08 | 16.23% | 5.72% | 6.04% | 18.28% | |
57 Neutral | $7.06B | 3.04 | -3.49% | 5.80% | 0.53% | -50.39% | |
52 Neutral | $1.99B | ― | -14.83% | 3.97% | -17.81% | -590.48% | |
48 Neutral | $505.54M | 5.86 | -28.13% | ― | -4.69% | -418.50% | |
44 Neutral | $434.32M | ― | -19.22% | ― | -19.76% | -323.41% | |
41 Neutral | $116.77M | 33.55 | -6.93% | 0.67% | -2.03% | -348.43% |
* Energy Sector Average
Performance Comparison
MMLP
Martin Midstream
2.99
-0.14
-4.47%
GEL
Genesis Energy
16.23
4.11
33.91%
GLP
Global Partners
50.66
7.36
17.00%
NGL
NGL Energy Partners
3.29
-2.28
-40.93%
SMC
Summit Midstream
26.94
-6.95
-20.51%
DKL
Delek Logistics
42.11
6.50
18.25%
Martin Midstream Earnings Call Summary
Earnings Call Date:Apr 16, 2025
(Q3-2024)
| % Change Since: 9.12%|
Next Earnings Date:Jul 16, 2025
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 Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Martin Midstream Amends Credit Agreement with RBC
Neutral
Feb 18, 2025
On February 13, 2025, Martin Midstream Partners L.P. and its subsidiaries amended their Credit Agreement with Royal Bank of Canada, adjusting financial covenants related to interest coverage and leverage ratios for various fiscal quarters in 2025. Additionally, on February 11, 2025, the company approved a 2025 Phantom Unit Plan, allowing for the award of cash-based phantom units and appreciation rights to employees and directors, with vesting conditions tied to employment duration and company control changes.
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.