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Martin Midstream (MMLP)
NASDAQ:MMLP
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Martin Midstream
(NASDAQ:MMLP)
Rating:49Neutral
Price Target:
$3.00
▼(-12.54% Downside)
Martin Midstream (MMLP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$130.05M
Dividend Yield0.58%
Average Volume (3M)12.53K
Price to Earnings (P/E)33.6
Beta (1Y)0.34
Revenue Growth-1.06%
EPS Growth-340.61%
CountryUS
Employees1,292
SectorEnergy
Sector Strength64
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)-0.06
Shares Outstanding39,055,084
10 Day Avg. Volume5,366
30 Day Avg. Volume12,526
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap4.68
Enterprise Value/Revenue0.85
Enterprise Value/Gross Profit1.66
Enterprise Value/Ebitda6.27
Forecast
1Y Price Target
$4.00Price Target Upside16.62% Upside
Rating ConsensusHold
Number of Analyst Covering1
Martin Midstream Business Overview & Revenue Model
Company DescriptionMartin Midstream Partners L.P. (MMLP) is a publicly traded limited partnership that operates in the midstream sector of the energy industry. The company provides a range of services including the transportation, storage, and processing of petroleum and natural gas products. MMLP operates through several segments, including terminalling and storage, transportation, and marine services. Its core products and services are focused on liquids and gases, serving various customers in the refining and petrochemical industries.
How the Company Makes MoneyMartin Midstream generates revenue through multiple key streams. Primarily, it earns income from storage and terminalling services, where it charges fees for storing and handling hydrocarbon products. Additionally, MMLP generates revenue from its transportation services, which involve the movement of petroleum products via pipelines and other transport methods. The company also has marine services that include the handling of liquid bulk products. Significant partnerships with major oil and gas companies, along with long-term contracts for storage and transportation, contribute to stable revenue streams. Furthermore, the demand for midstream services, driven by fluctuations in oil and gas production, impacts MMLP's earnings positively.
Martin Midstream Earnings Call Summary
Earnings Call Date:Jul 16, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Oct 15, 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 Financial Statement Overview
Summary
Martin Midstream shows strong revenue generation and gross profitability, but is hampered by high leverage and persistent net losses. The company generates healthy cash flows, yet struggles with profitability and financial stability.Income Statement
The company has shown a slight revenue growth over TTM (Trailing-Twelve-Months) with a Gross Profit Margin of 51.2%, indicating strong cost management. However, the Net Profit Margin remains negative at -2.18%, reflecting ongoing losses. EBIT and EBITDA margins are modest at 6.81% and 13.59%, respectively, suggesting operational challenges.45
Neutral
Balance Sheet
The balance sheet indicates high leverage with a negative Stockholders' Equity of -$74.19 million, resulting in a negative Debt-to-Equity Ratio. The Equity Ratio is also negative, reflecting financial instability. Negative Return on Equity (ROE) further highlights profitability challenges.30
Negative
Cash Flow
Free Cash Flow is positive and shows growth, which is a positive indicator. The Operating Cash Flow to Net Income Ratio is high, suggesting strong cash generation relative to reported losses. However, the Free Cash Flow to Net Income Ratio highlights ongoing challenges in achieving profitability.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 715.48M | 707.62M | 797.96M | 1.02B | 882.43M | 672.14M |
| Gross Profit | 366.56M | 359.80M | 106.18M | 339.29M | 292.58M | 253.75M |
| EBITDA | 97.20M | 106.50M | 111.55M | 107.54M | 114.03M | 93.27M |
| Net Income | -15.62M | -5.08M | -4.55M | -10.33M | -211.00K | -6.77M |
Balance Sheet | ||||||
| Total Assets | 515.63M | 1.18B | 509.38M | 598.85M | 579.86M | 579.64M |
| Cash, Cash Equivalents and Short-Term Investments | 47.00K | 55.00K | 54.00K | 45.00K | 52.00K | 4.96M |
| Total Debt | 472.64M | 505.23M | 481.76M | 548.23M | 521.74M | 539.09M |
| Total Liabilities | 589.82M | 608.95M | 574.00M | 658.30M | 627.90M | 626.51M |
| Stockholders Equity | -74.19M | 570.86M | -66.18M | -61.11M | 816.00K | -46.87M |
Cash Flow | ||||||
| Free Cash Flow | 35.07M | 6.34M | 103.15M | -11.09M | 19.67M | 36.16M |
| Operating Cash Flow | 51.31M | 48.35M | 137.47M | 16.15M | 35.73M | 64.78M |
| Investing Cash Flow | -33.43M | -58.60M | -33.66M | -24.64M | -19.24M | 2.60M |
| Financing Cash Flow | -17.89M | 10.25M | -103.80M | 8.49M | -21.39M | -65.29M |
Martin Midstream Technical Analysis
Positive
3.43
Price Trends
3.10
Positive
3.03
Positive
3.36
Positive
Market Momentum
0.10
Positive
61.69
Neutral
60.37
Neutral
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 3.43 is above the 20-day moving average (MA) of 3.32, above the 50-day MA of 3.10, and above the 200-day MA of 3.36, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 61.69 is Neutral, neither overbought nor oversold. The STOCH value of 60.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MMLP.
Martin Midstream Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.31B | 14.64 | 542.39% | 10.21% | -12.08% | 1.44% | |
65 Neutral | $15.54B | 7.27 | 2.96% | 5.23% | 4.26% | -62.58% | |
61 Neutral | $1.81B | 20.35 | 13.89% | 5.59% | 3.74% | -4.49% | |
61 Neutral | $685.26M | ― | 8.32% | ― | -33.19% | 81.02% | |
56 Neutral | $2.10B | ― | -14.68% | 3.85% | -28.72% | -1173.53% | |
49 Neutral | $130.05M | 33.55 | -6.93% | 0.58% | -1.06% | -340.61% | |
44 Neutral | $432.00M | 5.86 | -25.85% | ― | 2.91% | -432.03% |
* Energy Sector Average
Performance Comparison
MMLP
Martin Midstream
3.43
-0.08
-2.28%
GEL
Genesis Energy
16.99
3.80
28.81%
GLP
Global Partners
53.11
10.61
24.96%
NGL
NGL Energy Partners
5.41
1.29
31.31%
SMC
Summit Midstream
23.02
-13.88
-37.62%
DKL
Delek Logistics
43.82
6.74
18.18%
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
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.