Martin Midstream (MMLP) AI Stock Analysis

Compare

461 Followers

Top Page

Martin Midstream

(NASDAQ:MMLP)

Rating:51Neutral

Price Target:

$3.00

▼(-3.85%Downside)

Martin Midstream's overall score is primarily impacted by its financial performance, which highlights significant instability due to declining revenues and negative equity. The technical analysis provides some short-term positive indicators, but long-term resistance remains. Valuation concerns persist due to negative earnings. Strategic financial improvements are necessary for a more favorable outlook.

Martin Midstream (MMLP) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$121.85M

Dividend Yield0.64%

Average Volume (3M)60.84K

Price to Earnings (P/E)33.6

Beta (1Y)0.37

Revenue Growth-2.03%

EPS Growth-348.43%

CountryUS

Employees1,292

SectorEnergy

Sector Strength73

IndustryOil & Gas Midstream

Share Statistics

EPS (TTM)-0.03

Shares Outstanding39,055,084

10 Day Avg. Volume94,166

30 Day Avg. Volume60,836

Financial Highlights & Ratios

PEG Ratio0.15

Price to Book (P/B)-1.66

Price to Sales (P/S)0.00

P/FCF Ratio43.92

Enterprise Value/Market Cap5.25

Enterprise Value/Revenue0.22

Enterprise Value/Gross Profit2.18

Enterprise Value/Ebitda1.09

Forecast

1Y Price Target

$4.00

Price Target Upside28.21% 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 Partners L.P. generates revenue through its diversified portfolio of services within the energy sector. The Terminalling and Storage segment provides fee-based services for the storage of petroleum products and by-products, earning revenue from long-term contracts with customers. The Natural Gas Services segment involves the transportation and distribution of natural gas liquids, as well as the provision of specialty services, generating income through contracts and service fees. The Sulfur Services segment includes the processing and marketing of sulfur and sulfur-based products, which contribute to revenue through product sales and handling fees. Lastly, the Marine Transportation segment provides offshore transportation services for petroleum products, earning revenue through charter agreements and transport fees. Strategic partnerships and long-term agreements with major oil and gas companies significantly support the company's revenue streams.

Martin Midstream Earnings Call Summary

Earnings Call Date:Apr 16, 2025

(Q3-2024)

% Change Since: 13.87%|

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 Financial Statement Overview

Summary

The company faces financial instability, marked by declining revenue, consistent net losses, and negative equity. While there is positive operating cash flow, solvency concerns are significant due to high leverage and negative equity.

Income Statement

Neutral

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.

Balance Sheet

Negative

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.

Cash Flow

Neutral

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price3.12

Price Trends

50DMA

2.97

Positive

100DMA

3.28

Negative

200DMA

3.54

Negative

Market Momentum

MACD

0.04

Negative

RSI

52.07

Neutral

STOCH

30.49

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 3.12 is above the 20-day moving average (MA) of 3.09, above the 50-day MA of 2.97, and below the 200-day MA of 3.54, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 52.07 is Neutral, neither overbought nor oversold. The STOCH value of 30.49 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 (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLP	73 Outperform	$1.88B	17.54	16.23%	5.42%	6.04%	18.28%
DKL	68 Neutral	$2.29B	14.36	542.39%	10.35%	-8.79%	7.75%
Sector *	58 Neutral	$7.56B	3.29	-4.46%	10.00%	0.84%	-49.61%
GEL	56 Neutral	$2.03B	―	-14.83%	3.95%	-17.81%	-590.48%
MMLP	51 Neutral	$121.85M	33.55	-6.93%	0.64%	-2.03%	-348.43%
SMC	48 Neutral	$494.66M	5.86	-28.13%	―	-4.69%	-418.50%
NGL	44 Neutral	$598.02M	―	4.63%	―	-19.76%	-323.41%

* Energy Sector Average

Performance Comparison

MMLP

Martin Midstream

3.12

-0.17

-5.17%

GEL

Genesis Energy

16.71

4.26

34.22%

GLP

Global Partners

55.02

12.60

29.70%

NGL

NGL Energy Partners

4.53

-0.70

-13.38%

SMC

Summit Midstream

26.36

-9.54

-26.57%

DKL

Delek Logistics

42.90

7.91

22.61%

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.