Marten Transport (MRTN) AI Stock Analysis

• Market Cap: $1.14B
• Dividend Yield: 1.71%
• Average Volume (3M): 433.15K
• Price to Earnings (P/E): 42.4
• Beta (1Y): 1.01
• Revenue Growth: -14.83%
• EPS Growth: -61.80%
• Country: US
• Employees: 4,213
• Sector: Industrials
• Sector Strength: 69
• Industry: Transportation
• EPS (TTM): 0.33
• Shares Outstanding: 81,463,936
• 10 Day Avg. Volume: 498,818
• 30 Day Avg. Volume: 433,154
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.18
• Price to Cash Flow (P/CF): 12.00
• P/FCF Ratio: 12.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $19.00
• Price Target Upside: 35.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Marten Transport's overall score reflects a stable financial position with strong equity and cash flow, but challenges in revenue growth and profitability weigh on the outlook. Technical indicators suggest bearish momentum, and valuation metrics indicate the stock may be overvalued. Corporate challenges further impact the score, though strategic efforts may support future performance.

Marten Transport Business Overview & Revenue Model

Company Description

Marten Transport Ltd. engages in the provision of temperature-sensitive truckload carrier services. It operates through the following segments: Truckload, Dedicated, Intermodal, and Brokerage. The Truckload segment includes transport of food and consumer packaged goods that require a temperature-controlled or insulated environment. The Dedicated segment provides transportation solutions to individual customers using temperature-controlled trailers, dry vans, and specialized equipment. The Intermodal segment offers transports its customer's freight utilizing temperature-controlled trailers and dry containers on railroad flatcars for portions of trips. The Brokerage segment involves in arranging smaller third-party carriers to transport freight for its customers in temperature-controlled trailers and dry vans. The company was founded by Roger R. Marten in 1946 and is headquartered in Mondovi, WI.

How the Company Makes Money

Marten Transport generates revenue primarily through its core transportation services, which include truckload and dedicated transportation services that accommodate the unique needs of temperature-sensitive freight. The company also earns income through its intermodal services, which involve the transfer of goods using multiple modes of transportation, and its brokerage segment, which provides logistics services by arranging transportation solutions through third-party carriers. Key revenue streams are derived from long-term contracts with a diverse range of clients, including major food and consumer packaged goods companies. The company's earnings are significantly influenced by factors such as fuel costs, freight demand, pricing strategies, and its ability to maintain efficient operations. Strategic partnerships with customers and other transportation providers also play a crucial role in sustaining its revenue model.

Marten Transport Financial Statement Overview

Summary

Marten Transport exhibits solid financial health with a strong balance sheet and cash flow improvements. However, challenges remain in revenue and profit margin growth. Low leverage and strong equity positions provide a stable foundation.

Income Statement

The TTM (Trailing-Twelve-Months) total revenue has declined compared to the previous year by 14.89%. Gross profit margin stands at 18.29%, indicating a healthy ability to cover operating expenses. However, the net profit margin is 2.79%, reflecting challenges in converting revenue to profit. EBIT and EBITDA margins are 3.06% and 11.89% respectively, showing moderate operational efficiency.

Balance Sheet

The company maintains a strong financial position with a low debt-to-equity ratio of 0.0004, indicating minimal reliance on debt. Return on equity is 3.51%, showing moderate profitability relative to equity. The equity ratio is robust at 79.28%, reflecting financial stability and a strong capital base.

Cash Flow

Free cash flow has improved significantly, transitioning from negative to positive at $134.81 million in TTM. The operating cash flow to net income ratio is healthy at 5.01, indicating strong cash generation relative to net earnings. Positive free cash flow signals potential for reinvestment and shareholder returns.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
963.71M	1.13B	1.26B	973.64M	874.37M
	Gross Profit
452.83M	295.31M	238.50M	183.15M	170.76M
	EBIT
33.22M	90.11M	5.57M	-23.46M	-30.55M
	EBITDA
33.22M	193.22M	240.98M	197.96M	185.69M
	Net Income Common Stockholders
26.92M	70.37M	110.35M	85.43M	69.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.27M	53.21M	80.60M	56.99M	66.13M
	Total Assets
968.76M	990.34M	965.68M	870.69M	831.64M
	Total Debt
282.00K	249.00K	409.00K	291.00K	411.00K
	Net Debt
-16.98M	-52.96M	-80.19M	-56.70M	-65.72M
	Total Liabilities
200.84M	232.95M	261.76M	219.01M	211.30M
	Stockholders Equity
767.92M	757.39M	703.92M	651.68M	620.33M
Cash Flow		Free Cash Flow
134.81M	-76.18M	42.87M	-28.09M	16.55M
	Operating Cash Flow
134.81M	164.38M	219.49M	171.20M	189.60M
	Investing Cash Flow
-152.14M	-172.54M	-134.96M	-123.73M	-106.33M
	Financing Cash Flow
-18.62M	-19.23M	-60.93M	-56.60M	-48.61M

Marten Transport Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRTN, the sentiment is Negative. The current price of 14.01 is below the 20-day moving average (MA) of 14.61, below the 50-day MA of 15.21, and below the 200-day MA of 16.66, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 32.66 is Neutral, neither overbought nor oversold. The STOCH value of 17.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MRTN.

Marten Transport Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JBHT	65 Neutral	$15.42B	27.75	14.06%	1.12%	-5.79%	-20.32%
KNX	62 Neutral	$7.51B	63.92	1.66%	1.38%	3.76%	-46.10%
Sector *	62 Neutral	$8.17B	12.83	0.26%	3.07%	3.83%	-16.44%
SNDR	57 Neutral	$4.28B	36.74	3.94%	1.56%	-3.79%	-50.29%
MRTN	56 Neutral	$1.14B	42.40	3.53%	1.71%	-14.83%	-61.80%
WERN	54 Neutral	$1.89B	58.83	2.29%	1.83%	-7.71%	-69.05%
HTLD	52 Neutral	$754.08M	―	-3.52%	0.83%	-13.25%	-301.55%

Marten Transport Corporate Events

Marten Transport Faces Revenue Decline Amidst Challenges

Marten Transport reported a net income of $5.6 million for the fourth quarter of 2024, marking a sequential improvement from the third quarter but a decrease compared to the same period in 2023. The company’s operating revenue for the year declined from $1.131 billion in 2023 to $963.7 million in 2024, reflecting challenges such as reduced fuel surcharge revenue and higher operating expenses as a percentage of operating revenue. Despite these challenges, the company is focused on minimizing the freight market’s impact on operations and is positioning itself for profitable growth opportunities.