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Mullen Group Ltd. (TSE:MTL)
:MTL
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Mullen Group Ltd.
(TSX:MTL)
73Outperform
Mullen Group Ltd. (MTL) vs. S&P 500 (SPY)
Market Cap
C$1.11B
Dividend Yield6.61%
Average Volume (3M)330.48K
Price to Earnings (P/E)9.9
Beta (1Y)0.53
Revenue Growth-0.27%
EPS Growth-15.99%
CountryCA
Employees8,070
SectorIndustrials
Sector Strength61
IndustryTrucking
Share Statistics
EPS (TTM)1.28
Shares Outstanding87,467,834
10 Day Avg. Volume318,664
30 Day Avg. Volume330,477
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.57
Price to Cash Flow (P/CF)2.50
P/FCF Ratio3.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$16.50Price Target Upside30.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Mullen Group Ltd. Business Overview & Revenue Model
Company DescriptionMullen Group Ltd. provides a range of trucking and logistics services in Canada and the United States. The company operates in four segments: Less-Than-Truckload, Logistics & Warehousing, Specialized & Industrial Services, and U.S. & International Logistics. The Less-Than-Truckload segment delivers general freight consisting of smaller shipments, packages, and parcels; and pharmaceutical and package products. The Logistics & Warehousing segment offers multimode transportation services, such as full truckload, specialized trucking, intermodal, and transload to customers through a network of terminals and transload facilities; and warehousing and distribution services. The Specialized & Industrial Services segment provides production services, such as well servicing, production fluid transportation, transportation of fluids for disposal, frac support, hydrovac excavation, and industrial cleaning and turnaround services; and specialized services comprising dredging and dewatering services, large diameter pipe stockpiling and stringing services, water management, environmental services, civil construction, municipal development and emergency services, hydrostatic testing services to the pipeline industry and midstream sector, and transporting of oversize and overweight shipments, as well as deals in original equipment manufacturer parts and services. This segment also offers drilling and drilling related services, consisting of transportation, handling, and storage of oilfield fluids, tubulars, and drilling mud; drilling rig relocation; general oilfield hauling; well disposal facility; core drilling; setting surface casing; and conductor pipe setting services. The U.S. & International Logistics segment provides logistics services through professional representatives and station agents. This segment also owns SilverExpress, a proprietary integrated transportation management platform. Mullen Group Ltd. was founded in 1949 and is headquartered in Okotoks, Canada.
How the Company Makes MoneyMullen Group Ltd. generates revenue primarily through its extensive network of trucking and logistics services. Key revenue streams include transportation services, which involve moving freight across Canada and into the United States, and logistics and warehousing, where the company provides storage, inventory management, and supply chain solutions. The company's earnings are bolstered by its strategic partnerships with various industries, particularly in the oil and gas sector, where demand for specialized trucking services remains robust. Additionally, Mullen Group's focus on efficiency and customer service contributes significantly to its financial performance, allowing it to maintain long-term contracts and attract new business.
Mullen Group Ltd. Financial Statement Overview
Summary
Mullen Group Ltd. maintains a stable financial position with consistent revenue and cash flow generation. Profitability metrics show some pressure with a decline in the net profit margin and zero EBIT reported in the latest year, but the balance sheet and cash flow remain solid with manageable leverage.Income Statement
Mullen Group Ltd. has maintained stable revenue over recent years with a slight decrease in the latest annual report. The gross profit margin is steady, reflecting consistent cost management. However, the net profit margin has slightly declined, indicating some pressure on profitability. The EBIT margin dropped significantly in the latest year due to zero EBIT reported, affecting overall profitability metrics.75
Positive
Balance Sheet
The company's balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. Return on equity has seen some fluctuations but remains relatively healthy. The equity ratio is stable, suggesting a solid asset base backed by equity. However, an increase in total debt could pose future financial risks.70
Positive
Cash Flow
Cash flow analysis reveals a robust operating cash flow to net income ratio, indicating strong cash generation relative to earnings. Free cash flow growth has been positive, supporting future investments and debt servicing. The free cash flow to net income ratio is favorable, showing effective cash management and profitability.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.99B | 1.99B | 2.00B | 1.48B | 1.16B | Gross Profit |
| 472.68M | 473.88M | 459.00M | 308.08M | 266.20M | EBIT |
| 0.00 | 339.88M | 229.10M | 124.47M | 119.63M | EBITDA |
| 332.98M | 334.63M | 350.31M | 239.13M | 215.82M | Net Income Common Stockholders |
| 112.26M | 136.72M | 158.62M | 72.44M | 63.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 126.29M | 2.29M | 8.76M | -81.25M | 105.34M | Total Assets |
| 2.33B | 2.04B | 2.00B | 1.92B | 1.72B | Total Debt |
| 997.56M | 764.08M | 712.28M | 745.32M | 607.87M | Net Debt |
| 871.27M | 761.79M | 703.52M | 826.57M | 502.53M | Total Liabilities |
| 1.32B | 1.07B | 1.02B | 1.03B | 821.52M | Stockholders Equity |
| 1.02B | 974.88M | 973.40M | 888.66M | 896.42M |
| Cash Flow | Free Cash Flow | |||
| 224.55M | 175.15M | 181.56M | 129.76M | 159.65M | Operating Cash Flow |
| 296.12M | 276.75M | 262.97M | 197.97M | 224.82M | Investing Cash Flow |
| -111.90M | -111.84M | -36.99M | -255.59M | -68.66M | Financing Cash Flow |
| -51.61M | -138.67M | -215.14M | -46.28M | -128.89M |
Mullen Group Ltd. Technical Analysis
Neutral
12.67
Price Trends
13.20
Negative
14.01
Negative
13.88
Negative
Market Momentum
-0.20
Negative
39.39
Neutral
6.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MTL, the sentiment is Neutral. The current price of 12.67 is above the 20-day moving average (MA) of 12.66, below the 50-day MA of 13.20, and below the 200-day MA of 13.88, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 39.39 is Neutral, neither overbought nor oversold. The STOCH value of 6.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MTL.
Mullen Group Ltd. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Performance Comparison
TSE:MTL
Mullen Group Ltd.
12.67
-1.50
-10.59%
CNI
Canadian National Railway
98.32
-28.30
-22.35%
CP
Canadian Pacific Kansas City
73.18
-12.86
-14.95%
TFII
TFI International
82.44
-73.29
-47.06%
TSE:ATS
ATS Corporation
34.71
-7.98
-18.69%
TSE:WTE
Westshore Terminals
23.89
-0.56
-2.29%
Mullen Group Ltd. Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -9.95% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a stable performance by Mullen Group in a challenging economic environment, with successful acquisitions and strong financial management supporting stable revenues and margins. However, the company faces significant challenges in the Canadian market due to economic stagnation and competitive pressures. Mullen Group is cautiously optimistic about future growth, particularly through potential expansion in the U.S. market.Highlights
Stable Revenue and Cash Flow
Despite a no-growth economy, Mullen Group's revenue held steady at approximately $500 million for Q4 2024, and they generated $85 million in OIBDA. The company achieved cash flow from operating activities of approximately $340 million for the year.
Successful Acquisition Strategy
Five acquisitions completed in 2024 contributed to maintaining financial results and positioning Mullen for future growth. Incremental revenues from these acquisitions offset the lack of capital investment in Canada, contributing to steady results.
LTL Segment Performance
The LTL segment showed resilience with segment revenues at $189.4 million, despite a $5.3 million reduction in fuel surcharge revenue. The segment also improved operating margins by nearly 1%.
Strong Balance Sheet
Mullen Group closed a $400 million 10-year private placement debt financing in 2024, ending the year with $126 million of cash on hand and $525 million in undrawn bank credit facilities.
Safety Recognition
Grimshaw Trucking, a Mullen Group business unit, won the annual safety award, highlighting the company's commitment to safety and operational excellence.
Lowlights
S&I Segment Revenue Decline
The S&I segment experienced a revenue decrease of $18.7 million (15.3%) due to the completion of major pipeline projects and a decision to exit certain business lines.
Canada's No Growth Economy
Mullen Group faced a challenging macro environment with no growth in the Canadian economy, impacting sectors like transportation and warehousing.
Competitive Market Pressures
Operating margins across segments were pressured by competitive pricing and a lack of demand growth, particularly affecting the U.S. 3PL and international logistics segments.
Company Guidance
During the Mullen Group Limited Year-End and Fourth Quarter 2024 Earnings Conference Call, the company reported that its revenue for Q4 remained flat at approximately $500 million compared to the previous year, while operating income before depreciation, amortization, and OIBDA was $85 million, an increase of $5.8 million from the prior year. Despite challenging market conditions, Mullen held its financial results steady through strategic acquisitions, which accounted for $6 million of incremental OIBDA. The company's operating margin improved to 17%, with key segments like LTL showing resilience despite a $5.3 million decline in fuel surcharge revenues. Mullen Group also maintained strong cash flow from operating activities at $92.9 million for the quarter and about $340 million for 2024. For 2025, Mullen plans to continue its acquisition strategy with $150 million earmarked for this purpose, aiming to achieve $350 million in EBITDA. The company also highlighted its strong balance sheet with approximately $126 million in cash on hand and $525 million in undrawn bank credit facilities.Mullen Group Ltd. Corporate Events
Financial Disclosures
Mullen Group Ltd. to Announce Q1 2025 Earnings
Neutral
Apr 1, 2025
Mullen Group Ltd. has announced its plans to release its 2025 First Quarter earnings results on April 23, 2025, at 6:00 a.m. ET, followed by a conference call and webcast at 10:00 a.m. ET. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.
Dividends
Mullen Group Declares Monthly Dividend for Shareholders
Positive
Mar 21, 2025
Mullen Group Ltd. has announced a monthly dividend of $0.07 per common share, payable to shareholders of record on March 31, 2025, with payment scheduled for April 15, 2025. This dividend is classified as an ‘eligible dividend’ for Canadian tax purposes, potentially benefiting shareholders with enhanced tax credits. The announcement underscores Mullen Group’s commitment to delivering shareholder value and may positively impact its market positioning within the logistics and transportation industry.
Dividends
Mullen Group Ltd. Declares Monthly Dividend
Positive
Feb 21, 2025
Mullen Group Ltd. has announced a monthly dividend of $0.07 per common share, payable on March 17, 2025, for shareholders of record on February 28, 2025. This dividend is classified as an ‘eligible dividend’ for Canadian tax purposes, potentially providing enhanced tax credits to shareholders. Such announcements can reflect the company’s financial health and its commitment to returning value to shareholders, which may bolster investor confidence and impact the company’s market positioning.
Business Operations and StrategyFinancial Disclosures
Mullen Group Maintains Revenue Amid Market Challenges, Eyes Future Opportunities
Neutral
Feb 13, 2025
Mullen Group Ltd. reported steady revenue in its 2024 fourth-quarter financial results despite challenging market conditions characterized by soft demand and pricing pressures. The company’s strategic management and robust balance sheet have positioned it to potentially capitalize on acquisition opportunities, although it anticipates continued subdued demand for freight services in 2025 due to economic uncertainties and trade disruptions.
Dividends
Mullen Group Declares Monthly Dividend to Enhance Shareholder Value
Positive
Jan 23, 2025
Mullen Group Ltd. announced the declaration of a monthly dividend of $0.07 per Common Share, to be paid to shareholders of record on January 31, 2025, with payment scheduled for February 18, 2025. This dividend is designated as an ‘eligible dividend’ for Canadian resident shareholders, which may benefit from enhanced tax credits. The announcement reflects Mullen Group’s commitment to providing shareholder value and highlights its financial stability, potentially strengthening its position in the logistics industry.
Mullen Group Ltd. Schedules 2024 Year-End Earnings Release
Jan 15, 2025
Mullen Group Ltd. has announced the release of its 2024 Year-End and Fourth Quarter earnings results scheduled for February 13, 2025, at 6:00 a.m. ET. The company will hold a conference call and webcast later that morning to discuss the results. This event will provide stakeholders with insights into the company’s financial performance and strategic direction as it continues to solidify its position in the logistics industry.
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.