Mullen Group (MTL) AI Stock Analysis

• Market Cap: C$1.18B
• Dividend Yield: 6.19%
• Average Volume (3M): 288.88K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.64
• Revenue Growth: 5.52%
• EPS Growth: -18.01%
• Country: CA
• Employees: 8,070
• Sector: Industrials
• Sector Strength: 78
• Industry: Trucking
• EPS (TTM): 0.28
• Shares Outstanding: 87,207,756
• 10 Day Avg. Volume: 221,810
• 30 Day Avg. Volume: 288,882
• PEG Ratio: -0.72
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 5.70
• 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: C$15.79
• Price Target Upside: 16.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 75 Outperform
• Price Target: C$15.50 ▲(14.14% Upside)

Mullen Group's overall stock score reflects its solid financial performance, attractive valuation, and positive corporate events. While technical indicators and earnings call sentiment present some challenges, the company's strategic acquisitions and strong dividend yield support a favorable outlook.

Positive Factors

Earnings

Mullen's revenue grew by 9% due to acquisitions, showing resilience even in a challenging freight environment.

Liquidity

The company has strong liquidity with substantial cash on hand and undrawn credit facilities, supporting financial stability.

Valuation

Mullen is trading at a large discount on forward P/E and EV/EBITDA metrics compared to its peers, indicating an attractive valuation.

Negative Factors

Margins

Competitive pricing and cost inflation have negatively impacted Mullen's margins.

Operational Performance

Disappointing 1Q25 results were due to lower margins and various operational cost challenges.

Stock Performance

The stock has underperformed the TSX, affecting its risk/reward profile.

Mullen Group Business Overview & Revenue Model

Company Description

Mullen 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 Money

Mullen Group generates revenue primarily through its diversified transportation and logistics services. The company's key revenue streams include its trucking and logistics segment, which provides a wide array of transport and logistics solutions such as LTL, FTL, intermodal, and specialized hauling. Additionally, Mullen Group has a significant presence in the oilfield services sector, offering transportation and related services to the energy industry. The company benefits from its strategic acquisitions and partnerships, which enhance its service offerings and expand its market reach. Other contributing factors to its earnings include its warehousing and distribution capabilities, which support its logistics operations.

Mullen Group Financial Statement Overview

Summary

Mullen Group Ltd. exhibits stable financial health with solid revenue and cash flow figures amidst a competitive trucking industry. The company is efficiently managing its operations and costs, albeit with slight pressures on net profitability. A balanced approach to leveraging and strong equity ratios provide a cushion against economic fluctuations. Continued focus on enhancing net income and cash flow growth will bolster overall financial stability.

Income Statement

The company shows a stable revenue base with moderate growth. The gross profit margin for TTM is approximately 23.5%, indicating efficient cost management. However, net profit margin has seen a slight decline, from 5.6% in 2024 to 5.3% TTM, suggesting pressure on net earnings. EBIT and EBITDA margins remain healthy, reflecting good operational efficiency despite competitive industry dynamics.

Balance Sheet

The company maintains a strong equity position, with an equity ratio of approximately 43.4% TTM, showcasing financial stability. The debt-to-equity ratio is around 0.98, indicating manageable leverage levels. Return on equity has shown a slight decline to 10.6% TTM from 11% in the previous year, pointing to a need for improving profitability on shareholder equity.

Cash Flow

Mullen Group demonstrates robust cash flow generation capabilities, with a free cash flow to net income ratio of approximately 2.0 TTM, highlighting effective cash conversion. Operating cash flow remains strong, supporting liquidity. However, free cash flow growth has been slightly negative, indicating potential capital investment or operational cash requirements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.07B	1.99B	1.99B	2.00B	1.48B	1.16B
Gross Profit	482.29M	472.68M	473.88M	459.00M	308.08M	266.20M
EBITDA	329.42M	332.98M	334.63M	350.31M	239.13M	215.82M
Net Income	100.48M	112.26M	136.72M	158.62M	72.44M	63.98M
Balance Sheet
Total Assets	2.58B	2.33B	2.04B	2.00B	1.92B	1.72B
Cash, Cash Equivalents and Short-Term Investments	176.67M	126.29M	2.29M	8.76M	37.91M	105.34M
Total Debt	1.19B	997.56M	764.08M	712.28M	745.32M	607.87M
Total Liabilities	1.56B	1.32B	1.07B	1.02B	1.03B	821.52M
Stockholders Equity	1.02B	1.02B	974.88M	973.40M	888.66M	896.42M
Cash Flow
Free Cash Flow	224.92M	224.55M	175.15M	181.56M	129.76M	159.65M
Operating Cash Flow	295.33M	296.12M	276.75M	262.97M	197.97M	224.82M
Investing Cash Flow	-242.54M	-111.90M	-111.84M	-36.99M	-255.59M	-68.66M
Financing Cash Flow	118.45M	-51.61M	-138.67M	-215.14M	-46.28M	-128.89M

Mullen Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.58
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 13.58 is above the 20-day moving average (MA) of 13.52, below the 50-day MA of 13.82, and below the 200-day MA of 13.72, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 49.26 is Neutral, neither overbought nor oversold. The STOCH value of 85.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MTL.

Mullen Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTL	75 Outperform	C$1.18B	11.84	9.99%	6.19%	5.52%	-18.01%
Sector *	61 Neutral	C$7.19B	-4.76	-4.20%	2.32%	13.56%	-31.48%
TFII	―	$7.48B	20.72	13.80%	1.93%	―	―
WSP	74 Outperform	C$36.44B	45.32	10.52%	0.54%	18.24%	28.47%
ARE	61 Neutral	C$1.29B	50.65	2.78%	3.77%	20.53%	74.96%
RUSMF	―	$1.65B	14.29	9.90%	4.13%	―	―
CGJTF	―	$1.17B	11.44	19.73%	1.34%	―	―

Mullen Group Corporate Events

Mullen Group Reports Q2 2025 Results, Highlights Strategic Acquisitions

Mullen Group Ltd. reported its financial results for the second quarter of 2025, highlighting a successful bond issue and the acquisition of the Cole Group. Despite economic uncertainties and a challenging logistics market, the company maintained stable revenues and margins. Mullen Group’s strategy focuses on acquisitions to enhance market positioning and protect margins, with optimism for future economic projects in Canada that could benefit the industry.

The most recent analyst rating on (TSE:MTL) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Mullen Group stock, see the TSE:MTL Stock Forecast page.

Mullen Group Declares Monthly Dividend for Shareholders

Mullen Group Ltd. has announced a monthly dividend of $0.07 per common share, payable to shareholders of record as of July 31, 2025, with payment on August 15, 2025. This dividend is classified as an ‘eligible dividend’ for Canadian tax purposes, potentially providing tax benefits to shareholders. This announcement reflects Mullen Group’s ongoing commitment to delivering value to its shareholders and may positively impact investor sentiment.

The most recent analyst rating on (TSE:MTL) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Mullen Group stock, see the TSE:MTL Stock Forecast page.

Mullen Group Closes CAD$400 Million Notes Offering

Mullen Group Ltd. has successfully closed a private placement of approximately CAD$400 million in senior secured notes, with the proceeds intended to prepay existing debt and for general corporate purposes. This strategic financial maneuver is expected to strengthen Mullen Group’s financial position and support its ongoing operations and growth within the logistics and transportation sectors.

The most recent analyst rating on (TSE:MTL) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Mullen Group stock, see the TSE:MTL Stock Forecast page.

Mullen Group to Announce Q2 2025 Earnings

Mullen Group Ltd. announced it will release its second quarter earnings results for 2025 on July 24, with a conference call and webcast scheduled for the same day. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:MTL) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Mullen Group stock, see the TSE:MTL Stock Forecast page.

Mullen Group Declares Monthly Dividend for Shareholders

Mullen Group Ltd. has declared a monthly dividend of $0.07 per common share, payable to shareholders of record as of June 30, 2025, with payment scheduled for July 15, 2025. This announcement underscores Mullen Group’s commitment to providing value to its shareholders and reflects its stable financial position within the logistics and transportation industry.

The most recent analyst rating on (TSE:MTL) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Mullen Group stock, see the TSE:MTL Stock Forecast page.

Mullen Group Expands with Acquisition of Cole Group

Mullen Group Ltd. has completed the acquisition of the Cole Group, a leading logistics services company specializing in customs brokerage, freight forwarding, and trade consulting across Canada and the U.S. This acquisition aligns with Mullen Group’s strategy to expand its non-asset based logistics offerings and is expected to enhance synergies across its business units. The acquisition is financially attractive, expected to generate significant free cash flow with minimal capital expenditure, and provides a strong foundation for future growth in the U.S. and international markets.

The most recent analyst rating on (TSE:MTL) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Mullen Group stock, see the TSE:MTL Stock Forecast page.

Mullen Group Secures CAD$400 Million in Private Placement Notes Offering

Mullen Group Ltd. announced the pricing of a CAD$400 million senior secured notes offering through a private placement, guaranteed by its subsidiaries. The proceeds will be used to prepay existing debt and support future growth plans, including acquisitions. This strategic financial move is aimed at enhancing liquidity amid economic uncertainties, reflecting Mullen Group’s commitment to strengthening its market position and operational capabilities.

The most recent analyst rating on (TSE:MTL) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Mullen Group stock, see the TSE:MTL Stock Forecast page.