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Mullen Group Ltd. (TSE:MTL)
:MTL

Mullen Group (MTL) AI Stock Analysis

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Mullen Group

(TSX:MTL)

74Outperform
Mullen Group Ltd. scores a solid 74, driven by stable financial performance and effective cost management. The company benefits from attractive valuation metrics, including a high dividend yield and reasonable P/E ratio. Strategic acquisitions highlight growth potential, balancing risks such as decreased operating margins and economic uncertainties. Technical indicators suggest caution, yet the overall financial health and strategic direction support a positive outlook.

Mullen Group (MTL) vs. S&P 500 (SPY)

Mullen Group 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. makes money through its diversified portfolio of transportation and logistics services. The company's revenue model primarily revolves around providing Less-Than-Truckload (LTL) services, where it consolidates freight from multiple customers into single shipments, optimizing truckloads and improving efficiency. Another significant revenue stream comes from its Logistics and Warehousing segment, which offers services such as inventory management, storage, and distribution solutions. Additionally, Mullen Group capitalizes on its expertise in the oil and gas sector by offering specialized transportation and logistics services tailored to that industry. The company also benefits from strategic partnerships and acquisitions that enhance its service offerings and expand its market reach.

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
75
Positive
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
70
Positive
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
80
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.02B1.99B1.99B2.00B1.48B1.16B
Gross Profit
476.12M472.68M473.88M459.00M308.08M266.20M
EBIT
196.49M201.27M339.88M229.10M124.47M119.63M
EBITDA
334.60M332.98M334.63M350.31M239.13M215.82M
Net Income Common Stockholders
107.77M112.26M136.72M158.62M72.44M63.98M
Balance SheetCash, Cash Equivalents and Short-Term Investments
12.09M126.29M2.29M8.76M-81.25M105.34M
Total Assets
2.06B2.33B2.04B2.00B1.92B1.72B
Total Debt
786.88M997.56M764.08M712.28M745.32M607.87M
Net Debt
774.79M871.27M761.79M703.52M826.57M502.53M
Total Liabilities
1.08B1.32B1.07B1.02B1.03B821.52M
Stockholders Equity
981.63M1.02B974.88M973.40M888.66M896.42M
Cash FlowFree Cash Flow
215.17M224.55M175.15M181.56M129.76M159.65M
Operating Cash Flow
281.34M296.12M276.75M262.97M197.97M224.82M
Investing Cash Flow
-103.95M-111.90M-111.84M-36.99M-255.59M-68.66M
Financing Cash Flow
-51.02M-51.61M-138.67M-215.14M-46.28M-128.89M

Mullen Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.30
Price Trends
50DMA
12.88
Positive
100DMA
13.45
Positive
200DMA
13.85
Positive
Market Momentum
MACD
0.42
Negative
RSI
71.81
Negative
STOCH
81.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MTL, the sentiment is Positive. The current price of 14.3 is above the 20-day moving average (MA) of 13.35, above the 50-day MA of 12.88, and above the 200-day MA of 13.85, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 71.81 is Negative, neither overbought nor oversold. The STOCH value of 81.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MTL.

Mullen Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSWSP
75
Outperform
C$35.58B49.619.42%0.55%16.77%21.38%
TSMTL
74
Outperform
C$1.25B11.6510.81%5.59%3.28%-14.21%
64
Neutral
$4.44B11.995.16%249.23%4.01%-11.87%
TSARE
50
Neutral
C$1.22B-9.26%3.93%1.70%-154.73%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:MTL
Mullen Group
14.25
2.24
18.65%
TFII
TFI International
89.74
-40.22
-30.95%
TSE:ARE
Aecon Group Inc.
18.40
2.26
14.00%
TSE:WSP
WSP Global
272.65
65.97
31.92%
RUSMF
Russel Metals
29.34
1.91
6.96%
CGJTF
Cargojet
67.10
-18.31
-21.44%

Mullen Group Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q1-2025)
|
% Change Since: 16.35%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted positive revenue growth driven by acquisitions and strong cash flow, but also noted challenges such as decreased operating margins, specific revenue declines, and increased corporate costs. The uncertainty around tariffs and trade issues poses a risk to future performance. The overall sentiment is mixed, with both positive and negative aspects balancing out.
Q1-2025 Updates
Positive Updates
Revenue Increase Across All Segments
Revenues increased in all four segments, reaching approximately $500 million, an increase of $34.5 million compared to the prior year.
Successful Acquisition Strategy
Incremental revenue from acquisitions was $37.7 million, highlighting the success of the acquisition strategy in driving growth.
Cash Flow Growth
Net cash flow from operating activities was $39.9 million, a 3.4% increase from the prior year, indicating strong cash generation.
LTL Segment Performance
The LTL segment saw revenue growth of $9 million year-over-year despite a decline at Grimshaw Trucking, indicating resilience in core business units.
Cascade Energy Services Success
Cascade Energy Services experienced market share gains due to new technology investments, contributing positively to the Specialized & Industrial Services segment.
Strong Balance Sheet and Liquidity
The company ended the quarter with $131 million in cash and working capital of $286.7 million, highlighting strong financial positioning.
Negative Updates
Grimshaw Trucking Revenue Decline
Grimshaw Trucking experienced a $10.2 million revenue decline due to the demarketing of a winter ice road project.
Decreased Operating Margins
Operating margins decreased to 14.9% from 15.7% due to lower margins from new acquisitions and a reduction in higher-margin business.
Challenges in U.S. 3PL Segment
The U.S. 3PL segment experienced decreased OIBDA due to higher direct operating expenses and a competitive environment.
Impact of Tariffs and Trade Uncertainty
Ongoing uncertainty around tariffs and trade issues is causing concern for future business activity and freight demand.
Higher Corporate Costs
Corporate costs increased due to higher professional fees, foreign exchange variances, and staffing for future growth initiatives.
Company Guidance
During the first quarter earnings call for Mullen Group Limited, the company provided guidance for the remainder of 2025, emphasizing a cautious yet optimistic outlook. They anticipate maintaining their revenue target of $2.25 billion and OIBDA goal of $350 million, primarily driven by strategic acquisitions such as the Cole Group, which is expected to contribute significantly to their growth. The company reported first-quarter revenues of approximately $500 million, a $34.5 million increase from the previous year, primarily due to $37.7 million in incremental revenue from acquisitions. However, they noted a decrease in operating margins to 14.9% from 15.7%, attributed to lower margins from recent acquisitions. Mullen Group also highlighted a 3.4% increase in net cash flow from operating activities to $39.9 million. Despite economic uncertainties, they remain focused on acquiring market share as competitors struggle and have strategically delayed some capital expenditures to adjust to potential tariff impacts.

Mullen Group Corporate Events

Executive/Board ChangesShareholder Meetings
Mullen Group Announces Board of Directors Election Results
Positive
May 7, 2025

Mullen Group Ltd. announced the election results for its board of directors following the annual shareholders’ meeting. The election saw high approval rates for all nominees, indicating strong shareholder confidence in the current leadership. This development is likely to reinforce the company’s strategic direction and operational stability, benefiting stakeholders and maintaining its robust position in the logistics and transportation sector.

Spark’s Take on TSE:MTL Stock

According to Spark, TipRanks’ AI Analyst, TSE:MTL is a Outperform.

Mullen Group Ltd. scores a solid 73, driven by stable financial performance and effective cost management. The company benefits from attractive valuation metrics, including a high dividend yield and reasonable P/E ratio. Strategic acquisitions highlight growth potential, balancing risks such as decreased operating margins and economic uncertainties. Technical indicators suggest caution, yet the overall financial health and strategic direction support a positive outlook.

To see Spark’s full report on TSE:MTL stock, click here.

Shareholder Meetings
Mullen Group Ltd. Announces Virtual Annual Meeting for 2025
Neutral
Apr 29, 2025

Mullen Group Ltd. has announced that its Annual Meeting will be held virtually on May 6, 2025. The meeting will be accessible via a live webcast, allowing registered shareholders and proxyholders to participate and vote in real time. Non-registered shareholders can attend as guests but will not have voting rights. This move to a virtual meeting format reflects the company’s adaptation to modern communication methods, potentially increasing accessibility and engagement among stakeholders.

Spark’s Take on TSE:MTL Stock

According to Spark, TipRanks’ AI Analyst, TSE:MTL is a Outperform.

Mullen Group Ltd. scores a solid 73, driven by stable financial performance and effective cost management. The company benefits from attractive valuation metrics, including a high dividend yield and reasonable P/E ratio. Strategic acquisitions highlight growth potential, balancing risks such as decreased operating margins and economic uncertainties. Technical indicators suggest caution, yet the overall financial health and strategic direction support a positive outlook.

To see Spark’s full report on TSE:MTL stock, click here.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Mullen Group Reports Q1 2025 Financial Results Amid Strategic Acquisitions
Positive
Apr 23, 2025

Mullen Group Ltd. reported its financial results for the first quarter of 2025, highlighting a 7.5% increase in revenue primarily driven by acquisitions. Despite a challenging economic backdrop marked by tariff uncertainties, the company maintained stable performance across its business units. Mullen Group’s strategic acquisition of the Cole Group is expected to enhance its service offerings and align with its 2025 Business Plan, supported by a strong balance sheet that enables further growth opportunities.

Spark’s Take on TSE:MTL Stock

According to Spark, TipRanks’ AI Analyst, TSE:MTL is a Outperform.

Mullen Group Ltd. scores a solid 74.8, driven by stable financial performance and effective cost management. The attractive valuation enhances shareholder value, despite mixed technical signals and challenges in the Canadian market. Strategic acquisitions highlight growth potential, balancing risks and opportunities.

To see Spark’s full report on TSE:MTL stock, click here.

Dividends
Mullen Group Ltd. Declares Monthly Dividend for Shareholders
Positive
Apr 21, 2025

Mullen Group Ltd. has announced a monthly dividend of $0.07 per common share, payable to shareholders of record as of April 30, 2025, with payment scheduled for May 15, 2025. This dividend is classified as an ‘eligible dividend’ for Canadian tax purposes, potentially benefiting shareholders through enhanced tax credits.

Spark’s Take on TSE:MTL Stock

According to Spark, TipRanks’ AI Analyst, TSE:MTL is a Outperform.

Mullen Group Ltd. scores a solid 72, driven by stable financial performance, effective cost management, and strong cash flow. While the valuation is attractive, technical indicators suggest caution due to bearish momentum. The company’s strategic acquisitions offer potential growth opportunities, but economic challenges in the Canadian market and competitive pressures are notable risks.

To see Spark’s full report on TSE:MTL stock, click here.

M&A TransactionsBusiness Operations and Strategy
Mullen Group Ltd. Expands with Acquisition of Cole Group Inc.
Positive
Apr 14, 2025

Mullen Group Ltd. has announced its acquisition of Cole Group Inc., a leading logistics services company specializing in customs brokerage, freight forwarding, and trade consulting in Canada and the U.S. This acquisition is expected to enhance Mullen Group’s U.S. and International Logistics segment, aligning with its strategic growth in the logistics sector. The Cole Group will continue to operate under its current leadership, maintaining its focus on integrity, customer service, and professional excellence, which aligns with Mullen Group’s values.

Spark’s Take on TSE:MTL Stock

According to Spark, TipRanks’ AI Analyst, TSE:MTL is a Outperform.

Mullen Group Ltd. scores a solid 73, reflecting a stable financial performance and attractive valuation metrics. The company has maintained consistent revenue and cash flow generation, although it faces profitability pressure and operates in a challenging economic environment. Technical indicators suggest bearish momentum, but the valuation remains strong with a reasonable P/E ratio and high dividend yield, enhancing shareholder value. The earnings call highlights the company’s strategic acquisitions and cautious growth outlook, balancing the risks and opportunities in its industry.

To see Spark’s full report on TSE:MTL stock, click here.

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.

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.