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Mullen Group Ltd. (TSE:MTL)
TSX:MTL
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Mullen Group (MTL) AI Stock Analysis

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TSE:MTL

Mullen Group

(TSX:MTL)

Rating:74Outperform
Price Target:
C$15.50
▲(11.67% Upside)
Mullen Group's overall score reflects solid financial health and attractive valuation, supported by strategic acquisitions and strong cash flow. However, profitability pressures and a neutral technical outlook slightly temper the score. The company's focus on margin protection and growth through acquisitions positions it well for future performance improvements.
Positive Factors
Revenue Growth
Mullen's base business remained resilient despite a soft freight backdrop, with acquisitions contributing to 9% revenue growth.
Valuation
Mullen's valuation is attractive, trading at a large discount on forward P/E and EV/EBITDA metrics compared to peers, with a solid return on capital metrics.
Negative Factors
Margins
Competitive pricing and cost inflation negatively impacted margins.
Operational Challenges
1Q25 results were disappointing due to lower margins and various operational cost challenges.

Mullen Group (MTL) vs. iShares MSCI Canada ETF (EWC)

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 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 Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Mullen Group's ability to grow revenue through strategic acquisitions despite a stagnant economic environment. However, profitability faced pressures due to competitive pricing and cost escalations. The issuance of long-term bonds and strong cash flow are positive indicators for future growth. The sentiment is balanced with both positive growth and some challenges in profitability.
Q2-2025 Updates
Positive Updates
Revenue Growth Despite Economic Stagnation
Mullen Group achieved a 9% increase in top line revenue, reaching over $540 million in consolidated revenues, primarily driven by acquisitions which contributed $52.6 million in incremental revenues.
Issuance of New Long-Term Bonds
The company successfully issued approximately CAD 400 million in new long-term bonds, providing over $100 million in available cash for future growth and securing the company's position for the next decade.
Strength in Logistics and Warehousing
The Logistics and Warehousing segment saw a 15% increase in revenue to $173.6 million, primarily due to acquisitions. OIBDA grew despite a nearly 1% drop in margins.
Strong Cash Position
Cash from operations remained robust at $117 million, consistent with 2024 figures, showcasing strong cash flow generation despite economic challenges.
Negative Updates
Profitability Pressures
Pricing pressure and cost escalation led to a slight decline in OIBDA, with adjusted OIBDA down by $1.8 million compared to the previous year.
Specialized Industrial Services Segment Decline
The segment experienced a $3.7 million revenue decline to $105.5 million, attributed to decreased drilling activity and demarketing of unprofitable projects.
Impact of Canadian Dollar Fluctuations
Corporate costs were negatively impacted by fluctuations in the Canadian dollar versus the U.S. dollar, affecting profitability.
Competitive Pricing Environment
The company faced a competitive pricing environment, especially in the LTL segment, which pressured margins despite revenue growth.
Company Guidance
During the Mullen Group Limited Second Quarter Earnings Conference Call, the company shared various metrics reflecting their performance and future expectations. The highlights included a 9% increase in top-line revenue, reaching over $540 million despite a stagnant economy. This growth was largely driven by acquisitions, which contributed $52.6 million in incremental revenue. The company reported same-store sales of $440.8 million, virtually flat year-over-year after adjusting for fuel surcharge revenues. They also finalized a new long-term bond issuance of approximately CAD 400 million, enhancing their cash position to over $100 million. Operationally, the largest segment, LTL, saw revenues rise by $11 million to $200 million, while the Logistics and Warehousing segment increased by 15% to $173.6 million. However, OIBDA declined slightly, with cost pressures and competitive pricing noted as challenges. Despite these hurdles, cash from operations remained strong at $117 million, consistent with the previous year. The company emphasized their focus on margin protection and future growth through strategic acquisitions, setting the stage for improved performance once economic conditions become more favorable.

Mullen Group Financial Statement Overview

Summary
Mullen Group shows stable revenue growth and effective cash management. Despite a slight decline in profitability margins, the company maintains a stable balance sheet with manageable leverage. Continued focus on operational efficiency and cost control could enhance profitability.
Income Statement
75
Positive
Mullen Group's income statement shows a stable revenue growth with a TTM increase of 2.24%. The gross profit margin is consistent at around 23%, indicating efficient cost management. However, the net profit margin has slightly decreased to 4.86% in the TTM, reflecting potential cost pressures or increased expenses. EBIT and EBITDA margins are healthy, though they have seen a slight decline, suggesting room for operational improvements.
Balance Sheet
70
Positive
The balance sheet reveals a moderate debt-to-equity ratio of 1.17 in the TTM, indicating a balanced approach to leveraging. The return on equity has decreased to 9.90%, which could be a concern for investors seeking high returns. The equity ratio remains stable, showing a solid asset base supported by equity.
Cash Flow
80
Positive
Cash flow analysis shows a positive trend with a free cash flow growth rate of 4.53% in the TTM. The operating cash flow to net income ratio is robust, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 76.16% suggests effective cash management and potential for reinvestment or debt reduction.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.07B1.99B1.99B2.00B1.48B1.16B
Gross Profit482.29M472.68M473.88M459.00M308.08M266.20M
EBITDA329.42M332.98M334.63M350.31M239.13M215.82M
Net Income100.48M112.26M136.72M158.62M72.44M63.98M
Balance Sheet
Total Assets2.58B2.33B2.04B2.00B1.92B1.72B
Cash, Cash Equivalents and Short-Term Investments176.67M126.29M2.29M8.76M37.91M105.34M
Total Debt1.19B997.56M764.08M712.28M745.32M607.87M
Total Liabilities1.56B1.32B1.07B1.02B1.03B821.52M
Stockholders Equity1.02B1.02B974.88M973.40M888.66M896.42M
Cash Flow
Free Cash Flow224.92M224.55M175.15M181.56M129.76M159.65M
Operating Cash Flow295.33M296.12M276.75M262.97M197.97M224.82M
Investing Cash Flow-242.54M-111.90M-111.84M-36.99M-255.59M-68.66M
Financing Cash Flow118.45M-51.61M-138.67M-215.14M-46.28M-128.89M

Mullen Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.88
Price Trends
50DMA
13.70
Positive
100DMA
13.54
Positive
200DMA
13.58
Positive
Market Momentum
MACD
0.06
Negative
RSI
57.74
Neutral
STOCH
53.88
Neutral
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 13.88 is above the 20-day moving average (MA) of 13.63, above the 50-day MA of 13.70, and above the 200-day MA of 13.58, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 57.74 is Neutral, neither overbought nor oversold. The STOCH value of 53.88 is Neutral, 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
74
Outperform
C$1.20B12.019.99%6.05%5.52%-18.01%
64
Neutral
$10.73B15.657.61%2.01%2.80%-14.92%
$8.04B21.9413.80%1.81%
78
Outperform
C$36.18B44.9910.52%0.54%18.24%28.47%
66
Neutral
C$1.32B50.702.78%3.63%20.53%74.96%
$1.71B14.819.90%3.99%
$1.13B10.9619.73%1.39%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:MTL
Mullen Group
13.88
0.82
6.28%
TFII
TFI International
96.72
-40.72
-29.63%
TSE:ARE
Aecon Group Inc.
20.93
3.04
16.99%
TSE:WSP
WSP Global
281.90
60.36
27.25%
RUSMF
Russel Metals
30.46
4.77
18.57%
CGJTF
Cargojet
73.72
-17.01
-18.75%

Mullen Group Corporate Events

Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Mullen Group Reports Q2 2025 Results, Highlights Strategic Acquisitions
Positive
Jul 24, 2025

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.

Dividends
Mullen Group Declares Monthly Dividend for Shareholders
Positive
Jul 22, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Mullen Group Closes CAD$400 Million Notes Offering
Positive
Jul 10, 2025

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.

Financial Disclosures
Mullen Group to Announce Q2 2025 Earnings
Neutral
Jul 2, 2025

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.

Dividends
Mullen Group Declares Monthly Dividend for Shareholders
Positive
Jun 20, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Mullen Group Expands with Acquisition of Cole Group
Positive
May 30, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Mullen Group Secures CAD$400 Million in Private Placement Notes Offering
Positive
May 22, 2025

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.

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.Date of analysis: Aug 22, 2025