Mullen Group (MTL) AI Stock Analysis

• Market Cap: C$1.53B
• Dividend Yield: 5.24%
• Average Volume (3M): 177.36K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.70
• Revenue Growth: 5.53%
• EPS Growth: -21.87%
• Country: CA
• Employees: 8,070
• Sector: Industrials
• Sector Strength: 72
• Industry: Trucking
• EPS (TTM): 0.36
• Shares Outstanding: 95,623,930
• 10 Day Avg. Volume: 189,051
• 30 Day Avg. Volume: 177,360
• 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$16.44
• Price Target Upside: 2.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: C$18.00 ▲(12.36% Upside)

Mullen Group's overall stock score reflects its solid financial performance and attractive valuation, supported by strong cash flow and a reasonable P/E ratio. The technical analysis indicates a strong upward trend, though caution is advised due to overbought signals. The earnings call provided positive insights into the company's growth strategy through acquisitions, despite challenges in certain segments.

Positive Factors

Successful Acquisition Strategy

Mullen Group's acquisition strategy has effectively expanded their network and service offerings, driving revenue growth and enhancing market position.

Strong Cash Generation

Robust cash generation supports strategic capital allocation and provides financial flexibility for future investments and debt management.

Strong Balance Sheet and Liquidity

Ample liquidity and a strong balance sheet position Mullen Group to capitalize on growth opportunities and withstand market fluctuations.

Negative Factors

Revenue Decline in S&I Segment

The decline in the S&I segment due to lack of large projects and low commodity prices could impact overall revenue stability and growth.

Challenges in Oil and Natural Gas Services

Persistent challenges in the oil and gas sector may limit growth and profitability, requiring strategic adjustments to mitigate impact.

Pressure on Pricing and Cost Management

Ongoing pricing pressure necessitates improved cost management to maintain margins, which could strain resources and affect profitability.

Mullen Group Business Overview & Revenue Model

Company Description

Mullen Group Ltd. (MTL) is a leading logistics and transportation company based in Canada, specializing in various sectors including trucking, logistics, and specialized transportation services. With a diverse portfolio, Mullen Group operates through multiple subsidiaries that provide services such as freight transportation, warehousing, and supply chain management, catering primarily to the oil and gas, industrial, and retail sectors.

How the Company Makes Money

Mullen Group generates revenue primarily through its comprehensive logistics and transportation services. The company earns money by charging fees for freight transportation, which includes the movement of goods via truck and rail. Key revenue streams include long-haul trucking, specialized transportation for heavy equipment, and logistics services that encompass warehousing and distribution. Additionally, Mullen Group benefits from contracts with major clients in the oil and gas industry, which often require reliable and efficient transportation solutions. The company also leverages partnerships with other logistics providers and clients to enhance its service offerings, thereby increasing its market reach and financial performance.

Mullen Group Financial Statement Overview

Summary

Mullen Group demonstrates solid financial health with consistent revenue growth and effective cash management. While profitability margins have slightly declined, the company maintains a stable balance sheet with manageable leverage. Continued focus on operational efficiency and cost control could enhance profitability and investor confidence.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.10B	1.99B	1.99B	2.00B	1.48B	1.16B
Gross Profit	488.54M	472.68M	473.88M	459.00M	308.08M	266.20M
EBITDA	330.27M	332.98M	334.63M	350.31M	239.13M	215.82M
Net Income	95.33M	112.26M	136.72M	158.62M	72.44M	63.98M
Balance Sheet
Total Assets	2.63B	2.33B	2.04B	2.00B	1.92B	1.72B
Cash, Cash Equivalents and Short-Term Investments	151.17M	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	1.60B	1.32B	1.07B	1.02B	1.03B	821.52M
Stockholders Equity	1.03B	1.02B	974.88M	973.40M	888.66M	896.42M
Cash Flow
Free Cash Flow	241.34M	224.55M	175.15M	181.56M	129.76M	159.65M
Operating Cash Flow	328.47M	296.12M	276.75M	262.97M	197.97M	224.82M
Investing Cash Flow	-270.86M	-111.90M	-111.84M	-36.99M	-255.59M	-68.66M
Financing Cash Flow	-247.17M	-51.61M	-138.67M	-215.14M	-46.28M	-128.89M

Mullen Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 16.02 is above the 20-day moving average (MA) of 15.23, above the 50-day MA of 14.54, and above the 200-day MA of 13.55, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 75.59 is Negative, neither overbought nor oversold. The STOCH value of 91.15 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTL	74 Outperform	C$1.53B	14.69	9.33%	5.24%	5.53%	-21.87%
WJX	73 Outperform	C$595.73M	12.93	8.84%	5.08%	3.71%	-12.70%
RUS	73 Outperform	C$2.46B	15.03	10.04%	3.89%	8.15%	-3.57%
CJT	67 Neutral	C$1.26B	10.55	16.75%	1.67%	7.71%	3170.43%
ARE	65 Neutral	C$1.99B	240.43	0.92%	2.50%	25.68%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TFII	63 Neutral	$11.85B	26.75	11.98%	1.76%	-0.25%	-28.71%

Mullen Group Corporate Events

Mullen Group Completes Debenture Redemption Ahead of Schedule

Mullen Group Ltd. has completed the redemption of its 5.75% convertible unsecured subordinated debentures, initially due in November 2026, on December 1, 2025. This move involved converting a significant portion of the debentures into common shares and redeeming the remaining debentures, which led to their delisting from the Toronto Stock Exchange. This strategic financial maneuver is likely to impact the company’s financial structure and market operations, potentially influencing stakeholder interests and the company’s positioning within the industry.

Mullen Group Declares Monthly Dividend for Shareholders

Mullen Group Ltd. has announced a monthly dividend of $0.07 per common share, payable to shareholders on December 15, 2025, with a record date of November 30, 2025. This dividend is designated as an ‘eligible dividend’ for Canadian tax purposes, potentially benefiting shareholders through enhanced tax credits. The announcement underscores Mullen Group’s commitment to providing shareholder value and reflects its stable financial position within the logistics and transportation sector.

Mullen Group’s Acquisition Strategy Fuels Q3 Growth Amid Economic Challenges

Mullen Group Ltd. reported strong financial results for the third quarter of 2025, driven by its acquisition strategy which contributed to a 5.6% increase in revenue compared to the previous year. Despite challenges in the Canadian economy, the company achieved record net cash from operating activities and continued to diversify its revenue streams through acquisitions like Cole International Inc. and Pacific Northwest Moving. This approach not only boosts revenue but also enhances service offerings and expands the customer base, reinforcing Mullen Group’s position in the competitive logistics market.

Mullen Group Announces Early Redemption of Debentures

Mullen Group Ltd. has announced the early redemption of its 5.75% convertible unsecured subordinated debentures, originally due in November 2026, with the redemption set for December 1, 2025. This strategic financial move will see the company redeem the full outstanding principal amount of $125 million in cash, potentially strengthening its financial position and impacting stakeholders by ceasing interest payments post-redemption.

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 October 31, 2025, with the payment date set for November 17, 2025. This declaration reflects the company’s ongoing commitment to providing shareholder value and may enhance its attractiveness to investors seeking income through dividends.

Mullen Group to Announce Q3 2025 Earnings

Mullen Group Ltd. announced it will release its third-quarter earnings results for 2025 on October 22, followed by a conference call and webcast. 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.

Mullen Group Declares Monthly Dividend of $0.07 Per Share

Mullen Group Ltd. has announced a monthly dividend of $0.07 per Common Share, payable on October 15, 2025, to shareholders of record as of September 30, 2025. This dividend is designated as an ‘eligible dividend’ for Canadian tax purposes. This announcement reflects the company’s ongoing commitment to providing shareholder value and may enhance its attractiveness to investors seeking reliable income streams.