Mullen Group (MTL) AI Stock Analysis

• Market Cap: C$1.22B
• Dividend Yield: 6.01%
• Average Volume (3M): 160.34K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.69
• Revenue Growth: 5.52%
• EPS Growth: -18.01%
• Country: CA
• Employees: 8,070
• Sector: Industrials
• Sector Strength: 72
• Industry: Trucking
• EPS (TTM): 0.28
• Shares Outstanding: 87,123,955
• 10 Day Avg. Volume: 195,467
• 30 Day Avg. Volume: 160,336
• 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: 13.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: C$15.50 ▲(10.95% 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

The 9% revenue growth, driven by acquisitions, highlights Mullen Group's strategic expansion and ability to increase market share despite economic stagnation.

Strong Cash Position

Consistent cash flow generation indicates effective cash management, providing financial flexibility for reinvestment and debt reduction, supporting long-term stability.

Logistics and Warehousing Growth

Growth in the Logistics and Warehousing segment underscores Mullen Group's ability to capitalize on strategic acquisitions, enhancing service offerings and market reach.

Negative Factors

Profitability Pressures

Profitability pressures from pricing and cost escalations may hinder margin sustainability, impacting long-term earnings potential and operational efficiency.

Specialized Industrial Services Segment Decline

Decline in the Specialized Industrial Services segment reflects challenges in the energy sector, potentially affecting revenue diversification and growth prospects.

Competitive Pricing Environment

A competitive pricing environment, particularly in the LTL segment, could continue to pressure margins, affecting profitability and competitive positioning.

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 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

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	2.07B	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: Positive
• Last Price: 13.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 13.97 is above the 20-day moving average (MA) of 13.87, above the 50-day MA of 13.66, and above the 200-day MA of 13.51, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 56.45 is Neutral, neither overbought nor oversold. The STOCH value of 66.49 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSP	75 Outperform	35.42B	44.03	9.37%	0.55%	18.24%	28.47%
MTL	74 Outperform	C$1.22B	12.18	9.99%	6.01%	5.52%	-18.01%
RUS	73 Outperform	2.24B	13.85	10.26%	4.25%	5.82%	-15.76%
ARE	66 Neutral	1.42B	56.11	2.81%	3.37%	20.53%	74.96%
CJT	65 Neutral	1.44B	10.05	19.91%	1.51%	14.37%	―
TFII	63 Neutral	10.27B	20.51	―	1.98%	6.04%	-20.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.