NYSE:MATX

Stock Analysis Report

Executive Summary

Matson, Inc. provides ocean transportation and logistics services.

Rewards

Trading at 84.1% below its fair value

Earnings are forecast to grow 11.7% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Profit margins (3.9%) are lower than last year (11.7%)

Significant insider selling over the past 3 months



Snowflake Analysis

Fair value second-rate dividend payer.


Similar Companies

Kirby

NYSE:KEX

Share Price & News

How has Matson's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MATX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.4%

MATX

0.08%

US Shipping

2.0%

US Market


1 Year Return

16.7%

MATX

19.1%

US Shipping

23.5%

US Market

Return vs Industry: MATX underperformed the US Shipping industry which returned 26.2% over the past year.

Return vs Market: MATX underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

MATXIndustryMarket
7 Day4.4%0.08%2.0%
30 Day1.1%2.1%4.3%
90 Day5.7%9.1%12.2%
1 Year19.3%16.7%21.5%19.1%26.1%23.5%
3 Year17.8%9.8%12.5%6.0%53.1%43.2%
5 Year22.8%10.3%-37.4%-43.9%75.5%56.1%

Price Volatility Vs. Market

How volatile is Matson's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Matson undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MATX ($39.14) is trading below our estimate of fair value ($245.66)

Significantly Below Fair Value: MATX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MATX is good value based on its PE Ratio (19.1x) compared to the Shipping industry average (21.4x).

PE vs Market: MATX is poor value based on its PE Ratio (19.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: MATX is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: MATX is overvalued based on its PB Ratio (2.1x) compared to the US Shipping industry average (0.5x).


Next Steps

Future Growth

How is Matson forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MATX's forecast earnings growth (11.7% per year) is above the savings rate (1.7%).

Earnings vs Market: MATX's earnings (11.7% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: MATX's earnings are forecast to grow, but not significantly.

Revenue vs Market: MATX's revenue (2.2% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: MATX's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MATX's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has Matson performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MATX has high quality earnings.

Growing Profit Margin: MATX's current net profit margins (3.9%) are lower than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: MATX's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: MATX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MATX had negative earnings growth (-65.5%) over the past year, making it difficult to compare to the Shipping industry average (-48.2%).


Return on Equity

High ROE: MATX's Return on Equity (11%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Matson's financial position?


Financial Position Analysis

Short Term Liabilities: MATX's short term assets ($299.5M) do not cover its short term liabilities ($437.7M).

Long Term Liabilities: MATX's short term assets ($299.5M) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: MATX's debt to equity ratio (110.7%) is considered high.

Reducing Debt: MATX's debt to equity ratio has increased from 102.9% to 110.7% over the past 5 years.

Debt Coverage: MATX's debt is well covered by operating cash flow (32%).

Interest Coverage: MATX's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

Inventory Level: MATX has a high level of physical assets or inventory.

Debt Coverage by Assets: MATX's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Matson's current dividend yield, its reliability and sustainability?

2.20%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: MATX's dividend (2.25%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: MATX's dividend (2.25%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: MATX's dividend payments have been volatile in the past 10 years.

Growing Dividend: MATX's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.5%), MATX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MATX's dividends in 3 years are forecast to be well covered by earnings (39% payout ratio).


Next Steps

Management

What is the CEO of Matson's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Matt Cox (58yo)

7.6yrs

Tenure

US$4,564,599

Compensation

Mr. Matthew J. Cox, also known as Matt, serves as Director of First Hawaiian Inc since 2016. Mr. Cox has been a Director at First Hawaiian Bank since 2014. Mr. Cox Serves as the Director at Matson Inc. sin ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD4.56M) is about average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.4yrs

Average Tenure

58yo

Average Age

Experienced Management: MATX's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

63yo

Average Age

Experienced Board: MATX's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: MATX insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$110,63913 Dec 19
Mark Fukunaga
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$36.88
SellUS$117,00012 Nov 19
W. Baird
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$39.00
SellUS$175,40612 Nov 19
Peter Heilmann
EntityIndividual
Role
Chief Administrative Officer
Senior VP
Shares4,460
Max PriceUS$39.33
SellUS$565,72526 Aug 19
Vicente Angoco
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Pacific
Shares16,100
Max PriceUS$35.14
SellUS$94,08013 May 19
W. Baird
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$37.63
SellUS$153,00911 Mar 19
Michael Chun
EntityIndividual
Shares4,398
Max PriceUS$34.79

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Matt Cox (58yo)

    Chairman & CEO

    • Tenure: 7.6yrs
    • Compensation: US$4.56m
  • Keoni Wagner (58yo)

    Director of Corporate Communications

    • Tenure: 4.4yrs
  • Ron Forest (63yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$1.67m
  • John Lauer (58yo)

    Senior VP & Chief Commercial Officer

    • Tenure: 2.8yrs
    • Compensation: US$1.26m
  • Lee Fishman

    Director of Strategic Development & Investor Relations

    • Vic Angoco (52yo)

      Senior Vice President of Pacific

      • Tenure: 7.6yrs
      • Compensation: US$848.54k
    • Joel Wine (47yo)

      Senior VP

      • Tenure: 8.3yrs
      • Compensation: US$1.73m
    • P. Weis

      Chief Information Officer & Senior VP

      • Yolanda Gonzales

        Vice President of Human Resources

        • Peter Heilmann (50yo)

          Senior VP

          • Tenure: 2.8yrs
          • Compensation: US$1.40m

        Board Members

        • Stan Kuriyama (65yo)

          Lead Independent Director

          • Tenure: 1.8yrs
          • Compensation: US$207.88k
        • W. Baird (58yo)

          Independent Director

          • Tenure: 13.6yrs
          • Compensation: US$188.94k
        • Connie Lau (66yo)

          Independent Director

          • Tenure: 15.8yrs
          • Compensation: US$198.94k
        • Matt Cox (58yo)

          Chairman & CEO

          • Tenure: 7.6yrs
          • Compensation: US$4.56m
        • Mark Fukunaga (63yo)

          Independent Director

          • Tenure: 1.8yrs
          • Compensation: US$162.63k
        • Tom Fargo (70yo)

          Independent Director

          • Tenure: 8.1yrs
          • Compensation: US$197.07k
        • Jenai Wall (60yo)

          Director

          • Tenure: 0.8yrs

        Company Information

        Matson, Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Matson, Inc.
        • Ticker: MATX
        • Exchange: NYSE
        • Founded: 1882
        • Industry: Marine
        • Sector: Transportation
        • Market Cap: US$1.719b
        • Shares outstanding: 42.87m
        • Website: https://www.matson.com

        Number of Employees


        Location

        • Matson, Inc.
        • 1411 Sand Island Parkway
        • Honolulu
        • Hawaii
        • 96819
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        MATXNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1972
        MATXDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972

        Biography

        Matson, Inc. provides ocean transportation and logistics services. The company’s Ocean Transportation segment offers ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska, and Guam, as well as to other island economies in Micronesia. It primarily transports dry containers of mixed commodities, refrigerated commodities, packaged foods and beverages, building materials, automobiles, and household goods; livestock; seafood; general sustenance cargo; and garments, footwear, and other retail merchandise. This segment also operates an expedited service from China to Long Beach, California, and various islands in the South Pacific, as well as Okinawa, Japan; and provides container stevedoring, refrigerated cargo services, inland transportation, container equipment maintenance, and other terminal services Hawaiian islands of Oahu, Hawaii, Maui, and Kauai, as well as in the Alaska locations of Anchorage, Kodiak, and Dutch Harbor. In addition, it offers ship management services. The Logistics segment provides multimodal transportation brokerage services, including domestic and international rail intermodal, long-haul and regional highway trucking, specialized hauling, flat-bed and project, less-than-truckload, and expedited freight services; less-than-container load forwarding services; warehousing and distribution services; and supply chain management services. The company was formerly known as Alexander & Baldwin Holdings, Inc. and changed its name to Matson, Inc. in June 2012. Matson, Inc. was founded in 1882 and is headquartered in Honolulu, Hawaii. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/17 23:31
        End of Day Share Price2020/01/17 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.