Matson (NYSE:MATX) - Share price, News & Analysis

Q: What is the Fair Price of MATX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

MATX ($72.52) is trading above our estimate of [[fair value]] ($52.76)

MATX fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	5/6
Financial Health	5/6
Dividends	3/6

MATX Stock Overview

Matson, Inc., together with its subsidiaries, provides ocean transportation and logistics services.

Rewards

Price-To-Earnings ratio (2.5x) is below the US market (14.7x)

Earnings have grown 46.1% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of 58.6% per year for the next 3 years

Unstable dividend track record

Matson Competitors

Star Bulk Carriers

NasdaqGS:SBLK

US$2.5b

Golden Ocean Group

NasdaqGS:GOGL

US$2.3b

Costamare

NYSE:CMRE

US$1.4b

Danaos

NYSE:DAC

US$1.3b

Price History & Performance

Summary of all time highs, changes and price drops for Matson
Historical stock prices
Current Share Price	US$74.54
52 Week High	US$125.34
52 Week Low	US$62.34
Beta	1.04
1 Month Change	-16.93%
3 Month Change	-40.15%
1 Year Change	16.16%
3 Year Change	89.91%
5 Year Change	143.67%
Change since IPO	101.46%

Recent News & Updates

Jun 26

Matson (NYSE:MATX) Has Announced That It Will Be Increasing Its Dividend To US$0.31

Matson, Inc. ( NYSE:MATX ) will increase its dividend on the 1st of September to US$0.31. Despite this raise, the...

Jun 06

Here's Why Matson (NYSE:MATX) Can Manage Its Debt Responsibly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

May 13

When Should You Buy Matson, Inc. (NYSE:MATX)?

Matson, Inc. ( NYSE:MATX ), might not be a large cap stock, but it received a lot of attention from a substantial price...

Shareholder Returns

	MATX	US Shipping	US Market
7D	2.7%	-5.2%	6.6%
1Y	16.2%	-6.3%	-18.4%

Return vs Industry: MATX exceeded the US Shipping industry which returned -6.3% over the past year.

Return vs Market: MATX exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is MATX's price volatile compared to industry and market?
MATX volatility
MATX Average Weekly Movement	8.4%
Shipping Industry Average Movement	9.4%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: MATX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: MATX's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1882	4,259	Matt Cox	https://www.matson.com

Matson, Inc., together with its subsidiaries, 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, e-commerce, and other retail merchandise.

Matson Fundamentals Summary

How do Matson's earnings and revenue compare to its market cap?
MATX fundamental statistics
Market Cap	US$2.94b
Earnings (TTM)	US$1.18b
Revenue (TTM)	US$4.38b

2.6x

P/E Ratio

0.7x

P/S Ratio

Is MATX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MATX income statement (TTM)
Revenue	US$4.38b
Cost of Revenue	US$2.72b
Gross Profit	US$1.66b
Other Expenses	US$483.00m
Earnings	US$1.18b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	29.09
Gross Margin	37.96%
Net Profit Margin	26.93%
Debt/Equity Ratio	31.4%

How did MATX perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

4%

Payout Ratio

Does MATX pay a reliable dividends?

See MATX dividend history and benchmarks

When do you need to buy MATX by to receive an upcoming dividend?
Matson dividend dates
Ex Dividend Date	Aug 03 2022
Dividend Pay Date	Sep 01 2022
Days until Ex dividend	36 days
Days until Dividend pay date	65 days

Does MATX pay a reliable dividends?

See MATX dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is MATX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MATX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MATX. This is calculated by dividing MATX's market cap by their current preferred multiple.
What is MATX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$2.94b

MATX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	2.3x
PEG Ratio	-0.04x

Price to Earnings Ratio vs Peers

How does MATX's PE Ratio compare to its peers?

MATX PE Ratio vs Peers

The above table shows the PE ratio for MATX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	2.9x
SBLK Star Bulk Carriers	3.1x	-13.8%	US$2.5b
GOGL Golden Ocean Group	3.6x	-20.4%	US$2.3b
CMRE Costamare	3.1x	11.3%	US$1.4b
DAC Danaos	1.2x	-37.2%	US$1.3b
MATX Matson	2.5x	-58.6%	US$2.9b

Forward PE

Price-To-Earnings vs Peers: MATX is good value based on its Price-To-Earnings Ratio (2.5x) compared to the peer average (2.7x).

Price to Earnings Ratio vs Industry

How does MATX's PE Ratio compare vs other companies in the US Shipping Industry?

Price-To-Earnings vs Industry: MATX is good value based on its Price-To-Earnings Ratio (2.5x) compared to the US Shipping industry average (2.7x)

Price to Earnings Ratio vs Fair Ratio

What is MATX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MATX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2.6x
Fair PE Ratio	2.6x

Price-To-Earnings vs Fair Ratio: MATX is good value based on its Price-To-Earnings Ratio (2.5x) compared to the estimated Fair Price-To-Earnings Ratio (2.6x).

Share Price vs Fair Value

What is the Fair Price of MATX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MATX ($72.52) is trading above our estimate of fair value ($52.76)

Significantly Below Fair Value: MATX is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: MATX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Discover undervalued companies

Future Growth

How is Matson forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-58.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MATX's earnings are forecast to decline over the next 3 years (-58.6% per year).

Earnings vs Market: MATX's earnings are forecast to decline over the next 3 years (-58.6% per year).

High Growth Earnings: MATX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MATX's revenue is expected to decline over the next 3 years (-15.1% per year).

High Growth Revenue: MATX's revenue is forecast to decline over the next 3 years (-15.1% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if MATX's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Matson performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

46.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MATX has high quality earnings.

Growing Profit Margin: MATX's current net profit margins (26.9%) are higher than last year (10.7%).

Past Earnings Growth Analysis

Earnings Trend: MATX's earnings have grown significantly by 46.1% per year over the past 5 years.

Accelerating Growth: MATX's earnings growth over the past year (326.5%) exceeds its 5-year average (46.1% per year).

Earnings vs Industry: MATX earnings growth over the past year (326.5%) underperformed the Shipping industry 649.4%.

Return on Equity

High ROE: MATX's Return on Equity (61.7%) is considered outstanding.

Discover strong past performing companies

Financial Health

How is Matson's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MATX's short term assets ($874.8M) exceed its short term liabilities ($610.2M).

Long Term Liabilities: MATX's short term assets ($874.8M) do not cover its long term liabilities ($1.5B).

Debt to Equity History and Analysis

Debt Level: MATX's net debt to equity ratio (10.9%) is considered satisfactory.

Reducing Debt: MATX's debt to equity ratio has reduced from 167.3% to 31.4% over the past 5 years.

Debt Coverage: MATX's debt is well covered by operating cash flow (189%).

Interest Coverage: MATX's interest payments on its debt are well covered by EBIT (71x coverage).

Balance Sheet

Discover healthy companies

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.66%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: MATX's dividend (1.71%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: MATX's dividend (1.71%) is low compared to the top 25% of dividend payers in the US market (4.24%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (4%), MATX's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (6.3%), MATX's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure

CEO

Matt Cox (60 yo)

10yrs

Tenure

US$5,957,058

Compensation

Mr. Matthew J. Cox, also known as Matt, had served on the First Hawaiian Bank's board of directors since 2014 until 2022. He served as Independent Director at First Hawaiian, Inc. since 2016 until April 20...

CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD5.96M) is about average for companies of similar size in the US market ($USD6.88M).

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

Leadership Team

Experienced Management: MATX's management team is seasoned and experienced (6.8 years average tenure).

Board Members

Experienced Board: MATX's board of directors are considered experienced (6 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: MATX insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31