Matson (MATX) AI Stock Analysis

• Market Cap: $3.75B
• Dividend Yield: 1.17%
• Average Volume (3M): 662.32K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.92
• Revenue Growth: 11.88%
• EPS Growth: 80.21%
• Country: US
• Employees: 4,356
• Sector: Industrials
• Sector Strength: 91
• Industry: Marine Shipping
• EPS (TTM): 2.18
• Shares Outstanding: 32,644,844
• 10 Day Avg. Volume: 935,271
• 30 Day Avg. Volume: 662,319
• PEG Ratio: 0.75
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.49
• 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: $138.33
• Price Target Upside: 20.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Matson's overall stock score reflects its strong financial foundation and shareholder-friendly actions like the share repurchase program. However, challenges in maintaining revenue growth, mixed guidance from the earnings call, and current technical trends weigh on the score.

Positive Factors

Financial Performance

Matson's balance sheet transformed since 2020, boosting capital rewards, with a net cash position of $519 million and reduced share count by 25%.

International Trade

Matson offers a stable domestic revenue stream with optionality on the international Transpacific trade, which could see rates surprise higher.

Market Position

Matson's large footprint on the USWC and Hawaii trade is protected through the Jones Act, ensuring stable volumes and freight rates.

Negative Factors

Market Conditions

Lower US import volumes already reflected in spot rates, setting up a potential positive surprise as the peak season approaches despite economic uncertainty.

Stock Performance

The shares have corrected, setting up a compelling buying opportunity.

Matson Business Overview & Revenue Model

Company Description

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. 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 to ocean carriers on the Hawaiian islands of Oahu, Hawaii, Maui, and Kauai, as well as in the Alaska locations of Anchorage, Kodiak, and Dutch Harbor. In addition, the company offers vessel management and container transshipment services. Its 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 consolidation and freight forwarding services; warehousing and distribution services; supply chain management services, and non-vessel operating common carrier freight forwarding services. The company serves the U.S. military, freight forwarders, retailers, consumer goods, automobile manufacturers, and other customers. 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.

How the Company Makes Money

Matson generates revenue primarily through its Ocean Transportation and Logistics segments. In the Ocean Transportation segment, the company earns money by providing container shipping services, where it charges customers for transporting goods across the Pacific Ocean. This includes both domestic routes, such as from the U.S. mainland to Hawaii and Alaska, and international routes, including to Guam and other Pacific islands. The Logistics segment contributes to the company's revenue by offering services like freight forwarding, warehousing, and distribution, which help streamline customers' supply chains. Key revenue streams include shipping fees, fuel surcharges, and logistics service charges. Matson's earnings are influenced by factors such as shipping demand, fuel prices, and economic conditions in the regions it serves. The company also benefits from long-standing relationships and contracts with government and military clients, providing additional stability to its revenue streams.

Matson Financial Statement Overview

Summary

Matson demonstrates financial resilience with strong profitability and cash generation capabilities, despite revenue pressures. The balance sheet is strong with improving leverage metrics, while cash flows remain positive, indicating a well-positioned financial state with some challenges in sustaining revenue growth.

Income Statement

Matson's revenue shows a downward trend from 2022 to 2024, with a slight recovery in TTM. Despite this, gross and net profit margins remain robust, reflecting efficient cost management. The EBIT and EBITDA margins are healthy, though there's a notable decline in revenue growth rate from previous high levels.

Balance Sheet

The company's balance sheet is strong with a debt-to-equity ratio that has improved over time, indicating reduced leverage. Return on Equity (ROE) remains solid, showcasing effective utilization of shareholder's equity. The equity ratio is stable, reflecting a strong equity base relative to total assets.

Cash Flow

Operating cash flow is consistently positive, providing a solid cash base. Free cash flow growth fluctuates but remains positive overall, indicating the company's capability to generate excess cash after capital expenditures. The ratios of operating cash flow and free cash flow to net income are favorable, highlighting efficient cash conversion.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.48B	3.42B	3.09B	4.34B	3.93B	2.38B
	Gross Profit
1.53B	855.90M	623.90M	1.53B	1.37B	479.00M
	EBIT
595.30M	551.30M	340.60M	1.35B	1.19B	280.30M
	EBITDA
871.00M	893.70M	690.50M	1.68B	1.45B	494.30M
	Net Income Common Stockholders
512.60M	476.40M	297.10M	1.06B	927.40M	193.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
122.00M	266.80M	134.00M	249.80M	282.40M	14.40M
	Total Assets
4.06B	4.60B	4.29B	4.33B	3.69B	2.90B
	Total Debt
380.60M	749.00M	725.00M	504.60M	614.70M	744.80M
	Net Debt
258.60M	482.20M	591.00M	254.80M	332.30M	730.40M
	Total Liabilities
1.35B	1.94B	1.89B	2.03B	2.03B	1.94B
	Stockholders Equity
2.63B	2.65B	2.40B	2.30B	1.67B	961.20M
Cash Flow		Free Cash Flow
565.40M	457.70M	249.70M	1.06B	658.80M	237.50M
	Operating Cash Flow
820.20M	767.80M	510.50M	1.27B	984.10M	429.80M
	Investing Cash Flow
-406.50M	-336.10M	-338.20M	-729.30M	-323.40M	-177.00M
	Financing Cash Flow
-319.90M	-301.20M	-289.70M	-576.60M	-392.70M	-261.50M

Matson Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 114.97
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MATX, the sentiment is Neutral. The current price of 114.97 is above the 20-day moving average (MA) of 105.67, above the 50-day MA of 114.53, and below the 200-day MA of 133.22, indicating a neutral trend. The MACD of 0.35 indicates Negative momentum. The RSI at 55.60 is Neutral, neither overbought nor oversold. The STOCH value of 82.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MATX.

Matson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZIM	80 Outperform	$2.21B	1.03	66.17%	38.95%	63.25%	―
DAC	78 Outperform	$1.62B	3.55	14.14%	3.81%	4.93%	-17.08%
SBLK	76 Outperform	$1.92B	8.29	11.09%	13.05%	25.60%	-9.32%
MATX	71 Outperform	$3.75B	7.58	20.48%	1.17%	11.88%	80.21%
GOGL	70 Neutral	$1.61B	7.22	11.68%	13.03%	9.33%	98.70%
KEX	67 Neutral	$6.19B	21.86	8.95%	―	2.99%	19.03%
Sector *	64 Neutral	$4.43B	12.01	5.16%	249.23%	4.03%	-11.73%

Matson Corporate Events

Matson Shareholders Approve 2025 Incentive Compensation Plan

On April 24, 2025, Matson, Inc. held its 2025 Annual Meeting of Shareholders where several key decisions were made. The shareholders approved the 2025 Incentive Compensation Plan, which allows for the issuance of 1,400,000 common shares, and ratified the appointment of Deloitte & Touche LLP as the independent accounting firm for the year ending December 31, 2025. Additionally, seven directors were elected to the board, and executive compensation was approved in an advisory vote.

Spark’s Take on MATX Stock

According to Spark, TipRanks’ AI Analyst, MATX is a Outperform.

Matson’s strong financial performance and strategic corporate actions support a moderately positive outlook. However, technical indicators suggest caution due to bearish momentum. The stock’s low valuation and shareholder-friendly initiatives provide a buffer against market uncertainties, while geopolitical risks and operational challenges in specific regions require ongoing attention.

To see Spark’s full report on MATX stock, click here.

Matson EVP Rusty Rolfe Announces Retirement

On April 23, 2025, Rusty K. Rolfe, the Executive Vice President and President of Matson Logistics, announced his retirement from Matson, Inc., effective July 1, 2025. The company may enter into a Consulting Agreement with Mr. Rolfe to assist with the transition following his retirement.

Spark’s Take on MATX Stock

According to Spark, TipRanks’ AI Analyst, MATX is a Outperform.

Matson’s strong financial performance and strategic corporate actions support a moderately positive outlook. However, technical indicators suggest caution due to bearish momentum. The stock’s low valuation and shareholder-friendly initiatives provide a buffer against market uncertainties, while geopolitical risks and operational challenges in specific regions require ongoing attention.

To see Spark’s full report on MATX stock, click here.

Matson Expands Share Repurchase Program to 2027

On February 27, 2025, Matson, Inc., a prominent U.S. carrier in the Pacific, announced the addition of three million shares to its existing share repurchase program, extending the program to December 31, 2027. This decision follows the repurchase of 11.5 million shares since August 2021, aimed at returning excess cash to shareholders and enhancing long-term shareholder value. The repurchase will be conducted at the company’s discretion based on capital needs, market price, and conditions, with the possibility of suspension or discontinuation at any time.