Matson (MATX) AI Stock Analysis

• Market Cap: $3.21B
• Dividend Yield: 1.48%
• Average Volume (3M): 322.10K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 1.02
• Revenue Growth: 8.75%
• EPS Growth: 56.21%
• Country: US
• Employees: 4,356
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): N/A
• Shares Outstanding: 31,789,019
• 10 Day Avg. Volume: 303,663
• 30 Day Avg. Volume: 322,100
• PEG Ratio: 0.14
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 1.33
• P/FCF Ratio: 9.93
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 4.81
• Enterprise Value/Ebitda: 4.72
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $113.00 ▲(20.95% Upside)

Matson's overall stock score is driven by its strong financial performance and attractive valuation, despite challenges in revenue and cash flow growth. Technical analysis indicates mixed signals, and the earnings call highlighted both opportunities and risks. The company's low P/E ratio and solid dividend yield enhance its attractiveness, but market volatility, especially in the China service, poses challenges.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates financial stability, providing Matson with the flexibility to invest in growth opportunities and weather economic downturns.

Hawaii and Alaska Volume Growth

Growth in key markets like Hawaii and Alaska suggests strong demand and market position, supporting long-term revenue stability and expansion potential.

New Vessel Construction Funding

Secured funding for new vessels ensures Matson can modernize its fleet, enhancing operational efficiency and service reliability in the long term.

Negative Factors

Declining Revenue Growth

A sharp decline in revenue growth can hinder Matson's ability to sustain profitability and invest in future growth, impacting long-term competitiveness.

China Service Volume Decline

Decreased volume in China due to market uncertainty and tariffs could limit revenue from a significant trade lane, affecting overall performance.

Decreased Operating Income

A decline in operating income reflects reduced profitability, which can strain resources for reinvestment and shareholder returns over time.

Matson Business Overview & Revenue Model

Company Description

Matson, Inc. (MATX) is a leading provider of ocean transportation and logistics services, primarily serving the Pacific region. The company operates through two main segments: Ocean Transportation and Logistics. Matson's core services include container shipping, terminal operations, and logistics solutions, catering mainly to the transportation of goods between the U.S. mainland and Hawaii, as well as to other Pacific islands. The company is known for its reliable service and commitment to customer satisfaction in the transportation of a wide range of cargo, including retail goods, food products, and industrial materials.

How the Company Makes Money

Matson generates revenue primarily through its Ocean Transportation segment, which accounts for a significant portion of its earnings. This segment derives income from the shipping of containerized freight, with revenue influenced by factors such as shipping volumes, freight rates, and fuel costs. The Logistics segment contributes additional revenue by providing integrated supply chain solutions, including transportation management, warehousing, and distribution services. Key revenue streams include contracts with large retail and food companies, as well as spot market transactions. Additionally, strategic partnerships with other logistics providers enhance service offerings and expand reach, bolstering Matson's competitive edge in the market.

Matson Financial Statement Overview

Summary

Matson demonstrates strong profitability with a solid balance sheet, highlighted by a low debt-to-equity ratio and healthy return on equity. However, challenges exist with declining revenue and cash flow growth, which need addressing for sustained long-term growth.

Income Statement

Matson's income statement shows a mixed performance. The company has maintained a strong net profit margin of 14.26% in the TTM period, indicating good profitability. However, there is a significant decline in revenue growth rate (-48.5% TTM), which is a concern. The gross profit margin has decreased from previous years, and the EBIT and EBITDA margins have also seen a decline, reflecting reduced operational efficiency.

Balance Sheet

The balance sheet of Matson is relatively strong with a low debt-to-equity ratio of 0.25 in the TTM period, indicating low leverage and financial stability. The return on equity is healthy at 18.90%, showcasing effective use of equity to generate profits. The equity ratio is stable, reflecting a solid capital structure.

Cash Flow

Matson's cash flow statement reveals some challenges. The free cash flow growth rate is negative (-9.09% TTM), indicating a decline in cash generation. However, the operating cash flow to net income ratio is above 1, suggesting that the company generates sufficient cash from operations to cover its net income. The free cash flow to net income ratio is also strong at 0.70, indicating good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.46B	3.42B	3.09B	4.34B	3.93B	2.38B
Gross Profit	876.50M	855.90M	623.90M	1.53B	1.37B	479.00M
EBITDA	892.20M	893.70M	690.50M	1.68B	1.45B	494.30M
Net Income	494.10M	476.40M	297.10M	1.06B	927.40M	193.10M
Balance Sheet
Total Assets	4.48B	4.60B	4.29B	4.33B	3.69B	2.90B
Cash, Cash Equivalents and Short-Term Investments	59.10M	266.80M	134.00M	249.80M	282.40M	14.40M
Total Debt	665.30M	749.00M	725.00M	910.70M	1.06B	1.00B
Total Liabilities	1.86B	1.94B	1.89B	2.03B	2.03B	1.94B
Stockholders Equity	2.62B	2.65B	2.40B	2.30B	1.67B	961.20M
Cash Flow
Free Cash Flow	432.90M	457.70M	262.10M	1.06B	658.80M	237.50M
Operating Cash Flow	617.90M	767.80M	510.50M	1.27B	984.10M	429.80M
Investing Cash Flow	-388.40M	-336.10M	-338.20M	-729.30M	-323.40M	-177.00M
Financing Cash Flow	-341.00M	-301.20M	-289.70M	-576.60M	-392.70M	-261.50M

Matson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 93.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MATX, the sentiment is Positive. The current price of 93.43 is below the 20-day moving average (MA) of 95.21, below the 50-day MA of 100.12, and below the 200-day MA of 113.32, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 55.76 is Neutral, neither overbought nor oversold. The STOCH value of 75.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MATX.

Matson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEX	―	$5.77B	19.21	9.17%	―	1.59%	3.36%
MATX	―	$3.21B	6.83	19.70%	1.48%	8.75%	56.21%
DAC	―	$1.67B	3.75	13.38%	3.74%	5.63%	-17.54%
CMRE	―	$1.49B	5.25	14.61%	3.76%	-7.24%	-16.39%
SBLK	―	$2.09B	17.27	5.11%	4.33%	2.95%	-61.74%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ZIM	―	$1.85B	0.92	59.06%	49.74%	43.57%	―

Matson Corporate Events

Matson Highlights Strategic Focus at Jefferies Conference

On September 3, 2025, Matson, Inc. presented an overview of the company at the Jefferies Industrials Conference in New York. The presentation highlighted Matson’s strong market positions in niche markets, its commitment to returning cash to shareholders, and its financial strength to invest in growth opportunities. The company also emphasized its unique network connecting the Pacific and its premium services, such as the China-to-Long Beach Express, which offer competitive advantages and high return on invested capital. The announcement underscores Matson’s strategic focus on expanding its service offerings and maintaining its leadership in the Pacific transportation and logistics industry.

The most recent analyst rating on (MATX) stock is a Buy with a $116.00 price target. To see the full list of analyst forecasts on Matson stock, see the MATX Stock Forecast page.

Matson Inc Navigates Challenges Amid Earnings Call Insights

Matson Inc’s recent earnings call presented a balanced perspective, highlighting both achievements and challenges. The company reported notable growth in container volumes in specific regions and a robust performance from its SSAT joint venture. However, these positives were offset by significant hurdles, including a decline in operating income and reduced volumes in the China service, attributed to market volatility and tariffs. While proactive measures like share repurchases and vessel program funding were commendable, the overall sentiment was cautious due to ongoing uncertainties in trade and logistics.

Matson Inc. Reports Q2 2025 Earnings Amid Trade Challenges

Matson, Inc., a prominent U.S. carrier in the Pacific, provides ocean transportation and logistics services, notably connecting Hawaii, Alaska, and Guam with mainland U.S. and offering expedited services from China to California.