Mullen Group Ltd. (MTL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Waste Connections, Inc.

Total Energy Services, Inc.

Trican Well Service Ltd.

TFI International, Inc.

Mullen Group Ltd.

CES Energy Solutions Corp.

TerraVest Industries, Inc.

North American Construction Group Ltd.

Titanium Transportation Group, Inc.

Mattr Corp.

Why is Mullen Group Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 11.77% signifying low profitability per unit of shareholders funds

Negative results in Jun 25

NET PROFIT(9M) At CAD 59.32 MM has Grown at -26.52%
ROCE(HY) Lowest at 9.99%
DEBT-EQUITY RATIO (HY) Highest at 99.47 %

With ROE of 9.78%, it has a very attractive valuation with a 1.21 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -2.78%, its profits have fallen by -13.2%

Majority shareholders : Mutual Funds

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.78% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mullen Group Ltd. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Mullen Group Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mullen Group Ltd.

25.49%

0.24

23.30%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.88%

EBIT Growth (5y)

8.85%

EBIT to Interest (avg)

4.93

Debt to EBITDA (avg)

2.24

Net Debt to Equity (avg)

0.68

Sales to Capital Employed (avg)

1.10

Tax Ratio

27.63%

Dividend Payout Ratio

81.41%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

10.91%

ROE (avg)

11.77%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.38

EV to EBIT

12.70

EV to EBITDA

6.97

EV to Capital Employed

1.23

EV to Sales

1.06

PEG Ratio

Dividend Yield

ROCE (Latest)

9.72%

ROE (Latest)

8.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 130.76%

INVENTORY TURNOVER RATIO(HY)

Highest at 36.12 times

-13What is not working for the Company

INTEREST(HY)

At CAD 30.32 MM has Grown at 32.55%

ROCE(HY)

Lowest at 8.45%

INTEREST COVERAGE RATIO(Q)

Lowest at 520.61

PRE-TAX PROFIT(Q)

At CAD 21.14 MM has Fallen at -30.08%

NET PROFIT(Q)

At CAD 15.96 MM has Fallen at -28.64%

EPS(Q)

Lowest at CAD 0.16

Here's what is working for Mullen Group Ltd.

Inventory Turnover Ratio

Highest at 36.12 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 130.76%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at CAD 38.61 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Mullen Group Ltd.

Interest

At CAD 30.32 MM has Grown at 32.55%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 520.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CAD 21.14 MM has Fallen at -30.08%

over average net sales of the previous four periods of CAD 30.23 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 15.96 MM has Fallen at -28.64%

over average net sales of the previous four periods of CAD 22.36 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD 0.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)