Latest news with #MartenTransport
Yahoo
27-05-2025
- Business
- Yahoo
These Return Metrics Don't Make Marten Transport (NASDAQ:MRTN) Look Too Strong
When researching a stock for investment, what can tell us that the company is in decline? Typically, we'll see the trend of both return on capital employed (ROCE) declining and this usually coincides with a decreasing amount of capital employed. This indicates the company is producing less profit from its investments and its total assets are decreasing. In light of that, from a first glance at Marten Transport (NASDAQ:MRTN), we've spotted some signs that it could be struggling, so let's investigate. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. The formula for this calculation on Marten Transport is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.024 = US$21m ÷ (US$983m - US$110m) (Based on the trailing twelve months to March 2025). So, Marten Transport has an ROCE of 2.4%. In absolute terms, that's a low return and it also under-performs the Transportation industry average of 9.1%. See our latest analysis for Marten Transport Above you can see how the current ROCE for Marten Transport compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for Marten Transport . There is reason to be cautious about Marten Transport, given the returns are trending downwards. To be more specific, the ROCE was 9.3% five years ago, but since then it has dropped noticeably. Meanwhile, capital employed in the business has stayed roughly the flat over the period. This combination can be indicative of a mature business that still has areas to deploy capital, but the returns received aren't as high due potentially to new competition or smaller margins. If these trends continue, we wouldn't expect Marten Transport to turn into a multi-bagger. In summary, it's unfortunate that Marten Transport is generating lower returns from the same amount of capital. Long term shareholders who've owned the stock over the last five years have experienced a 14% depreciation in their investment, so it appears the market might not like these trends either. Unless there is a shift to a more positive trajectory in these metrics, we would look elsewhere. Marten Transport does have some risks, we noticed 3 warning signs (and 1 which shouldn't be ignored) we think you should know about. While Marten Transport isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
11-05-2025
- Business
- Yahoo
Marten Transport (NASDAQ:MRTN) Has Affirmed Its Dividend Of $0.06
The board of Marten Transport, Ltd. (NASDAQ:MRTN) has announced that it will pay a dividend on the 27th of June, with investors receiving $0.06 per share. Based on this payment, the dividend yield will be 1.8%, which is fairly typical for the industry. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. Before making this announcement, Marten Transport was paying out a fairly large proportion of earnings, and it wasn't generating positive free cash flows either. We think that this practice can make the dividend quite risky in the future. EPS is set to grow by 39.3% over the next year. If the dividend continues along recent trends, we estimate the payout ratio could reach 78%, which is on the higher side, but certainly still feasible. See our latest analysis for Marten Transport The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The annual payment during the last 10 years was $0.04 in 2015, and the most recent fiscal year payment was $0.24. This implies that the company grew its distributions at a yearly rate of about 20% over that duration. Despite the rapid growth in the dividend over the past number of years, we have seen the payments go down the past as well, so that makes us cautious. With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Marten Transport's EPS has fallen by approximately 19% per year during the past five years. Such rapid declines definitely have the potential to constrain dividend payments if the trend continues into the future. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this becomes a long term trend. Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. The payments are bit high to be considered sustainable, and the track record isn't the best. We don't think Marten Transport is a great stock to add to your portfolio if income is your focus. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. To that end, Marten Transport has 3 warning signs (and 1 which is potentially serious) we think you should know about. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-05-2025
- Business
- Yahoo
Insider Spends US$258k Buying More Shares In Marten Transport
Potential Marten Transport, Ltd. (NASDAQ:MRTN) shareholders may wish to note that the Independent Director, Jerry Bauer, recently bought US$258k worth of stock, paying US$12.88 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 13%. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. In fact, the recent purchase by Jerry Bauer was the biggest purchase of Marten Transport shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$12.84 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Jerry Bauer. Jerry Bauer purchased 30.00k shares over the year. The average price per share was US$13.86. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below! View our latest analysis for Marten Transport Marten Transport is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket. Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Marten Transport insiders own about US$307m worth of shares (which is 29% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders. It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Marten Transport. Nice! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 3 warning signs we've spotted with Marten Transport (including 1 which shouldn't be ignored). But note: Marten Transport may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
17-04-2025
- Business
- Yahoo
Fear and loathing for truckload earnings
Q1 earnings season is upon us, with early results pointing to continued degradation in truckload carriers' financial health. Wisconsin-based Marten Transport released its Q1 earnings on Wednesday, but with publicly traded companies timing is everything. FreightWaves' John Kingston notes, 'The earnings, released midday Wednesday in an unusual move given that the stock market was open for business, saw declines in almost every major metric.' A big metric truckload carriers use is operating ratio (OR), or the comparison of your costs to your revenue. In the case of Marten, OR decreased in its truckload, dedicated, intermodal and brokerage segments. Truckload fell to 100.3% compared to 99.5% last year. Dedicated, viewed as a safer option compared to the boom-bust of one-way truckload, fell 500 basis points y/y from 87.1% to 92.2%. Intermodal, which remained over 100 OR last year, rose from 101.5% in Q1 2024 to 108.3%. The one bright side was Marten's brokerage segment, which fell 110 bps y/y to 93.5%. The earnings release also showed a shrinking fleet, with Marten's total tractor count down to 3,040 compared to 3,406 a year ago. Diving further showed Marten's truckload tractor count fell from 1,830 to 1,670 while dedicated declined from 1,459 to 1,262 tractors. Executive Chairman Randolph Marten noted in the release that the company's earnings continued to be pressured by the duration and depth of the freight market recession, paired with overcapacity and weak demand. The tariff uncertainty added further woes, with Marten noting the company remains focused on minimizing the impact of U.S. and global economies from trade policy volatility. Marten's plan to address these challenges comes from organic growth and getting fair compensation for their premium Ohio-based Ease Logistics is part of a collaboration between the Ohio Department of Transportation and the Indiana Department of Transportation aimed at testing truck automation technologies. FreightWaves' Steve Barrett writes, 'A DOT grant is partially funding the $8.8 million, multiyear project, which is gauging different levels of automation in truck fleets.' The route involves a 175-mile stretch between Columbus, Ohio, and Indianapolis, with two tractor-trailers participating in the test. 'This technology offers a complete safety system with redundancies that could make roadways safer,' Ohio State Highway Patrol Capt. Chris Kinn said. 'Unlike human drivers, automated vehicles do not drive impaired, text while driving, fall asleep at the wheel or recklessly speed. The goal of this technology is to take the human error out of the safety equation.' The trucks are equipped with Kratos Defense platooning technology linking them electronically, with a human driver in the lead vehicle being able to control the speed and direction of the second truck. DriveOhio noted that the tech enables the autonomous follower truck to precisely follow the path of the lead truck. For law enforcement agencies worried about trucks following too closely, the two trucks are equipped with purple lights in the cabs to notify them they're electronically linked. Freight audit and payment provider Cass Information System released on Monday its March Cass Freight Index. The shipments component saw a slight narrowing in year-over-year declines, with March down 5.3% y/y compared to 5.5% y/y in February. Seasonally adjusted month over month saw shipments fall 2.1% compared to a 4.9% gain in February due to severe January weather. Pre-tariff shipping was also cited for the higher February numbers. Freight expenditures, which measured the total amount spent on freight, rose 2.8% m/m in March. Looking at y/y comps, the decline narrowed to 2% from a decline of 4.6% in recent 90-day pause on most reciprocal tariffs is expected to lead to more pre-tariff shipping in Q2 but will be counterbalanced by adverse effects from the extreme China tariffs. Tim Denoyer, vice president and senior analyst at ACT Research, wrote in the report, 'Volumes may also be temporarily supported in the coming months as consumers scoop up pre-tariff goods before prices go up. But thereafter, the trade war is likely to extend the for-hire freight recession as higher prices reduce goods affordability and consumers' real incomes.' Looking ahead, the report notes a frequently asked question is what proportion of freight is international trade, as the Cass Data focuses on domestic data. Denoyer notes, 'Even with good border and port data, it's tough to pinpoint.' To take a stab at that question, ACT asked the academic community. Jason Miller, professor at Michigan State, estimates the answer is in the range of 20% to 25%. In the meantime, Denoyer says freight is caught up in the trade war, adding, 'We expect a few more months of brisk demand for pre-tariff goods, followed by a tariff adjustment period with lower goods demand. It's been 39 months since the first y/y decline of this cycle, so a recovery can only be so far away. But freight is very much in the crosshairs of the trade war.' Summary: Tariff-related uncertainty continues to weigh on the dry van segment, which, compared to the previous year, is in a better pricing situation despite a deterioration in load tender volumes. The past week saw dry van outbound tender rejection rates fall 33 basis points from 5.52% on April 7 to 5.19%. Dry van outbound tender volumes were mostly flat w/w, up 0.76 points, from 6,992.55 points to 6,993.31 points. A bump in dry van spot rates the first week of April has given way to a slump, with the SONAR National Truckload Index 7-Day average falling 6 cents per mile all in from $2.29 on April 7 to $2.23. Spot market linehaul rates also fell, down 6 cents per mile from $1.73 to $1.67. For linehaul rates, fuel costs are based on the average retail price of diesel fuel and fuel efficiency of 6.5 miles per gallon. The formula is NTID – ( For fleets languishing in this tough operating environment, one sign of relief is the downward movement in the average retail price paid for diesel fuel. DTS fell 3 cents per gallon w/w from $3.65 to $3.62. Compared to this time last year's price of $4.07 per gallon, diesel prices are 45 cents per gallon lower. A single fuel tank for a Class 8 tractor averages between 120 and 150 gallons, with some fleets opting for two tanks at around 300 gallons. A 45-cent-per-gallon fuel savings can give fleets anywhere between $54 in savings for a 120-gallon tank to $135 for a 300-gallon tank. If a tractor runs 2,000 miles per week and has an engine at the low end of fuel economy at 6.5 mpg, it may fuel one or two times a week including extra fuel loss from idling. Doing the math, 2,000 miles divided by 6.5 mpg yields approximately 307 gallons, with a 300-gallon tank fueling around once a week and a 120-to-150-gallon tank at least twice a week. Over the course of a year, that can add up to between $5,616 and $7,020 extra net income per truck. NIMBY, other concerns limit state acquisition of land for public truck parking (Overdrive)FMCSA OKs exemptions for pulsing brake lights for 2 truck fleets (FreightWaves) Trucking companies spark healthier lifestyles for drivers (Commercial Carrier Journal) Freight fraud everywhere, but Truckstop CEO asks: Is anybody going to jail? (FreightWaves) Tariff Impact Analysis on Automakers in the United States (Center for Automotive Research)Breaking from the FreightTech AI pack: Companies make their case at TIA meeting (FreightWaves) The post Fear and loathing for truckload earnings appeared first on FreightWaves.
Yahoo
24-02-2025
- Business
- Yahoo
Resilient rejection rates illustrate truckload capacity's decline
Chart of the Week: Outbound Tender Reject Index, Outbound Tender Volume Index – USA SONAR: Requests for truckload capacity (OTVI) are down roughly 16% from their peak levels in September of last year. However, carriers are rejecting these requests at a higher rate — national rejection rates reached 5.7% last week, compared to 4.3% in early September. This suggests that the balance between supply (capacity) and demand is the closest it has been to equilibrium in the truckload market since 2022. The Outbound Tender Reject Index (OTRI) measures the percentage of requests from shippers that truckload carriers turn down. Carriers generally avoid rejecting loads frequently, as doing so means turning away business. For this reason, rejection rates tend to remain relatively low. The pandemic years of 2020-2021 were among the most challenging periods for securing transportation capacity. Between July 2020 and January 2022, the OTRI averaged above 23%, meaning carriers rejected nearly one out of every four loads due to insufficient this historically high period, the OTRI entered the opposite environment, averaging just 4.3% from July 2022 through last September — equivalent to about one out of every 25 loads being rejected. Beginning in May 2023, the OTRI showed a slow but steady upward trend, coinciding with the market bottoming out in terms of oversupply. This period marked one of the easiest sourcing environments in recent history. However, last October, the OTRI's upward movement accelerated. From May 2023 to September 2024, the OTRI rose from approximately 2.9% to 4.4%, averaging an increase of 8.8 basis points per month. Since late September, the OTRI has surged to 5.69%, rising at a rate of 25.5 bps per month — despite January and February typically being the slowest months of the year. Some argue that the holidays and winter weather have inflated the OTRI, making these comparisons less meaningful. While this point has merit, it is important to note that tender volumes have declined significantly during this same period, which weakens that argument. Most of the holiday influence should have been flushed out at this point. Last week's chart of the week article highlighted the fact that carriers appear to be prioritizing loads coming off the West Coast in lieu of some of the Eastern markets, even in very well publicized markets with strong growth like Laredo, reality, carriers have consistently prioritized loads that offer the best financial and operational benefits throughout the downturn. However, this trend is now becoming more apparent as capacity tightens. Large fleets have been parking and selling trucks over the past year. Werner reported a 9% y/y decline in active units in Q4 in its one-way TL segment and a 7% drop in dedicated units. Marten Transport showed a 3.5% reduction in TL and 15% in dedicated. Since late September, the market has experienced a net loss of over 4,500 carriers, according to Carrier Details' analysis of Federal Motor Carrier Safety Administration data. While most of these losses involve small fleets, this trend has been ongoing since late 2023. As capacity contracts, the underlying weaknesses in the market are becoming more visible — like rocks emerging as the tide recedes. Over the past week, the OTVI fell by more than 7%, a very strong decline even considering seasonality. The OTRI barely reacted. Unlike rejection rates, spot rates have been more volatile, experiencing a steep decline — aside from one brief increase — since mid-January. The takeaway is that a 5.5% rejection rate is still not high enough to drive inflationary spot rate activity. Additionally, rejection rates tend to be a more stable market indicator, as they are not subject to negotiation. In contrast, rapid shifts in market conditions often lead to exaggerated movements in rate negotiations. The bottom line: The truckload market has tightened significantly in recent months – more than many realize. While slower demand has obscured signs of recovery, the market remains increasingly vulnerable to sharp shifts. The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on for future reference. SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real FreightWaves data science and product teams are releasing new datasets each week and enhancing the client experience. To request a SONAR demo, click here. The post Resilient rejection rates illustrate truckload capacity's decline appeared first on FreightWaves. Sign in to access your portfolio
