MRTN - Marten Transport: On A Road To Recovery Navigating A Freight Recession

2024-07-15 13:30:40 ET

Summary

• Marten Transport is a transportation and logistics company specializing in long-haul trucking and refrigerated transport services across North America.
• Over the last few quarters, the company has been navigating through challenging market conditions with a commitment to improving profitability.
• The company is well-positioned with a solid balance sheet and ample liquidity, which should bode well if the freight recession lasts longer than expected.
• Given a wide valuation differential versus its peers and a discount to the historical valuation range, I rate shares of Marten Transport as a 'buy'.

Introduction

It's been a difficult time to be a logistics and transport company. During the last few years, the sector has undergone a tumultuous period navigating supply chains, inflation, and now a freight recession as an imbalance of supply and demand for trucking leaves the market dry. However, for those that look under the hood of the companies in the sector, as well as which ones are poised to benefit from a rebound, I believe that Marten Transport, Ltd. (MRTN) should be a strong candidate to come out ahead. A strong balance sheet, attractive valuation, and signs of a rebound make this logistics provider a 'buy'.

Company Overview

Marten Transport is a transportation and logistics company that specializes in long-haul trucking and refrigerated transport services stretching across North America's three largest economies: Canada, the U.S., and Mexico. With a fleet of trucks that have built-in advanced refrigeration systems, Marten Transport ensures that goods transported through them can retain their integrity and quality given that its systems can maintain precise temperature control during transit....

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