CA - Mullen Group: A Dirt Cheap Valuation With A Balance Sheet Ready For M&A

2024-07-05 16:50:22 ET

Summary

• Mullen Group provides transportation and logistics services to specialized industries such as construction, energy, mining, and forestry.
• The company has historically grown through M&A, with recent acquisitions like ContainerWorld aiming to improve margins and revenue opportunities.
• Despite weak recent quarterly results, Mullen's disciplined approach to M&A, strong free cash flow generation, and attractive valuation make it a 'buy'.

Introduction

Mullen Group ( MTL:CA ) is a transportation and logistics company. As part of its service offerings , Mullen Group does less-than-truckload, truckload, warehousing, transload, oversized, third-party logistics and specialized hauling transportation for several industries. Some of these industries include the construction, energy, mining, and forestry sectors, where hauling needs tend to be specialized, requiring particular attention from companies like Mullen who can address these demands. For some of these industries, water management, environmental reclamation, and hauling for non-traditional cargo like particular fluids are a required part of their transportation needs. Mullen Group helps companies with these challenges....

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