Matson Inc. Common Stock (MATX)

FairStock Score: 68/100 — STEADY

Key Financials

Strengths

• Generates $204 million in annual free cash flow (3.9% yield on market cap)
• Solid return on equity of 16.4% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.26, providing financial flexibility

Concerns

• Revenue declining at 4.3% year-over-year signals potential demand weakness or market share loss

AI Analysis

Matson Inc. Common Stock is a small-cap industrials company valued at $5.2 billion. The business generates $3.3 billion in annual revenue with a 4.3% net margin and $204 million in free cash flow. From a quality standpoint, Matson shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.7 in the grey zone. On valuation, the stock is attractively valued at 12.3x earnings, with trades above its Graham Number with a negative 2% margin. Growth dynamics show revenue growing at -4.3% and profit growth of 11.8%. Our composite FairStock Score of 68/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Matson's consistent 16% ROE at just 12x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $204 million in annual free cash flow (3.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer