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Martin Midstream (MMLP)
NASDAQ:MMLP
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Martin Midstream
(NASDAQ:MMLP)
47Neutral
Martin Midstream (MMLP) vs. S&P 500 (SPY)
Market Cap
$140.60M
Dividend Yield0.56%
Average Volume (3M)107.20K
Price to Earnings (P/E)33.6
Beta (1Y)0.31
Revenue Growth-11.32%
EPS Growth-13.16%
CountryUS
Employees1,292
SectorEnergy
Sector Strength84
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)-0.13
Shares Outstanding39,055,084
10 Day Avg. Volume67,468
30 Day Avg. Volume107,198
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.20
Price to Cash Flow (P/CF)0.90
P/FCF Ratio1.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.00Price Target Upside12.68% Upside
Rating ConsensusHold
Number of Analyst Covering1
Martin Midstream Business Overview & Revenue Model
Company DescriptionMartin Midstream Partners L.P. (MMLP) is a publicly traded limited partnership that provides a wide range of services to the energy industry. The company operates in several segments including terminalling and storage, natural gas services, sulfur services, and marine transportation. Martin Midstream's core offerings include the storage and transportation of petroleum products, the provision of marine transportation for oil and gas, and the processing of natural gas liquids and sulfur.
How the Company Makes MoneyMartin Midstream makes money through its diversified operations across its four main segments. In the terminalling and storage segment, the company earns revenue by providing storage solutions for petroleum products and by operating terminal facilities. The natural gas services segment generates income through the gathering, processing, and marketing of natural gas and natural gas liquids. The sulfur services segment contributes to revenue by processing and marketing sulfur and sulfur-based products. Lastly, the marine transportation segment generates revenue by offering marine transport services for petroleum products and other bulk liquids. The company's earnings are also influenced by long-term contracts and partnerships with key players in the energy industry, providing stable and recurring income.
Martin Midstream Financial Statement Overview
Summary
Martin Midstream faces significant financial challenges, particularly with profitability and capital structure. The high reliance on debt, coupled with negative net income, suggests a need for strategic restructuring. While cash flows show some resilience, overall financial stability remains a concern, requiring careful management to improve margins and leverage ratios.Income Statement
The income statement reveals challenges in profitability with consistently negative net income over the years. The gross profit margin is high due to the low cost of goods sold, but the net profit margin remains negative, indicating inefficiencies in managing expenses and interest. Revenue showed volatility, declining significantly in 2023, which affects the overall financial health.45
Neutral
Balance Sheet
The balance sheet highlights a high debt-to-equity ratio due to substantial liabilities and negative equity in some years, which poses financial risk. Despite this, there was a positive equity trend in 2024. The equity ratio remains weak, reflecting the company's reliance on debt financing over equity.40
Negative
Cash Flow
Cash flow analysis indicates a moderate position with operating cash flow covering free cash flow positively in recent years. However, the cash flow from operations has seen fluctuation, impacting the company's ability to generate consistent free cash flow, which is crucial for sustainability.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 707.62M | 797.96M | 1.02B | 882.43M | 672.14M | Gross Profit |
| 359.80M | 106.18M | 339.29M | 292.58M | 253.75M | EBIT |
| 57.30M | 65.35M | 51.26M | 57.28M | 46.50M | EBITDA |
| 104.40M | 111.55M | 294.64M | 114.03M | 93.27M | Net Income Common Stockholders |
| -5.21M | -4.55M | -10.33M | -211.00K | -6.77M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 55.00K | 54.00K | 45.00K | 52.00K | 4.96M | Total Assets |
| 1.18B | 509.38M | 598.85M | 579.86M | 579.64M | Total Debt |
| 55.81M | 481.76M | 539.15M | 514.86M | 531.56M | Net Debt |
| 55.76M | 481.70M | 539.10M | 514.81M | 526.61M | Total Liabilities |
| 608.95M | 574.00M | 658.30M | 627.90M | 626.51M | Stockholders Equity |
| 570.86M | -66.18M | 510.41M | 816.00K | -46.87M |
| Cash Flow | Free Cash Flow | |||
| 6.34M | 103.15M | -11.09M | 19.67M | 36.16M | Operating Cash Flow |
| 48.35M | 137.47M | 16.15M | 35.73M | 64.78M | Investing Cash Flow |
| -58.60M | -33.66M | -24.64M | -19.24M | 2.60M | Financing Cash Flow |
| 10.25M | -103.80M | 8.49M | -21.39M | -65.29M |
Martin Midstream Technical Analysis
Negative
3.55
Price Trends
3.63
Negative
3.74
Negative
3.69
Negative
Market Momentum
>-0.01
Positive
45.40
Neutral
30.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMLP, the sentiment is Negative. The current price of 3.55 is below the 20-day moving average (MA) of 3.67, below the 50-day MA of 3.63, and below the 200-day MA of 3.69, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.40 is Neutral, neither overbought nor oversold. The STOCH value of 30.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MMLP.
Martin Midstream Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $54.72B | 12.71 | 31.78% | 6.68% | 4.30% | 10.45% | |
80 Outperform | $15.81B | 10.32 | 50.12% | 8.54% | 16.06% | 54.94% | |
78 Outperform | $14.22B | 27.60 | 7.56% | 6.66% | 3.28% | -47.59% | |
77 Outperform | $64.20B | 14.57 | 13.40% | 6.87% | 5.20% | 18.35% | |
77 Outperform | $73.81B | 12.79 | 20.78% | 6.15% | 12.71% | 6.74% | |
58 Neutral | $9.14B | 5.25 | -7.99% | 7.51% | 0.53% | -65.25% | |
47 Neutral | $140.60M | 33.55 | -6.93% | 0.56% | -11.32% | -13.16% |
* Energy Sector Average
Performance Comparison
MMLP
Martin Midstream
3.55
0.95
36.54%
ET
Energy Transfer
18.73
4.08
27.85%
EPD
Enterprise Products Partners
34.22
6.48
23.36%
PAA
Plains All American
20.13
3.56
21.48%
WES
Western Midstream Partners
41.03
8.21
25.02%
MPLX
MPLX
53.65
14.96
38.67%
Martin Midstream Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -0.84% | Next Earnings Date: Apr 16, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there was notable outperformance in segments like Transportation and Sulfur Services, overall financial performance fell short of guidance due to increased expenses. The Specialty Products segment notably underperformed, reflecting economic challenges. However, the pending transaction with Martin Resource Management and strategic plans for debt reduction provide some positive outlook.Highlights
Transportation Segment Outperformance
The transportation segment had an adjusted EBITDA of $11.6 million, exceeding guidance of $10.8 million. The Marine Transportation business also exceeded expectations with an adjusted EBITDA of $5.1 million compared to guidance of $4.4 million.
Sulfur Services Segment Success
Sulfur Services segment had an adjusted EBITDA of $4.2 million, surpassing guidance of $3.7 million. This was driven by strong sulfur production volumes, which were 12% greater than forecasted.
Pending Transaction with Martin Resource Management
A proposed transaction with Martin Resource Management Corporation is expected to deliver nearly $1 more per unit than the initial proposal, indicating a positive negotiation outcome for shareholders.
Lowlights
Guidance Shortfall
Overall third quarter performance fell short of guidance by $1.3 million due to increased expenses related to long-term incentive plans, impacting multiple segments.
Specialty Products Segment Underperformance
Specialty Products segment had an adjusted EBITDA of $4.6 million, missing guidance by $1.9 million. This was attributed to weaker demand for packaged lubricants and grease, driven by the slowing U.S. economy.
Capital Expenditure and Debt Increase
Total long-term debt increased to $486.5 million, with a higher adjusted leverage ratio of 4.14x due to working capital needs and interest payments, though plans are in place to reduce leverage below 4x by year-end.
Company Guidance
During the MMLP Q3 2024 earnings call, the company provided detailed guidance on various metrics. Adjusted EBITDA for Q3 was reported at $25.1 million, falling short of the $26.4 million guidance due to a $1.4 million increase in long-term incentive plan expenses. Segment-wise, the Transportation segment outperformed with an adjusted EBITDA of $11.6 million against a $10.8 million forecast. Meanwhile, the Terminalling and Storage segment recorded $8.4 million, slightly missing the $9 million guidance due to a $0.6 million incentive charge. The Specialty Products segment underperformed, generating $4.6 million versus a $6.5 million guidance, primarily due to weak demand attributed to the slowing U.S. economy. Conversely, the Sulfur Services segment exceeded expectations with an adjusted EBITDA of $4.2 million, bolstered by a 12% higher daily sulfur production volume than forecast. Total long-term debt stood at $486.5 million, with a leverage ratio of 4.14x, and capital expenditures for the year are projected to be $57.4 million. Looking ahead, the company maintains its full-year 2024 adjusted EBITDA guidance at $116.1 million, with stable outlooks for the Marine and Sulfur Services divisions.Martin Midstream Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Martin Midstream Amends Credit Agreement with RBC
Neutral
Feb 18, 2025
On February 13, 2025, Martin Midstream Partners L.P. and its subsidiaries amended their Credit Agreement with Royal Bank of Canada, adjusting financial covenants related to interest coverage and leverage ratios for various fiscal quarters in 2025. Additionally, on February 11, 2025, the company approved a 2025 Phantom Unit Plan, allowing for the award of cash-based phantom units and appreciation rights to employees and directors, with vesting conditions tied to employment duration and company control changes.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.