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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
18.1%
Sector: 8.9%
Dividend Analysis audit
GROWTH
1.40%
Trailing Yield
$1.40
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
14%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Matson, Inc. (MATX) receives a "Hold" rating with a composite score of 52.2/100, ranked #296 out of 4446 stocks. Key factor scores: Quality 50/100, Value 71/100, Momentum 64/100. This is quantitative analysis only — not investment advice.
Matson, Inc. (MATX) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Matson, Inc. Do?
Matson, Inc., together with its subsidiaries, provides ocean transportation and logistics services. The company's Ocean Transportation segment offers ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska, and Guam, as well as to other island economies in Micronesia. It primarily transports dry containers of mixed commodities, refrigerated commodities, packaged foods and beverages, building materials, automobiles, and household goods; livestock; seafood; general sustenance cargo; and garments, footwear, e-commerce, and other retail merchandise. This segment also operates an expedited service from China to Long Beach, California, and various islands in the South Pacific, as well as Okinawa, Japan; and provides container stevedoring, refrigerated cargo services, inland transportation, container equipment maintenance, and other terminal services to ocean carriers on the Hawaiian islands of Oahu, Hawaii, Maui, and Kauai, as well as in the Alaska locations of Anchorage, Kodiak, and Dutch Harbor. In addition, the company offers vessel management and container transshipment services. Its Logistics segment provides multimodal transportation brokerage services, including domestic and international rail intermodal, long-haul and regional highway trucking, specialized hauling, flat-bed and project, less-than-truckload, and expedited freight services; less-than-container load consolidation and freight forwarding services; warehousing and distribution services; supply chain management services, and non-vessel operating common carrier freight forwarding services. The company serves the U.S. military, freight forwarders, retailers, consumer goods, automobile manufacturers, and other customers. The company was formerly known as Alexander & Baldwin Holdings, Inc. and changed its name to Matson, Inc. in June 2012. Matson, Inc. was founded in 1882 and is headquartered in Honolulu, Hawaii. Matson, Inc. (MATX) is classified as a mid-cap stock in the Industrials sector, specifically within the Transportation industry. The company is led by CEO Matthew J. Cox and employs approximately 4,290 people, headquartered in Honolulu, Hawaii. With a market capitalization of $5.0B, MATX is one of the notable companies in the Industrials sector.
Matson, Inc. (MATX) Stock Rating — Hold (April 2026)
As of April 2026, Matson, Inc. receives a Hold rating with a composite score of 52.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.MATX ranks #296 out of 4,446 stocks in our coverage universe. Within the Industrials sector, Matson, Inc. ranks #54 of 752 stocks, placing it in the top 10% of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
MATX Stock Price and 52-Week Range
Matson, Inc. (MATX) currently trades at $172.11. The stock gained $0.01 (0.0%) in the most recent trading session. The 52-week high for MATX is $177.51, which means the stock is currently trading -3.0% from its annual peak. The 52-week low is $86.97, putting the stock 97.9% above its annual trough. Recent trading volume was 20K shares, suggesting relatively thin trading activity.
Is MATX Overvalued or Undervalued? — Valuation Analysis
Matson, Inc. (MATX) carries a value factor score of 71/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 10.21x, compared to the Industrials sector average of 28.33x — a discount of 64%. The price-to-book ratio stands at 1.85x, versus the sector average of 2.23x. The price-to-sales ratio is 1.48x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, MATX trades at 9.15x EV/EBITDA, versus 5.70x for the sector.
Based on these multiples, Matson, Inc. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Matson, Inc. Profitability — ROE, Margins, and Quality Score
Matson, Inc. (MATX) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 18.1%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 10.8% versus the sector average of 3.3%.
On a margin basis, Matson, Inc. reports gross margins of 95.0%, compared to 35.8% for the sector. The operating margin is 16.9% (sector: 6.2%). Net profit margin stands at 14.2%, versus 3.9% for the average Industrials stock. Revenue growth is running at 3.9% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
MATX Debt, Balance Sheet, and Financial Health
Matson, Inc. has a debt-to-equity ratio of 13.0%, compared to the Industrials sector average of 70.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 0.89x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $361M. Cash and equivalents stand at $93M.
MATX has a beta of 1.27, meaning it is more volatile than the broader market — a $10,000 investment in MATX would be expected to move 27.1% more than the S&P 500 on any given day. The stability factor score for Matson, Inc. is 53/100, reflecting average volatility within the normal range for its sector.
Matson, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Matson, Inc. reported revenue of $3.45B and earnings per share (EPS) of $13.99. Net income for the quarter was $501M. Gross margin was 95.0%. Operating income came in at $598M.
In FY 2025, Matson, Inc. reported revenue of $3.34B and earnings per share (EPS) of $13.99. Net income for the quarter was $445M. Gross margin was 114.8%. Revenue grew -2.3% year-over-year compared to FY 2024. Operating income came in at $500M.
In Q3 2025, Matson, Inc. reported revenue of $880M and earnings per share (EPS) of $4.28. Net income for the quarter was $135M. Gross margin was 114.9%. Revenue grew -8.5% year-over-year compared to Q3 2024. Operating income came in at $161M.
In Q2 2025, Matson, Inc. reported revenue of $831M and earnings per share (EPS) of $2.95. Net income for the quarter was $95M. Gross margin was 85.3%. Revenue grew -2.0% year-over-year compared to Q2 2024. Operating income came in at $113M.
Over the past 8 quarters, Matson, Inc. has demonstrated a growth trajectory, with revenue expanding from $847M to $3.45B. Investors analyzing MATX stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
MATX Dividend Yield and Income Analysis
Matson, Inc. (MATX) currently pays a dividend yield of 1.4%. At this yield, a $10,000 investment in MATX stock would generate approximately $$140.00 in annual dividend income. The net margin of 14.2% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
MATX Momentum and Technical Analysis Profile
Matson, Inc. (MATX) has a momentum factor score of 64/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 32/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 22/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
MATX vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing MATX against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full MATX vs S&P 500 (SPY) comparison to assess how Matson, Inc. stacks up against the broader market across all factor dimensions.
MATX Next Earnings Date
No upcoming earnings date has been announced for Matson, Inc. (MATX) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy MATX? — Investment Thesis Summary
Matson, Inc. presents a balanced picture with arguments on both sides. The value score of 71/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 64/100, suggesting the trend favors buyers.
In summary, Matson, Inc. (MATX) earns a Hold rating with a composite score of 52.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on MATX stock.
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Institutional Research Dossier
Matson, Inc. (MATX) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We initiate coverage of Matson, Inc. (MATX) with a Buy rating. This rating is primarily driven by the company's dominant position in the niche markets of Hawaii, Alaska, and Guam, coupled with its attractive valuation relative to its peers and historical performance. While recent financial performance has been robust, the current valuation does not fully reflect the long-term stability and profitability afforded by its entrenched market share and the essential nature of its services to these island economies.
The most critical takeaway is that Matson's unique geographic focus provides a significant barrier to entry, creating a defensible economic moat. This moat, combined with disciplined capital allocation and a history of strong profitability, makes Matson an attractive investment despite potential cyclical headwinds in the broader shipping industry. The current valuation offers a compelling entry point for long-term investors seeking exposure to a stable, high-margin transportation company.
Business Strategy & Overview
Matson, Inc. operates primarily in two segments: Ocean Transportation and Logistics. The Ocean Transportation segment, which constitutes the majority of revenue, focuses on providing essential freight services to the non-contiguous U.S. economies of Hawaii, Alaska, and Guam, as well as select international routes. This segment transports a wide array of goods, including consumer goods, refrigerated items, building materials, and automobiles, effectively serving as a lifeline for these island communities. The company's strategic positioning in these markets is paramount, as it benefits from limited competition and high barriers to entry due to the capital-intensive nature of ocean transportation and the regulatory complexities of serving these regions.
The Logistics segment offers multimodal transportation brokerage services, including rail intermodal, trucking, and freight forwarding. While smaller than the Ocean Transportation segment, it provides diversification and complements Matson's core business by offering end-to-end supply chain solutions. This segment allows Matson to capture additional value from its existing customer base and expand its service offerings beyond ocean freight. The company's strategy involves leveraging its established relationships and expertise in transportation to grow its logistics business organically and through strategic acquisitions.
Matson's strategic focus on its core markets is evident in its capital allocation decisions. The company consistently invests in its fleet and infrastructure to maintain its competitive edge and improve operational efficiency. This includes the acquisition of new vessels and the modernization of its terminals. Furthermore, Matson prioritizes customer service and reliability, which are critical factors in the island economies it serves. The company's commitment to on-time delivery and efficient cargo handling has earned it a strong reputation and customer loyalty.
The industry context is characterized by cyclical fluctuations in demand and freight rates, influenced by global economic conditions and trade patterns. However, Matson's focus on essential goods and its dominant market share in its core markets provide a degree of insulation from these fluctuations. The company's ability to maintain high margins and profitability even during periods of economic downturn demonstrates the strength of its business model and its strategic positioning.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
3.9%
Sector: 6.4%
-39% VS SCTR
Economic Moat Analysis
Matson possesses a narrow economic moat, primarily derived from its efficient scale and intangible assets. The efficient scale advantage stems from the limited number of players that can profitably serve the relatively small, geographically isolated markets of Hawaii, Alaska, and Guam. The capital expenditure required to establish a competing ocean transportation network is substantial, deterring new entrants. Furthermore, the regulatory hurdles and established relationships with local stakeholders create additional barriers to entry.
The intangible asset component of Matson's moat is its strong brand reputation and established relationships with customers in its core markets. The company has been serving these communities for over a century, building a reputation for reliability and customer service. This long-standing presence and deep understanding of the local markets give Matson a significant advantage over potential competitors. Customers value the company's expertise and its ability to provide customized solutions to meet their specific needs.
While Matson benefits from these advantages, its moat is not considered wide due to the potential for competition from existing players and the cyclical nature of the shipping industry. Although new entrants are unlikely, established shipping companies could potentially expand their services to Matson's core markets. Furthermore, fluctuations in demand and freight rates can impact Matson's profitability, albeit to a lesser extent than other shipping companies due to its focus on essential goods and its dominant market share.
The company's ability to maintain its market share and profitability over time will depend on its continued investment in its fleet and infrastructure, its commitment to customer service, and its ability to adapt to changing market conditions. While the moat is not impenetrable, it provides a significant competitive advantage that supports Matson's long-term growth and profitability. The high gross margins, consistently above the sector average, are a testament to the pricing power afforded by this moat.
Financial Health & Profitability
Matson's financial health is generally strong, characterized by robust profitability and a manageable debt load. The company has consistently generated high gross margins, operating margins, and net margins compared to the industrials sector. The TTM gross margin of 95.0% is significantly higher than the sector average of 35.8%, indicating Matson's pricing power and efficient operations. Similarly, the TTM operating margin of 16.9% and net margin of 14.2% are substantially higher than the sector averages of 6.2% and 3.7%, respectively.
The company's return on equity (ROE) of 18.2% is also significantly higher than the sector average of 9.2%, demonstrating its ability to generate profits from shareholders' equity. However, the free cash flow (FCF) of $21.30M is relatively low, which warrants further investigation. This could be due to recent capital expenditures or working capital fluctuations. The company's current ratio of 0.89 indicates a potential liquidity concern, as current liabilities slightly exceed current assets. However, this is mitigated by the company's consistent profitability and access to capital markets.
Analyzing the quarterly financial history reveals a trend of fluctuating revenue and net income. While FY2025 revenue is projected to be $3.34B, slightly lower than FY2024's $3.42B, net income is also lower at $444.80M compared to $476.40M. The gross margin has seen significant volatility, jumping to 114.8% in FY2025 from 85.6% in FY2024, which requires further scrutiny to understand the drivers behind this change. Operating margin also shows volatility, reflecting the impact of various factors on the company's profitability.
Matson's debt-to-equity ratio of 13.00 is significantly lower than the sector average of 70.00, indicating a conservative capital structure. The company's total debt of $361.20M is manageable, and its strong profitability provides ample coverage for interest payments. The total cash balance of $92.70M provides a buffer against unexpected expenses or economic downturns. Overall, Matson's financial health is sound, supported by its strong profitability, manageable debt, and conservative capital structure. However, the low free cash flow and fluctuating revenue and net income warrant close monitoring.
Valuation Assessment
Matson's valuation appears attractive based on several key metrics. The company's price-to-earnings (P/E) ratio of 11.1x is significantly lower than the industrials sector average of 27.7x, suggesting that the stock is undervalued relative to its peers. Similarly, the enterprise value-to-EBITDA (EV/EBITDA) ratio of 2.5x is substantially lower than the sector average of 5.7x, further supporting the undervaluation thesis. These metrics indicate that investors are not fully appreciating Matson's earnings power and its dominant position in its core markets.
However, the low free cash flow (FCF) of $21.30M raises concerns about the company's ability to generate cash. A low FCF yield could indicate that the stock is overvalued, despite the attractive P/E and EV/EBITDA ratios. It is important to consider the reasons for the low FCF, such as recent capital expenditures or working capital fluctuations, before drawing definitive conclusions about the valuation.
Considering Matson's historical performance, the current valuation appears even more compelling. The company has consistently generated high margins and returns on equity, demonstrating its ability to create value for shareholders. The current valuation does not fully reflect the company's long-term growth potential and its defensible economic moat. The BCR proprietary quant model assigns a Value score of 72/100, further supporting the undervaluation thesis.
Overall, Matson's valuation is attractive based on its P/E ratio, EV/EBITDA ratio, and historical performance. While the low free cash flow warrants further investigation, the company's strong profitability and dominant market position suggest that the stock is undervalued. The Buy rating is supported by the belief that the market will eventually recognize Matson's intrinsic value and the stock price will appreciate accordingly.
Risk & Uncertainty
Several risks and uncertainties could impact Matson's business and financial performance. One of the primary risks is the cyclical nature of the shipping industry. Fluctuations in global economic conditions and trade patterns can impact demand for freight services and freight rates, which could negatively affect Matson's revenue and profitability. While Matson's focus on essential goods and its dominant market share provide some insulation from these fluctuations, the company is still susceptible to economic downturns.
Another risk is the potential for increased competition. While new entrants are unlikely due to the high capital expenditures and regulatory hurdles, existing shipping companies could potentially expand their services to Matson's core markets. Increased competition could lead to lower freight rates and reduced market share, which would negatively impact Matson's profitability. The company must continue to invest in its fleet and infrastructure and maintain its strong customer relationships to defend its market position.
Regulatory risks also pose a threat to Matson's business. The company operates in highly regulated markets, and changes in regulations could increase its operating costs or restrict its ability to conduct business. For example, environmental regulations could require Matson to invest in new technologies or modify its operations, which could be costly. The company must stay abreast of regulatory changes and adapt its operations accordingly to mitigate these risks.
Finally, geopolitical risks could also impact Matson's business. Trade disputes, political instability, and natural disasters could disrupt supply chains and impact demand for freight services. For example, a trade war between the U.S. and China could reduce demand for goods transported by Matson, which would negatively affect its revenue. The company must monitor geopolitical events and develop contingency plans to mitigate these risks.
Bulls Say / Bears Say
The Bull Case
BULL VIEWMatson's dominant market share in the Hawaii, Alaska, and Guam markets provides a stable revenue stream and pricing power, leading to consistent profitability.
BULL VIEWThe company's attractive valuation, with a P/E ratio significantly below the sector average, offers a compelling entry point for long-term investors seeking value.
BULL VIEWMatson's commitment to shareholder returns through dividends and share repurchases enhances its appeal as an investment.
The Bear Case
BEAR VIEWThe cyclical nature of the shipping industry exposes Matson to fluctuations in demand and freight rates, potentially impacting its revenue and profitability.
BEAR VIEWThe company's low free cash flow raises concerns about its ability to fund future growth and maintain its dividend payments.
BEAR VIEWIncreased competition from existing players or new entrants could erode Matson's market share and pricing power, negatively affecting its financial performance.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score MATX and 4,400+ other equities.
Matson, Inc. exhibits a 44% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
10.8%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
95.0%
Sector: 35.8%
Operating Margin
Core business profitability
16.9%
Sector: 6.2%
Net Margin
Bottom-line profitability
14.2%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $140 annually in dividends at the current trailing rate.
