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1. Company Snapshot

1.a. Company Description

Marten Transport, Ltd.operates as a temperature-sensitive truckload carrier for shippers in the United States, Canada, and Mexico.It operates through four segments: Truckload, Dedicated, Intermodal, and Brokerage.


The Truckload segment transports food and other consumer packaged goods that require a temperature-controlled or insulated environment.The Dedicated segment offers customized transportation solutions for individual customers' requirements using temperature-controlled trailers, dry vans, and other specialized equipment.The Intermodal segment transports customers' freight utilizing its refrigerated containers and temperature-controlled trailers on railroad flatcars for portions of trips, as well as using tractors and contracted carriers.


The Brokerage segment develops contractual relationships with and arranges for third-party carriers to transport freight for customers in temperature-controlled trailers and dry vans.As of December 31, 2021, the company operated a fleet of 3,204 tractors, including 3,111 company-owned tractors and 93 tractors supplied by independent contractors.Marten Transport, Ltd.


was founded in 1946 and is headquartered in Mondovi, Wisconsin.

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1.b. Last Insights on MRTN

Marten Transport, Ltd.'s recent performance was negatively impacted by weak Q4 and full-year 2024 earnings, with revenues declining 14% year-over-year due to operational inefficiencies and reduced profitability. The company's earnings were also hurt by significant declines across all revenue segments. Despite the economic uncertainties, Marten Transport has no long-term debt, which allows it to focus on surviving the downturn. The trucking industry outlook for 2025 is mixed, with potential for a slight rebound but concerns over overcapacity, and Marten Transport's ability to adapt to these conditions will be crucial.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Geode Capital Management LLC Has $18.99 Million Holdings in Marten Transport, Ltd. $MRTN

Dec -01

Source: defenseworld.net

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Marten Transport, Ltd. $MRTN Shares Sold by Intech Investment Management LLC

Dec -01

Source: defenseworld.net

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Marten Transport, Ltd. $MRTN Shares Purchased by Creative Planning

Nov -29

Source: defenseworld.net

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MARTEN TRANSPORT DECLARES QUARTERLY DIVIDEND

Nov -24

Source: globenewswire.com

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Marten Transport: One Of The Top Candidates In Trucking

Nov -15

Source: seekingalpha.com

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Marten Transport, Ltd. (MRTN) Lags Q3 Earnings and Revenue Estimates

Oct -23

Source: zacks.com

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Marten Transport Announces Third Quarter Results

Oct -23

Source: globenewswire.com

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MARTEN TRANSPORT ANNOUNCES CEO RETIREMENT AND LEADERSHIP TRANSITION

Aug -19

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.60%)

6. Segments

Truckload

Expected Growth: 4.5%

Marten Transport's 4.5% truckload growth driven by increasing demand for refrigerated and dry goods transportation, expansion into dedicated and intermodal services, and strategic acquisitions. Additionally, investments in digitalization and operational efficiency have improved fleet utilization and reduced costs, contributing to the company's growth momentum.

Dedicated

Expected Growth: 4.8%

Marten Transport's 4.8% growth is driven by increasing demand for refrigerated transportation services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on operational efficiency, cost savings, and investments in technology have contributed to its growth. Furthermore, the rise in e-commerce and online grocery shopping has led to increased demand for temperature-controlled logistics, benefiting Marten Transport's dedicated segment.

Brokerage

Expected Growth: 4.2%

Marten Transport's brokerage growth of 4.2% is driven by increasing demand for refrigerated and dry goods transportation, expansion into new markets, and strategic partnerships. Additionally, investments in digital freight matching platforms and improved operational efficiency have enhanced customer experience, leading to increased market share and revenue growth.

Intermodal

Expected Growth: 4.9%

Marten Transport's Intermodal segment growth of 4.9% is driven by increasing demand for efficient and cost-effective transportation solutions, strategic partnerships with major railroads, and investments in technology to enhance operational efficiency. Additionally, growing e-commerce and retail sales contribute to increased freight volumes, further fueling segment growth.

7. Detailed Products

Dedicated

Marten Transport's Dedicated services provide customized transportation solutions for customers with unique logistics needs, offering a dedicated fleet and tailored operations to meet specific requirements.

Regional

Marten Transport's Regional services offer flexible and efficient transportation solutions for customers with regional logistics needs, providing cost-effective and reliable transportation within specific geographic areas.

Long Haul

Marten Transport's Long Haul services provide coast-to-coast transportation solutions for customers with long-distance logistics needs, offering efficient and reliable transportation across the country.

Intermodal

Marten Transport's Intermodal services offer a seamless combination of truck and rail transportation, providing customers with a cost-effective and environmentally friendly logistics solution.

Brokerage

Marten Transport's Brokerage services provide customers with access to a network of trusted carriers, offering flexible and customized logistics solutions for their transportation needs.

8. Marten Transport, Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Marten Transport, Ltd. operates in a niche market, providing temperature-controlled truckload and dedicated fleet services. While there are substitutes available, such as refrigerated rail and air transportation, they are not as convenient or cost-effective, reducing the threat of substitutes.

Bargaining Power Of Customers

Marten Transport, Ltd. has a diverse customer base, with no single customer accounting for more than 10% of revenue. This reduces the bargaining power of customers, as they do not have significant leverage to negotiate prices or terms.

Bargaining Power Of Suppliers

Marten Transport, Ltd. relies on a network of independent contractors and company-owned equipment to provide its services. While there are some suppliers of equipment and fuel, the company's diversified supply chain reduces the bargaining power of suppliers.

Threat Of New Entrants

The trucking industry has significant barriers to entry, including high capital costs, regulatory hurdles, and the need for specialized equipment and expertise. This reduces the threat of new entrants, as it is difficult for new companies to enter the market.

Intensity Of Rivalry

The trucking industry is highly competitive, with many established players competing for market share. Marten Transport, Ltd. must differentiate itself through its services and pricing to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.07%
Debt Cost 3.95%
Equity Weight 99.93%
Equity Cost 7.96%
WACC 7.96%
Leverage 0.07%

11. Quality Control: Marten Transport, Ltd. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Marten Transport

A-Score: 4.7/10

Value: 5.9

Growth: 3.2

Quality: 5.1

Yield: 5.0

Momentum: 1.0

Volatility: 8.0

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Value: 7.8

Growth: 7.6

Quality: 5.0

Yield: 1.0

Momentum: 2.0

Volatility: 4.3

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Covenant Logistics Group

A-Score: 4.4/10

Value: 5.9

Growth: 6.9

Quality: 4.2

Yield: 1.0

Momentum: 2.5

Volatility: 6.0

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Heartland Express

A-Score: 4.3/10

Value: 8.9

Growth: 3.7

Quality: 3.8

Yield: 2.0

Momentum: 1.0

Volatility: 6.3

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Universal Logistics Holdings

A-Score: 4.2/10

Value: 9.3

Growth: 5.7

Quality: 3.4

Yield: 4.0

Momentum: 0.0

Volatility: 3.0

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PAM Transportation Services

A-Score: 3.6/10

Value: 8.4

Growth: 2.9

Quality: 2.2

Yield: 0.0

Momentum: 6.5

Volatility: 1.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.24$

Current Price

11.24$

Potential

-0.00%

Expected Cash-Flows