Q: Your thoughts on Mullen please. Would you consider it a buy at current price? Thanks.
5i Research Answer:
MTL is a small-cap company that operates in the trucking and logistics industry. In the last five years, revenue growth was around 9% on average, driven through a combination of organic investment and M&A. The balance sheet is slightly leveraged with net debt of $775M and net debt/EBITDA of 2.4x. MTL pays an attractive dividend and repurchases shares at a small scale which is covered by cash flow. MTL is a truck operator that trades slightly below industry peers. Overall, a cheap valuation, but growth prospects are somewhat limited, and it is cyclical. Overall we would consider it OK, but would prefer the much-larger TFII within the trucking sector.