Do these transportation stocks deserve your attention?

June 02, 2023 06:14 AM EDT | By Akanksha Vashisht
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  • The transportation sector comprises of companies that form the backbone of various sectors and is responsible for the smooth functioning of these sectors.
  • The Mullen Group, a North American logistics giant, reported total revenue of CA$ 497.82 million.
  • Westshore Terminals operates a coal storage and loading space and reported total revenue of CA$ 96.72 million for the March 2023 quarter.

The transportation sector encompasses a unique market segment without which industries cannot function. Logistics is the underlying backbone upon which the operation of many industries is contingent.

Stock prices in the transportation industry are susceptible to changes in the prices of energy. Low energy costs could lead to increased profitability in the transportation sector. However, the demand for transportation is a good metric to judge the performance of transportation stocks.

A booming transportation sector is indicative of flourishing business and transactions across an economy. Higher prices of transportation services and stocks in the segment reflect that the economy might be on a growth path.

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Here are two transportation stocks to watch in June 2023.

Mullen Group Ltd. (TSX: MTL)

A North American logistics giant, Mullen Group offers truckload, warehousing, and logistics support to organizations. It also provides specialized services to various industries such as mining, construction, and energy across Canada.

For the March 2023 quarter, Mullen’s total revenue was CA$ 497.82 million and its net income was CA$ 31.72 million. The EBIT for the period was CA$ 50.68 million. The operating cash flow was reported to be CA$ 34.21 million for the three months ended March 23. 

Image source: ©2023 Kalkine®; Data source: Company Reports

The company announced a monthly dividend of CA$ 0.06 per common share to be paid on June 15, 2023.

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Westshore Terminals Investment Corporation (TSX: WTE)

Westshore operates a coal storage and loading space in Roberts Bank, British Columbia. It services coal from mines and delivers it to its terminal in unit trains. The coal is then unloaded onto a ship, after which it is delivered to multiple countries across the globe. Japan, Korea, and China form the major markets for the coal.

Westshore’s total revenue for the March 2023 quarter was CA$ 96.72 million, while the net income was CA$ 32.9 million. During the quarter, the EBIT was reported to be CA$ 46.36 million while the operating income was CA$ 46.03 million.

Image source: ©2023 Kalkine®; Data source: Company Reports

The company also announced a dividend of CA$ 0.35 per share to be paid on or before April 15, 2023. This marked an increase of 5 cents from the corporation’s previous quarter dividend of CA$ 0.30.

The company anticipates shipping around 7 million tonnes in Q1 2023, compared to 6.8 million tonnes in Q1 2022.



Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.


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