Oil dependency Oil is certainly a great factor that helps MTL. It was driving its main segment by enormous proportions 10 years ago. Its now between 20 and 25% of the business (sales, earnings, fcf). LTL and Logistics are now bigger segments. Latest substantial acquisition ContainerWorld is still outside of the oil and gas.
Mtl is considered dependent to the oil and gas industry and its volatility. However, management spent over 10 years to get out of this dependency, with little to no recognition. Imagine what they will do in the next 10 years now that they are clear from this dependency and can look forward.
As Mr. Mullen stated in the last CC, they are almost done with new verticals for a while. As he said, these are not the most profitable transactions. Tuck ins gets margins
up at decent prices.
Its been a rough ride, accepting that the easy money they were getting out of the oil and gas was forever gone. They worked hard and deserve was is upcoming.
I bless portfolio managers who collectively select TFII in the transportation industry, since it brought this great opportunity with MTL.
Cheers