Investing with the long game in mind can often feel like an exercise in patience. But choosing the right stock at the right time can make that wait well worth it. One of the most overlooked opportunities on the TSX right now might be Mullen Group (TSX:MTL). With $5,000 to invest in May 2025, this Canadian transportation and logistics company could offer the ideal blend of income and growth for long-term investors.
The stock
Mullen Group is headquartered in Okotoks, Alberta, and it’s more than just a trucking company. It’s one of Canada’s largest logistics providers, operating across four segments: Less-Than-Truckload, Logistics & Warehousing, Specialized & Industrial Services, and U.S. & International Logistics. That kind of diversification gives it a lot of flexibility. When one segment slows, another usually picks up the slack. And in today’s economic climate, in which shipping, warehousing, and cross-border trade are in high demand, Mullen Group is positioned to ride the wave.
Let’s talk about the latest numbers. In its first-quarter 2025 results, the company reported revenue of $497.1 million, which was up 7.5% from the same quarter in 2024. That growth was mainly powered by recent acquisitions that contributed $37.7 million in additional revenue. Operating income before depreciation and amortization (OIBDA) came in at $68 million, a 2.7% increase from a year earlier. Those aren’t huge jumps, but are steady, and that’s exactly what long-term investors like to see.
There was a drop in net income, which came in at $17.7 million compared to $22.2 million last year. That 20% decline could seem alarming at first glance. But most of it was due to increased depreciation from newly acquired assets and higher finance costs, costs that come with expansion and investment. It’s not ideal, but it’s manageable, especially since the Canadian stock’s cash from operations actually increased. Net cash from operating activities rose 3.4% year over year to $39.9 million, proving that the business continues to generate solid cash flow.
More to come
Another reason Mullen Group stands out is its smart use of acquisitions. The Canadian stock isn’t just sitting still, it’s buying complementary businesses that extend its reach and capabilities. That includes regional carriers, warehousing services, and cross-border logistics providers. These acquisitions aren’t flashy, but accretive. And over time, they have built up a highly integrated network that can respond quickly to changing supply chain needs. In a time when e-commerce continues to grow and North American trade remains vital, that network is a valuable asset.
You also can’t ignore the dividend. Right now, Mullen Group offers a forward annual dividend of $0.84 per share, which works out to a yield of 5.9%. For a Canadian stock with consistent cash flow and solid earnings, that’s a generous payout. The company has been reliable in maintaining this dividend, even during economic downturns. It offers investors a way to earn income while they wait for the Canadian stock to appreciate.
Now let’s look at valuation. As of writing, Mullen Group is trading at a price-to-earnings ratio of around 11.7, with a forward P/E of 10.4. Those are reasonable multiples for a Canadian stock with steady earnings and a high yield. Its market cap is currently around $1.3 billion, making it a mid-cap stock that still has room to grow. You’re not overpaying for this stock, and that’s a big part of what makes it so appealing right now.
Bottom line
In short, this is a Canadian stock with stability, consistent income, and long-term potential. It’s not going to double overnight, but that’s not the point. With $5,000 invested today, you’re getting a business that’s built for the long haul. It knows how to grow strategically, how to adapt, and how to reward shareholders along the way.
For investors looking to add a reliable income stock with a growth kicker to their portfolio in May 2025, Mullen Group checks all the boxes. This isn’t just a trucking company, it’s a logistics powerhouse with a long runway ahead. And years from now, investors who got in while it was trading below the radar may be very glad they did.
