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Reasonable growth and debt and a high ROIC for MURPHY USA INC (NYSE:MUSA).

By Mill Chart

Last update: Sep 14, 2023

In this article we will dive into MURPHY USA INC (NYSE:MUSA) as a possible candidate for quality investing. Investors should always do their own research, but we noticed MURPHY USA INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NYSE:MUSA may be interesting for quality investors.

  • Over the past 5 years, MURPHY USA INC has experienced impressive revenue growth, with 12.82% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • The ROIC excluding cash and goodwill of MURPHY USA INC stands at 22.96%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • With a favorable Debt/Free Cash Flow Ratio of 3.65, MURPHY USA INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • MURPHY USA INC demonstrates consistent Profit Quality over the past 5 years, with a strong 93.23%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • MURPHY USA INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 27.58%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • MURPHY USA INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

How does the complete fundamental picture look for NYSE:MUSA?

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Taking everything into account, MUSA scores 6 out of 10 in our fundamental rating. MUSA was compared to 133 industry peers in the Specialty Retail industry. While MUSA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MUSA has a decent growth rate and is not valued too expensively.

For an up to date full fundamental analysis you can check the fundamental report of MUSA

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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