Exploring NYSE:MUSA's quality characteristics.

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.

Looking into the quality metrics of MURPHY USA INC

• MURPHY USA INC has shown strong performance in revenue growth over the past 5 years, with a 12.82% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• 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.
• MURPHY USA INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.65, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a favorable Profit Quality (5-year) ratio of 93.23%, MURPHY USA INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• The 5-year EBIT growth of MURPHY USA INC has been remarkable, with 27.58% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, MURPHY USA INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

A complete fundamental analysis of NYSE:MUSA

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall MUSA gets a fundamental rating of 6 out of 10. We evaluated MUSA against 131 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.

Check the latest full fundamental report of MUSA for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.