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Reasonable Growth, Debt Levels, and a High ROIC Make MURPHY USA INC (NYSE:MUSA) Appealing to Quality Investors.

By Mill Chart

Last update: Jun 25, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if MURPHY USA INC (NYSE:MUSA) is suited for quality investing. Investors should of course do their own research, but we spotted MURPHY USA INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.


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Some of the quality metrics of NYSE:MUSA highlighted

  • MURPHY USA INC has demonstrated significant revenue growth over the past 5 years, with a 8.43% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a robust ROIC excluding cash and goodwill at 20.19%, MURPHY USA INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a Debt/Free Cash Flow Ratio of 4.17, MURPHY USA INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • MURPHY USA INC demonstrates consistent Profit Quality over the past 5 years, with a strong 91.16%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • MURPHY USA INC has experienced impressive EBIT growth over the past 5 years, with 24.54% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • 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.

What is the full fundamental picture of NYSE:MUSA telling us.

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, MUSA scores 5 out of 10 in our fundamental rating. MUSA was compared to 125 industry peers in the Specialty Retail industry. While MUSA has a great profitability rating, there are some minor concerns on its financial health. MUSA is not valued too expensively and it also shows a decent growth rate.

Our latest full fundamental report of MUSA contains the most current fundamental analsysis.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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