Should Quality Investors Include NYSE:MUSA in Their Portfolio?

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.

Exploring Why NYSE:MUSA Holds Appeal for Quality Investors.

• Over the past 5 years, MURPHY USA INC has experienced impressive revenue growth, with 8.43% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a notable ROIC excluding cash and goodwill at 20.19%, MURPHY USA INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• MURPHY USA INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.17, 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.
• The Profit Quality (5-year) of MURPHY USA INC stands at 91.16%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• 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.
• 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

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Taking everything into account, MUSA scores 5 out of 10 in our fundamental rating. MUSA was compared to 127 industry peers in the Specialty Retail industry. MUSA scores excellent on profitability, but there are some minor concerns on its financial health. MUSA has a correct valuation and a medium growth rate.

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

More ideas for quality investing can be found on ChartMill 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.