MAGELLAN MIDSTREAM PARTNERS (MMP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MMP - US5590801065
69 USD
+0.46 (+0.67%)
69.01 USD
+0.01 (+0.01%)
Taking everything into account, MMP scores 3 out of 10 in our fundamental rating. MMP was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of MMP while its profitability can be described as average. While showing a medium growth rate, MMP is valued expensive at the moment. Finally MMP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year MMP was profitable.
- MMP had a positive operating cash flow in the past year.
1.2 Ratios
- Looking at the Return On Assets, with a value of 13.50%, MMP is in the better half of the industry, outperforming 61.75% of the companies in the same industry.
- With an excellent Return On Equity value of 60.05%, MMP belongs to the best of the industry, outperforming 88.48% of the companies in the same industry.
- With a Return On Invested Capital value of 13.04%, MMP perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
- MMP had an Average Return On Invested Capital over the past 3 years of 10.07%. This is significantly below the industry average of 21.94%.
- The last Return On Invested Capital (13.04%) for MMP is above the 3 year average (10.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.5% | ||
| ROE | 60.05% | ||
| ROIC | 13.04% |
ROA(3y)11.88%
ROA(5y)12.99%
ROE(3y)49.55%
ROE(5y)47.34%
ROIC(3y)10.07%
ROIC(5y)10.4%
1.3 Margins
- MMP has a Profit Margin of 29.55%. This is in the better half of the industry: MMP outperforms 64.06% of its industry peers.
- MMP's Profit Margin has been stable in the last couple of years.
- MMP has a Operating Margin (32.92%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of MMP has declined.
- MMP has a Gross Margin (48.28%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of MMP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.92% | ||
| PM (TTM) | 29.55% | ||
| GM | 48.28% |
OM growth 3Y-7.86%
OM growth 5Y-4.63%
PM growth 3Y-4.7%
PM growth 5Y-1.36%
GM growth 3Y-4.92%
GM growth 5Y-2.39%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MMP is still creating some value.
- MMP has less shares outstanding than it did 1 year ago.
- The debt/assets ratio for MMP is higher compared to a year ago.
2.2 Solvency
- MMP has a debt to FCF ratio of 3.79. This is a good value and a sign of high solvency as MMP would need 3.79 years to pay back of all of its debts.
- MMP has a Debt to FCF ratio of 3.79. This is comparable to the rest of the industry: MMP outperforms 56.68% of its industry peers.
- MMP has a Debt/Equity ratio of 2.91. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 2.91, MMP is doing worse than 84.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.91 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.54
WACC8.46%
2.3 Liquidity
- MMP has a Current Ratio of 1.08. This is a normal value and indicates that MMP is financially healthy and should not expect problems in meeting its short term obligations.
- MMP has a Current ratio of 1.08. This is comparable to the rest of the industry: MMP outperforms 44.70% of its industry peers.
- A Quick Ratio of 0.60 indicates that MMP may have some problems paying its short term obligations.
- The Quick ratio of MMP (0.60) is worse than 76.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.49% over the past year.
- Measured over the past 5 years, MMP shows a small growth in Earnings Per Share. The EPS has been growing by 5.82% on average per year.
- MMP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.66%.
- MMP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.00% yearly.
EPS 1Y (TTM)7.49%
EPS 3Y3.54%
EPS 5Y5.82%
EPS Q2Q%-29.34%
Revenue 1Y (TTM)19.66%
Revenue growth 3Y5.47%
Revenue growth 5Y5%
Sales Q2Q%11.24%
3.2 Future
- The Earnings Per Share is expected to grow by 4.58% on average over the next years.
- The Revenue is expected to grow by 4.20% on average over the next years.
EPS Next Y4.81%
EPS Next 2Y3.83%
EPS Next 3Y3.33%
EPS Next 5Y4.58%
Revenue Next Year12.86%
Revenue Next 2Y7.1%
Revenue Next 3Y5.56%
Revenue Next 5Y4.2%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 13.75 indicates a correct valuation of MMP.
- Based on the Price/Earnings ratio, MMP is valued a bit more expensive than the industry average as 64.52% of the companies are valued more cheaply.
- When comparing the Price/Earnings ratio of MMP to the average of the S&P500 Index (27.21), we can say MMP is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 12.93, the valuation of MMP can be described as correct.
- The rest of the industry has a similar Price/Forward Earnings ratio as MMP.
- MMP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MMP is valued a bit more expensive than the industry average as 73.73% of the companies are valued more cheaply.
- MMP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.6 | ||
| EV/EBITDA | 13.08 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MMP does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.86
PEG (5Y)2.36
EPS Next 2Y3.83%
EPS Next 3Y3.33%
5. Dividend
5.1 Amount
- MMP has a Yearly Dividend Yield of 6.07%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.75, MMP pays a bit more dividend than its industry peers.
- MMP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
5.2 History
- The dividend of MMP has a limited annual growth rate of 3.51%.
- MMP has been paying a dividend for at least 10 years, so it has a reliable track record.
- MMP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.51%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
- 83.00% of the earnings are spent on dividend by MMP. This is not a sustainable payout ratio.
- The dividend of MMP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP83%
EPS Next 2Y3.83%
EPS Next 3Y3.33%
MAGELLAN MIDSTREAM PARTNERS / MMP FAQ
What is the fundamental rating for MMP stock?
ChartMill assigns a fundamental rating of 4 / 10 to MMP.
What is the valuation status of MAGELLAN MIDSTREAM PARTNERS (MMP) stock?
ChartMill assigns a valuation rating of 3 / 10 to MAGELLAN MIDSTREAM PARTNERS (MMP). This can be considered as Overvalued.
Can you provide the profitability details for MAGELLAN MIDSTREAM PARTNERS?
MAGELLAN MIDSTREAM PARTNERS (MMP) has a profitability rating of 6 / 10.
What is the valuation of MAGELLAN MIDSTREAM PARTNERS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MAGELLAN MIDSTREAM PARTNERS (MMP) is 13.75 and the Price/Book (PB) ratio is 8.13.
What is the expected EPS growth for MAGELLAN MIDSTREAM PARTNERS (MMP) stock?
The Earnings per Share (EPS) of MAGELLAN MIDSTREAM PARTNERS (MMP) is expected to grow by 4.81% in the next year.