MAGELLAN MIDSTREAM PARTNERS (MMP) Fundamental Analysis & Valuation

NYSE:MMP • US5590801065

Current stock price

69 USD
+0.46 (+0.67%)
At close:
69.01 USD
+0.01 (+0.01%)
After Hours:

This MMP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. MMP Profitability Analysis

1.1 Basic Checks

  • In the past year MMP was profitable.
  • MMP had a positive operating cash flow in the past year.
MMP Yearly Net Income VS EBIT VS OCF VS FCFMMP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

1.2 Ratios

  • With a decent Return On Assets value of 13.50%, MMP is doing good in the industry, outperforming 61.75% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 60.05%, MMP belongs to the top of the industry, outperforming 88.48% of the companies in the same industry.
  • The Return On Invested Capital of MMP (13.04%) is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for MMP is significantly below the industry average of 23.03%.
  • The 3 year average ROIC (10.07%) for MMP is below the current ROIC(13.04%), indicating increased profibility in the last year.
Industry RankSector 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%
MMP Yearly ROA, ROE, ROICMMP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 20 40 60

1.3 Margins

  • Looking at the Profit Margin, with a value of 29.55%, MMP is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
  • MMP's Profit Margin has been stable in the last couple of years.
  • With a Operating Margin value of 32.92%, MMP perfoms like the industry average, outperforming 52.07% of the companies in the same industry.
  • In the last couple of years the Operating Margin of MMP has declined.
  • MMP has a Gross Margin (48.28%) which is comparable to the rest of the industry.
  • MMP's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
MMP Yearly Profit, Operating, Gross MarginsMMP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 10 20 30 40 50

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2

2. MMP Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MMP is creating some value.
  • The number of shares outstanding for MMP has been reduced compared to 1 year ago.
  • The debt/assets ratio for MMP is higher compared to a year ago.
MMP Yearly Shares OutstandingMMP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M 200M
MMP Yearly Total Debt VS Total AssetsMMP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B

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.
  • Looking at the Debt to FCF ratio, with a value of 3.79, MMP is in line with its industry, outperforming 56.68% of the companies in the same industry.
  • A Debt/Equity ratio of 2.91 is on the high side and indicates that MMP has dependencies on debt 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 RankSector Rank
Debt/Equity 2.91
Debt/FCF 3.79
Altman-Z N/A
ROIC/WACC1.54
WACC8.46%
MMP Yearly LT Debt VS Equity VS FCFMMP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 1.08 indicates that MMP should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.08, MMP perfoms like the industry average, outperforming 44.70% of the companies in the same industry.
  • A Quick Ratio of 0.60 indicates that MMP may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.60, MMP is doing worse than 76.96% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.6
MMP Yearly Current Assets VS Current LiabilitesMMP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M

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4

3. MMP Growth Analysis

3.1 Past

  • MMP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.49%.
  • 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%.
  • The Revenue has been growing slightly by 5.00% on average over the past years.
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

  • Based on estimates for the next years, MMP will show a small growth in Earnings Per Share. The EPS will grow by 4.58% on average per year.
  • Based on estimates for the next years, MMP will show a small growth in Revenue. The Revenue will grow by 4.20% on average per year.
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.
MMP Yearly Revenue VS EstimatesMMP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
MMP Yearly EPS VS EstimatesMMP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

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2

4. MMP Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 13.75, MMP is valued correctly.
  • Compared to the rest of the industry, the Price/Earnings ratio of MMP indicates a slightly more expensive valuation: MMP is more expensive than 64.52% of the companies listed in the same industry.
  • MMP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.89.
  • A Price/Forward Earnings ratio of 12.93 indicates a correct valuation of MMP.
  • MMP's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 22.19. MMP is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 13.75
Fwd PE 12.93
MMP Price Earnings VS Forward Price EarningsMMP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of MMP is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 10.6
EV/EBITDA 13.08
MMP Per share dataMMP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.86
PEG (5Y)2.36
EPS Next 2Y3.83%
EPS Next 3Y3.33%

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8

5. MMP Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 6.07%, MMP is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 3.20, 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 1.89.
Industry RankSector Rank
Dividend Yield 6.07%

5.2 History

  • The dividend of MMP has a limited annual growth rate of 3.51%.
  • MMP has paid a dividend for at least 10 years, which is a reliable track record.
  • MMP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.51%
Div Incr Years16
Div Non Decr Years16
MMP Yearly Dividends per shareMMP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 1 2 3 4

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%
MMP Yearly Income VS Free CF VS DividendMMP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B
MMP Dividend Payout.MMP Dividend Payout, showing the Payout Ratio.MMP Dividend Payout.PayoutRetained Earnings

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MMP Fundamentals: All Metrics, Ratios and Statistics

MAGELLAN MIDSTREAM PARTNERS

NYSE:MMP (9/22/2023, 8:13:22 PM)

After market: 69.01 +0.01 (+0.01%)

69

+0.46 (+0.67%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)08-03
Earnings (Next)10-25
Inst Owners0.02%
Inst Owner Change0%
Ins Owners0.42%
Ins Owner Change0%
Market Cap13.94B
Revenue(TTM)3.48B
Net Income(TTM)1.03B
Analysts65
Price Target65.85 (-4.57%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.07%
Yearly Dividend4.19
Dividend Growth(5Y)3.51%
DP83%
Div Incr Years16
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.41%
Min EPS beat(2)5.32%
Max EPS beat(2)11.5%
EPS beat(4)3
Avg EPS beat(4)5.84%
Min EPS beat(4)-30.04%
Max EPS beat(4)36.57%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)10.3%
Min Revenue beat(2)1.59%
Max Revenue beat(2)19.01%
Revenue beat(4)4
Avg Revenue beat(4)9.1%
Min Revenue beat(4)1.59%
Max Revenue beat(4)19.01%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.16%
PT rev (3m)2.39%
EPS NQ rev (1m)1.08%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)1.98%
EPS NY rev (3m)6.81%
Revenue NQ rev (1m)3.22%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)4.04%
Revenue NY rev (3m)10.85%
Valuation
Industry RankSector Rank
PE 13.75
Fwd PE 12.93
P/S 4
P/FCF 10.6
P/OCF 9.3
P/B 8.13
P/tB 8.58
EV/EBITDA 13.08
EPS(TTM)5.02
EY7.28%
EPS(NY)5.34
Fwd EY7.73%
FCF(TTM)6.51
FCFY9.43%
OCF(TTM)7.42
OCFY10.76%
SpS17.24
BVpS8.48
TBVpS8.04
PEG (NY)2.86
PEG (5Y)2.36
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 13.5%
ROE 60.05%
ROCE 16.51%
ROIC 13.04%
ROICexc 13.29%
ROICexgc 13.46%
OM 32.92%
PM (TTM) 29.55%
GM 48.28%
FCFM 37.76%
ROA(3y)11.88%
ROA(5y)12.99%
ROE(3y)49.55%
ROE(5y)47.34%
ROIC(3y)10.07%
ROIC(5y)10.4%
ROICexc(3y)10.08%
ROICexc(5y)10.49%
ROICexgc(3y)10.21%
ROICexgc(5y)10.63%
ROCE(3y)12.75%
ROCE(5y)13.16%
ROICexgc growth 3Y0.46%
ROICexgc growth 5Y-1.67%
ROICexc growth 3Y0.46%
ROICexc growth 5Y-1.6%
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%
F-Score8
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 2.91
Debt/FCF 3.79
Debt/EBITDA 3.47
Cap/Depr 63.64%
Cap/Sales 5.3%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 127.77%
Current Ratio 1.08
Quick Ratio 0.6
Altman-Z N/A
F-Score8
WACC8.46%
ROIC/WACC1.54
Cap/Depr(3y)98.33%
Cap/Depr(5y)177.38%
Cap/Sales(3y)9.67%
Cap/Sales(5y)16.63%
Profit Quality(3y)93.88%
Profit Quality(5y)75.72%
High Growth Momentum
Growth
EPS 1Y (TTM)7.49%
EPS 3Y3.54%
EPS 5Y5.82%
EPS Q2Q%-29.34%
EPS Next Y4.81%
EPS Next 2Y3.83%
EPS Next 3Y3.33%
EPS Next 5Y4.58%
Revenue 1Y (TTM)19.66%
Revenue growth 3Y5.47%
Revenue growth 5Y5%
Sales Q2Q%11.24%
Revenue Next Year12.86%
Revenue Next 2Y7.1%
Revenue Next 3Y5.56%
Revenue Next 5Y4.2%
EBIT growth 1Y28.59%
EBIT growth 3Y-2.82%
EBIT growth 5Y0.13%
EBIT Next Year37.09%
EBIT Next 3Y12.31%
EBIT Next 5Y8.33%
FCF growth 1Y42.63%
FCF growth 3Y36.82%
FCF growth 5Y11.03%
OCF growth 1Y31.92%
OCF growth 3Y-4.76%
OCF growth 5Y0.18%

MAGELLAN MIDSTREAM PARTNERS / MMP Fundamental Analysis 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.