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.
  • In the past year MMP had a positive cash flow from operations.
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

  • 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.
  • 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.
  • Looking at the Return On Invested Capital, with a value of 13.04%, MMP is in line with its industry, 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 22.52%.
  • 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 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.
  • MMP's Operating Margin has declined in the last couple of years.
  • MMP has a Gross Margin of 48.28%. This is comparable to the rest of the industry: MMP outperforms 46.54% of its industry peers.
  • In the last couple of years the Gross Margin of MMP has declined.
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

  • 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.
  • Compared to 1 year ago, MMP has a worse debt to assets ratio.
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

  • The Debt to FCF ratio of MMP is 3.79, which is a good value as it means it would take MMP, 3.79 years of fcf income to pay off 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.
  • A Debt/Equity ratio of 2.91 is on the high side and indicates that MMP has dependencies on debt financing.
  • MMP has a worse Debt to Equity ratio (2.91) than 84.79% of its industry peers.
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

  • 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 (1.08) which is in line with its industry peers.
  • A Quick Ratio of 0.60 indicates that MMP may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.60, MMP is not doing good in the industry: 76.96% of the companies in the same industry are doing better.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. MMP Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 7.49% over the past year.
  • MMP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.82% yearly.
  • 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

  • MMP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.58% yearly.
  • 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

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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

  • The Price/Earnings ratio is 13.75, which indicates a correct valuation of MMP.
  • Based on the Price/Earnings ratio, MMP is valued a bit more expensive than 64.52% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of MMP to the average of the S&P500 Index (26.89), we can say MMP is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 12.93 indicates a correct valuation of MMP.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MMP is on the same level as its industry peers.
  • MMP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.97, which is the current average of the S&P500 Index.
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MMP indicates a slightly more expensive valuation: MMP is more expensive than 73.73% of the companies listed in the same industry.
  • MMP's Price/Free Cash Flow is on the same level as the industry average.
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 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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. MMP Dividend Analysis

5.1 Amount

  • MMP has a Yearly Dividend Yield of 6.07%, which is a nice return.
  • MMP's Dividend Yield is a higher than the industry average which is at 3.22.
  • MMP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
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 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
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.
  • MMP's earnings are growing more than its dividend. This makes the dividend growth 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 Number0 (-100%)
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.


What is the profitability of MMP stock?

MAGELLAN MIDSTREAM PARTNERS (MMP) has a profitability rating of 6 / 10.


Can you provide the PE and PB ratios for MMP stock?

The Price/Earnings (PE) ratio for MAGELLAN MIDSTREAM PARTNERS (MMP) is 13.75 and the Price/Book (PB) ratio is 8.13.


How sustainable is the dividend of MAGELLAN MIDSTREAM PARTNERS (MMP) stock?

The dividend rating of MAGELLAN MIDSTREAM PARTNERS (MMP) is 8 / 10 and the dividend payout ratio is 83%.