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%)
MMP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 208 industry peers in the Oil, Gas & Consumable Fuels industry. While MMP is still in line with the averages on profitability rating, there are concerns on its financial health. MMP is valied quite expensively at the moment, while it does show a decent growth rate. MMP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- MMP had positive earnings in the past year.
- MMP had a positive operating cash flow in the past year.
1.2 Ratios
- The Return On Assets of MMP (13.50%) is better than 61.75% of its industry peers.
- MMP has a Return On Equity of 60.05%. This is amongst the best in the industry. MMP outperforms 88.48% of its industry peers.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for MMP is significantly below the industry average of 21.83%.
- 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.
- In the last couple of years the Profit Margin of MMP has remained more or less at the same level.
- MMP's Operating Margin of 32.92% is in line compared to the rest of the industry. MMP outperforms 52.07% of its industry peers.
- MMP's Operating Margin has declined in the last couple of years.
- MMP's Gross Margin of 48.28% is in line compared to the rest of the industry. MMP outperforms 46.54% of its industry peers.
- MMP's Gross Margin has declined in the last couple of years.
| 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.
- 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.
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's Debt to FCF ratio of 3.79 is in line compared 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.
- The Debt to Equity ratio of MMP (2.91) is worse than 84.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.91 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.54
WACC8.46%
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.
- MMP has a Quick Ratio of 1.08. This is a bad value and indicates that MMP is not financially healthy enough and could expect problems in meeting its short term obligations.
- MMP's Quick ratio of 0.60 is on the low side compared to the rest of the industry. MMP is outperformed by 76.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- MMP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.49%.
- The Earnings Per Share has been growing slightly by 5.82% on average over the past years.
- MMP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.66%.
- Measured over the past years, MMP shows a small growth in Revenue. The Revenue has been growing by 5.00% on average per year.
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.
- MMP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.20% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.75, MMP is valued correctly.
- MMP's Price/Earnings ratio is a bit more expensive when compared to the industry. MMP is 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 (27.30), we can say MMP is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 12.93, MMP is valued correctly.
- The rest of the industry has a similar Price/Forward Earnings ratio as MMP.
- The average S&P500 Price/Forward Earnings ratio is at 24.04. MMP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.93 |
4.2 Price Multiples
- 73.73% of the companies in the same industry are cheaper than MMP, based on the Enterprise Value to EBITDA ratio.
- MMP's Price/Free Cash Flow ratio is in line with 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
- With a Yearly Dividend Yield of 6.07%, MMP is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.91, 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 1.92.
| 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 paid a dividend for at least 10 years, which is 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
- MMP pays out 83.00% of its income as dividend. 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%
69
+0.46 (+0.67%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)08-03 2023-08-03/bmo
Earnings (Next)10-25 2023-10-25/bmo
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 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.