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. MMP has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, MMP is valued expensive at the moment. 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
- MMP has a better Return On Assets (13.50%) 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.
- The Return On Invested Capital of MMP (13.04%) is comparable to the rest of the 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
- With a decent Profit Margin value of 29.55%, MMP is doing good in the industry, outperforming 64.06% of the companies in the same industry.
- In the last couple of years the Profit Margin of MMP has remained more or less at the same level.
- 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.
- The Gross Margin of MMP (48.28%) is comparable to the rest of the industry.
- 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.
- Compared to 1 year ago, MMP has less shares outstanding
- Compared to 1 year ago, MMP has a worse debt to assets ratio.
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.
- MMP has a Debt/Equity ratio of 2.91. This is a high value indicating a heavy dependency on external financing.
- MMP has a worse Debt to Equity ratio (2.91) 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.
- MMP has a Current ratio (1.08) which is comparable to the rest of the 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 has a Quick ratio of 0.60. This is in the lower half of the industry: MMP underperforms 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%.
- 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.
- The Revenue has grown by 19.66% in the past year. This is quite good.
- 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
- 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
- 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.
- 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
- MMP is valuated correctly with a Price/Earnings ratio of 13.75.
- 64.52% of the companies in the same industry are cheaper than MMP, based on the Price/Earnings ratio.
- MMP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 12.93, which indicates a correct valuation of MMP.
- MMP's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, MMP is valued a bit cheaper.
| 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.
- MMP's Dividend Yield is a higher than the industry average which is at 3.75.
- MMP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
| 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
- 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.