MARATHON PETROLEUM CORP (MPC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MPC - US56585A1025 - Common Stock
171.79 USD
-0.75 (-0.43%)
171.79 USD
0 (0%)
Overall MPC gets a fundamental rating of 4 out of 10. We evaluated MPC against 207 industry peers in the Oil, Gas & Consumable Fuels industry. MPC has an average financial health and profitability rating. MPC is valued correctly, but it does not seem to be growing. MPC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- MPC had positive earnings in the past year.
- In the past year MPC had a positive cash flow from operations.
- Of the past 5 years MPC 4 years were profitable.
- Each year in the past 5 years MPC had a positive operating cash flow.
1.2 Ratios
- MPC has a Return On Assets (3.53%) which is comparable to the rest of the industry.
- The Return On Equity of MPC (17.56%) is better than 84.54% of its industry peers.
- MPC's Return On Invested Capital of 9.41% is amongst the best of the industry. MPC outperforms 81.16% of its industry peers.
- MPC had an Average Return On Invested Capital over the past 3 years of 17.20%. This is below the industry average of 21.94%.
- The 3 year average ROIC (17.20%) for MPC is well above the current ROIC(9.41%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 17.56% | ||
| ROIC | 9.41% |
ROA(3y)10.58%
ROA(5y)6.32%
ROE(3y)37.13%
ROE(5y)20.85%
ROIC(3y)17.2%
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of MPC (2.13%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of MPC has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 4.97%, MPC is doing worse than 64.25% of the companies in the same industry.
- In the last couple of years the Operating Margin of MPC has remained more or less at the same level.
- MPC's Gross Margin of 10.43% is on the low side compared to the rest of the industry. MPC is outperformed by 70.53% of its industry peers.
- In the last couple of years the Gross Margin of MPC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.97% | ||
| PM (TTM) | 2.13% | ||
| GM | 10.43% |
OM growth 3Y10.38%
OM growth 5Y0%
PM growth 3Y-32.72%
PM growth 5Y0.75%
GM growth 3Y3.77%
GM growth 5Y-1.88%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MPC is creating value.
- MPC has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for MPC has been reduced compared to 5 years ago.
- The debt/assets ratio for MPC is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.10 indicates that MPC is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 3.10, MPC belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
- The Debt to FCF ratio of MPC is 7.23, which is on the high side as it means it would take MPC, 7.23 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of MPC (7.23) is comparable to the rest of the industry.
- MPC has a Debt/Equity ratio of 1.64. This is a high value indicating a heavy dependency on external financing.
- MPC has a Debt to Equity ratio of 1.64. This is in the lower half of the industry: MPC underperforms 75.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 7.23 | ||
| Altman-Z | 3.1 |
ROIC/WACC1.16
WACC8.11%
2.3 Liquidity
- MPC has a Current Ratio of 1.19. This is a normal value and indicates that MPC is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.19, MPC perfoms like the industry average, outperforming 52.66% of the companies in the same industry.
- A Quick Ratio of 0.73 indicates that MPC may have some problems paying its short term obligations.
- With a Quick ratio value of 0.73, MPC is not doing good in the industry: 64.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- MPC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.24%.
- The Earnings Per Share has been growing by 14.10% on average over the past years. This is quite good.
- MPC shows a decrease in Revenue. In the last year, the revenue decreased by -5.85%.
- Measured over the past years, MPC shows a small growth in Revenue. The Revenue has been growing by 4.70% on average per year.
EPS 1Y (TTM)-40.24%
EPS 3Y55.17%
EPS 5Y14.1%
EPS Q2Q%60.96%
Revenue 1Y (TTM)-5.85%
Revenue growth 3Y5.1%
Revenue growth 5Y4.7%
Sales Q2Q%1.35%
3.2 Future
- MPC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.53% yearly.
- Based on estimates for the next years, MPC will show a decrease in Revenue. The Revenue will decrease by -2.18% on average per year.
EPS Next Y6.14%
EPS Next 2Y21.17%
EPS Next 3Y13.46%
EPS Next 5Y20.53%
Revenue Next Year-3.89%
Revenue Next 2Y-4.39%
Revenue Next 3Y-1.72%
Revenue Next 5Y-2.18%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 22.91, which indicates a rather expensive current valuation of MPC.
- Compared to the rest of the industry, the Price/Earnings ratio of MPC is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of MPC to the average of the S&P500 Index (27.25), we can say MPC is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 12.53, the valuation of MPC can be described as correct.
- 65.70% of the companies in the same industry are more expensive than MPC, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, MPC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
- MPC's Enterprise Value to EBITDA ratio is in line with the industry average.
- MPC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MPC is cheaper than 71.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.08 | ||
| EV/EBITDA | 8.3 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- MPC's earnings are expected to grow with 13.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.73
PEG (5Y)1.62
EPS Next 2Y21.17%
EPS Next 3Y13.46%
5. Dividend
5.1 Amount
- MPC has a Yearly Dividend Yield of 2.28%. Purely for dividend investing, there may be better candidates out there.
- MPC's Dividend Yield is comparable with the industry average which is at 3.73.
- Compared to an average S&P500 Dividend Yield of 1.82, MPC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
5.2 History
- The dividend of MPC is nicely growing with an annual growth rate of 9.91%!
- MPC has been paying a dividend for at least 10 years, so it has a reliable track record.
- MPC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.91%
Div Incr Years3
Div Non Decr Years13
5.3 Sustainability
- MPC pays out 39.32% of its income as dividend. This is a sustainable payout ratio.
- MPC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.32%
EPS Next 2Y21.17%
EPS Next 3Y13.46%
MARATHON PETROLEUM CORP / MPC FAQ
Can you provide the ChartMill fundamental rating for MARATHON PETROLEUM CORP?
ChartMill assigns a fundamental rating of 4 / 10 to MPC.
Can you provide the valuation status for MARATHON PETROLEUM CORP?
ChartMill assigns a valuation rating of 4 / 10 to MARATHON PETROLEUM CORP (MPC). This can be considered as Fairly Valued.
What is the profitability of MPC stock?
MARATHON PETROLEUM CORP (MPC) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for MPC stock?
The Price/Earnings (PE) ratio for MARATHON PETROLEUM CORP (MPC) is 22.91 and the Price/Book (PB) ratio is 3.15.
Can you provide the expected EPS growth for MPC stock?
The Earnings per Share (EPS) of MARATHON PETROLEUM CORP (MPC) is expected to grow by 6.14% in the next year.