MARATHON PETROLEUM CORP (MPC)
US56585A1025 - Common Stock
Taking everything into account, MPC scores 4 out of 10 in our fundamental rating. MPC was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. MPC has only an average score on both its financial health and profitability. MPC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MPC had positive earnings in the past year.
MPC had a positive operating cash flow in the past year.
Of the past 5 years MPC 4 years were profitable.
MPC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MPC's Return On Assets of 5.66% is in line compared to the rest of the industry. MPC outperforms 52.94% of its industry peers.
Looking at the Return On Equity, with a value of 23.88%, MPC is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
The Return On Invested Capital of MPC (10.67%) is better than 69.61% of its industry peers.
MPC had an Average Return On Invested Capital over the past 3 years of 15.09%. This is significantly below the industry average of 29.02%.
The 3 year average ROIC (15.09%) for MPC is well above the current ROIC(10.67%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 23.88% | ||
| ROIC | 10.67% |
ROA(3y)12.93%
ROA(5y)5.98%
ROE(3y)43.04%
ROE(5y)18.54%
ROIC(3y)15.09%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 3.15%, MPC is doing worse than 68.14% of the companies in the same industry.
MPC's Profit Margin has improved in the last couple of years.
MPC's Operating Margin of 5.53% is on the low side compared to the rest of the industry. MPC is outperformed by 73.53% of its industry peers.
MPC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 10.72%, MPC is not doing good in the industry: 72.06% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MPC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.53% | ||
| PM (TTM) | 3.15% | ||
| GM | 10.72% |
OM growth 3YN/A
OM growth 5Y11.98%
PM growth 3YN/A
PM growth 5Y14.96%
GM growth 3Y45.22%
GM growth 5Y5.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MPC is creating value.
Compared to 1 year ago, MPC has less shares outstanding
Compared to 5 years ago, MPC has less shares outstanding
Compared to 1 year ago, MPC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.27 indicates that MPC is not in any danger for bankruptcy at the moment.
The Altman-Z score of MPC (3.27) is better than 79.41% of its industry peers.
MPC has a debt to FCF ratio of 5.30. This is a neutral value as MPC would need 5.30 years to pay back of all of its debts.
MPC has a Debt to FCF ratio (5.30) which is in line with its industry peers.
MPC has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
MPC has a Debt to Equity ratio of 1.27. This is in the lower half of the industry: MPC underperforms 76.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 5.3 | ||
| Altman-Z | 3.27 |
ROIC/WACC1.41
WACC7.59%
2.3 Liquidity
MPC has a Current Ratio of 1.23. This is a normal value and indicates that MPC is financially healthy and should not expect problems in meeting its short term obligations.
MPC has a Current ratio of 1.23. This is comparable to the rest of the industry: MPC outperforms 49.02% of its industry peers.
MPC has a Quick Ratio of 1.23. This is a bad value and indicates that MPC is not financially healthy enough and could expect problems in meeting its short term obligations.
MPC has a Quick ratio of 0.76. This is in the lower half of the industry: MPC underperforms 65.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
MPC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -52.10%.
MPC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.78% yearly.
MPC shows a decrease in Revenue. In the last year, the revenue decreased by -6.39%.
Measured over the past years, MPC shows a quite strong growth in Revenue. The Revenue has been growing by 11.63% on average per year.
EPS 1Y (TTM)-52.1%
EPS 3YN/A
EPS 5Y30.78%
EPS Q2Q%-77.03%
Revenue 1Y (TTM)-6.39%
Revenue growth 3Y29.59%
Revenue growth 5Y11.63%
Sales Q2Q%-14.93%
3.2 Future
Based on estimates for the next years, MPC will show a very negative growth in Earnings Per Share. The EPS will decrease by -20.82% on average per year.
The Revenue is expected to decrease by -4.45% on average over the next years.
EPS Next Y-60.44%
EPS Next 2Y-36.99%
EPS Next 3Y-17.83%
EPS Next 5Y-20.82%
Revenue Next Year-6.34%
Revenue Next 2Y-6.21%
Revenue Next 3Y-3.17%
Revenue Next 5Y-4.45%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.63, the valuation of MPC can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MPC is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.73. MPC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 14.28 indicates a correct valuation of MPC.
MPC's Price/Forward Earnings ratio is in line with the industry average.
MPC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 14.28 |
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 72.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.05 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
A cheap valuation may be justified as MPC's earnings are expected to decrease with -17.83% in the coming years.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-36.99%
EPS Next 3Y-17.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.76%, MPC has a reasonable but not impressive dividend return.
MPC's Dividend Yield is comparable with the industry average which is at 7.08.
Compared to an average S&P500 Dividend Yield of 2.34, MPC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
The dividend of MPC is nicely growing with an annual growth rate of 13.40%!
MPC has paid a dividend for at least 10 years, which is a reliable track record.
MPC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.4%
Div Incr Years3
Div Non Decr Years13
5.3 Sustainability
25.95% of the earnings are spent on dividend by MPC. This is a low number and sustainable payout ratio.
DP25.95%
EPS Next 2Y-36.99%
EPS Next 3Y-17.83%
MARATHON PETROLEUM CORP
NYSE:MPC (12/20/2024, 8:25:22 PM)
After market: 133.38 0 (0%)133.38
+1.73 (+1.31%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners76.35%
Inst Owner Change-5.38%
Ins Owners0.2%
Ins Owner Change0.29%
Market Cap42.87B
Analysts73.91
Price Target174.61 (30.91%)
Short Float %2.48%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Dividend Growth(5Y)13.4%
DP25.95%
Div Incr Years3
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)60.12%
Min EPS beat(2)32.15%
Max EPS beat(2)88.08%
EPS beat(4)4
Avg EPS beat(4)51.23%
Min EPS beat(4)5.62%
Max EPS beat(4)88.08%
EPS beat(8)8
Avg EPS beat(8)30.63%
EPS beat(12)12
Avg EPS beat(12)37.51%
EPS beat(16)16
Avg EPS beat(16)39.35%
Revenue beat(2)2
Avg Revenue beat(2)7.46%
Min Revenue beat(2)6.66%
Max Revenue beat(2)8.26%
Revenue beat(4)4
Avg Revenue beat(4)5.27%
Min Revenue beat(4)2.72%
Max Revenue beat(4)8.26%
Revenue beat(8)7
Avg Revenue beat(8)4.59%
Revenue beat(12)11
Avg Revenue beat(12)10.95%
Revenue beat(16)15
Avg Revenue beat(16)14.55%
PT rev (1m)-1.19%
PT rev (3m)-12.03%
EPS NQ rev (1m)9.37%
EPS NQ rev (3m)-66.35%
EPS NY rev (1m)-5.05%
EPS NY rev (3m)-22.62%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)-6.74%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 14.28 | ||
| P/S | 0.3 | ||
| P/FCF | 8.05 | ||
| P/OCF | 5.65 | ||
| P/B | 2.26 | ||
| P/tB | 4.01 | ||
| EV/EBITDA | 5.74 |
EPS(TTM)12.55
EY9.41%
EPS(NY)9.34
Fwd EY7%
FCF(TTM)16.57
FCFY12.42%
OCF(TTM)23.59
OCFY17.68%
SpS447
BVpS58.91
TBVpS33.26
PEG (NY)N/A
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 23.88% | ||
| ROCE | 13.51% | ||
| ROIC | 10.67% | ||
| ROICexc | 11.7% | ||
| ROICexgc | 13.82% | ||
| OM | 5.53% | ||
| PM (TTM) | 3.15% | ||
| GM | 10.72% | ||
| FCFM | 3.71% |
ROA(3y)12.93%
ROA(5y)5.98%
ROE(3y)43.04%
ROE(5y)18.54%
ROIC(3y)15.09%
ROIC(5y)N/A
ROICexc(3y)18.02%
ROICexc(5y)N/A
ROICexgc(3y)21.07%
ROICexgc(5y)N/A
ROCE(3y)19.11%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y30.1%
ROICexc growth 3YN/A
ROICexc growth 5Y33.77%
OM growth 3YN/A
OM growth 5Y11.98%
PM growth 3YN/A
PM growth 5Y14.96%
GM growth 3Y45.22%
GM growth 5Y5.42%
F-Score5
Asset Turnover1.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 5.3 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 67.54% | ||
| Cap/Sales | 1.57% | ||
| Interest Coverage | 6.58 | ||
| Cash Conversion | 67.2% | ||
| Profit Quality | 117.81% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 3.27 |
F-Score5
WACC7.59%
ROIC/WACC1.41
Cap/Depr(3y)58.65%
Cap/Depr(5y)81.25%
Cap/Sales(3y)1.27%
Cap/Sales(5y)2.54%
Profit Quality(3y)84.08%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-52.1%
EPS 3YN/A
EPS 5Y30.78%
EPS Q2Q%-77.03%
EPS Next Y-60.44%
EPS Next 2Y-36.99%
EPS Next 3Y-17.83%
EPS Next 5Y-20.82%
Revenue 1Y (TTM)-6.39%
Revenue growth 3Y29.59%
Revenue growth 5Y11.63%
Sales Q2Q%-14.93%
Revenue Next Year-6.34%
Revenue Next 2Y-6.21%
Revenue Next 3Y-3.17%
Revenue Next 5Y-4.45%
EBIT growth 1Y-52.57%
EBIT growth 3YN/A
EBIT growth 5Y25%
EBIT Next Year-23.02%
EBIT Next 3Y-5.21%
EBIT Next 5Y-7.49%
FCF growth 1Y-60.48%
FCF growth 3YN/A
FCF growth 5Y36.5%
OCF growth 1Y-51.57%
OCF growth 3Y80.04%
OCF growth 5Y18.05%