MARATHON PETROLEUM CORP (MPC)
US56585A1025 - Common Stock
Overall MPC gets a fundamental rating of 4 out of 10. We evaluated MPC against 204 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.
1. Profitability
1.1 Basic Checks
In the past year MPC was profitable.
In the past year MPC had a positive cash flow from operations.
MPC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MPC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.66%, MPC is in line with its industry, outperforming 50.74% of the companies in the same industry.
MPC's Return On Equity of 23.88% is fine compared to the rest of the industry. MPC outperforms 77.83% of its industry peers.
With a decent Return On Invested Capital value of 10.67%, MPC is doing good in the industry, outperforming 66.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MPC is significantly below the industry average of 22.54%.
The last Return On Invested Capital (10.67%) for MPC is well below the 3 year average (15.09%), which needs to be investigated, but indicates that MPC had better years and this may not be a problem.
| 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 68.97% of the companies in the same industry.
In the last couple of years the Profit Margin of MPC has grown nicely.
MPC's Operating Margin of 5.53% is on the low side compared to the rest of the industry. MPC is outperformed by 74.38% 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: 72.41% 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.
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.
Compared to 1 year ago, MPC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.35 indicates that MPC is not in any danger for bankruptcy at the moment.
MPC has a Altman-Z score of 3.35. This is in the better half of the industry: MPC outperforms 78.33% of its industry peers.
The Debt to FCF ratio of MPC is 5.30, which is a neutral value as it means it would take MPC, 5.30 years of fcf income to pay off all of its debts.
MPC has a Debt to FCF ratio of 5.30. This is comparable to the rest of the industry: MPC outperforms 58.13% of its industry peers.
A Debt/Equity ratio of 1.27 is on the high side and indicates that MPC has dependencies on debt financing.
MPC has a Debt to Equity ratio of 1.27. This is in the lower half of the industry: MPC underperforms 76.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 5.3 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.41
WACC7.55%
2.3 Liquidity
A Current Ratio of 1.23 indicates that MPC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.23, MPC is in line with its industry, outperforming 49.75% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that MPC may have some problems paying its short term obligations.
MPC's Quick ratio of 0.76 is on the low side compared to the rest of the industry. MPC is outperformed by 66.01% 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%.
The Earnings Per Share has been growing by 30.78% on average over the past years. This is a very strong growth
Looking at the last year, MPC shows a decrease in Revenue. The Revenue has decreased by -6.39% in the last year.
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
The Earnings Per Share is expected to decrease by -8.48% on average over the next years.
MPC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.48% yearly.
EPS Next Y-58.33%
EPS Next 2Y-33.52%
EPS Next 3Y-16.29%
EPS Next 5Y-8.48%
Revenue Next Year-5.72%
Revenue Next 2Y-5.21%
Revenue Next 3Y-3.01%
Revenue Next 5Y-4.48%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MPC is valuated correctly with a Price/Earnings ratio of 12.69.
MPC's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of MPC to the average of the S&P500 Index (28.96), we can say MPC is valued rather cheaply.
MPC is valuated correctly with a Price/Forward Earnings ratio of 15.32.
MPC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, MPC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 15.32 |
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 68.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.61 | ||
| EV/EBITDA | 6.48 |
4.3 Compensation for Growth
MPC's earnings are expected to decrease with -16.29% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.41
EPS Next 2Y-33.52%
EPS Next 3Y-16.29%
5. Dividend
5.1 Amount
MPC has a Yearly Dividend Yield of 2.30%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.45, MPC has a dividend in line with its industry peers.
MPC's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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 Years2
Div Non Decr Years12
5.3 Sustainability
MPC pays out 25.95% of its income as dividend. This is a sustainable payout ratio.
DP25.95%
EPS Next 2Y-33.52%
EPS Next 3Y-16.29%
MARATHON PETROLEUM CORP
NYSE:MPC (11/21/2024, 8:04:00 PM)
Premarket: 159.3 +0.01 (+0.01%)159.29
-0.09 (-0.06%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap51.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 15.32 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 23.88% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.53% | ||
| PM (TTM) | 3.15% | ||
| GM | 10.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-52.1%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-58.33%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.39%
Revenue growth 3Y29.59%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y