MPLX LP (MPLX) Stock Fundamental Analysis
NYSE:MPLX - New York Stock Exchange, Inc. - US55336V1008 - Currency: USD
We assign a fundamental rating of 4 out of 10 to MPLX. MPLX was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. MPLX has an excellent profitability rating, but there are concerns on its financial health. MPLX has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year MPLX was profitable.
In the past year MPLX had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MPLX reported negative net income in multiple years.
MPLX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MPLX's Return On Assets of 11.17% is amongst the best of the industry. MPLX outperforms 81.37% of its industry peers.
The Return On Equity of MPLX (31.75%) is better than 88.24% of its industry peers.
MPLX has a Return On Invested Capital of 12.16%. This is in the better half of the industry: MPLX outperforms 75.98% of its industry peers.
MPLX had an Average Return On Invested Capital over the past 3 years of 11.01%. This is significantly below the industry average of 28.75%.
The 3 year average ROIC (11.01%) for MPLX is below the current ROIC(12.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.17% | ||
| ROE | 31.75% | ||
| ROIC | 12.16% |
ROA(3y)9.82%
ROA(5y)5.89%
ROE(3y)28.87%
ROE(5y)17.14%
ROIC(3y)11.01%
ROIC(5y)9.2%
1.3 Margins
MPLX has a better Profit Margin (36.34%) than 87.75% of its industry peers.
In the last couple of years the Profit Margin of MPLX has grown nicely.
With an excellent Operating Margin value of 44.55%, MPLX belongs to the best of the industry, outperforming 85.78% of the companies in the same industry.
MPLX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 59.89%, MPLX is doing good in the industry, outperforming 65.69% of the companies in the same industry.
MPLX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.55% | ||
| PM (TTM) | 36.34% | ||
| GM | 59.89% |
OM growth 3Y10.98%
OM growth 5Y2.21%
PM growth 3YN/A
PM growth 5Y6.41%
GM growth 3Y1.24%
GM growth 5Y0.59%
2. Health
2.1 Basic Checks
MPLX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MPLX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
MPLX has a debt to FCF ratio of 4.71. This is a neutral value as MPLX would need 4.71 years to pay back of all of its debts.
MPLX has a Debt to FCF ratio of 4.71. This is in the better half of the industry: MPLX outperforms 62.25% of its industry peers.
MPLX has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.44, MPLX is doing worse than 79.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 4.71 | ||
| Altman-Z | N/A |
ROIC/WACC1.51
WACC8.04%
2.3 Liquidity
MPLX has a Current Ratio of 0.99. This is a bad value and indicates that MPLX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of MPLX (0.99) is worse than 63.73% of its industry peers.
MPLX has a Quick Ratio of 0.99. This is a bad value and indicates that MPLX is not financially healthy enough and could expect problems in meeting its short term obligations.
MPLX has a Quick ratio (0.95) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
MPLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.50%, which is quite good.
MPLX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.66% yearly.
EPS 1Y (TTM)10.5%
EPS 3Y13.76%
EPS 5Y12.66%
EPS Q2Q%-2.73%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.27%
3.2 Future
Based on estimates for the next years, MPLX will show a small growth in Earnings Per Share. The EPS will grow by 5.60% on average per year.
The Revenue is expected to decrease by -0.36% on average over the next years.
EPS Next Y7.2%
EPS Next 2Y6.64%
EPS Next 3Y7.15%
EPS Next 5Y5.6%
Revenue Next Year5.87%
Revenue Next 2Y4.36%
Revenue Next 3Y2.67%
Revenue Next 5Y-0.36%
3.3 Evolution
The EPS 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 12.68, which indicates a correct valuation of MPLX.
Compared to the rest of the industry, the Price/Earnings ratio of MPLX is on the same level as its industry peers.
MPLX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 11.83 indicates a reasonable valuation of MPLX.
Based on the Price/Forward Earnings ratio, MPLX is valued a bit cheaper than the industry average as 62.25% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MPLX to the average of the S&P500 Index (22.68), we can say MPLX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 11.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MPLX is valued a bit more expensive than the industry average as 60.78% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MPLX indicates a somewhat cheap valuation: MPLX is cheaper than 63.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.46 | ||
| EV/EBITDA | 11.41 |
4.3 Compensation for Growth
MPLX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MPLX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.76
PEG (5Y)1
EPS Next 2Y6.64%
EPS Next 3Y7.15%
5. Dividend
5.1 Amount
MPLX has a Yearly Dividend Yield of 7.12%, which is a nice return.
MPLX's Dividend Yield is a higher than the industry average which is at 6.75.
Compared to an average S&P500 Dividend Yield of 2.29, MPLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.12% |
5.2 History
The dividend of MPLX has a limited annual growth rate of 0.89%.
MPLX has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MPLX decreased in the last 3 years.
Dividend Growth(5Y)0.89%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
MPLX pays out 81.38% of its income as dividend. This is not a sustainable payout ratio.
MPLX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP81.38%
EPS Next 2Y6.64%
EPS Next 3Y7.15%
53.38
-0.46 (-0.85%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners23.6%
Inst Owner Change-5.15%
Ins Owners0.16%
Ins Owner Change0.07%
Market Cap54.29B
Analysts77.14
Price Target53.65 (0.51%)
Short Float %2.99%
Short Ratio5.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.12% |
Yearly Dividend3.29
Dividend Growth(5Y)0.89%
DP81.38%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.91%
Min EPS beat(2)-5.24%
Max EPS beat(2)15.06%
EPS beat(4)2
Avg EPS beat(4)5.67%
Min EPS beat(4)-5.24%
Max EPS beat(4)15.06%
EPS beat(8)4
Avg EPS beat(8)1.83%
EPS beat(12)7
Avg EPS beat(12)6.45%
EPS beat(16)9
Avg EPS beat(16)4.89%
Revenue beat(2)0
Avg Revenue beat(2)-7.68%
Min Revenue beat(2)-9.61%
Max Revenue beat(2)-5.74%
Revenue beat(4)1
Avg Revenue beat(4)-4.19%
Min Revenue beat(4)-9.61%
Max Revenue beat(4)1.06%
Revenue beat(8)3
Avg Revenue beat(8)-2.2%
Revenue beat(12)7
Avg Revenue beat(12)0.95%
Revenue beat(16)11
Avg Revenue beat(16)1.93%
PT rev (1m)1.68%
PT rev (3m)10.27%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)-2.24%
EPS NY rev (1m)0.37%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 11.83 | ||
| P/S | 4.59 | ||
| P/FCF | 11.46 | ||
| P/OCF | 9.42 | ||
| P/B | 4.01 | ||
| P/tB | 10.15 | ||
| EV/EBITDA | 11.41 |
EPS(TTM)4.21
EY7.89%
EPS(NY)4.51
Fwd EY8.46%
FCF(TTM)4.66
FCFY8.73%
OCF(TTM)5.66
OCFY10.61%
SpS11.64
BVpS13.32
TBVpS5.26
PEG (NY)1.76
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.17% | ||
| ROE | 31.75% | ||
| ROCE | 15.4% | ||
| ROIC | 12.16% | ||
| ROICexc | 13.09% | ||
| ROICexgc | 17.63% | ||
| OM | 44.55% | ||
| PM (TTM) | 36.34% | ||
| GM | 59.89% | ||
| FCFM | 40.02% |
ROA(3y)9.82%
ROA(5y)5.89%
ROE(3y)28.87%
ROE(5y)17.14%
ROIC(3y)11.01%
ROIC(5y)9.2%
ROICexc(3y)11.16%
ROICexc(5y)9.29%
ROICexgc(3y)15%
ROICexgc(5y)12.55%
ROCE(3y)13.94%
ROCE(5y)11.64%
ROICexcg growth 3Y28.7%
ROICexcg growth 5Y13.37%
ROICexc growth 3Y28.62%
ROICexc growth 5Y15.12%
OM growth 3Y10.98%
OM growth 5Y2.21%
PM growth 3YN/A
PM growth 5Y6.41%
GM growth 3Y1.24%
GM growth 5Y0.59%
F-Score8
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 4.71 | ||
| Debt/EBITDA | 2.98 | ||
| Cap/Depr | 80.87% | ||
| Cap/Sales | 8.64% | ||
| Interest Coverage | 5.9 | ||
| Cash Conversion | 88.1% | ||
| Profit Quality | 110.14% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | N/A |
F-Score8
WACC8.04%
ROIC/WACC1.51
Cap/Depr(3y)61.29%
Cap/Depr(5y)92.36%
Cap/Sales(3y)6.84%
Cap/Sales(5y)12.56%
Profit Quality(3y)125.39%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.5%
EPS 3Y13.76%
EPS 5Y12.66%
EPS Q2Q%-2.73%
EPS Next Y7.2%
EPS Next 2Y6.64%
EPS Next 3Y7.15%
EPS Next 5Y5.6%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.27%
Revenue Next Year5.87%
Revenue Next 2Y4.36%
Revenue Next 3Y2.67%
Revenue Next 5Y-0.36%
EBIT growth 1Y13.45%
EBIT growth 3Y26.77%
EBIT growth 5Y12.43%
EBIT Next Year38.77%
EBIT Next 3Y14.59%
EBIT Next 5Y9.38%
FCF growth 1Y12.76%
FCF growth 3Y10.14%
FCF growth 5Y35.96%
OCF growth 1Y17.77%
OCF growth 3Y6.08%
OCF growth 5Y11.94%