Marathon Oil Corp (MRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MRO - US5658491064 - Common Stock
28.55 USD
-0.37 (-1.28%)
28.5798 USD
+0.03 (+0.1%)
MRO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 208 industry peers in the Oil, Gas & Consumable Fuels industry. MRO has an average financial health and profitability rating. MRO has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MRO was profitable.
In the past year MRO had a positive cash flow from operations.
MRO had positive earnings in 4 of the past 5 years.
In the past 5 years MRO always reported a positive cash flow from operatings.
1.2 Ratios
MRO has a Return On Assets of 6.85%. This is in the better half of the industry: MRO outperforms 61.46% of its industry peers.
MRO has a Return On Equity (11.63%) which is in line with its industry peers.
MRO has a better Return On Invested Capital (10.21%) than 67.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRO is significantly below the industry average of 21.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | 11.63% | ||
| ROIC | 10.21% |
ROA(3y)10.54%
ROA(5y)5.18%
ROE(3y)18.14%
ROE(5y)8.92%
ROIC(3y)13.87%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 19.79%, MRO is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
MRO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.96%, MRO is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
MRO's Operating Margin has improved in the last couple of years.
MRO's Gross Margin of 86.89% is amongst the best of the industry. MRO outperforms 92.68% of its industry peers.
In the last couple of years the Gross Margin of MRO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.96% | ||
| PM (TTM) | 19.79% | ||
| GM | 86.89% |
OM growth 3YN/A
OM growth 5Y8.4%
PM growth 3YN/A
PM growth 5Y5.86%
GM growth 3Y2.24%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MRO is creating some value.
Compared to 1 year ago, MRO has less shares outstanding
Compared to 1 year ago, MRO has an improved debt to assets ratio.
2.2 Solvency
MRO has an Altman-Z score of 2.76. This is not the best score and indicates that MRO is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.76, MRO is doing good in the industry, outperforming 72.68% of the companies in the same industry.
The Debt to FCF ratio of MRO is 2.33, which is a good value as it means it would take MRO, 2.33 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.33, MRO is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
MRO has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
MRO has a Debt to Equity ratio (0.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.27
WACC8.07%
2.3 Liquidity
MRO has a Current Ratio of 0.69. This is a bad value and indicates that MRO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.69, MRO is not doing good in the industry: 79.02% of the companies in the same industry are doing better.
A Quick Ratio of 0.61 indicates that MRO may have some problems paying its short term obligations.
The Quick ratio of MRO (0.61) is worse than 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
MRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.36%.
The Earnings Per Share has been growing by 29.38% on average over the past years. This is a very strong growth
The Revenue has decreased by -0.78% in the past year.
Measured over the past years, MRO shows a small growth in Revenue. The Revenue has been growing by 1.30% on average per year.
EPS 1Y (TTM)-10.36%
EPS 3YN/A
EPS 5Y29.38%
EPS Q2Q%-16.88%
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y29.48%
Revenue growth 5Y1.3%
Sales Q2Q%-3.97%
3.2 Future
Based on estimates for the next years, MRO will show a decrease in Earnings Per Share. The EPS will decrease by -2.56% on average per year.
Based on estimates for the next years, MRO will show a small growth in Revenue. The Revenue will grow by 1.14% on average per year.
EPS Next Y-6.75%
EPS Next 2Y-4.99%
EPS Next 3Y-3.07%
EPS Next 5Y-2.56%
Revenue Next Year0.06%
Revenue Next 2Y0.04%
Revenue Next 3Y1.14%
Revenue Next 5YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.37, the valuation of MRO can be described as very reasonable.
MRO's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.19, MRO is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.12, MRO is valued correctly.
MRO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, MRO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRO is valued a bit cheaper than 69.27% of the companies in the same industry.
MRO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MRO is cheaper than 75.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.83 | ||
| EV/EBITDA | 4.76 |
4.3 Compensation for Growth
The decent profitability rating of MRO may justify a higher PE ratio.
A cheap valuation may be justified as MRO's earnings are expected to decrease with -3.07% in the coming years.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-4.99%
EPS Next 3Y-3.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.54%, MRO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.91, MRO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.92, MRO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
The dividend of MRO is nicely growing with an annual growth rate of 15.43%!
MRO has paid a dividend for at least 10 years, which is a reliable track record.
MRO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.43%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
MRO pays out 19.02% of its income as dividend. This is a sustainable payout ratio.
DP19.02%
EPS Next 2Y-4.99%
EPS Next 3Y-3.07%
28.55
-0.37 (-1.28%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.7%
Inst Owner Change0%
Ins Owners0.43%
Ins Owner Change0%
Market Cap15.97B
Revenue(TTM)6.72B
Net Income(TTM)1.33B
Analysts73.08
Price Target31.8 (11.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend0.41
Dividend Growth(5Y)15.43%
DP19.02%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.91%
Min EPS beat(2)-10%
Max EPS beat(2)0.17%
EPS beat(4)3
Avg EPS beat(4)-0.05%
Min EPS beat(4)-10%
Max EPS beat(4)8.86%
EPS beat(8)7
Avg EPS beat(8)3.02%
EPS beat(12)11
Avg EPS beat(12)6.61%
EPS beat(16)15
Avg EPS beat(16)16.49%
Revenue beat(2)1
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)0.46%
Revenue beat(4)2
Avg Revenue beat(4)-0.64%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)1.44%
Revenue beat(8)5
Avg Revenue beat(8)0.58%
Revenue beat(12)9
Avg Revenue beat(12)3.55%
Revenue beat(16)11
Avg Revenue beat(16)3.13%
PT rev (1m)-1.5%
PT rev (3m)-5.37%
EPS NQ rev (1m)-28.13%
EPS NQ rev (3m)-28.13%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-12.35%
Revenue NQ rev (1m)-4.28%
Revenue NQ rev (3m)-4.28%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)-3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 12.12 | ||
| P/S | 2.38 | ||
| P/FCF | 7.83 | ||
| P/OCF | 3.86 | ||
| P/B | 1.4 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 4.76 |
EPS(TTM)2.51
EY8.79%
EPS(NY)2.36
Fwd EY8.25%
FCF(TTM)3.65
FCFY12.78%
OCF(TTM)7.39
OCFY25.88%
SpS12.01
BVpS20.44
TBVpS20.44
PEG (NY)N/A
PEG (5Y)0.39
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | 11.63% | ||
| ROCE | 11.67% | ||
| ROIC | 10.21% | ||
| ROICexc | 10.29% | ||
| ROICexgc | 10.29% | ||
| OM | 29.96% | ||
| PM (TTM) | 19.79% | ||
| GM | 86.89% | ||
| FCFM | 30.38% |
ROA(3y)10.54%
ROA(5y)5.18%
ROE(3y)18.14%
ROE(5y)8.92%
ROIC(3y)13.87%
ROIC(5y)N/A
ROICexc(3y)14.15%
ROICexc(5y)N/A
ROICexgc(3y)14.15%
ROICexgc(5y)N/A
ROCE(3y)15.81%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y12.25%
ROICexc growth 3YN/A
ROICexc growth 5Y12.37%
OM growth 3YN/A
OM growth 5Y8.4%
PM growth 3YN/A
PM growth 5Y5.86%
GM growth 3Y2.24%
GM growth 5Y0.24%
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.33 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 91.92% | ||
| Cap/Sales | 31.15% | ||
| Interest Coverage | 7.77 | ||
| Cash Conversion | 96.36% | ||
| Profit Quality | 153.46% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.76 |
F-Score7
WACC8.07%
ROIC/WACC1.27
Cap/Depr(3y)75.1%
Cap/Depr(5y)78.57%
Cap/Sales(3y)22.49%
Cap/Sales(5y)32.44%
Profit Quality(3y)158.04%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.36%
EPS 3YN/A
EPS 5Y29.38%
EPS Q2Q%-16.88%
EPS Next Y-6.75%
EPS Next 2Y-4.99%
EPS Next 3Y-3.07%
EPS Next 5Y-2.56%
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y29.48%
Revenue growth 5Y1.3%
Sales Q2Q%-3.97%
Revenue Next Year0.06%
Revenue Next 2Y0.04%
Revenue Next 3Y1.14%
Revenue Next 5YN/A
EBIT growth 1Y-20.06%
EBIT growth 3YN/A
EBIT growth 5Y9.81%
EBIT Next Year90.59%
EBIT Next 3Y24.05%
EBIT Next 5Y14.35%
FCF growth 1Y-49.68%
FCF growth 3Y150.93%
FCF growth 5Y35.42%
OCF growth 1Y-24.1%
OCF growth 3Y40.52%
OCF growth 5Y4.82%
Marathon Oil Corp / MRO FAQ
What is the fundamental rating for MRO stock?
ChartMill assigns a fundamental rating of 5 / 10 to MRO.
Can you provide the valuation status for Marathon Oil Corp?
ChartMill assigns a valuation rating of 5 / 10 to Marathon Oil Corp (MRO). This can be considered as Fairly Valued.
How profitable is Marathon Oil Corp (MRO) stock?
Marathon Oil Corp (MRO) has a profitability rating of 6 / 10.
What are the PE and PB ratios of Marathon Oil Corp (MRO) stock?
The Price/Earnings (PE) ratio for Marathon Oil Corp (MRO) is 11.37 and the Price/Book (PB) ratio is 1.4.
Can you provide the expected EPS growth for MRO stock?
The Earnings per Share (EPS) of Marathon Oil Corp (MRO) is expected to decline by -6.75% in the next year.