Marathon Oil Corp (MRO)
US5658491064 - Common Stock
MRO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 205 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of MRO get a neutral evaluation. Nothing too spectacular is happening here. MRO has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MRO had positive earnings in the past year.
In the past year MRO had a positive cash flow from operations.
Of the past 5 years MRO 4 years were profitable.
Each year in the past 5 years MRO had a positive operating cash flow.
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's Return On Equity of 11.63% is in line compared to the rest of the industry. MRO outperforms 51.22% of its industry peers.
MRO has a Return On Invested Capital of 10.21%. This is in the better half of the industry: MRO outperforms 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 29.03%.
| 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
MRO has a better Profit Margin (19.79%) than 65.85% of its industry peers.
MRO's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 29.96%, MRO is doing good in the industry, outperforming 63.41% of the companies in the same industry.
MRO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 86.89%, MRO belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
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
MRO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MRO has less shares outstanding than it did 1 year ago.
MRO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MRO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.76 indicates that MRO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.76, MRO is in the better half of 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.
The Debt to FCF ratio of MRO (2.33) is better than 73.17% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that MRO is not too dependend on debt financing.
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.
MRO's Current ratio of 0.69 is on the low side compared to the rest of the industry. MRO is outperformed by 79.02% of its industry peers.
A Quick Ratio of 0.61 indicates that MRO may have some problems paying its short term obligations.
MRO's Quick ratio of 0.61 is on the low side compared to the rest of the industry. MRO is outperformed by 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.
The Revenue has been growing slightly by 1.30% on average over the past years.
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.
MRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.14% yearly.
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
The Price/Earnings ratio is 11.37, which indicates a very decent valuation of MRO.
MRO's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.20, MRO is valued rather cheaply.
MRO is valuated correctly with a Price/Forward Earnings ratio of 12.12.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRO is on the same level as its industry peers.
MRO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
69.27% of the companies in the same industry are more expensive than MRO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MRO is valued a bit cheaper than the industry average as 75.12% of the companies are valued more expensively.
| 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.
MRO's Dividend Yield is slightly below the industry average, which is at 7.14.
MRO's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| 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
19.02% of the earnings are spent on dividend by MRO. This is a low number and sustainable payout ratio.
DP19.02%
EPS Next 2Y-4.99%
EPS Next 3Y-3.07%
Marathon Oil Corp
NYSE:MRO (11/21/2024, 8:04:00 PM)
After market: 28.5798 +0.03 (+0.1%)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 Change-0.96%
Ins Owners0.43%
Ins Owner Change-68.18%
Market Cap15.97B
Analysts73.08
Price Target31.8 (11.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Dividend Growth(5Y)15.43%
DP19.02%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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
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
ROICexcg growth 3YN/A
ROICexcg 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%