MARATHON OIL CORP (MRO)
US5658491064 - Common Stock
We assign a fundamental rating of 5 out of 10 to MRO. MRO was compared to 204 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.
MRO had positive earnings in 4 of the past 5 years.
MRO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.85%, MRO is doing good in the industry, outperforming 60.59% of the companies in the same industry.
The Return On Equity of MRO (11.63%) is comparable to the rest of the industry.
MRO has a Return On Invested Capital of 10.21%. This is in the better half of the industry: MRO outperforms 65.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRO is significantly below the industry average of 22.54%.
| 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 65.02% of its industry peers.
In the last couple of years the Profit Margin of MRO has grown nicely.
MRO's Operating Margin of 29.96% is fine compared to the rest of the industry. MRO outperforms 62.56% of its industry peers.
In the last couple of years the Operating Margin of MRO has grown nicely.
MRO's Gross Margin of 86.89% is amongst the best of the industry. MRO outperforms 93.10% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MRO is still creating some value.
The number of shares outstanding for MRO has been reduced compared to 1 year ago.
The number of shares outstanding for MRO has been reduced compared to 5 years ago.
The debt/assets ratio for MRO has been reduced compared to a year ago.
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.
MRO's Altman-Z score of 2.76 is fine compared to the rest of the industry. MRO outperforms 70.94% of its industry peers.
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.
MRO has a Debt to FCF ratio of 2.33. This is in the better half of the industry: MRO outperforms 73.40% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that MRO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.42, MRO is in line with its industry, outperforming 50.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.25
WACC8.2%
2.3 Liquidity
A Current Ratio of 0.69 indicates that MRO may have some problems paying 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 79.31% of its industry peers.
MRO has a Quick 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 Quick ratio of 0.61 is on the low side compared to the rest of the industry. MRO is outperformed by 77.83% 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%.
Measured over the past years, MRO shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.38% on average per year.
MRO shows a decrease in Revenue. In the last year, the revenue decreased by -0.78%.
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
The Earnings Per Share is expected to decrease by -2.56% on average over the next years.
Based on estimates for the next years, MRO will show a small growth in Revenue. The Revenue will grow by 1.23% on average per year.
EPS Next Y-6.72%
EPS Next 2Y-4.16%
EPS Next 3Y-1.76%
EPS Next 5Y-2.56%
Revenue Next Year-0.01%
Revenue Next 2Y0.19%
Revenue Next 3Y1.23%
Revenue Next 5YN/A
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MRO is valuated reasonably with a Price/Earnings ratio of 11.37.
Based on the Price/Earnings ratio, MRO is valued a bit cheaper than the industry average as 60.59% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.96. MRO is valued rather cheaply when compared to this.
MRO is valuated reasonably with a Price/Forward Earnings ratio of 11.91.
MRO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.82. MRO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
MRO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MRO is cheaper than 67.98% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MRO is valued a bit cheaper than 73.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.83 | ||
| EV/EBITDA | 4.76 |
4.3 Compensation for Growth
MRO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-4.16%
EPS Next 3Y-1.76%
5. Dividend
5.1 Amount
MRO has a Yearly Dividend Yield of 1.53%.
MRO's Dividend Yield is slightly below the industry average, which is at 6.45.
Compared to the average S&P500 Dividend Yield of 2.23, MRO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
The dividend of MRO is nicely growing with an annual growth rate of 15.43%!
MRO has been paying a dividend for at least 10 years, so it has a reliable track record.
MRO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.43%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
MRO pays out 19.02% of its income as dividend. This is a sustainable payout ratio.
DP19.02%
EPS Next 2Y-4.16%
EPS Next 3Y-1.76%
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 Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.97B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 11.37 | ||
| Fwd PE | 11.91 | ||
| 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)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | 11.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.96% | ||
| PM (TTM) | 19.79% | ||
| GM | 86.89% | ||
| 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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.61 | ||
| 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)-10.36%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-6.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y29.48%
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