MUR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. MUR has only an average score on both its financial health and profitability. MUR has a valuation in line with the averages, but on the other hand it scores bad on growth.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year MUR was profitable.
MUR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MUR reported negative net income in multiple years.
Of the past 5 years MUR 4 years had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 1.47%, MUR is doing worse than 60.39% of the companies in the same industry.
MUR's Return On Equity of 2.79% is on the low side compared to the rest of the industry. MUR is outperformed by 61.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.63%, MUR is in line with its industry, outperforming 40.58% of the companies in the same industry.
MUR had an Average Return On Invested Capital over the past 3 years of 10.38%. This is significantly below the industry average of 21.94%.
The 3 year average ROIC (10.38%) for MUR is well above the current ROIC(4.63%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	1.47%
ROE	2.79%
ROIC	4.63%

ROA(3y)6.78%

ROA(5y)1.76%

ROE(3y)13.16%

ROE(5y)2.09%

ROIC(3y)10.39%

ROIC(5y)N/A

1.3 Margins

MUR has a Profit Margin (5.18%) which is in line with its industry peers.
MUR's Profit Margin has declined in the last couple of years.
MUR has a Operating Margin of 18.10%. This is comparable to the rest of the industry: MUR outperforms 54.59% of its industry peers.
In the last couple of years the Operating Margin of MUR has grown nicely.
The Gross Margin of MUR (70.03%) is better than 78.26% of its industry peers.
In the last couple of years the Gross Margin of MUR has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	18.1%
PM (TTM)	5.18%
GM	70.03%

OM growth 3Y1.83%

OM growth 5Y6.15%

PM growth 3YN/A

PM growth 5Y-19.86%

GM growth 3Y-1.01%

GM growth 5Y-1.15%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

MUR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MUR 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

MUR has an Altman-Z score of 1.99. This is not the best score and indicates that MUR is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.99, MUR is doing good in the industry, outperforming 65.22% of the companies in the same industry.
The Debt to FCF ratio of MUR is 3.32, which is a good value as it means it would take MUR, 3.32 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.32, MUR is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
MUR has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
MUR's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. MUR outperforms 63.77% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.28
Debt/FCF	3.32
Altman-Z	1.99

ROIC/WACC0.55

WACC8.36%

2.3 Liquidity

A Current Ratio of 0.94 indicates that MUR may have some problems paying its short term obligations.
The Current ratio of MUR (0.94) is comparable to the rest of the industry.
A Quick Ratio of 0.87 indicates that MUR may have some problems paying its short term obligations.
The Quick ratio of MUR (0.87) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	0.94
Quick Ratio	0.87

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for MUR have decreased strongly by -49.82% in the last year.
The earnings per share for MUR have been decreasing by -37.31% on average. This is quite bad

EPS 1Y (TTM)-49.82%

EPS 3Y-37.31%

EPS 5YN/A

EPS Q2Q%-60%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%-6.72%

3.2 Future

MUR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.48% yearly.
Based on estimates for the next years, MUR will show a small growth in Revenue. The Revenue will grow by 3.75% on average per year.

EPS Next Y12.42%

EPS Next 2Y43.05%

EPS Next 3Y25.49%

EPS Next 5Y27.48%

Revenue Next Year-2.89%

Revenue Next 2Y3.75%

Revenue Next 3YN/A

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 accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 21.80, the valuation of MUR can be described as rather expensive.
MUR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.30. MUR is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 19.40, MUR is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as MUR.
MUR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	21.8
Fwd PE	19.4

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MUR is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
MUR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MUR is cheaper than 79.71% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	9.99
EV/EBITDA	3.75

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as MUR's earnings are expected to grow with 25.49% in the coming years.

PEG (NY)1.76

PEG (5Y)N/A

EPS Next 2Y43.05%

EPS Next 3Y25.49%

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5. Dividend

5.1 Amount

MUR has a Yearly Dividend Yield of 4.14%, which is a nice return.
Compared to an average industry Dividend Yield of 3.73, MUR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.82, MUR pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	4.14%

5.2 History

The dividend of MUR has a limited annual growth rate of 3.72%.
MUR has been paying a dividend for at least 10 years, so it has a reliable track record.
MUR has not decreased its dividend in the last 3 years.

Dividend Growth(5Y)3.72%

Div Incr Years3

Div Non Decr Years3

5.3 Sustainability

128.65% of the earnings are spent on dividend by MUR. This is not a sustainable payout ratio.
MUR's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP128.65%

EPS Next 2Y43.05%

EPS Next 3Y25.49%

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MURPHY OIL CORP / MUR FAQ

What is the fundamental rating for MUR stock?

ChartMill assigns a fundamental rating of 4 / 10 to MUR.

What is the valuation status for MUR stock?

ChartMill assigns a valuation rating of 4 / 10 to MURPHY OIL CORP (MUR). This can be considered as Fairly Valued.

Can you provide the profitability details for MURPHY OIL CORP?

MURPHY OIL CORP (MUR) has a profitability rating of 4 / 10.

Can you provide the financial health for MUR stock?

The financial health rating of MURPHY OIL CORP (MUR) is 4 / 10.

Can you provide the expected EPS growth for MUR stock?

The Earnings per Share (EPS) of MURPHY OIL CORP (MUR) is expected to grow by 12.42% in the next year.