MURPHY OIL CORP (MUR) Stock Fundamental Analysis
NYSE:MUR - New York Stock Exchange, Inc. - US6267171022 - Common Stock - Currency: USD
Taking everything into account, MUR scores 5 out of 10 in our fundamental rating. MUR was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. MUR has an average financial health and profitability rating. MUR is not valued too expensively and it also shows a decent growth rate. Finally MUR also has an excellent dividend rating.
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.
In the past 5 years MUR always reported a positive cash flow from operatings.
1.2 Ratios
MUR's Return On Assets of 4.21% is in line compared to the rest of the industry. MUR outperforms 51.42% of its industry peers.
The Return On Equity of MUR (7.84%) is comparable to the rest of the industry.
MUR's Return On Invested Capital of 6.55% is in line compared to the rest of the industry. MUR outperforms 51.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MUR is significantly below the industry average of 27.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 7.84% | ||
| ROIC | 6.55% |
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
With a Profit Margin value of 13.50%, MUR perfoms like the industry average, outperforming 59.43% of the companies in the same industry.
In the last couple of years the Profit Margin of MUR has declined.
MUR has a Operating Margin of 22.97%. This is comparable to the rest of the industry: MUR outperforms 53.77% of its industry peers.
In the last couple of years the Operating Margin of MUR has grown nicely.
MUR has a better Gross Margin (68.84%) than 75.94% of its industry peers.
MUR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.97% | ||
| PM (TTM) | 13.5% | ||
| GM | 68.84% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MUR is creating some value.
The number of shares outstanding for MUR has been reduced compared to 1 year ago.
Compared to 5 years ago, MUR has less shares outstanding
MUR has a better debt/assets ratio than last year.
2.2 Solvency
MUR has an Altman-Z score of 1.93. 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.
Looking at the Altman-Z score, with a value of 1.93, MUR is in the better half of the industry, outperforming 66.04% of the companies in the same industry.
MUR has a debt to FCF ratio of 1.55. This is a very positive value and a sign of high solvency as it would only need 1.55 years to pay back of all of its debts.
MUR has a better Debt to FCF ratio (1.55) than 86.32% of its industry peers.
MUR has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
MUR has a better Debt to Equity ratio (0.25) than 66.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.66
WACC9.97%
2.3 Liquidity
MUR has a Current Ratio of 0.83. This is a bad value and indicates that MUR is not financially healthy enough and could expect problems in meeting its short term obligations.
MUR has a worse Current ratio (0.83) than 68.40% of its industry peers.
MUR has a Quick Ratio of 0.83. This is a bad value and indicates that MUR is not financially healthy enough and could expect problems in meeting its short term obligations.
MUR has a Quick ratio of 0.77. This is in the lower half of the industry: MUR underperforms 62.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
MUR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.16%.
The Earnings Per Share has been growing by 25.59% on average over the past years. This is a very strong growth
The Revenue for MUR has decreased by -12.53% in the past year. This is quite bad
MUR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.39% yearly.
EPS 1Y (TTM)-39.16%
EPS 3Y28.7%
EPS 5Y25.59%
EPS Q2Q%-61.11%
Revenue 1Y (TTM)-12.53%
Revenue growth 3Y9.87%
Revenue growth 5Y1.39%
Sales Q2Q%-20.5%
3.2 Future
Based on estimates for the next years, MUR will show a very strong growth in Earnings Per Share. The EPS will grow by 20.61% on average per year.
Based on estimates for the next years, MUR will show a small growth in Revenue. The Revenue will grow by 0.22% on average per year.
EPS Next Y-6.72%
EPS Next 2Y15.37%
EPS Next 3Y9.23%
EPS Next 5Y20.61%
Revenue Next Year-6.57%
Revenue Next 2Y0.42%
Revenue Next 3Y0.22%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue 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
MUR is valuated cheaply with a Price/Earnings ratio of 7.77.
Based on the Price/Earnings ratio, MUR is valued a bit cheaper than 77.83% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, MUR is valued rather cheaply.
The Price/Forward Earnings ratio is 8.33, which indicates a very decent valuation of MUR.
74.53% of the companies in the same industry are more expensive than MUR, based on the Price/Forward Earnings ratio.
MUR is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.77 | ||
| Fwd PE | 8.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MUR is valued cheaply inside the industry as 88.21% of the companies are valued more expensively.
90.57% of the companies in the same industry are more expensive than MUR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.8 | ||
| EV/EBITDA | 2.55 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y15.37%
EPS Next 3Y9.23%
5. Dividend
5.1 Amount
MUR has a Yearly Dividend Yield of 6.08%, which is a nice return.
In the last 3 months the price of MUR has falen by -33.72%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MUR's Dividend Yield is a higher than the industry average which is at 7.52.
Compared to an average S&P500 Dividend Yield of 2.52, MUR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.08% |
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
MUR pays out 44.20% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of MUR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.2%
EPS Next 2Y15.37%
EPS Next 3Y9.23%
21.37
+0.78 (+3.79%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners84.04%
Inst Owner Change-0.2%
Ins Owners5.54%
Ins Owner Change5.89%
Market Cap3.12B
Analysts67.83
Price Target35.83 (67.66%)
Short Float %14.31%
Short Ratio6.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.08% |
Yearly Dividend1.21
Dividend Growth(5Y)3.72%
DP44.2%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.77%
Min EPS beat(2)-38.67%
Max EPS beat(2)7.13%
EPS beat(4)3
Avg EPS beat(4)-5.35%
Min EPS beat(4)-38.67%
Max EPS beat(4)7.68%
EPS beat(8)6
Avg EPS beat(8)0.51%
EPS beat(12)9
Avg EPS beat(12)5.03%
EPS beat(16)12
Avg EPS beat(16)20.38%
Revenue beat(2)0
Avg Revenue beat(2)-5.95%
Min Revenue beat(2)-10.44%
Max Revenue beat(2)-1.47%
Revenue beat(4)1
Avg Revenue beat(4)-2.35%
Min Revenue beat(4)-10.44%
Max Revenue beat(4)5%
Revenue beat(8)4
Avg Revenue beat(8)0.06%
Revenue beat(12)7
Avg Revenue beat(12)4.34%
Revenue beat(16)9
Avg Revenue beat(16)2.64%
PT rev (1m)-3.77%
PT rev (3m)-14.7%
EPS NQ rev (1m)4.09%
EPS NQ rev (3m)-38.96%
EPS NY rev (1m)-13.22%
EPS NY rev (3m)-28.37%
Revenue NQ rev (1m)0.87%
Revenue NQ rev (3m)-11.22%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-7.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.77 | ||
| Fwd PE | 8.33 | ||
| P/S | 1.03 | ||
| P/FCF | 3.8 | ||
| P/OCF | 1.8 | ||
| P/B | 0.6 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | 2.55 |
EPS(TTM)2.75
EY12.87%
EPS(NY)2.57
Fwd EY12%
FCF(TTM)5.62
FCFY26.32%
OCF(TTM)11.85
OCFY55.44%
SpS20.67
BVpS35.59
TBVpS35.59
PEG (NY)N/A
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 7.84% | ||
| ROCE | 7.94% | ||
| ROIC | 6.55% | ||
| ROICexc | 6.89% | ||
| ROICexgc | 6.89% | ||
| OM | 22.97% | ||
| PM (TTM) | 13.5% | ||
| GM | 68.84% | ||
| FCFM | 27.21% |
ROA(3y)6.78%
ROA(5y)1.76%
ROE(3y)13.16%
ROE(5y)2.09%
ROIC(3y)10.39%
ROIC(5y)N/A
ROICexc(3y)10.9%
ROICexc(5y)N/A
ROICexgc(3y)10.9%
ROICexgc(5y)N/A
ROCE(3y)12.59%
ROCE(5y)N/A
ROICexcg growth 3Y13.29%
ROICexcg growth 5Y12.74%
ROICexc growth 3Y13.29%
ROICexc growth 5Y12.74%
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%
F-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.55 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 104.9% | ||
| Cap/Sales | 30.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.92% | ||
| Profit Quality | 201.59% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 1.93 |
F-Score5
WACC9.97%
ROIC/WACC0.66
Cap/Depr(3y)118.5%
Cap/Depr(5y)106.09%
Cap/Sales(3y)28.76%
Cap/Sales(5y)32.24%
Profit Quality(3y)142.37%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-39.16%
EPS 3Y28.7%
EPS 5Y25.59%
EPS Q2Q%-61.11%
EPS Next Y-6.72%
EPS Next 2Y15.37%
EPS Next 3Y9.23%
EPS Next 5Y20.61%
Revenue 1Y (TTM)-12.53%
Revenue growth 3Y9.87%
Revenue growth 5Y1.39%
Sales Q2Q%-20.5%
Revenue Next Year-6.57%
Revenue Next 2Y0.42%
Revenue Next 3Y0.22%
Revenue Next 5YN/A
EBIT growth 1Y-35.44%
EBIT growth 3Y11.87%
EBIT growth 5Y7.62%
EBIT Next Year133.39%
EBIT Next 3Y35.12%
EBIT Next 5Y26.58%
FCF growth 1Y20.23%
FCF growth 3Y3.8%
FCF growth 5YN/A
OCF growth 1Y-1.13%
OCF growth 3Y6.73%
OCF growth 5YN/A