MURPHY OIL CORP (MUR) Stock Fundamental Analysis
NYSE:MUR - New York Stock Exchange, Inc. - US6267171022 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MUR. MUR was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. MUR has an average financial health and profitability rating. MUR is cheap, but on the other hand it scores bad on growth. 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.
Of the past 5 years MUR 4 years had a positive operating cash flow.
1.2 Ratios
MUR has a Return On Assets of 4.87%. This is comparable to the rest of the industry: MUR outperforms 48.77% of its industry peers.
MUR has a Return On Equity (9.01%) which is in line with its industry peers.
MUR has a Return On Invested Capital (6.97%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MUR is significantly below the industry average of 28.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 9.01% | ||
| ROIC | 6.97% |
ROA(3y)5.14%
ROA(5y)2.88%
ROE(3y)9.96%
ROE(5y)4.73%
ROIC(3y)9.25%
ROIC(5y)N/A
1.3 Margins
MUR has a Profit Margin of 14.83%. This is comparable to the rest of the industry: MUR outperforms 55.66% of its industry peers.
MUR's Profit Margin has declined in the last couple of years.
MUR has a Operating Margin (24.50%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MUR has grown nicely.
With a decent Gross Margin value of 71.13%, MUR is doing good in the industry, outperforming 77.83% of the companies in the same industry.
MUR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.5% | ||
| PM (TTM) | 14.83% | ||
| GM | 71.13% |
OM growth 3YN/A
OM growth 5Y16.04%
PM growth 3YN/A
PM growth 5Y-3.81%
GM growth 3Y1.22%
GM growth 5Y0.72%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MUR is still creating some value.
There is no outstanding debt for MUR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
MUR has an Altman-Z score of 2.07. 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 2.07, MUR is doing good in the industry, outperforming 62.56% of the companies in the same industry.
MUR has a debt to FCF ratio of 1.36. This is a very positive value and a sign of high solvency as it would only need 1.36 years to pay back of all of its debts.
MUR has a Debt to FCF ratio of 1.36. This is amongst the best in the industry. MUR outperforms 81.28% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that MUR is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.24, MUR is doing good in the industry, outperforming 64.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.36 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.85
WACC8.24%
2.3 Liquidity
MUR has a Current Ratio of 0.71. 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's Current ratio of 0.71 is on the low side compared to the rest of the industry. MUR is outperformed by 77.34% of its industry peers.
MUR has a Quick Ratio of 0.71. This is a bad value and indicates that MUR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.65, MUR is doing worse than 76.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for MUR have decreased strongly by -39.16% in the last year.
The Earnings Per Share has been growing by 25.59% on average over the past years. This is a very strong growth
EPS 1Y (TTM)-39.16%
EPS 3Y28.7%
EPS 5Y25.59%
EPS Q2Q%-61.11%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-20.5%
3.2 Future
Based on estimates for the next years, MUR will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.77% on average per year.
MUR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.73% yearly.
EPS Next Y7.48%
EPS Next 2Y23.44%
EPS Next 3Y9.32%
EPS Next 5Y11.77%
Revenue Next Year-4.52%
Revenue Next 2Y2.55%
Revenue Next 3Y0.73%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.93, the valuation of MUR can be described as reasonable.
Based on the Price/Earnings ratio, MUR is valued a bit cheaper than the industry average as 65.02% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MUR to the average of the S&P500 Index (29.62), we can say MUR is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.24, the valuation of MUR can be described as very reasonable.
69.46% of the companies in the same industry are more expensive than MUR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, MUR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 9.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MUR is valued cheaper than 85.71% of the companies in the same industry.
89.16% 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 | 4.23 | ||
| EV/EBITDA | 3.03 |
4.3 Compensation for Growth
MUR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.33
PEG (5Y)0.39
EPS Next 2Y23.44%
EPS Next 3Y9.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.61%, MUR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.67, MUR pays a bit more dividend than its industry peers.
MUR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
5.2 History
The dividend of MUR has a limited annual growth rate of 2.13%.
MUR has paid a dividend for at least 10 years, which is a reliable track record.
MUR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.13%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
MUR pays out 37.73% of its income as dividend. This is a sustainable payout ratio.
The dividend of MUR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.73%
EPS Next 2Y23.44%
EPS Next 3Y9.32%
27.31
-0.89 (-3.16%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners84.04%
Inst Owner Change-90.23%
Ins Owners5.54%
Ins Owner Change6.05%
Market Cap3.98B
Analysts67.83
Price Target38.12 (39.58%)
Short Float %9.5%
Short Ratio5.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
Yearly Dividend1.11
Dividend Growth(5Y)2.13%
DP37.73%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.4%
Min EPS beat(2)7.13%
Max EPS beat(2)7.68%
EPS beat(4)3
Avg EPS beat(4)1.86%
Min EPS beat(4)-9.83%
Max EPS beat(4)7.68%
EPS beat(8)6
Avg EPS beat(8)4.78%
EPS beat(12)9
Avg EPS beat(12)6.97%
EPS beat(16)12
Avg EPS beat(16)21.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.99%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-1.47%
Revenue beat(4)1
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)5%
Revenue beat(8)5
Avg Revenue beat(8)2.85%
Revenue beat(12)8
Avg Revenue beat(12)6.69%
Revenue beat(16)9
Avg Revenue beat(16)1.12%
PT rev (1m)-9.23%
PT rev (3m)-11.26%
EPS NQ rev (1m)-14.32%
EPS NQ rev (3m)-16.07%
EPS NY rev (1m)-3.41%
EPS NY rev (3m)-6.7%
Revenue NQ rev (1m)-2.43%
Revenue NQ rev (3m)-2.55%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 9.24 | ||
| P/S | 1.25 | ||
| P/FCF | 4.23 | ||
| P/OCF | 2.17 | ||
| P/B | 0.76 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 3.03 |
EPS(TTM)2.75
EY10.07%
EPS(NY)2.96
Fwd EY10.82%
FCF(TTM)6.46
FCFY23.64%
OCF(TTM)12.61
OCFY46.16%
SpS21.87
BVpS36
TBVpS36
PEG (NY)1.33
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 9.01% | ||
| ROCE | 8.85% | ||
| ROIC | 6.97% | ||
| ROICexc | 7.19% | ||
| ROICexgc | 7.19% | ||
| OM | 24.5% | ||
| PM (TTM) | 14.83% | ||
| GM | 71.13% | ||
| FCFM | 29.51% |
ROA(3y)5.14%
ROA(5y)2.88%
ROE(3y)9.96%
ROE(5y)4.73%
ROIC(3y)9.25%
ROIC(5y)N/A
ROICexc(3y)9.72%
ROICexc(5y)N/A
ROICexgc(3y)9.72%
ROICexgc(5y)N/A
ROCE(3y)11.75%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y36.32%
ROICexc growth 3YN/A
ROICexc growth 5Y36.32%
OM growth 3YN/A
OM growth 5Y16.04%
PM growth 3YN/A
PM growth 5Y-3.81%
GM growth 3Y1.22%
GM growth 5Y0.72%
F-Score5
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.36 | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | 103.93% | ||
| Cap/Sales | 28.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 111.78% | ||
| Profit Quality | 198.99% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 2.07 |
F-Score5
WACC8.24%
ROIC/WACC0.85
Cap/Depr(3y)112.38%
Cap/Depr(5y)129.66%
Cap/Sales(3y)28.81%
Cap/Sales(5y)44.38%
Profit Quality(3y)N/A
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 Y7.48%
EPS Next 2Y23.44%
EPS Next 3Y9.32%
EPS Next 5Y11.77%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-20.5%
Revenue Next Year-4.52%
Revenue Next 2Y2.55%
Revenue Next 3Y0.73%
Revenue Next 5YN/A
EBIT growth 1Y-34.75%
EBIT growth 3YN/A
EBIT growth 5Y32.69%
EBIT Next Year48.48%
EBIT Next 3Y19.3%
EBIT Next 5Y6.44%
FCF growth 1Y-13.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-7.85%
OCF growth 3Y30.71%
OCF growth 5Y26.32%