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 210 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. Finally MUR also has an excellent dividend rating. These ratings could make MUR a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year MUR was profitable.
MUR had a positive operating cash flow in the past year.
In multiple years MUR reported negative net income over the last 5 years.
In the past 5 years MUR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MUR (3.97%) is comparable to the rest of the industry.
MUR has a Return On Equity of 7.62%. This is comparable to the rest of the industry: MUR outperforms 50.00% of its industry peers.
MUR's Return On Invested Capital of 6.05% is in line compared to the rest of the industry. MUR outperforms 53.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MUR is significantly below the industry average of 23.80%.
The last Return On Invested Capital (6.05%) for MUR is well below the 3 year average (10.38%), which needs to be investigated, but indicates that MUR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.97% | ||
| ROE | 7.62% | ||
| ROIC | 6.05% |
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 of 13.52%. This is in the better half of the industry: MUR outperforms 62.38% of its industry peers.
MUR's Profit Margin has declined in the last couple of years.
MUR has a Operating Margin (22.39%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MUR has grown nicely.
Looking at the Gross Margin, with a value of 68.43%, MUR is in the better half of the industry, outperforming 77.62% of the companies in the same industry.
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 | 22.39% | ||
| PM (TTM) | 13.52% | ||
| GM | 68.43% |
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.
Compared to 1 year ago, MUR has less shares outstanding
Compared to 5 years ago, MUR has less shares outstanding
The debt/assets ratio for MUR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.93 indicates that MUR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.93, MUR is doing good in the industry, outperforming 64.29% of the companies in the same industry.
MUR has a debt to FCF ratio of 2.45. This is a good value and a sign of high solvency as MUR would need 2.45 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.45, MUR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
MUR has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
MUR has a Debt to Equity ratio of 0.29. This is in the better half of the industry: MUR outperforms 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.67
WACC8.98%
2.3 Liquidity
MUR has a Current Ratio of 0.76. 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 Current ratio of 0.76. This is in the lower half of the industry: MUR underperforms 72.38% of its industry peers.
MUR has a Quick Ratio of 0.76. 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 Quick ratio (0.69) than 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for MUR have decreased strongly by -40.44% in the last year.
MUR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.59% yearly.
MUR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.23%.
MUR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.39% yearly.
EPS 1Y (TTM)-40.44%
EPS 3Y28.7%
EPS 5Y25.59%
EPS Q2Q%-34.12%
Revenue 1Y (TTM)-15.23%
Revenue growth 3Y9.87%
Revenue growth 5Y1.39%
Sales Q2Q%-15.36%
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 9.31% on average per year.
The Revenue is expected to decrease by -0.88% on average over the next years.
EPS Next Y-42.8%
EPS Next 2Y-4.47%
EPS Next 3Y7.01%
EPS Next 5Y9.31%
Revenue Next Year-13.01%
Revenue Next 2Y-4.16%
Revenue Next 3Y-0.88%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.55 indicates a reasonable valuation of MUR.
Compared to the rest of the industry, the Price/Earnings ratio of MUR indicates a somewhat cheap valuation: MUR is cheaper than 69.52% of the companies listed in the same industry.
MUR is valuated cheaply when we compare the Price/Earnings ratio to 27.52, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.34 indicates a reasonable valuation of MUR.
MUR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MUR is cheaper than 65.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.58. MUR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.55 | ||
| Fwd PE | 10.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MUR is valued cheaper than 86.19% of the companies in the same industry.
87.62% 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 | 6.14 | ||
| EV/EBITDA | 3.25 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.41
EPS Next 2Y-4.47%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.96%, MUR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.41, MUR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, MUR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
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 46.44% 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.
DP46.44%
EPS Next 2Y-4.47%
EPS Next 3Y7.01%
25.95
-0.49 (-1.85%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners93.25%
Inst Owner Change0%
Ins Owners5.57%
Ins Owner Change6.05%
Market Cap3.70B
Analysts65.45
Price Target28.22 (8.75%)
Short Float %16.39%
Short Ratio7.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
Yearly Dividend1.21
Dividend Growth(5Y)3.72%
DP46.44%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-14.72%
Min EPS beat(2)-38.67%
Max EPS beat(2)9.22%
EPS beat(4)3
Avg EPS beat(4)-3.66%
Min EPS beat(4)-38.67%
Max EPS beat(4)9.22%
EPS beat(8)6
Avg EPS beat(8)-1.54%
EPS beat(12)9
Avg EPS beat(12)3.77%
EPS beat(16)12
Avg EPS beat(16)12.55%
Revenue beat(2)0
Avg Revenue beat(2)-5.83%
Min Revenue beat(2)-10.44%
Max Revenue beat(2)-1.22%
Revenue beat(4)0
Avg Revenue beat(4)-3.91%
Min Revenue beat(4)-10.44%
Max Revenue beat(4)-1.22%
Revenue beat(8)3
Avg Revenue beat(8)-0.96%
Revenue beat(12)7
Avg Revenue beat(12)5.42%
Revenue beat(16)9
Avg Revenue beat(16)4.05%
PT rev (1m)-0.24%
PT rev (3m)-21.23%
EPS NQ rev (1m)-3.23%
EPS NQ rev (3m)-64.05%
EPS NY rev (1m)-17.51%
EPS NY rev (3m)-47.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.68%
Revenue NY rev (1m)1.23%
Revenue NY rev (3m)-6.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.55 | ||
| Fwd PE | 10.34 | ||
| P/S | 1.28 | ||
| P/FCF | 6.14 | ||
| P/OCF | 2.27 | ||
| P/B | 0.72 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 3.25 |
EPS(TTM)2.46
EY9.48%
EPS(NY)2.51
Fwd EY9.67%
FCF(TTM)4.23
FCFY16.29%
OCF(TTM)11.43
OCFY44.04%
SpS20.22
BVpS35.88
TBVpS35.88
PEG (NY)N/A
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.97% | ||
| ROE | 7.62% | ||
| ROCE | 7.33% | ||
| ROIC | 6.05% | ||
| ROICexc | 6.33% | ||
| ROICexgc | 6.33% | ||
| OM | 22.39% | ||
| PM (TTM) | 13.52% | ||
| GM | 68.43% | ||
| FCFM | 20.91% |
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-Score4
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.45 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 121.06% | ||
| Cap/Sales | 35.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.1% | ||
| Profit Quality | 154.63% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.93 |
F-Score4
WACC8.98%
ROIC/WACC0.67
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)-40.44%
EPS 3Y28.7%
EPS 5Y25.59%
EPS Q2Q%-34.12%
EPS Next Y-42.8%
EPS Next 2Y-4.47%
EPS Next 3Y7.01%
EPS Next 5Y9.31%
Revenue 1Y (TTM)-15.23%
Revenue growth 3Y9.87%
Revenue growth 5Y1.39%
Sales Q2Q%-15.36%
Revenue Next Year-13.01%
Revenue Next 2Y-4.16%
Revenue Next 3Y-0.88%
Revenue Next 5YN/A
EBIT growth 1Y-32.99%
EBIT growth 3Y11.87%
EBIT growth 5Y7.62%
EBIT Next Year97.44%
EBIT Next 3Y35.11%
EBIT Next 5Y22.62%
FCF growth 1Y-40.92%
FCF growth 3Y3.8%
FCF growth 5YN/A
OCF growth 1Y-22.6%
OCF growth 3Y6.73%
OCF growth 5YN/A