MURPHY OIL CORP (MUR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MUR - US6267171022 - Common Stock
31.21 USD
-0.38 (-1.2%)
31.42 USD
+0.21 (+0.67%)
We assign a fundamental rating of 4 out of 10 to MUR. MUR was compared to 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year MUR was profitable.
- In the past year MUR had a positive cash flow from operations.
- In multiple years MUR reported negative net income over the last 5 years.
- MUR had a positive operating cash flow in each of the past 5 years.
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.
- With a Return On Equity value of 2.79%, MUR is not doing good in the industry: 61.35% of the companies in the same industry are doing better.
- MUR's Return On Invested Capital of 4.63% is in line compared to the rest of the industry. MUR outperforms 40.58% 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 21.94%.
- The last Return On Invested Capital (4.63%) 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 | 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 of 5.18%. This is comparable to the rest of the industry: MUR outperforms 45.89% of its industry peers.
- In the last couple of years the Profit Margin of MUR has declined.
- Looking at the Operating Margin, with a value of 18.10%, MUR is in line with its industry, outperforming 54.59% of the companies in the same industry.
- MUR's Operating Margin has improved in the last couple of years.
- MUR has a Gross Margin of 70.03%. This is in the better half of the industry: MUR outperforms 78.26% of its industry peers.
- MUR's Gross Margin has been stable in the last couple of years.
| 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%
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.
- MUR has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for MUR has been reduced compared to 5 years ago.
- The debt/assets ratio for MUR has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 1.99 indicates that MUR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 1.99, MUR is in the better half of the industry, outperforming 67.15% of the companies in the same industry.
- MUR has a debt to FCF ratio of 3.32. This is a good value and a sign of high solvency as MUR would need 3.32 years to pay back of all of its debts.
- The Debt to FCF ratio of MUR (3.32) is better than 73.91% of its industry peers.
- MUR has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.28, MUR is doing good in the industry, outperforming 63.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.32 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.56
WACC8.23%
2.3 Liquidity
- A Current Ratio of 0.94 indicates that MUR may have some problems paying its short term obligations.
- MUR has a Current ratio (0.94) which is comparable to the rest of the industry.
- MUR has a Quick Ratio of 0.94. 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 0.87. This is comparable to the rest of the industry: MUR outperforms 45.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- MUR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.82%.
- MUR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.59% yearly.
- The Revenue for MUR has decreased by -13.70% in the past year. This is quite bad
- The Revenue has been growing slightly by 1.39% on average over the past years.
EPS 1Y (TTM)-51.82%
EPS 3Y28.7%
EPS 5Y25.59%
EPS Q2Q%-44.59%
Revenue 1Y (TTM)-13.7%
Revenue growth 3Y9.87%
Revenue growth 5Y1.39%
Sales Q2Q%-4.28%
3.2 Future
- The Earnings Per Share is expected to grow by 0.92% on average over the next years.
- The Revenue is expected to decrease by -0.88% on average over the next years.
EPS Next Y-55.28%
EPS Next 2Y-20.66%
EPS Next 3Y5.49%
EPS Next 5Y0.92%
Revenue Next Year-12.24%
Revenue Next 2Y-6.85%
Revenue Next 3Y-0.88%
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 decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- MUR is valuated rather expensively with a Price/Earnings ratio of 19.63.
- The rest of the industry has a similar Price/Earnings ratio as MUR.
- When comparing the Price/Earnings ratio of MUR to the average of the S&P500 Index (27.32), we can say MUR is valued slightly cheaper.
- The Price/Forward Earnings ratio is 18.03, which indicates a rather expensive current valuation of MUR.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MUR is on the same level as its industry peers.
- MUR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 18.03 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MUR indicates a rather cheap valuation: MUR is cheaper than 85.51% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MUR indicates a somewhat cheap valuation: MUR is cheaper than 77.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.36 | ||
| EV/EBITDA | 3.76 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-20.66%
EPS Next 3Y5.49%
5. Dividend
5.1 Amount
- MUR has a Yearly Dividend Yield of 3.86%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.75, MUR pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, MUR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
- The dividend of MUR has a limited annual growth rate of 3.72%.
- 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)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 slower than its dividend. This means the dividend growth is not sustainable.
DP128.65%
EPS Next 2Y-20.66%
EPS Next 3Y5.49%
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 5 / 10.
Can you provide the expected EPS growth for MUR stock?
The Earnings per Share (EPS) of MURPHY OIL CORP (MUR) is expected to decline by -55.28% in the next year.