MURPHY USA INC (MUSA) Stock Fundamental Analysis
NYSE:MUSA - New York Stock Exchange, Inc. - US6267551025 - Common Stock
We assign a fundamental rating of 5 out of 10 to MUSA. MUSA was compared to 119 industry peers in the Specialty Retail industry. While MUSA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MUSA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MUSA was profitable.
MUSA had a positive operating cash flow in the past year.
In the past 5 years MUSA has always been profitable.
MUSA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MUSA has a better Return On Assets (11.58%) than 87.93% of its industry peers.
MUSA has a Return On Equity of 61.44%. This is amongst the best in the industry. MUSA outperforms 96.55% of its industry peers.
MUSA's Return On Invested Capital of 16.34% is amongst the best of the industry. MUSA outperforms 86.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MUSA is significantly above the industry average of 12.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.58% | ||
| ROE | 61.44% | ||
| ROIC | 16.34% |
ROA(3y)12.99%
ROA(5y)11.82%
ROE(3y)73.8%
ROE(5y)57.99%
ROIC(3y)18.16%
ROIC(5y)16.72%
1.3 Margins
MUSA has a Profit Margin of 2.48%. This is in the better half of the industry: MUSA outperforms 62.93% of its industry peers.
In the last couple of years the Profit Margin of MUSA has grown nicely.
The Operating Margin of MUSA (3.70%) is comparable to the rest of the industry.
MUSA's Operating Margin has improved in the last couple of years.
MUSA has a Gross Margin of 11.16%. This is amonst the worse of the industry: MUSA underperforms 93.10% of its industry peers.
In the last couple of years the Gross Margin of MUSA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.7% | ||
| PM (TTM) | 2.48% | ||
| GM | 11.16% |
OM growth 3Y-8.25%
OM growth 5Y14.85%
PM growth 3Y-8.95%
PM growth 5Y11.66%
GM growth 3Y-5.69%
GM growth 5Y7.23%
2. Health
2.1 Basic Checks
MUSA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, MUSA has less shares outstanding
MUSA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MUSA has an improved debt to assets ratio.
2.2 Solvency
MUSA has an Altman-Z score of 7.97. This indicates that MUSA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MUSA (7.97) is better than 97.41% of its industry peers.
The Debt to FCF ratio of MUSA is 4.27, which is a neutral value as it means it would take MUSA, 4.27 years of fcf income to pay off all of its debts.
MUSA has a Debt to FCF ratio of 4.27. This is in the better half of the industry: MUSA outperforms 65.52% of its industry peers.
MUSA has a Debt/Equity ratio of 2.19. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.19, MUSA is not doing good in the industry: 71.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | 4.27 | ||
| Altman-Z | 7.97 |
ROIC/WACC1.65
WACC9.91%
2.3 Liquidity
MUSA has a Current Ratio of 0.80. This is a bad value and indicates that MUSA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.80, MUSA is doing worse than 88.79% of the companies in the same industry.
MUSA has a Quick Ratio of 0.80. This is a bad value and indicates that MUSA is not financially healthy enough and could expect problems in meeting its short term obligations.
MUSA has a worse Quick ratio (0.41) than 60.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.18% over the past year.
Measured over the past years, MUSA shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.52% on average per year.
Looking at the last year, MUSA shows a decrease in Revenue. The Revenue has decreased by -5.61% in the last year.
Measured over the past years, MUSA shows a quite strong growth in Revenue. The Revenue has been growing by 8.43% on average per year.
EPS 1Y (TTM)2.18%
EPS 3Y24.13%
EPS 5Y36.52%
EPS Q2Q%-6.37%
Revenue 1Y (TTM)-5.61%
Revenue growth 3Y24.1%
Revenue growth 5Y8.43%
Sales Q2Q%-9.65%
3.2 Future
MUSA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.28% yearly.
MUSA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.18% yearly.
EPS Next Y-4.74%
EPS Next 2Y3.68%
EPS Next 3Y5.34%
EPS Next 5Y7.28%
Revenue Next Year-5.35%
Revenue Next 2Y-1.47%
Revenue Next 3Y-1.76%
Revenue Next 5Y1.18%
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
The Price/Earnings ratio is 20.05, which indicates a rather expensive current valuation of MUSA.
67.24% of the companies in the same industry are more expensive than MUSA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.29. MUSA is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.72, the valuation of MUSA can be described as rather expensive.
MUSA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MUSA is cheaper than 68.97% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MUSA to the average of the S&P500 Index (24.44), we can say MUSA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.05 | ||
| Fwd PE | 17.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MUSA is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MUSA indicates a somewhat cheap valuation: MUSA is cheaper than 69.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.89 | ||
| EV/EBITDA | 11.42 |
4.3 Compensation for Growth
MUSA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y3.68%
EPS Next 3Y5.34%
5. Dividend
5.1 Amount
MUSA has a yearly dividend return of 0.40%, which is pretty low.
MUSA's Dividend Yield is a higher than the industry average which is at 3.27.
Compared to an average S&P500 Dividend Yield of 2.28, MUSA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
MUSA has been paying a dividend for over 5 years, so it has already some track record.
MUSA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
7.02% of the earnings are spent on dividend by MUSA. This is a low number and sustainable payout ratio.
DP7.02%
EPS Next 2Y3.68%
EPS Next 3Y5.34%
MURPHY USA INC
NYSE:MUSA (1/21/2025, 8:15:59 PM)
After market: 485.98 0 (0%)485.98
+9.69 (+2.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.69%
Inst Owner Change-2.2%
Ins Owners7.17%
Ins Owner Change-0.27%
Market Cap9.84B
Analysts75
Price Target530.4 (9.14%)
Short Float %5.08%
Short Ratio5.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly Dividend1.57
Dividend Growth(5Y)N/A
DP7.02%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.89%
Min EPS beat(2)-1.91%
Max EPS beat(2)5.7%
EPS beat(4)2
Avg EPS beat(4)-4.89%
Min EPS beat(4)-33.21%
Max EPS beat(4)9.85%
EPS beat(8)4
Avg EPS beat(8)-0.49%
EPS beat(12)8
Avg EPS beat(12)17.59%
EPS beat(16)11
Avg EPS beat(16)21.36%
Revenue beat(2)0
Avg Revenue beat(2)-7.65%
Min Revenue beat(2)-8.63%
Max Revenue beat(2)-6.68%
Revenue beat(4)0
Avg Revenue beat(4)-6.63%
Min Revenue beat(4)-8.63%
Max Revenue beat(4)-2.85%
Revenue beat(8)2
Avg Revenue beat(8)-3.86%
Revenue beat(12)6
Avg Revenue beat(12)-0.98%
Revenue beat(16)9
Avg Revenue beat(16)-0.66%
PT rev (1m)0%
PT rev (3m)1.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.05 | ||
| Fwd PE | 17.72 | ||
| P/S | 0.48 | ||
| P/FCF | 22.89 | ||
| P/OCF | 11.29 | ||
| P/B | 11.86 | ||
| P/tB | 27.15 | ||
| EV/EBITDA | 11.42 |
EPS(TTM)24.24
EY4.99%
EPS(NY)27.43
Fwd EY5.64%
FCF(TTM)21.23
FCFY4.37%
OCF(TTM)43.06
OCFY8.86%
SpS1017.42
BVpS40.99
TBVpS17.9
PEG (NY)N/A
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.58% | ||
| ROE | 61.44% | ||
| ROCE | 21.51% | ||
| ROIC | 16.34% | ||
| ROICexc | 16.6% | ||
| ROICexgc | 19.16% | ||
| OM | 3.7% | ||
| PM (TTM) | 2.48% | ||
| GM | 11.16% | ||
| FCFM | 2.09% |
ROA(3y)12.99%
ROA(5y)11.82%
ROE(3y)73.8%
ROE(5y)57.99%
ROIC(3y)18.16%
ROIC(5y)16.72%
ROICexc(3y)18.94%
ROICexc(5y)17.79%
ROICexgc(3y)22.17%
ROICexgc(5y)19.73%
ROCE(3y)23.9%
ROCE(5y)22%
ROICexcg growth 3Y0.75%
ROICexcg growth 5Y12.09%
ROICexc growth 3Y-4.19%
ROICexc growth 5Y8.76%
OM growth 3Y-8.25%
OM growth 5Y14.85%
PM growth 3Y-8.95%
PM growth 5Y11.66%
GM growth 3Y-5.69%
GM growth 5Y7.23%
F-Score6
Asset Turnover4.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | 4.27 | ||
| Debt/EBITDA | 1.82 | ||
| Cap/Depr | 185.91% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 8.06 | ||
| Cash Conversion | 87.19% | ||
| Profit Quality | 84.29% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 7.97 |
F-Score6
WACC9.91%
ROIC/WACC1.65
Cap/Depr(3y)138.16%
Cap/Depr(5y)138.47%
Cap/Sales(3y)1.48%
Cap/Sales(5y)1.59%
Profit Quality(3y)99.84%
Profit Quality(5y)91.16%
High Growth Momentum
Growth
EPS 1Y (TTM)2.18%
EPS 3Y24.13%
EPS 5Y36.52%
EPS Q2Q%-6.37%
EPS Next Y-4.74%
EPS Next 2Y3.68%
EPS Next 3Y5.34%
EPS Next 5Y7.28%
Revenue 1Y (TTM)-5.61%
Revenue growth 3Y24.1%
Revenue growth 5Y8.43%
Sales Q2Q%-9.65%
Revenue Next Year-5.35%
Revenue Next 2Y-1.47%
Revenue Next 3Y-1.76%
Revenue Next 5Y1.18%
EBIT growth 1Y-2.92%
EBIT growth 3Y13.87%
EBIT growth 5Y24.54%
EBIT Next Year22.57%
EBIT Next 3Y11.25%
EBIT Next 5Y9.47%
FCF growth 1Y-32.37%
FCF growth 3Y10.43%
FCF growth 5Y18.19%
OCF growth 1Y-5.41%
OCF growth 3Y11.62%
OCF growth 5Y14.48%