MURPHY USA INC (MUSA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MUSA - US6267551025 - Common Stock
425.95 USD
-0.07 (-0.02%)
425.95 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MUSA. MUSA was compared to 122 industry peers in the Specialty Retail industry. MUSA scores excellent on profitability, but there are some minor concerns on its financial health. MUSA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MUSA had positive earnings in the past year.
MUSA had a positive operating cash flow in the past year.
MUSA had positive earnings in each of the past 5 years.
Each year in the past 5 years MUSA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.08%, MUSA belongs to the top of the industry, outperforming 85.25% of the companies in the same industry.
MUSA's Return On Equity of 86.30% is amongst the best of the industry. MUSA outperforms 97.54% of its industry peers.
MUSA has a Return On Invested Capital of 15.01%. This is amongst the best in the industry. MUSA outperforms 84.43% of its industry peers.
MUSA had an Average Return On Invested Capital over the past 3 years of 19.00%. This is significantly above the industry average of 12.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.08% | ||
| ROE | 86.3% | ||
| ROIC | 15.01% |
ROA(3y)13.41%
ROA(5y)12.88%
ROE(3y)77.34%
ROE(5y)66.09%
ROIC(3y)19%
ROIC(5y)18.15%
1.3 Margins
MUSA's Profit Margin of 2.44% is fine compared to the rest of the industry. MUSA outperforms 63.93% of its industry peers.
In the last couple of years the Profit Margin of MUSA has grown nicely.
MUSA has a Operating Margin (3.79%) which is in line with its industry peers.
MUSA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 11.99%, MUSA is doing worse than 88.52% of the companies in the same industry.
MUSA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.79% | ||
| PM (TTM) | 2.44% | ||
| GM | 11.99% |
OM growth 3Y1.87%
OM growth 5Y14.26%
PM growth 3Y2.77%
PM growth 5Y17.58%
GM growth 3Y2.28%
GM growth 5Y7.25%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MUSA is creating value.
Compared to 1 year ago, MUSA has less shares outstanding
Compared to 5 years ago, MUSA has less shares outstanding
Compared to 1 year ago, MUSA has an improved debt to assets ratio.
2.2 Solvency
MUSA has an Altman-Z score of 6.98. This indicates that MUSA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.98, MUSA belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
The Debt to FCF ratio of MUSA is 6.10, which is on the high side as it means it would take MUSA, 6.10 years of fcf income to pay off all of its debts.
MUSA has a better Debt to FCF ratio (6.10) than 63.11% of its industry peers.
A Debt/Equity ratio of 4.07 is on the high side and indicates that MUSA has dependencies on debt financing.
MUSA's Debt to Equity ratio of 4.07 is on the low side compared to the rest of the industry. MUSA is outperformed by 77.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.07 | ||
| Debt/FCF | 6.1 | ||
| Altman-Z | 6.98 |
ROIC/WACC1.59
WACC9.42%
2.3 Liquidity
MUSA has a Current Ratio of 0.81. 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 Current ratio of 0.81. This is amonst the worse of the industry: MUSA underperforms 83.61% of its industry peers.
MUSA has a Quick Ratio of 0.81. 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's Quick ratio of 0.40 is in line compared to the rest of the industry. MUSA outperforms 40.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The earnings per share for MUSA have decreased by -2.19% in the last year.
MUSA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.75% yearly.
The Revenue has decreased by -6.08% in the past year.
MUSA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.60% yearly.
EPS 1Y (TTM)-2.19%
EPS 3Y16.64%
EPS 5Y35.75%
EPS Q2Q%-6.11%
Revenue 1Y (TTM)-6.08%
Revenue growth 3Y5.25%
Revenue growth 5Y7.6%
Sales Q2Q%-2.45%
3.2 Future
MUSA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.52% yearly.
Based on estimates for the next years, MUSA will show a small growth in Revenue. The Revenue will grow by 2.05% on average per year.
EPS Next Y-2.9%
EPS Next 2Y3.31%
EPS Next 3Y6.37%
EPS Next 5Y6.52%
Revenue Next Year-4.42%
Revenue Next 2Y-0.7%
Revenue Next 3Y0.25%
Revenue Next 5Y2.05%
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.
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 17.96 indicates a rather expensive valuation of MUSA.
Based on the Price/Earnings ratio, MUSA is valued a bit cheaper than the industry average as 77.05% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.92. MUSA is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.49, which indicates a correct valuation of MUSA.
Based on the Price/Forward Earnings ratio, MUSA is valued a bit cheaper than 69.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.57. MUSA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.96 | ||
| Fwd PE | 16.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MUSA is valued a bit cheaper than 63.11% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MUSA is valued a bit cheaper than the industry average as 70.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.73 | ||
| EV/EBITDA | 10.13 |
4.3 Compensation for Growth
MUSA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y3.31%
EPS Next 3Y6.37%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, MUSA is not a good candidate for dividend investing.
MUSA's Dividend Yield is a higher than the industry average which is at 2.20.
Compared to an average S&P500 Dividend Yield of 1.94, MUSA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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
MUSA pays out 8.36% of its income as dividend. This is a sustainable payout ratio.
DP8.36%
EPS Next 2Y3.31%
EPS Next 3Y6.37%
425.95
-0.07 (-0.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.87%
Inst Owner Change0%
Ins Owners7.81%
Ins Owner Change-1.84%
Market Cap7.98B
Revenue(TTM)19.35B
Net Income(TTM)471.20M
Analysts74.67
Price Target421.07 (-1.15%)
Short Float %7.89%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend1.8
Dividend Growth(5Y)N/A
DP8.36%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.68%
Min EPS beat(2)-5.02%
Max EPS beat(2)8.37%
EPS beat(4)2
Avg EPS beat(4)-7.02%
Min EPS beat(4)-35.68%
Max EPS beat(4)8.37%
EPS beat(8)4
Avg EPS beat(8)-5.96%
EPS beat(12)6
Avg EPS beat(12)-2.67%
EPS beat(16)10
Avg EPS beat(16)11.44%
Revenue beat(2)0
Avg Revenue beat(2)-2.79%
Min Revenue beat(2)-4.14%
Max Revenue beat(2)-1.45%
Revenue beat(4)0
Avg Revenue beat(4)-3.83%
Min Revenue beat(4)-5.23%
Max Revenue beat(4)-1.45%
Revenue beat(8)0
Avg Revenue beat(8)-5.23%
Revenue beat(12)2
Avg Revenue beat(12)-3.85%
Revenue beat(16)6
Avg Revenue beat(16)-1.69%
PT rev (1m)0%
PT rev (3m)-1.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.55%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.96 | ||
| Fwd PE | 16.49 | ||
| P/S | 0.41 | ||
| P/FCF | 21.73 | ||
| P/OCF | 9.76 | ||
| P/B | 14.61 | ||
| P/tB | 101.5 | ||
| EV/EBITDA | 10.13 |
EPS(TTM)23.71
EY5.57%
EPS(NY)25.83
Fwd EY6.06%
FCF(TTM)19.6
FCFY4.6%
OCF(TTM)43.63
OCFY10.24%
SpS1033.14
BVpS29.15
TBVpS4.2
PEG (NY)N/A
PEG (5Y)0.5
Graham Number124.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.08% | ||
| ROE | 86.3% | ||
| ROCE | 19.63% | ||
| ROIC | 15.01% | ||
| ROICexc | 15.19% | ||
| ROICexgc | 17.39% | ||
| OM | 3.79% | ||
| PM (TTM) | 2.44% | ||
| GM | 11.99% | ||
| FCFM | 1.9% |
ROA(3y)13.41%
ROA(5y)12.88%
ROE(3y)77.34%
ROE(5y)66.09%
ROIC(3y)19%
ROIC(5y)18.15%
ROICexc(3y)19.48%
ROICexc(5y)19%
ROICexgc(3y)22.67%
ROICexgc(5y)21.44%
ROCE(3y)24.85%
ROCE(5y)23.74%
ROICexgc growth 3Y1.96%
ROICexgc growth 5Y11.65%
ROICexc growth 3Y2.7%
ROICexc growth 5Y8.54%
OM growth 3Y1.87%
OM growth 5Y14.26%
PM growth 3Y2.77%
PM growth 5Y17.58%
GM growth 3Y2.28%
GM growth 5Y7.25%
F-Score6
Asset Turnover4.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.07 | ||
| Debt/FCF | 6.1 | ||
| Debt/EBITDA | 2.21 | ||
| Cap/Depr | 165.83% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 7.34 | ||
| Cash Conversion | 81.31% | ||
| Profit Quality | 77.93% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 6.98 |
F-Score6
WACC9.42%
ROIC/WACC1.59
Cap/Depr(3y)156.66%
Cap/Depr(5y)148.5%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.75%
Profit Quality(3y)86.83%
Profit Quality(5y)92.66%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.19%
EPS 3Y16.64%
EPS 5Y35.75%
EPS Q2Q%-6.11%
EPS Next Y-2.9%
EPS Next 2Y3.31%
EPS Next 3Y6.37%
EPS Next 5Y6.52%
Revenue 1Y (TTM)-6.08%
Revenue growth 3Y5.25%
Revenue growth 5Y7.6%
Sales Q2Q%-2.45%
Revenue Next Year-4.42%
Revenue Next 2Y-0.7%
Revenue Next 3Y0.25%
Revenue Next 5Y2.05%
EBIT growth 1Y-3.76%
EBIT growth 3Y7.22%
EBIT growth 5Y22.94%
EBIT Next Year32.15%
EBIT Next 3Y13.09%
EBIT Next 5Y10.98%
FCF growth 1Y-14.07%
FCF growth 3Y-5.58%
FCF growth 5Y29.13%
OCF growth 1Y11.31%
OCF growth 3Y4.75%
OCF growth 5Y22.02%
MURPHY USA INC / MUSA FAQ
Can you provide the ChartMill fundamental rating for MURPHY USA INC?
ChartMill assigns a fundamental rating of 5 / 10 to MUSA.
What is the valuation status of MURPHY USA INC (MUSA) stock?
ChartMill assigns a valuation rating of 5 / 10 to MURPHY USA INC (MUSA). This can be considered as Fairly Valued.
How profitable is MURPHY USA INC (MUSA) stock?
MURPHY USA INC (MUSA) has a profitability rating of 8 / 10.
Can you provide the financial health for MUSA stock?
The financial health rating of MURPHY USA INC (MUSA) is 5 / 10.
How sustainable is the dividend of MURPHY USA INC (MUSA) stock?
The dividend rating of MURPHY USA INC (MUSA) is 3 / 10 and the dividend payout ratio is 8.36%.