MURPHY USA INC (MUSA)
US6267551025 - Common Stock
MUSA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. MUSA scores excellent on profitability, but 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.
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
MUSA has a better Return On Assets (11.58%) than 88.43% of its industry peers.
With an excellent Return On Equity value of 61.44%, MUSA belongs to the best of the industry, outperforming 96.69% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.34%, MUSA belongs to the best of the industry, outperforming 86.78% of the companies in the same industry.
MUSA had an Average Return On Invested Capital over the past 3 years of 18.16%. This is significantly above the industry average of 12.26%.
| 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 better Profit Margin (2.48%) than 62.81% of its industry peers.
In the last couple of years the Profit Margin of MUSA has grown nicely.
MUSA's Operating Margin of 3.70% is in line compared to the rest of the industry. MUSA outperforms 56.20% of its industry peers.
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 92.56% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MUSA is creating value.
The number of shares outstanding for MUSA has been reduced compared to 1 year ago.
Compared to 5 years ago, MUSA has less shares outstanding
The debt/assets ratio for MUSA has been reduced compared to a year ago.
2.2 Solvency
MUSA has an Altman-Z score of 8.14. This indicates that MUSA is financially healthy and has little risk of bankruptcy at the moment.
MUSA has a Altman-Z score of 8.14. This is amongst the best in the industry. MUSA outperforms 96.69% of its industry peers.
MUSA has a debt to FCF ratio of 4.27. This is a neutral value as MUSA would need 4.27 years to pay back of all of its debts.
MUSA has a better Debt to FCF ratio (4.27) than 62.81% of its industry peers.
A Debt/Equity ratio of 2.19 is on the high side and indicates that MUSA has dependencies on debt financing.
With a Debt to Equity ratio value of 2.19, MUSA is not doing good in the industry: 71.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | 4.27 | ||
| Altman-Z | 8.14 |
ROIC/WACC1.76
WACC9.29%
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.
With a Current ratio value of 0.80, MUSA is not doing good in the industry: 85.95% of the companies in the same industry are doing better.
A Quick Ratio of 0.41 indicates that MUSA may have some problems paying its short term obligations.
MUSA has a worse Quick ratio (0.41) than 62.81% 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.
MUSA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.52% yearly.
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 4.45% yearly.
MUSA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.00% yearly.
EPS Next Y-5.27%
EPS Next 2Y3.54%
EPS Next 3Y4.85%
EPS Next 5Y4.45%
Revenue Next Year-5.38%
Revenue Next 2Y-1.07%
Revenue Next 3Y-1.5%
Revenue Next 5Y3%
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
With a Price/Earnings ratio of 21.92, MUSA is valued on the expensive side.
Based on the Price/Earnings ratio, MUSA is valued a bit cheaper than 66.12% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, MUSA is valued a bit cheaper.
MUSA is valuated rather expensively with a Price/Forward Earnings ratio of 19.43.
Based on the Price/Forward Earnings ratio, MUSA is valued a bit cheaper than the industry average as 61.98% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.82. MUSA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.92 | ||
| Fwd PE | 19.43 |
4.2 Price Multiples
MUSA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, MUSA is valued a bit cheaper than 65.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.03 | ||
| EV/EBITDA | 12.41 |
4.3 Compensation for Growth
MUSA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y3.54%
EPS Next 3Y4.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.36%, MUSA is not a good candidate for dividend investing.
MUSA's Dividend Yield is a higher than the industry average which is at 3.09.
With a Dividend Yield of 0.36, MUSA pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
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 Years3
Div Non Decr Years3
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 2Y3.54%
EPS Next 3Y4.85%
MURPHY USA INC
NYSE:MUSA (11/21/2024, 8:04:00 PM)
After market: 531.34 0 (0%)531.34
+6.32 (+1.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.76B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.92 | ||
| Fwd PE | 19.43 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.58% | ||
| ROE | 61.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.7% | ||
| PM (TTM) | 2.48% | ||
| GM | 11.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover4.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.18%
EPS 3Y24.13%
EPS 5Y
EPS Q2Q%
EPS Next Y-5.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.61%
Revenue growth 3Y24.1%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y