MURPHY USA INC (MUSA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MUSA - US6267551025 - Common Stock
421.74 USD
-4.84 (-1.13%)
421.74 USD
0 (0%)
MUSA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.
- Each year in the past 5 years MUSA has been profitable.
- In the past 5 years MUSA always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of MUSA (10.08%) is better than 85.25% of its industry peers.
- Looking at the Return On Equity, with a value of 86.30%, MUSA belongs to the top of the industry, outperforming 97.54% of the companies in the same industry.
- MUSA has a better Return On Invested Capital (15.01%) than 84.43% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MUSA is significantly above the industry average of 12.24%.
| 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
- With a decent Profit Margin value of 2.44%, MUSA is doing good in the industry, outperforming 63.93% of the companies in the same industry.
- In the last couple of years the Profit Margin of MUSA has grown nicely.
- MUSA's Operating Margin of 3.79% is in line compared to the rest of the industry. MUSA outperforms 58.20% of its industry peers.
- MUSA's Operating Margin has improved in the last couple of years.
- MUSA has a Gross Margin of 11.99%. This is amonst the worse of the industry: MUSA underperforms 88.52% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MUSA is creating value.
- Compared to 1 year ago, MUSA has less shares outstanding
- MUSA has less shares outstanding than it did 5 years ago.
- MUSA has a better debt/assets ratio than last year.
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.
- MUSA has a Altman-Z score of 6.98. This is amongst the best in the industry. MUSA outperforms 95.08% of its industry peers.
- MUSA has a debt to FCF ratio of 6.10. This is a slightly negative value and a sign of low solvency as MUSA would need 6.10 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 6.10, MUSA is doing good in the industry, outperforming 63.11% of the companies in the same industry.
- MUSA has a Debt/Equity ratio of 4.07. This is a high value indicating a heavy dependency on external financing.
- MUSA has a worse Debt to Equity ratio (4.07) than 77.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.07 | ||
| Debt/FCF | 6.1 | ||
| Altman-Z | 6.98 |
ROIC/WACC1.6
WACC9.4%
2.3 Liquidity
- A Current Ratio of 0.81 indicates that MUSA may have some problems paying its short term obligations.
- The Current ratio of MUSA (0.81) is worse than 83.61% of its industry peers.
- A Quick Ratio of 0.40 indicates that MUSA may have some problems paying 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.
- Measured over the past years, MUSA shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.75% on average per year.
- The Revenue has decreased by -6.08% in the past year.
- The Revenue has been growing slightly by 7.60% on average over the past years.
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.
- The Revenue is expected to grow by 2.05% on average over the next years.
EPS Next Y-2.4%
EPS Next 2Y3.38%
EPS Next 3Y6.35%
EPS Next 5Y6.52%
Revenue Next Year-4.56%
Revenue Next 2Y-0.99%
Revenue Next 3Y0.03%
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
- Based on the Price/Earnings ratio of 17.79, the valuation of MUSA can be described as rather expensive.
- 77.05% of the companies in the same industry are more expensive than MUSA, based on the Price/Earnings ratio.
- MUSA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
- The Price/Forward Earnings ratio is 16.31, which indicates a correct valuation of MUSA.
- 70.49% of the companies in the same industry are more expensive than MUSA, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, MUSA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 16.31 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MUSA is valued a bit cheaper than 62.30% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, MUSA is valued a bit cheaper than 70.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.51 | ||
| EV/EBITDA | 10.14 |
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 2Y3.38%
EPS Next 3Y6.35%
5. Dividend
5.1 Amount
- MUSA has a yearly dividend return of 0.59%, which is pretty low.
- MUSA's Dividend Yield is a higher than the industry average which is at 2.15.
- With a Dividend Yield of 0.59, MUSA pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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
- 8.36% of the earnings are spent on dividend by MUSA. This is a low number and sustainable payout ratio.
DP8.36%
EPS Next 2Y3.38%
EPS Next 3Y6.35%
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%.