MURPHY USA INC (MUSA)
US6267551025 - Common Stock
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 has an excellent profitability rating, but there are some minor concerns on its financial health. MUSA has a correct valuation and a medium 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.
Each year in the past 5 years MUSA has 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 88.43% of its industry peers.
Looking at the Return On Equity, with a value of 61.44%, MUSA belongs to the top of the industry, outperforming 96.69% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.34%, MUSA belongs to the top 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 12.03%.
| 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
With a decent Profit Margin value of 2.48%, MUSA is doing good in the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Profit Margin of MUSA has grown nicely.
With a Operating Margin value of 3.70%, MUSA perfoms like the industry average, outperforming 57.02% of the companies in the same industry.
In the last couple of years the Operating Margin of MUSA has grown nicely.
MUSA has a worse Gross Margin (11.16%) than 92.56% of its industry peers.
MUSA's Gross Margin has improved in the last couple of years.
| 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.
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 8.12. This indicates that MUSA is financially healthy and has little risk of bankruptcy at the moment.
MUSA's Altman-Z score of 8.12 is amongst the best of the industry. MUSA outperforms 97.52% 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's Debt to FCF ratio of 4.27 is fine compared to the rest of the industry. MUSA outperforms 66.12% 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.
MUSA has a Debt to Equity ratio of 2.19. This is in the lower half of the industry: MUSA underperforms 71.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | 4.27 | ||
| Altman-Z | 8.12 |
ROIC/WACC1.64
WACC9.95%
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.
MUSA's Current ratio of 0.80 is on the low side compared to the rest of the industry. MUSA is outperformed by 86.78% of its industry peers.
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.
With a Quick ratio value of 0.41, MUSA is not doing good in the industry: 61.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
MUSA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.18%.
The Earnings Per Share has been growing by 36.52% on average over the past years. This is a very strong growth
MUSA shows a decrease in Revenue. In the last year, the revenue decreased by -5.61%.
MUSA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.43% yearly.
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
The Earnings Per Share is expected to grow by 7.28% on average over the next years.
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
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 21.45, the valuation of MUSA can be described as rather expensive.
Based on the Price/Earnings ratio, MUSA is valued a bit cheaper than the industry average as 64.46% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MUSA to the average of the S&P500 Index (27.73), we can say MUSA is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.96, the valuation of MUSA can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MUSA indicates a somewhat cheap valuation: MUSA is cheaper than 64.46% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. MUSA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.45 | ||
| Fwd PE | 18.96 |
4.2 Price Multiples
MUSA's Enterprise Value to EBITDA is on the same level as the industry average.
MUSA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MUSA is cheaper than 66.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.49 | ||
| EV/EBITDA | 12.31 |
4.3 Compensation for Growth
The excellent profitability rating of MUSA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y3.68%
EPS Next 3Y5.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, MUSA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.43, MUSA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.37, MUSA pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
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 7.02% of its income as dividend. This is a sustainable payout ratio.
DP7.02%
EPS Next 2Y3.68%
EPS Next 3Y5.34%
MURPHY USA INC
NYSE:MUSA (12/20/2024, 8:26:06 PM)
After market: 519.993 0 (0%)519.99
-5.7 (-1.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.69%
Inst Owner Change1.34%
Ins Owners7.17%
Ins Owner Change-0.19%
Market Cap10.53B
Analysts75
Price Target530.4 (2%)
Short Float %5.81%
Short Ratio7.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Dividend Growth(5Y)N/A
DP7.02%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)1.68%
PT rev (3m)1.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.79%
EPS NY rev (1m)0.55%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.31%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.45 | ||
| Fwd PE | 18.96 | ||
| P/S | 0.51 | ||
| P/FCF | 24.49 | ||
| P/OCF | 12.08 | ||
| P/B | 12.68 | ||
| P/tB | 29.05 | ||
| EV/EBITDA | 12.31 |
EPS(TTM)24.24
EY4.66%
EPS(NY)27.43
Fwd EY5.27%
FCF(TTM)21.23
FCFY4.08%
OCF(TTM)43.06
OCFY8.28%
SpS1017.42
BVpS40.99
TBVpS17.9
PEG (NY)N/A
PEG (5Y)0.59
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 | 8.12 |
F-Score6
WACC9.95%
ROIC/WACC1.64
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%