MURPHY USA INC (MUSA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MUSA - US6267551025 - Common Stock
431.95 USD
+2.52 (+0.59%)
431.95 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. While MUSA has a great profitability rating, there are some minor concerns on its financial health. MUSA has a valuation in line with the averages, but it does not seem to be growing.
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.
- Each year in the past 5 years MUSA had a positive operating cash flow.
1.2 Ratios
- MUSA's Return On Assets of 10.08% is amongst the best of the industry. MUSA outperforms 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.
- The Return On Invested Capital of MUSA (15.01%) is better 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
- The Profit Margin of MUSA (2.44%) is better than 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 of 3.79%. This is comparable to the rest of the industry: MUSA outperforms 58.20% of its industry peers.
- In the last couple of years the Operating Margin of MUSA has grown nicely.
- MUSA has a Gross Margin of 11.99%. This is amonst the worse of the industry: MUSA underperforms 88.52% of its industry peers.
- In the last couple of years the Gross Margin of MUSA has grown nicely.
| 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
- MUSA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- MUSA has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for MUSA has been reduced compared to 5 years ago.
- MUSA has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 7.00 indicates that MUSA is not in any danger for bankruptcy at the moment.
- The Altman-Z score of MUSA (7.00) is better than 94.26% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 6.10, MUSA is in the better half of the industry, outperforming 63.11% of the companies in the same industry.
- 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 | 7 |
ROIC/WACC1.6
WACC9.4%
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.
- Looking at the Current ratio, with a value of 0.81, MUSA is doing worse than 83.61% of the companies in the same industry.
- A Quick Ratio of 0.40 indicates that MUSA may have some problems paying its short term obligations.
- With a Quick ratio value of 0.40, MUSA perfoms like the industry average, outperforming 40.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
- MUSA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.19%.
- The Earnings Per Share has been growing by 35.75% on average over the past years. This is a very strong growth
- Looking at the last year, MUSA shows a decrease in Revenue. The Revenue has decreased by -6.08% in the last year.
- Measured over the past years, MUSA shows a small growth in Revenue. The Revenue has been growing by 7.60% on average per year.
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-2.4%
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
- MUSA is valuated rather expensively with a Price/Earnings ratio of 18.22.
- 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.
- MUSA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 16.70 indicates a correct valuation of MUSA.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MUSA indicates a somewhat cheap valuation: MUSA is cheaper than 69.67% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. MUSA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.22 | ||
| Fwd PE | 16.7 |
4.2 Price Multiples
- 63.11% of the companies in the same industry are more expensive than MUSA, based on the Enterprise Value to EBITDA ratio.
- MUSA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MUSA is cheaper than 70.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.03 | ||
| EV/EBITDA | 10.24 |
4.3 Compensation for Growth
- MUSA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.51
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 1.81.
| 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%.