MURPHY USA INC (MUSA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MUSA - US6267551025 - Common Stock
419.13 USD
-2.61 (-0.62%)
419.13 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
- MUSA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MUSA has a Return On Assets of 10.08%. This is amongst the best in the industry. MUSA outperforms 85.25% of its industry peers.
- MUSA has a better Return On Equity (86.30%) than 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 12.24%.
| 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
- 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 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.
- The Gross Margin of MUSA (11.99%) is worse than 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
- Compared to 1 year ago, MUSA has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.97 indicates that MUSA is not in any danger for bankruptcy at the moment.
- The Altman-Z score of MUSA (6.97) is better than 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.
- MUSA's Debt to FCF ratio of 6.10 is fine compared to the rest of the industry. MUSA outperforms 63.11% of its industry peers.
- MUSA has a Debt/Equity ratio of 4.07. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of MUSA (4.07) is worse than 77.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.07 | ||
| Debt/FCF | 6.1 | ||
| Altman-Z | 6.97 |
ROIC/WACC1.6
WACC9.41%
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's Current ratio of 0.81 is on the low side compared to the rest of the industry. MUSA is outperformed by 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 has a Quick ratio (0.40) which is comparable to the rest of the 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%.
- 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.
- 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
- The Earnings Per Share is expected to grow by 6.52% on average over the next years.
- 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.
- 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
- Based on the Price/Earnings ratio of 17.68, 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 77.05% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of MUSA to the average of the S&P500 Index (28.39), we can say MUSA is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 16.21, the valuation of MUSA can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MUSA indicates a somewhat cheap valuation: MUSA is cheaper than 70.49% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of MUSA to the average of the S&P500 Index (25.72), we can say MUSA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | 16.21 |
4.2 Price Multiples
- MUSA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MUSA is cheaper than 62.30% of the companies in the same industry.
- 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 | 21.38 | ||
| EV/EBITDA | 10.05 |
4.3 Compensation for Growth
- The excellent profitability rating of MUSA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.49
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.
- Compared to an average industry Dividend Yield of 2.15, MUSA pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, MUSA's dividend is way lower than the S&P500 average.
| 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
- MUSA pays out 8.36% of its income as dividend. This is a 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%.