MURPHY USA INC (MUSA) Stock Fundamental Analysis
NYSE:MUSA - New York Stock Exchange, Inc. - US6267551025 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MUSA. MUSA was compared to 121 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.
In the past year MUSA had a positive cash flow from operations.
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 has a Return On Assets of 10.88%. This is amongst the best in the industry. MUSA outperforms 84.30% of its industry peers.
With an excellent Return On Equity value of 68.05%, MUSA belongs to the best of the industry, outperforming 97.52% of the companies in the same industry.
The Return On Invested Capital of MUSA (15.67%) is better than 85.12% 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 13.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.88% | ||
| ROE | 68.05% | ||
| ROIC | 15.67% |
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 has a better Profit Margin (2.46%) than 62.81% of its industry peers.
MUSA's Profit Margin has improved in the last couple of years.
MUSA's Operating Margin of 3.71% is in line compared to the rest of the industry. MUSA outperforms 59.50% of its industry peers.
In the last couple of years the Operating Margin of MUSA has grown nicely.
MUSA has a worse Gross Margin (11.60%) than 91.74% of its industry peers.
MUSA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.71% | ||
| PM (TTM) | 2.46% | ||
| GM | 11.6% |
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
The debt/assets ratio for MUSA has been reduced compared to a year ago.
2.2 Solvency
MUSA has an Altman-Z score of 7.42. This indicates that MUSA is financially healthy and has little risk of bankruptcy at the moment.
MUSA's Altman-Z score of 7.42 is amongst the best of the industry. MUSA outperforms 96.69% of its industry peers.
The Debt to FCF ratio of MUSA is 5.37, which is a neutral value as it means it would take MUSA, 5.37 years of fcf income to pay off all of its debts.
MUSA has a Debt to FCF ratio of 5.37. This is in the better half of the industry: MUSA outperforms 63.64% of its industry peers.
A Debt/Equity ratio of 2.74 is on the high side and indicates that MUSA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.74, MUSA is doing worse than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 7.42 |
ROIC/WACC1.71
WACC9.16%
2.3 Liquidity
A Current Ratio of 0.80 indicates that MUSA may have some problems paying 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.
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.
MUSA has a Quick ratio (0.39) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The earnings per share for MUSA have decreased by -0.51% in the last year.
MUSA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.75% yearly.
Looking at the last year, MUSA shows a decrease in Revenue. The Revenue has decreased by -6.43% in the last year.
The Revenue has been growing slightly by 7.60% on average over the past years.
EPS 1Y (TTM)-0.51%
EPS 3Y16.64%
EPS 5Y35.75%
EPS Q2Q%-15.71%
Revenue 1Y (TTM)-6.43%
Revenue growth 3Y5.25%
Revenue growth 5Y7.6%
Sales Q2Q%-6.57%
3.2 Future
MUSA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.79% yearly.
Based on estimates for the next years, MUSA will show a small growth in Revenue. The Revenue will grow by 2.13% on average per year.
EPS Next Y-0.07%
EPS Next 2Y7.71%
EPS Next 3Y7.54%
EPS Next 5Y5.79%
Revenue Next Year-2.94%
Revenue Next 2Y0.75%
Revenue Next 3Y1.21%
Revenue Next 5Y2.13%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 17.84, 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 72.73% 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 27.45.
With a Price/Forward Earnings ratio of 15.07, MUSA is valued correctly.
67.77% of the companies in the same industry are more expensive than MUSA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MUSA to the average of the S&P500 Index (21.90), we can say MUSA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.84 | ||
| Fwd PE | 15.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MUSA is on the same level as its industry peers.
69.42% of the companies in the same industry are more expensive than MUSA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.57 | ||
| EV/EBITDA | 10.32 |
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 2Y7.71%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
MUSA has a yearly dividend return of 0.47%, which is pretty low.
Compared to an average industry Dividend Yield of 5.03, MUSA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.47, MUSA pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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 7.72% of its income as dividend. This is a sustainable payout ratio.
DP7.72%
EPS Next 2Y7.71%
EPS Next 3Y7.54%
423.01
+8.11 (+1.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.09%
Inst Owner Change5.17%
Ins Owners7.41%
Ins Owner Change-5.33%
Market Cap8.36B
Analysts76
Price Target504.05 (19.16%)
Short Float %5.5%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend1.8
Dividend Growth(5Y)N/A
DP7.72%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.17%
Min EPS beat(2)-35.68%
Max EPS beat(2)5.33%
EPS beat(4)2
Avg EPS beat(4)-6.64%
Min EPS beat(4)-35.68%
Max EPS beat(4)5.7%
EPS beat(8)4
Avg EPS beat(8)-4.12%
EPS beat(12)7
Avg EPS beat(12)4.43%
EPS beat(16)11
Avg EPS beat(16)16.5%
Revenue beat(2)0
Avg Revenue beat(2)-4.86%
Min Revenue beat(2)-5.23%
Max Revenue beat(2)-4.49%
Revenue beat(4)0
Avg Revenue beat(4)-6.26%
Min Revenue beat(4)-8.63%
Max Revenue beat(4)-4.49%
Revenue beat(8)1
Avg Revenue beat(8)-4.86%
Revenue beat(12)4
Avg Revenue beat(12)-2.47%
Revenue beat(16)8
Avg Revenue beat(16)-1.06%
PT rev (1m)-6.99%
PT rev (3m)-6.37%
EPS NQ rev (1m)-0.96%
EPS NQ rev (3m)-6.59%
EPS NY rev (1m)-1.1%
EPS NY rev (3m)-8.15%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-5.64%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-4.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.84 | ||
| Fwd PE | 15.07 | ||
| P/S | 0.42 | ||
| P/FCF | 22.57 | ||
| P/OCF | 9.95 | ||
| P/B | 11.62 | ||
| P/tB | 33.16 | ||
| EV/EBITDA | 10.32 |
EPS(TTM)23.71
EY5.61%
EPS(NY)28.08
Fwd EY6.64%
FCF(TTM)18.74
FCFY4.43%
OCF(TTM)42.52
OCFY10.05%
SpS1008.4
BVpS36.42
TBVpS12.76
PEG (NY)N/A
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.88% | ||
| ROE | 68.05% | ||
| ROCE | 20.5% | ||
| ROIC | 15.67% | ||
| ROICexc | 15.89% | ||
| ROICexgc | 18.29% | ||
| OM | 3.71% | ||
| PM (TTM) | 2.46% | ||
| GM | 11.6% | ||
| FCFM | 1.86% |
ROA(3y)13.41%
ROA(5y)12.88%
ROE(3y)77.34%
ROE(5y)66.09%
ROIC(3y)19%
ROIC(5y)18.15%
ROICexc(3y)19.48%
ROICexc(5y)19%
ROICexgc(3y)22.67%
ROICexgc(5y)21.44%
ROCE(3y)24.85%
ROCE(5y)23.74%
ROICexcg growth 3Y1.96%
ROICexcg growth 5Y11.65%
ROICexc growth 3Y2.7%
ROICexc growth 5Y8.54%
OM growth 3Y1.87%
OM growth 5Y14.26%
PM growth 3Y2.77%
PM growth 5Y17.58%
GM growth 3Y2.28%
GM growth 5Y7.25%
F-Score5
Asset Turnover4.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 5.37 | ||
| Debt/EBITDA | 1.98 | ||
| Cap/Depr | 182.41% | ||
| Cap/Sales | 2.36% | ||
| Interest Coverage | 7.98 | ||
| Cash Conversion | 84.21% | ||
| Profit Quality | 75.64% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 7.42 |
F-Score5
WACC9.16%
ROIC/WACC1.71
Cap/Depr(3y)156.66%
Cap/Depr(5y)148.5%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.75%
Profit Quality(3y)86.83%
Profit Quality(5y)92.66%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.51%
EPS 3Y16.64%
EPS 5Y35.75%
EPS Q2Q%-15.71%
EPS Next Y-0.07%
EPS Next 2Y7.71%
EPS Next 3Y7.54%
EPS Next 5Y5.79%
Revenue 1Y (TTM)-6.43%
Revenue growth 3Y5.25%
Revenue growth 5Y7.6%
Sales Q2Q%-6.57%
Revenue Next Year-2.94%
Revenue Next 2Y0.75%
Revenue Next 3Y1.21%
Revenue Next 5Y2.13%
EBIT growth 1Y-3.71%
EBIT growth 3Y7.22%
EBIT growth 5Y22.94%
EBIT Next Year34.25%
EBIT Next 3Y15.04%
EBIT Next 5Y10.86%
FCF growth 1Y-24.59%
FCF growth 3Y-5.58%
FCF growth 5Y29.13%
OCF growth 1Y4.33%
OCF growth 3Y4.75%
OCF growth 5Y22.02%