Balancing Dividends and Fundamentals: The Case of MARATHON PETROLEUM CORP (NYSE:MPC).

Take a closer look at MARATHON PETROLEUM CORP (NYSE:MPC), a stock of interest to dividend investors uncovered by our stock screener. MPC excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Analyzing Dividend Metrics

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. MPC was assigned a score of 7 for dividend:

• The dividend of MPC is nicely growing with an annual growth rate of 9.91%!
• MPC has been paying a dividend for at least 10 years, so it has a reliable track record.
• MPC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• MPC pays out 25.95% of its income as dividend. This is a sustainable payout ratio.
• The dividend of MPC is growing, but earnings are growing more, so the dividend growth is sustainable.

Evaluating Health: MPC

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of MPC, the assigned 5 reflects its health status:

• MPC has an Altman-Z score of 3.25. This indicates that MPC is financially healthy and has little risk of bankruptcy at the moment.
• MPC has a Altman-Z score of 3.25. This is amongst the best in the industry. MPC outperforms 84.43% of its industry peers.
• With a decent Debt to FCF ratio value of 5.30, MPC is doing good in the industry, outperforming 64.15% of the companies in the same industry.

What does the Profitability looks like for MPC

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of MPC, the assigned 5 is noteworthy for profitability:

• With a decent Return On Assets value of 5.66%, MPC is doing good in the industry, outperforming 61.79% of the companies in the same industry.
• MPC has a better Return On Equity (23.88%) than 84.91% of its industry peers.
• MPC has a Return On Invested Capital of 11.14%. This is in the better half of the industry: MPC outperforms 76.89% of its industry peers.
• The 3 year average ROIC (17.20%) for MPC is well above the current ROIC(11.14%). The reason for the recent decline needs to be investigated.

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Check the latest full fundamental report of MPC for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.