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Why NYSE:MUSA qualifies as a quality stock.

By Mill Chart

Last update: Oct 6, 2023

In this article we will dive into MURPHY USA INC (NYSE:MUSA) as a possible candidate for quality investing. Investors should always do their own research, but we noticed MURPHY USA INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

A Deep Dive into MURPHY USA INC's Quality Metrics.

  • MURPHY USA INC has achieved substantial revenue growth over the past 5 years, with a 12.82% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • MURPHY USA INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 22.96% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • MURPHY USA INC maintains a healthy Debt/Free Cash Flow Ratio of 3.65, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • With a favorable Profit Quality (5-year) ratio of 93.23%, MURPHY USA INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • MURPHY USA INC has consistently achieved strong EBIT growth over the past 5 years, with a 27.58% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • MURPHY USA INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What is the full fundamental picture of NYSE:MUSA telling us.

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, MUSA scores 5 out of 10 in our fundamental rating. MUSA was compared to 134 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 decent growth rate and is not valued too expensively.

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

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.

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