MAGELLAN MIDSTREAM PARTNERS (MMP) Stock Fundamental Analysis
NYSE:MMP - New York Stock Exchange, Inc. - US5590801065 - Currency: USD
Overall MMP gets a fundamental rating of 4 out of 10. We evaluated MMP against 214 industry peers in the Oil, Gas & Consumable Fuels industry. MMP has a medium profitability rating, but doesn't score so well on its financial health evaluation. MMP is quite expensive at the moment. It does show a decent growth rate. Finally MMP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MMP had positive earnings in the past year.
In the past year MMP had a positive cash flow from operations.
Each year in the past 5 years MMP has been profitable.
In the past 5 years MMP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MMP (13.50%) is better than 61.75% of its industry peers.
With an excellent Return On Equity value of 60.05%, MMP belongs to the best of the industry, outperforming 88.48% of the companies in the same industry.
MMP's Return On Invested Capital of 13.04% is in line compared to the rest of the industry. MMP outperforms 54.84% of its industry peers.
MMP had an Average Return On Invested Capital over the past 3 years of 10.07%. This is significantly below the industry average of 25.70%.
The 3 year average ROIC (10.07%) for MMP is below the current ROIC(13.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.5% | ||
| ROE | 60.05% | ||
| ROIC | 13.04% |
ROA(3y)11.88%
ROA(5y)12.99%
ROE(3y)49.55%
ROE(5y)47.34%
ROIC(3y)10.07%
ROIC(5y)10.4%
1.3 Margins
MMP has a better Profit Margin (29.55%) than 64.06% of its industry peers.
MMP's Profit Margin has been stable in the last couple of years.
MMP has a Operating Margin of 32.92%. This is comparable to the rest of the industry: MMP outperforms 52.07% of its industry peers.
MMP's Operating Margin has declined in the last couple of years.
MMP has a Gross Margin of 48.28%. This is comparable to the rest of the industry: MMP outperforms 46.54% of its industry peers.
MMP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.92% | ||
| PM (TTM) | 29.55% | ||
| GM | 48.28% |
OM growth 3Y-7.86%
OM growth 5Y-4.63%
PM growth 3Y-4.7%
PM growth 5Y-1.36%
GM growth 3Y-4.92%
GM growth 5Y-2.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MMP is creating some value.
Compared to 1 year ago, MMP has less shares outstanding
The debt/assets ratio for MMP is higher compared to a year ago.
2.2 Solvency
MMP has a debt to FCF ratio of 3.79. This is a good value and a sign of high solvency as MMP would need 3.79 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.79, MMP perfoms like the industry average, outperforming 56.68% of the companies in the same industry.
MMP has a Debt/Equity ratio of 2.91. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MMP (2.91) is worse than 84.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.91 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.54
WACC8.46%
2.3 Liquidity
A Current Ratio of 1.08 indicates that MMP should not have too much problems paying its short term obligations.
The Current ratio of MMP (1.08) is comparable to the rest of the industry.
A Quick Ratio of 0.60 indicates that MMP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.60, MMP is doing worse than 76.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.49% over the past year.
Measured over the past 5 years, MMP shows a small growth in Earnings Per Share. The EPS has been growing by 5.82% on average per year.
MMP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.66%.
MMP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.00% yearly.
EPS 1Y (TTM)7.49%
EPS 3Y3.54%
EPS 5Y5.82%
EPS Q2Q%-29.34%
Revenue 1Y (TTM)19.66%
Revenue growth 3Y5.47%
Revenue growth 5Y5%
Sales Q2Q%11.24%
3.2 Future
Based on estimates for the next years, MMP will show a small growth in Earnings Per Share. The EPS will grow by 4.58% on average per year.
MMP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.20% yearly.
EPS Next Y4.81%
EPS Next 2Y3.83%
EPS Next 3Y3.33%
EPS Next 5Y4.58%
Revenue Next Year12.86%
Revenue Next 2Y7.1%
Revenue Next 3Y5.56%
Revenue Next 5Y4.2%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
MMP is valuated correctly with a Price/Earnings ratio of 13.75.
Compared to the rest of the industry, the Price/Earnings ratio of MMP indicates a slightly more expensive valuation: MMP is more expensive than 64.52% of the companies listed in the same industry.
MMP is valuated rather cheaply when we compare the Price/Earnings ratio to 24.21, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.93, the valuation of MMP can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMP is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.44. MMP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MMP indicates a slightly more expensive valuation: MMP is more expensive than 73.73% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MMP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.6 | ||
| EV/EBITDA | 13.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of MMP may justify a higher PE ratio.
PEG (NY)2.86
PEG (5Y)2.36
EPS Next 2Y3.83%
EPS Next 3Y3.33%
5. Dividend
5.1 Amount
MMP has a Yearly Dividend Yield of 6.07%, which is a nice return.
Compared to an average industry Dividend Yield of 7.20, MMP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, MMP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
5.2 History
The dividend of MMP has a limited annual growth rate of 3.51%.
MMP has paid a dividend for at least 10 years, which is a reliable track record.
MMP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.51%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
MMP pays out 83.00% of its income as dividend. This is not a sustainable payout ratio.
MMP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP83%
EPS Next 2Y3.83%
EPS Next 3Y3.33%
69
+0.46 (+0.67%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners0.02%
Inst Owner Change0%
Ins Owners0.42%
Ins Owner Change0%
Market Cap13.94B
Analysts65
Price Target65.85 (-4.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
Yearly Dividend4.19
Dividend Growth(5Y)3.51%
DP83%
Div Incr Years16
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.41%
Min EPS beat(2)5.32%
Max EPS beat(2)11.5%
EPS beat(4)3
Avg EPS beat(4)5.84%
Min EPS beat(4)-30.04%
Max EPS beat(4)36.57%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)10.3%
Min Revenue beat(2)1.59%
Max Revenue beat(2)19.01%
Revenue beat(4)4
Avg Revenue beat(4)9.1%
Min Revenue beat(4)1.59%
Max Revenue beat(4)19.01%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.16%
PT rev (3m)2.39%
EPS NQ rev (1m)1.08%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)1.98%
EPS NY rev (3m)6.81%
Revenue NQ rev (1m)3.22%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)4.04%
Revenue NY rev (3m)10.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.93 | ||
| P/S | 4 | ||
| P/FCF | 10.6 | ||
| P/OCF | 9.3 | ||
| P/B | 8.13 | ||
| P/tB | 8.58 | ||
| EV/EBITDA | 13.08 |
EPS(TTM)5.02
EY7.28%
EPS(NY)5.34
Fwd EY7.73%
FCF(TTM)6.51
FCFY9.43%
OCF(TTM)7.42
OCFY10.76%
SpS17.24
BVpS8.48
TBVpS8.04
PEG (NY)2.86
PEG (5Y)2.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.5% | ||
| ROE | 60.05% | ||
| ROCE | 16.51% | ||
| ROIC | 13.04% | ||
| ROICexc | 13.29% | ||
| ROICexgc | 13.46% | ||
| OM | 32.92% | ||
| PM (TTM) | 29.55% | ||
| GM | 48.28% | ||
| FCFM | 37.76% |
ROA(3y)11.88%
ROA(5y)12.99%
ROE(3y)49.55%
ROE(5y)47.34%
ROIC(3y)10.07%
ROIC(5y)10.4%
ROICexc(3y)10.08%
ROICexc(5y)10.49%
ROICexgc(3y)10.21%
ROICexgc(5y)10.63%
ROCE(3y)12.75%
ROCE(5y)13.16%
ROICexcg growth 3Y0.46%
ROICexcg growth 5Y-1.67%
ROICexc growth 3Y0.46%
ROICexc growth 5Y-1.6%
OM growth 3Y-7.86%
OM growth 5Y-4.63%
PM growth 3Y-4.7%
PM growth 5Y-1.36%
GM growth 3Y-4.92%
GM growth 5Y-2.39%
F-Score8
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.91 | ||
| Debt/FCF | 3.79 | ||
| Debt/EBITDA | 3.47 | ||
| Cap/Depr | 63.64% | ||
| Cap/Sales | 5.3% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 127.77% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | N/A |
F-Score8
WACC8.46%
ROIC/WACC1.54
Cap/Depr(3y)98.33%
Cap/Depr(5y)177.38%
Cap/Sales(3y)9.67%
Cap/Sales(5y)16.63%
Profit Quality(3y)93.88%
Profit Quality(5y)75.72%
High Growth Momentum
Growth
EPS 1Y (TTM)7.49%
EPS 3Y3.54%
EPS 5Y5.82%
EPS Q2Q%-29.34%
EPS Next Y4.81%
EPS Next 2Y3.83%
EPS Next 3Y3.33%
EPS Next 5Y4.58%
Revenue 1Y (TTM)19.66%
Revenue growth 3Y5.47%
Revenue growth 5Y5%
Sales Q2Q%11.24%
Revenue Next Year12.86%
Revenue Next 2Y7.1%
Revenue Next 3Y5.56%
Revenue Next 5Y4.2%
EBIT growth 1Y28.59%
EBIT growth 3Y-2.82%
EBIT growth 5Y0.13%
EBIT Next Year37.09%
EBIT Next 3Y12.31%
EBIT Next 5Y8.33%
FCF growth 1Y42.63%
FCF growth 3Y36.82%
FCF growth 5Y11.03%
OCF growth 1Y31.92%
OCF growth 3Y-4.76%
OCF growth 5Y0.18%