MAGELLAN MIDSTREAM PARTNERS (MMP) Stock Fundamental Analysis
NYSE:MMP - US5590801065
69 USD
+0.46 (+0.67%)
69.01 USD
+0.01 (+0.01%)
Taking everything into account, MMP scores 4 out of 10 in our fundamental rating. MMP was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of MMP while its profitability can be described as average. MMP is quite expensive at the moment. It does show a decent growth rate. MMP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MMP had positive earnings in the past year.
MMP had a positive operating cash flow in the past year.
MMP had positive earnings in each of the past 5 years.
MMP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MMP has a better Return On Assets (13.50%) than 61.75% of its industry peers.
Looking at the Return On Equity, with a value of 60.05%, MMP belongs to the top of the industry, outperforming 88.48% of the companies in the same industry.
MMP has a Return On Invested Capital (13.04%) which is comparable to the rest of the industry.
MMP had an Average Return On Invested Capital over the past 3 years of 10.07%. This is significantly below the industry average of 21.91%.
The last Return On Invested Capital (13.04%) for MMP is above the 3 year average (10.07%), which is a sign of increasing profitability.
| 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 Profit Margin of 29.55%. This is in the better half of the industry: MMP outperforms 64.06% of its industry peers.
MMP's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 32.92%, MMP is in line with its industry, outperforming 52.07% of the companies in the same industry.
In the last couple of years the Operating Margin of MMP has declined.
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.
In the last couple of years the Gross Margin of MMP has declined.
| 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.
MMP has less shares outstanding than it did 1 year ago.
MMP has a worse debt/assets ratio than last year.
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.
Looking at the Debt to FCF ratio, with a value of 3.79, MMP is in line with its industry, outperforming 56.68% of the companies in the same industry.
A Debt/Equity ratio of 2.91 is on the high side and indicates that MMP has dependencies on debt financing.
MMP has a Debt to Equity ratio of 2.91. This is amonst the worse of the industry: MMP underperforms 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
MMP has a Current Ratio of 1.08. This is a normal value and indicates that MMP is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.08, MMP perfoms like the industry average, outperforming 44.70% of the companies in the same industry.
MMP has a Quick Ratio of 1.08. This is a bad value and indicates that MMP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.60, MMP is not doing good in the industry: 76.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
MMP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.49%.
MMP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.82% yearly.
MMP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.66%.
The Revenue has been growing slightly by 5.00% on average over the past years.
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
The Earnings Per Share is expected to grow by 4.58% on average over the next years.
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
A Price/Earnings ratio of 13.75 indicates a correct valuation of MMP.
Based on the Price/Earnings ratio, MMP is valued a bit more expensive than 64.52% of the companies in the same industry.
When comparing the Price/Earnings ratio of MMP to the average of the S&P500 Index (26.84), we can say MMP is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.93, which indicates a correct valuation of MMP.
MMP's Price/Forward Earnings ratio is in line with the industry average.
MMP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.48.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.93 |
4.2 Price Multiples
MMP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MMP is more expensive than 73.73% of the companies in the same industry.
MMP's Price/Free Cash Flow ratio is in line with the industry average.
| 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 MMP does not grow enough to justify the current Price/Earnings ratio.
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.
MMP's Dividend Yield is a higher than the industry average which is at 6.06.
Compared to an average S&P500 Dividend Yield of 2.32, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.51%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
83.00% of the earnings are spent on dividend by MMP. This is not a sustainable payout ratio.
The dividend of MMP is growing, but earnings are growing more, so the dividend growth is 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 Change-50%
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%