MAGELLAN MIDSTREAM PARTNERS (MMP) Stock Fundamental Analysis
USA - NYSE:MMP - US5590801065
69 USD
+0.46 (+0.67%)
69.01 USD
+0.01 (+0.01%)
MMP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 209 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.
MMP had a positive operating cash flow in the past year.
In the past 5 years MMP has always been profitable.
In the past 5 years MMP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.50%, MMP is in the better half of the industry, outperforming 61.75% of the companies in the same industry.
MMP's Return On Equity of 60.05% is amongst the best of the industry. MMP outperforms 88.48% of its industry peers.
MMP has a Return On Invested Capital of 13.04%. This is comparable to the rest of the industry: MMP outperforms 54.84% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MMP is significantly below the industry average of 21.72%.
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
With a decent Profit Margin value of 29.55%, MMP is doing good in the industry, outperforming 64.06% of the companies in the same industry.
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.
With a Gross Margin value of 48.28%, MMP perfoms like the industry average, outperforming 46.54% of the companies in the same industry.
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
MMP has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of MMP is 3.79, which is a good value as it means it would take MMP, 3.79 years of fcf income to pay off all of its debts.
MMP has a Debt to FCF ratio (3.79) which is in line with its industry peers.
A Debt/Equity ratio of 2.91 is on the high side and indicates that MMP has dependencies on debt financing.
With a Debt to Equity ratio value of 2.91, MMP is not doing good in the industry: 84.79% of the companies in the same industry are doing better.
| 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.
A Quick Ratio of 0.60 indicates that MMP may have some problems paying its short term obligations.
MMP's Quick ratio of 0.60 is on the low side compared to the rest of the industry. MMP is outperformed by 76.96% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 5.82% on average over the past years.
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
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.
Based on estimates for the next years, MMP will show a small growth in Revenue. The Revenue will grow by 4.20% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.75 indicates a correct valuation of MMP.
MMP's Price/Earnings ratio is a bit more expensive when compared to the industry. MMP is more expensive than 64.52% of the companies in the same industry.
MMP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.10.
With a Price/Forward Earnings ratio of 12.93, MMP is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as MMP.
MMP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMP is valued a bit more expensive than 73.73% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MMP is on the same level as its industry peers.
| 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.
MMP has a very decent profitability rating, which 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
With a Yearly Dividend Yield of 6.07%, MMP is a good candidate for dividend investing.
MMP's Dividend Yield is a higher than the industry average which is at 6.13.
Compared to an average S&P500 Dividend Yield of 2.35, 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 been paying a dividend for at least 10 years, so it has 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
MMP pays out 83.00% of its income as dividend. 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 Change0%
Ins Owners0.42%
Ins Owner Change0%
Market Cap13.94B
Revenue(TTM)3.48B
Net Income(TTM)1.03B
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
Graham NumberN/A
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%
ROICexgc growth 3Y0.46%
ROICexgc 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%
MAGELLAN MIDSTREAM PARTNERS / MMP FAQ
What is the fundamental rating for MMP stock?
ChartMill assigns a fundamental rating of 4 / 10 to MMP.
Can you provide the valuation status for MAGELLAN MIDSTREAM PARTNERS?
ChartMill assigns a valuation rating of 3 / 10 to MAGELLAN MIDSTREAM PARTNERS (MMP). This can be considered as Overvalued.
Can you provide the profitability details for MAGELLAN MIDSTREAM PARTNERS?
MAGELLAN MIDSTREAM PARTNERS (MMP) has a profitability rating of 6 / 10.
Can you provide the financial health for MMP stock?
The financial health rating of MAGELLAN MIDSTREAM PARTNERS (MMP) is 3 / 10.
Is the dividend of MAGELLAN MIDSTREAM PARTNERS sustainable?
The dividend rating of MAGELLAN MIDSTREAM PARTNERS (MMP) is 8 / 10 and the dividend payout ratio is 83%.