MAGELLAN MIDSTREAM PARTNERS (MMP) Stock Fundamental Analysis
USA - NYSE:MMP - US5590801065
69 USD
+0.46 (+0.67%)
69.01 USD
+0.01 (+0.01%)
Overall MMP gets a fundamental rating of 4 out of 10. We evaluated MMP against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While MMP is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past year MMP had a positive cash flow from operations.
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's Return On Assets of 13.50% is fine compared to the rest of the industry. MMP outperforms 61.75% of its industry peers.
The Return On Equity of MMP (60.05%) is better than 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.
Measured over the past 3 years, the Average Return On Invested Capital for MMP is significantly below the industry average of 21.93%.
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
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.
With a Operating Margin value of 32.92%, MMP perfoms like the industry average, outperforming 52.07% of the companies in the same industry.
In the last couple of years the Operating Margin of MMP has declined.
The Gross Margin of MMP (48.28%) is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MMP is still creating some value.
MMP has less shares outstanding than it did 1 year ago.
The debt/assets ratio for MMP is higher compared to a year ago.
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.
MMP has a Debt/Equity ratio of 2.91. This is a high value indicating a heavy dependency on external financing.
MMP's Debt to Equity ratio of 2.91 is on the low side compared to the rest of the industry. MMP is outperformed by 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.
MMP has a Current ratio of 1.08. This is comparable to the rest of the industry: MMP outperforms 44.70% of its industry peers.
A Quick Ratio of 0.60 indicates that MMP may have some problems paying its short term obligations.
MMP has a worse Quick ratio (0.60) than 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.
MMP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.82% yearly.
Looking at the last year, MMP shows a quite strong growth in Revenue. The Revenue has grown by 19.66% in the last year.
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
MMP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.58% yearly.
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
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.
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
With a Price/Earnings ratio of 13.75, MMP is valued correctly.
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 26.11.
The Price/Forward Earnings ratio is 12.93, which indicates a correct valuation of MMP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, MMP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.93 |
4.2 Price Multiples
73.73% of the companies in the same industry are cheaper than MMP, based on the Enterprise Value to EBITDA ratio.
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 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 6.83, MMP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, 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.
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
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%.