MAGELLAN MIDSTREAM PARTNERS (MMP)
US5590801065
MMP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 214 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 valied quite expensively at the moment, while it does show a decent growth rate. Finally MMP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MMP was profitable.
In the past year MMP had a positive cash flow from operations.
Each year in the past 5 years MMP has been profitable.
Each year in the past 5 years MMP had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 13.50%, MMP is doing good in the industry, outperforming 61.75% of the companies in the same industry.
MMP has a better Return On Equity (60.05%) 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.
MMP had an Average Return On Invested Capital over the past 3 years of 10.07%. This is significantly below the industry average of 45.80%.
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 better Profit Margin (29.55%) than 64.06% of its industry peers.
In the last couple of years the Profit Margin of MMP has remained more or less at the same level.
The Operating Margin of MMP (32.92%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MMP has declined.
MMP has a Gross Margin (48.28%) which 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
MMP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, MMP has less shares outstanding
Compared to 5 years ago, MMP has less shares outstanding
Compared to 1 year ago, MMP has a worse debt to assets ratio.
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.
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.
MMP has a Debt/Equity ratio of 2.91. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.91, MMP is doing worse than 84.79% of the companies in the same industry.
| 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 (1.08) which is comparable to the rest of the 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.
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.
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.
The Revenue has grown by 19.66% in the past year. This is quite good.
Measured over the past years, MMP shows a small growth in Revenue. The Revenue has been growing by 5.00% on average per year.
EPS 1Y (TTM)7.49%
EPS 3Y3.54%
EPS 5Y5.82%
EPS growth Q2Q-29.34%
Revenue 1Y (TTM)19.66%
Revenue growth 3Y5.47%
Revenue growth 5Y5%
Revenue growth Q2Q11.24%
3.2 Future
The Earnings Per Share is expected to grow by 4.58% on average over the next years.
The Revenue is expected to grow by 4.20% on average over the next years.
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.
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
With a Price/Earnings ratio of 13.75, MMP is valued correctly.
Based on the Price/Earnings ratio, MMP is valued a bit more expensive than the industry average as 64.52% of the companies are valued more cheaply.
MMP is valuated rather cheaply when we compare the Price/Earnings ratio to 24.95, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.93, MMP is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMP is on the same level as its industry peers.
MMP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.40, which is the current average of the S&P500 Index.
| 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 the industry average as 73.73% of the companies are valued more cheaply.
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 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.
Compared to an average industry Dividend Yield of 5.79, MMP pays a bit more dividend than its industry peers.
MMP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| 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 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
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%
MAGELLAN MIDSTREAM PARTNERS
NYSE:MMP (9/22/2023, 7:13:22 PM)
After market: 69.01 +0.01 (+0.01%)69
+0.46 (+0.67%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.07% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.93 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.86
PEG (5Y)2.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.5% | ||
| ROE | 60.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.92% | ||
| PM (TTM) | 29.55% | ||
| GM | 48.28% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.91 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)7.49%
EPS 3Y3.54%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.66%
Revenue growth 3Y5.47%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y