MARATHON PETROLEUM CORP (MPC)
US56585A1025 - Common Stock
MPC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. MPC has only an average score on both its financial health and profitability. MPC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MPC was profitable.
In the past year MPC had a positive cash flow from operations.
Of the past 5 years MPC 4 years were profitable.
Each year in the past 5 years MPC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 11.25%, MPC is doing good in the industry, outperforming 70.42% of the companies in the same industry.
MPC has a Return On Equity of 39.63%. This is amongst the best in the industry. MPC outperforms 87.32% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.15%, MPC belongs to the top of the industry, outperforming 82.16% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MPC is significantly below the industry average of 45.95%.
The 3 year average ROIC (15.09%) for MPC is below the current ROIC(17.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.25% | ||
| ROE | 39.63% | ||
| ROIC | 17.15% |
ROA(3y)12.93%
ROA(5y)5.98%
ROE(3y)43.04%
ROE(5y)18.54%
ROIC(3y)15.09%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of MPC (6.44%) is worse than 67.14% of its industry peers.
MPC's Profit Margin has improved in the last couple of years.
MPC has a Operating Margin of 9.53%. This is in the lower half of the industry: MPC underperforms 72.77% of its industry peers.
In the last couple of years the Operating Margin of MPC has grown nicely.
MPC's Gross Margin of 14.34% is on the low side compared to the rest of the industry. MPC is outperformed by 72.30% of its industry peers.
MPC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.53% | ||
| PM (TTM) | 6.44% | ||
| GM | 14.34% |
OM growth 3YN/A
OM growth 5Y11.98%
PM growth 3YN/A
PM growth 5Y14.96%
GM growth 3Y45.22%
GM growth 5Y5.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MPC is creating value.
The number of shares outstanding for MPC has been reduced compared to 1 year ago.
The number of shares outstanding for MPC has been reduced compared to 5 years ago.
The debt/assets ratio for MPC is higher compared to a year ago.
2.2 Solvency
MPC has an Altman-Z score of 3.72. This indicates that MPC is financially healthy and has little risk of bankruptcy at the moment.
MPC has a Altman-Z score of 3.72. This is in the better half of the industry: MPC outperforms 79.34% of its industry peers.
MPC has a debt to FCF ratio of 2.23. This is a good value and a sign of high solvency as MPC would need 2.23 years to pay back of all of its debts.
MPC has a Debt to FCF ratio of 2.23. This is in the better half of the industry: MPC outperforms 72.77% of its industry peers.
MPC has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.04, MPC is doing worse than 72.77% of the companies in the same industry.
Although MPC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 2.23 | ||
| Altman-Z | 3.72 |
ROIC/WACC2.22
WACC7.71%
2.3 Liquidity
MPC has a Current Ratio of 1.59. This is a normal value and indicates that MPC is financially healthy and should not expect problems in meeting its short term obligations.
MPC has a Current ratio of 1.59. This is in the better half of the industry: MPC outperforms 69.95% of its industry peers.
A Quick Ratio of 1.13 indicates that MPC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.13, MPC is in line with its industry, outperforming 59.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The earnings per share for MPC have decreased strongly by -11.41% in the last year.
Measured over the past years, MPC shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.78% on average per year.
Looking at the last year, MPC shows a very negative growth in Revenue. The Revenue has decreased by -16.10% in the last year.
Measured over the past years, MPC shows a quite strong growth in Revenue. The Revenue has been growing by 11.63% on average per year.
EPS 1Y (TTM)-11.41%
EPS 3YN/A
EPS 5Y30.78%
EPS growth Q2Q-40.15%
Revenue 1Y (TTM)-16.1%
Revenue growth 3Y29.59%
Revenue growth 5Y11.63%
Revenue growth Q2Q-8.41%
3.2 Future
MPC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.43% yearly.
Based on estimates for the next years, MPC will show a decrease in Revenue. The Revenue will decrease by -9.74% on average per year.
EPS Next Y-24.72%
EPS Next 2Y-18.07%
EPS Next 3Y-13.69%
EPS Next 5Y-8.43%
Revenue Next Year-7.66%
Revenue Next 2Y-5.08%
Revenue Next 3Y-3.97%
Revenue Next 5Y-9.74%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.48 indicates a reasonable valuation of MPC.
Based on the Price/Earnings ratio, MPC is valued a bit cheaper than 68.08% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.20. MPC is valued rather cheaply when compared to this.
MPC is valuated reasonably with a Price/Forward Earnings ratio of 11.26.
MPC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MPC is cheaper than 61.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MPC to the average of the S&P500 Index (21.63), we can say MPC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
MPC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MPC is cheaper than 66.20% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MPC is valued cheaper than 81.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.88 | ||
| EV/EBITDA | 4.77 |
4.3 Compensation for Growth
MPC has a very decent profitability rating, which may justify a higher PE ratio.
MPC's earnings are expected to decrease with -13.69% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-18.07%
EPS Next 3Y-13.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.69%, MPC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.79, MPC has a dividend in line with its industry peers.
MPC's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
The dividend of MPC is nicely growing with an annual growth rate of 13.40%!
MPC has paid a dividend for at least 10 years, which is a reliable track record.
MPC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.4%
Div Incr Years2
Div Non Decr Years12
5.3 Sustainability
MPC pays out 13.04% of its income as dividend. This is a sustainable payout ratio.
DP13.04%
EPS Next 2Y-18.07%
EPS Next 3Y-13.69%
MARATHON PETROLEUM CORP
NYSE:MPC (4/25/2024, 5:40:00 PM)
After market: 199.51 0 (0%)199.51
+0.37 (+0.19%)
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 Cap71.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)
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EPS beat(4)
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Min EPS beat(4)
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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)
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Min Revenue beat(4)
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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 | 8.48 | ||
| Fwd PE | 11.26 | ||
| 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)N/A
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.25% | ||
| ROE | 39.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.53% | ||
| PM (TTM) | 6.44% | ||
| GM | 14.34% | ||
| 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 Turnover1.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.13 | ||
| 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)-11.41%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-24.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.1%
Revenue growth 3Y29.59%
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