Marathon Oil Corp (MRO) Stock Fundamental Analysis
NYSE:MRO - US5658491064 - Common Stock
28.55 USD
-0.37 (-1.28%)
28.5798 USD
+0.03 (+0.1%)
Taking everything into account, MRO scores 5 out of 10 in our fundamental rating. MRO was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. MRO has an average financial health and profitability rating. MRO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MRO was profitable.
MRO had a positive operating cash flow in the past year.
Of the past 5 years MRO 4 years were profitable.
MRO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MRO has a better Return On Assets (6.85%) than 61.46% of its industry peers.
Looking at the Return On Equity, with a value of 11.63%, MRO is in line with its industry, outperforming 51.22% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.21%, MRO is in the better half of the industry, outperforming 67.32% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MRO is significantly below the industry average of 23.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | 11.63% | ||
| ROIC | 10.21% |
ROA(3y)10.54%
ROA(5y)5.18%
ROE(3y)18.14%
ROE(5y)8.92%
ROIC(3y)13.87%
ROIC(5y)N/A
1.3 Margins
MRO has a better Profit Margin (19.79%) than 65.85% of its industry peers.
MRO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.96%, MRO is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
MRO's Operating Margin has improved in the last couple of years.
MRO has a Gross Margin of 86.89%. This is amongst the best in the industry. MRO outperforms 92.68% of its industry peers.
In the last couple of years the Gross Margin of MRO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.96% | ||
| PM (TTM) | 19.79% | ||
| GM | 86.89% |
OM growth 3YN/A
OM growth 5Y8.4%
PM growth 3YN/A
PM growth 5Y5.86%
GM growth 3Y2.24%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MRO is still creating some value.
MRO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MRO has less shares outstanding
Compared to 1 year ago, MRO has an improved debt to assets ratio.
2.2 Solvency
MRO has an Altman-Z score of 2.76. This is not the best score and indicates that MRO is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of MRO (2.76) is better than 72.68% of its industry peers.
The Debt to FCF ratio of MRO is 2.33, which is a good value as it means it would take MRO, 2.33 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MRO (2.33) is better than 73.17% of its industry peers.
MRO has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.42, MRO is in line with its industry, outperforming 50.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.33 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.27
WACC8.07%
2.3 Liquidity
A Current Ratio of 0.69 indicates that MRO may have some problems paying its short term obligations.
MRO has a Current ratio of 0.69. This is in the lower half of the industry: MRO underperforms 79.02% of its industry peers.
MRO has a Quick Ratio of 0.69. This is a bad value and indicates that MRO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.61, MRO is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for MRO have decreased strongly by -10.36% in the last year.
Measured over the past years, MRO shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.38% on average per year.
The Revenue has decreased by -0.78% in the past year.
MRO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.30% yearly.
EPS 1Y (TTM)-10.36%
EPS 3YN/A
EPS 5Y29.38%
EPS Q2Q%-16.88%
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y29.48%
Revenue growth 5Y1.3%
Sales Q2Q%-3.97%
3.2 Future
MRO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.56% yearly.
Based on estimates for the next years, MRO will show a small growth in Revenue. The Revenue will grow by 1.14% on average per year.
EPS Next Y-6.75%
EPS Next 2Y-4.99%
EPS Next 3Y-3.07%
EPS Next 5Y-2.56%
Revenue Next Year0.06%
Revenue Next 2Y0.04%
Revenue Next 3Y1.14%
Revenue Next 5YN/A
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
The Price/Earnings ratio is 11.37, which indicates a very decent valuation of MRO.
Compared to the rest of the industry, the Price/Earnings ratio of MRO is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MRO to the average of the S&P500 Index (27.03), we can say MRO is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.12, MRO is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as MRO.
The average S&P500 Price/Forward Earnings ratio is at 22.63. MRO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRO is valued a bit cheaper than the industry average as 69.27% of the companies are valued more expensively.
MRO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MRO is cheaper than 75.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.83 | ||
| EV/EBITDA | 4.76 |
4.3 Compensation for Growth
MRO has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as MRO's earnings are expected to decrease with -3.07% in the coming years.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-4.99%
EPS Next 3Y-3.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.54%, MRO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.33, MRO is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.34, MRO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
The dividend of MRO is nicely growing with an annual growth rate of 15.43%!
MRO has paid a dividend for at least 10 years, which is a reliable track record.
MRO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.43%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
MRO pays out 19.02% of its income as dividend. This is a sustainable payout ratio.
DP19.02%
EPS Next 2Y-4.99%
EPS Next 3Y-3.07%
28.55
-0.37 (-1.28%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.7%
Inst Owner Change-2.37%
Ins Owners0.43%
Ins Owner Change0%
Market Cap15.97B
Analysts73.08
Price Target31.8 (11.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend0.41
Dividend Growth(5Y)15.43%
DP19.02%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.91%
Min EPS beat(2)-10%
Max EPS beat(2)0.17%
EPS beat(4)3
Avg EPS beat(4)-0.05%
Min EPS beat(4)-10%
Max EPS beat(4)8.86%
EPS beat(8)7
Avg EPS beat(8)3.02%
EPS beat(12)11
Avg EPS beat(12)6.61%
EPS beat(16)15
Avg EPS beat(16)16.49%
Revenue beat(2)1
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)0.46%
Revenue beat(4)2
Avg Revenue beat(4)-0.64%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)1.44%
Revenue beat(8)5
Avg Revenue beat(8)0.58%
Revenue beat(12)9
Avg Revenue beat(12)3.55%
Revenue beat(16)11
Avg Revenue beat(16)3.13%
PT rev (1m)-1.5%
PT rev (3m)-5.37%
EPS NQ rev (1m)-28.13%
EPS NQ rev (3m)-28.13%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-12.35%
Revenue NQ rev (1m)-4.28%
Revenue NQ rev (3m)-4.28%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)-3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 12.12 | ||
| P/S | 2.38 | ||
| P/FCF | 7.83 | ||
| P/OCF | 3.86 | ||
| P/B | 1.4 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 4.76 |
EPS(TTM)2.51
EY8.79%
EPS(NY)2.36
Fwd EY8.25%
FCF(TTM)3.65
FCFY12.78%
OCF(TTM)7.39
OCFY25.88%
SpS12.01
BVpS20.44
TBVpS20.44
PEG (NY)N/A
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | 11.63% | ||
| ROCE | 11.67% | ||
| ROIC | 10.21% | ||
| ROICexc | 10.29% | ||
| ROICexgc | 10.29% | ||
| OM | 29.96% | ||
| PM (TTM) | 19.79% | ||
| GM | 86.89% | ||
| FCFM | 30.38% |
ROA(3y)10.54%
ROA(5y)5.18%
ROE(3y)18.14%
ROE(5y)8.92%
ROIC(3y)13.87%
ROIC(5y)N/A
ROICexc(3y)14.15%
ROICexc(5y)N/A
ROICexgc(3y)14.15%
ROICexgc(5y)N/A
ROCE(3y)15.81%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y12.25%
ROICexc growth 3YN/A
ROICexc growth 5Y12.37%
OM growth 3YN/A
OM growth 5Y8.4%
PM growth 3YN/A
PM growth 5Y5.86%
GM growth 3Y2.24%
GM growth 5Y0.24%
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.33 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 91.92% | ||
| Cap/Sales | 31.15% | ||
| Interest Coverage | 7.77 | ||
| Cash Conversion | 96.36% | ||
| Profit Quality | 153.46% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.76 |
F-Score7
WACC8.07%
ROIC/WACC1.27
Cap/Depr(3y)75.1%
Cap/Depr(5y)78.57%
Cap/Sales(3y)22.49%
Cap/Sales(5y)32.44%
Profit Quality(3y)158.04%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.36%
EPS 3YN/A
EPS 5Y29.38%
EPS Q2Q%-16.88%
EPS Next Y-6.75%
EPS Next 2Y-4.99%
EPS Next 3Y-3.07%
EPS Next 5Y-2.56%
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y29.48%
Revenue growth 5Y1.3%
Sales Q2Q%-3.97%
Revenue Next Year0.06%
Revenue Next 2Y0.04%
Revenue Next 3Y1.14%
Revenue Next 5YN/A
EBIT growth 1Y-20.06%
EBIT growth 3YN/A
EBIT growth 5Y9.81%
EBIT Next Year90.59%
EBIT Next 3Y24.05%
EBIT Next 5Y14.35%
FCF growth 1Y-49.68%
FCF growth 3Y150.93%
FCF growth 5Y35.42%
OCF growth 1Y-24.1%
OCF growth 3Y40.52%
OCF growth 5Y4.82%