Marathon Oil Corp (MRO) Stock Fundamental Analysis
USA - New York Stock Exchange - 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 209 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of MRO get a neutral evaluation. Nothing too spectacular is happening here. MRO has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MRO had positive earnings in the past year.
MRO had a positive operating cash flow in the past year.
MRO had positive earnings in 4 of the past 5 years.
In the past 5 years MRO always reported a positive cash flow from operatings.
1.2 Ratios
MRO has a better Return On Assets (6.85%) than 61.46% of its industry peers.
MRO's Return On Equity of 11.63% is in line compared to the rest of the industry. MRO outperforms 51.22% of its industry peers.
The Return On Invested Capital of MRO (10.21%) is better than 67.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRO is significantly below the industry average of 21.27%.
| 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
With a decent Profit Margin value of 19.79%, MRO is doing good in the industry, outperforming 65.85% of the companies in the same industry.
MRO's Profit Margin has improved in the last couple of years.
MRO's Operating Margin of 29.96% is fine compared to the rest of the industry. MRO outperforms 63.41% of its industry peers.
MRO's Operating Margin has improved in the last couple of years.
The Gross Margin of MRO (86.89%) is better than 92.68% of its industry peers.
MRO's Gross Margin has been stable in the last couple of years.
| 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
MRO 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, MRO has less shares outstanding
The debt/assets ratio for MRO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.76 indicates that MRO is not a great score, but indicates only limited risk for bankruptcy at the moment.
MRO's Altman-Z score of 2.76 is fine compared to the rest of the industry. MRO outperforms 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.
A Debt/Equity ratio of 0.42 indicates that MRO is not too dependend on debt financing.
MRO has a Debt to Equity ratio (0.42) which is comparable to the rest of the 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
MRO has a Current 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.
MRO has a worse Current ratio (0.69) than 79.02% of its industry peers.
A Quick Ratio of 0.61 indicates that MRO may have some problems paying its short term obligations.
MRO has a Quick ratio of 0.61. This is in the lower half of the industry: MRO underperforms 78.05% of its industry peers.
| 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.
The Earnings Per Share has been growing by 29.38% on average over the past years. This is a very strong growth
Looking at the last year, MRO shows a decrease in Revenue. The Revenue has decreased by -0.78% in the last year.
The Revenue has been growing slightly by 1.30% on average over the past years.
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
The Earnings Per Share is expected to decrease by -2.56% on average over the next years.
MRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.14% yearly.
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 (26.51), we can say MRO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.12, the valuation of MRO can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRO is on the same level as its industry peers.
MRO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
MRO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MRO is cheaper than 69.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MRO is valued a bit cheaper than the industry average as 75.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.83 | ||
| EV/EBITDA | 4.76 |
4.3 Compensation for Growth
The decent profitability rating of MRO may justify a higher PE ratio.
MRO's earnings are expected to decrease with -3.07% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-4.99%
EPS Next 3Y-3.07%
5. Dividend
5.1 Amount
MRO has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
MRO's Dividend Yield is slightly below the industry average, which is at 3.93.
MRO's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| 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 been paying a dividend for at least 10 years, so it has 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-100%
Ins Owners0.43%
Ins Owner Change0%
Market Cap15.97B
Revenue(TTM)6.72B
Net Income(TTM)1.33B
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
Graham NumberN/A
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
ROICexgc growth 3YN/A
ROICexgc 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%
Marathon Oil Corp / MRO FAQ
What is the fundamental rating for MRO stock?
ChartMill assigns a fundamental rating of 5 / 10 to MRO.
Can you provide the valuation status for Marathon Oil Corp?
ChartMill assigns a valuation rating of 5 / 10 to Marathon Oil Corp (MRO). This can be considered as Fairly Valued.
How profitable is Marathon Oil Corp (MRO) stock?
Marathon Oil Corp (MRO) has a profitability rating of 6 / 10.
What are the PE and PB ratios of Marathon Oil Corp (MRO) stock?
The Price/Earnings (PE) ratio for Marathon Oil Corp (MRO) is 11.37 and the Price/Book (PB) ratio is 1.4.
Can you provide the expected EPS growth for MRO stock?
The Earnings per Share (EPS) of Marathon Oil Corp (MRO) is expected to decline by -6.75% in the next year.