MARATHON OIL CORP (MRO)
US5658491064 - Common Stock
MRO 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. MRO has only an average score on both its financial health and profitability. 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.
Of the past 5 years MRO 4 years were profitable.
In the past 5 years MRO always reported a positive cash flow from operatings.
1.2 Ratios
MRO has a Return On Assets (7.94%) which is comparable to the rest of the industry.
The Return On Equity of MRO (13.87%) is comparable to the rest of the industry.
MRO has a Return On Invested Capital of 12.27%. This is in the better half of the industry: MRO outperforms 64.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRO is significantly below the industry average of 45.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 13.87% | ||
| ROIC | 12.27% |
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
Looking at the Profit Margin, with a value of 23.26%, MRO is in the better half of the industry, outperforming 61.03% of the companies in the same industry.
MRO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 33.43%, MRO is in the better half of the industry, outperforming 61.97% of the companies in the same industry.
MRO's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 87.60%, MRO belongs to the best of the industry, outperforming 92.02% of the companies in the same industry.
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 | 33.43% | ||
| PM (TTM) | 23.26% | ||
| GM | 87.6% |
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.
Compared to 1 year ago, MRO has less shares outstanding
The number of shares outstanding for MRO has been reduced compared to 5 years ago.
MRO has a better debt/assets ratio than last year.
2.2 Solvency
MRO has an Altman-Z score of 2.56. 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.
MRO's Altman-Z score of 2.56 is fine compared to the rest of the industry. MRO outperforms 66.20% of its industry peers.
The Debt to FCF ratio of MRO is 2.65, which is a good value as it means it would take MRO, 2.65 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MRO (2.65) is better than 69.48% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that MRO is not too dependend on debt financing.
MRO has a Debt to Equity ratio (0.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.65 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.5
WACC8.16%
2.3 Liquidity
A Current Ratio of 0.40 indicates that MRO may have some problems paying its short term obligations.
The Current ratio of MRO (0.40) is worse than 92.02% of its industry peers.
A Quick Ratio of 0.35 indicates that MRO may have some problems paying its short term obligations.
MRO has a worse Quick ratio (0.35) than 89.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The earnings per share for MRO have decreased strongly by -41.48% in the last year.
MRO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.38% yearly.
The Revenue for MRO has decreased by -17.27% in the past year. This is quite bad
Measured over the past years, MRO shows a small growth in Revenue. The Revenue has been growing by 1.30% on average per year.
EPS 1Y (TTM)-41.48%
EPS 3YN/A
EPS 5Y29.38%
EPS growth Q2Q-21.59%
Revenue 1Y (TTM)-17.27%
Revenue growth 3Y29.48%
Revenue growth 5Y1.3%
Revenue growth Q2Q-5.19%
3.2 Future
MRO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.62% yearly.
The Revenue is expected to grow by 0.97% on average over the next years.
EPS Next Y2.47%
EPS Next 2Y9.23%
EPS Next 3Y3.72%
EPS Next 5Y1.62%
Revenue Next Year0.21%
Revenue Next 2Y2.02%
Revenue Next 3Y0.97%
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.66, the valuation of MRO can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MRO is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.20. MRO is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.40, the valuation of MRO can be described as reasonable.
65.26% of the companies in the same industry are more expensive than MRO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MRO to the average of the S&P500 Index (21.60), we can say MRO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.66 | ||
| Fwd PE | 10.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MRO indicates a somewhat cheap valuation: MRO is cheaper than 67.61% of the companies listed in the same industry.
MRO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MRO is cheaper than 73.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.74 | ||
| EV/EBITDA | 4.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MRO does not grow enough to justify the current Price/Earnings ratio.
MRO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.32
PEG (5Y)0.36
EPS Next 2Y9.23%
EPS Next 3Y3.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.53%, MRO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.79, MRO is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.45, MRO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
On average, the dividend of MRO grows each year by 15.43%, which is quite nice.
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 Years3
Div Non Decr Years3
5.3 Sustainability
MRO pays out 16.15% of its income as dividend. This is a sustainable payout ratio.
The dividend of MRO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.15%
EPS Next 2Y9.23%
EPS Next 3Y3.72%
MARATHON OIL CORP
NYSE:MRO (4/23/2024, 5:30:00 PM)
After market: 27.82 0 (0%)27.82
+0.17 (+0.61%)
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 Cap15.90B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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 | 10.66 | ||
| Fwd PE | 10.4 | ||
| 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)4.32
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 13.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 33.43% | ||
| PM (TTM) | 23.26% | ||
| GM | 87.6% | ||
| 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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.35 | ||
| 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)-41.48%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y2.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-17.27%
Revenue growth 3Y29.48%
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