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%)
Overall MRO gets a fundamental rating of 5 out of 10. We evaluated MRO against 210 industry peers in the Oil, Gas & Consumable Fuels industry. MRO has an average financial health and profitability rating. MRO has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years MRO always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.85%, MRO is doing good in the industry, outperforming 61.46% of the companies in the same industry.
MRO has a Return On Equity of 11.63%. This is comparable to the rest of the industry: MRO outperforms 51.22% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for MRO is significantly below the industry average of 21.41%.
| 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's Profit Margin of 19.79% is fine compared to the rest of the industry. MRO outperforms 65.85% of its industry peers.
MRO's Profit Margin has improved in the last couple of years.
MRO has a better Operating Margin (29.96%) than 63.41% of its industry peers.
MRO's Operating Margin has improved in the last couple of years.
MRO's Gross Margin of 86.89% is amongst the best of the industry. MRO outperforms 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MRO is creating some value.
The number of shares outstanding for MRO has been reduced compared to 1 year ago.
MRO has less shares outstanding than it did 5 years ago.
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.
MRO has a debt to FCF ratio of 2.33. This is a good value and a sign of high solvency as MRO would need 2.33 years to pay back of all of its debts.
MRO's Debt to FCF ratio of 2.33 is fine compared to the rest of the industry. MRO outperforms 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
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.
With a Current ratio value of 0.69, MRO is not doing good in the industry: 79.02% of the companies in the same industry are doing better.
A Quick Ratio of 0.61 indicates that MRO may have some problems paying 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
MRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.36%.
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 has decreased by -0.78% in the past 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
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.
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
Based on the Price/Earnings ratio of 11.37, the valuation of MRO can be described as reasonable.
MRO's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.65, MRO is valued rather cheaply.
The Price/Forward Earnings ratio is 12.12, which indicates a correct valuation of MRO.
MRO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, MRO is valued rather cheaply.
| 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.
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.
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 5.88.
Compared to the average S&P500 Dividend Yield of 2.41, 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 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.
What is the valuation status for MRO stock?
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.
Can you provide the PE and PB ratios for MRO stock?
The Price/Earnings (PE) ratio for Marathon Oil Corp (MRO) is 11.37 and the Price/Book (PB) ratio is 1.4.
Is the dividend of Marathon Oil Corp sustainable?
The dividend rating of Marathon Oil Corp (MRO) is 4 / 10 and the dividend payout ratio is 19.02%.