Marathon Oil Corp (MRO) Stock Fundamental Analysis
USA - 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 only an average score on both its financial health and profitability. 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.
MRO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MRO had a positive operating cash flow.
1.2 Ratios
MRO's Return On Assets of 6.85% is fine compared to the rest of the industry. MRO outperforms 61.46% of its industry peers.
MRO has a Return On Equity (11.63%) which is comparable to the rest of the industry.
MRO has a Return On Invested Capital of 10.21%. This is in the better half of the industry: MRO outperforms 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 21.75%.
| 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.
With a decent Operating Margin value of 29.96%, MRO is doing good in 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.
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.
MRO has less shares outstanding than it did 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
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.
With a decent Altman-Z score value of 2.76, MRO is doing good in the industry, outperforming 72.68% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.33, MRO is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
MRO has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
MRO has a Debt to Equity ratio (0.42) which is in line with its industry peers.
| 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 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 worse Quick ratio (0.61) than 78.05% of its industry peers.
| 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%.
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
Based on estimates for the next years, MRO will show a decrease in Earnings Per Share. The EPS will decrease by -2.56% on average per year.
The Revenue is expected to grow by 1.14% on average over the next years.
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
A Price/Earnings ratio of 11.37 indicates a reasonable 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.
MRO is valuated cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.12, MRO is valued correctly.
MRO's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.53. MRO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 12.12 |
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 69.27% of the companies listed 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 6.82.
Compared to the average S&P500 Dividend Yield of 2.38, MRO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
On average, the dividend of MRO grows each year by 15.43%, which is quite nice.
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
19.02% of the earnings are spent on dividend by MRO. This is a low number and 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%.