MARATHON OIL CORP (MRO)
US5658491064 - Common Stock
We assign a fundamental rating of 5 out of 10 to MRO. 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
MRO had positive earnings in the past year.
In the past year MRO had a positive cash flow from operations.
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 (7.58%) than 65.55% of its industry peers.
MRO's Return On Equity of 13.35% is in line compared to the rest of the industry. MRO outperforms 57.89% of its industry peers.
MRO has a better Return On Invested Capital (10.98%) than 66.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRO is significantly below the industry average of 22.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 13.35% | ||
| ROIC | 10.98% |
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 22.20%, MRO is in the better half of the industry, outperforming 69.38% of the companies in the same industry.
In the last couple of years the Profit Margin of MRO has grown nicely.
The Operating Margin of MRO (31.75%) is better than 64.59% of its industry peers.
MRO's Operating Margin has improved in the last couple of years.
The Gross Margin of MRO (87.39%) is better than 93.30% of its industry peers.
MRO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.75% | ||
| PM (TTM) | 22.2% | ||
| GM | 87.39% |
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.
The number of shares outstanding for MRO has been reduced compared to 5 years ago.
The debt/assets ratio for MRO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.62 indicates that MRO is not a great score, but indicates only limited risk for bankruptcy at the moment.
MRO has a better Altman-Z score (2.62) than 69.38% of its industry peers.
The Debt to FCF ratio of MRO is 2.85, which is a good value as it means it would take MRO, 2.85 years of fcf income to pay off all of its debts.
MRO has a better Debt to FCF ratio (2.85) than 71.29% of its industry peers.
MRO has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
MRO's Debt to Equity ratio of 0.44 is in line compared to the rest of the industry. MRO outperforms 49.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.42
WACC7.72%
2.3 Liquidity
MRO has a Current Ratio of 0.57. 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 Current ratio of 0.57. This is amonst the worse of the industry: MRO underperforms 83.25% of its industry peers.
MRO has a Quick Ratio of 0.57. This is a bad value and indicates that MRO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.52, MRO is doing worse than 82.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for MRO have decreased strongly by -19.27% 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
MRO shows a decrease in Revenue. In the last year, the revenue decreased by -6.45%.
MRO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.30% yearly.
EPS 1Y (TTM)-19.27%
EPS 3YN/A
EPS 5Y29.38%
EPS Q2Q%31.25%
Revenue 1Y (TTM)-6.45%
Revenue growth 3Y29.48%
Revenue growth 5Y1.3%
Sales Q2Q%10.11%
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 1.38% yearly.
EPS Next Y5.64%
EPS Next 2Y7.29%
EPS Next 3Y2.57%
EPS Next 5Y-2.56%
Revenue Next Year1.21%
Revenue Next 2Y1.06%
Revenue Next 3Y1.38%
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 10.65, which indicates a very decent valuation of MRO.
Based on the Price/Earnings ratio, MRO is valued a bit cheaper than 60.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.97. MRO is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.36, the valuation of MRO can be described as very reasonable.
63.64% of the companies in the same industry are more expensive than MRO, based on the Price/Forward Earnings ratio.
MRO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 9.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRO is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRO indicates a somewhat cheap valuation: MRO is cheaper than 70.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.47 | ||
| EV/EBITDA | 4.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MRO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.89
PEG (5Y)0.36
EPS Next 2Y7.29%
EPS Next 3Y2.57%
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 6.32.
Compared to the average S&P500 Dividend Yield of 2.22, 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 Years3
Div Non Decr Years3
5.3 Sustainability
MRO pays out 16.91% of its income as dividend. This is a sustainable payout ratio.
DP16.91%
EPS Next 2Y7.29%
EPS Next 3Y2.57%
MARATHON OIL CORP
NYSE:MRO (10/8/2024, 8:11:49 PM)
After market: 28.11 0 (0%)28.11
-0.98 (-3.37%)
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 Cap15.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 10.65 | ||
| Fwd PE | 9.36 | ||
| 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)1.89
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 13.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.75% | ||
| PM (TTM) | 22.2% | ||
| GM | 87.39% | ||
| 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 | 0.44 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.52 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-19.27%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y5.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.45%
Revenue growth 3Y29.48%
Revenue growth 5Y
Sales 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