MARATHON OIL CORP (MRO)
US5658491064 - Common Stock
MRO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 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 is valued correctly, 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 (7.29%) which is in line with its industry peers.
With a Return On Equity value of 12.87%, MRO perfoms like the industry average, outperforming 53.81% of the companies in the same industry.
MRO has a Return On Invested Capital of 10.66%. This is in the better half of the industry: MRO outperforms 62.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRO is significantly below the industry average of 30.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.29% | ||
| ROE | 12.87% | ||
| ROIC | 10.66% |
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 21.87%, MRO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of MRO has grown nicely.
MRO has a Operating Margin of 31.74%. This is in the better half of the industry: MRO outperforms 62.86% of its industry peers.
In the last couple of years the Operating Margin of MRO has grown nicely.
The Gross Margin of MRO (87.07%) is better than 93.33% of its industry peers.
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 | 31.74% | ||
| PM (TTM) | 21.87% | ||
| GM | 87.07% |
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.
MRO has a better debt/assets ratio than last year.
2.2 Solvency
MRO has an Altman-Z score of 2.57. 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 has a Altman-Z score of 2.57. This is in the better half of the industry: MRO outperforms 68.10% of its industry peers.
The Debt to FCF ratio of MRO is 2.89, which is a good value as it means it would take MRO, 2.89 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MRO (2.89) is better than 69.05% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that MRO is not too dependend on debt financing.
MRO has a Debt to Equity ratio (0.45) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 2.57 |
ROIC/WACC1.35
WACC7.89%
2.3 Liquidity
A Current Ratio of 0.55 indicates that MRO may have some problems paying its short term obligations.
With a Current ratio value of 0.55, MRO is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
A Quick Ratio of 0.48 indicates that MRO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.48, MRO is doing worse than 85.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
MRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.42%.
Measured over the past years, MRO shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.38% on average per year.
MRO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.01%.
MRO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.30% yearly.
EPS 1Y (TTM)-39.42%
EPS 3YN/A
EPS 5Y29.38%
EPS Q2Q%-17.91%
Revenue 1Y (TTM)-18.01%
Revenue growth 3Y29.48%
Revenue growth 5Y1.3%
Sales Q2Q%-7.68%
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.
MRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.25% yearly.
EPS Next Y10.34%
EPS Next 2Y12.74%
EPS Next 3Y4.69%
EPS Next 5Y-2.56%
Revenue Next Year1.92%
Revenue Next 2Y2.43%
Revenue Next 3Y0.25%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.19, which indicates a very decent valuation of MRO.
The rest of the industry has a similar Price/Earnings ratio as MRO.
The average S&P500 Price/Earnings ratio is at 24.41. MRO is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.40, which indicates a very decent valuation of MRO.
Based on the Price/Forward Earnings ratio, MRO is valued a bit cheaper than 67.14% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MRO to the average of the S&P500 Index (20.59), we can say MRO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 8.4 |
4.2 Price Multiples
69.05% of the companies in the same industry are more expensive than MRO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MRO is valued a bit cheaper than the industry average as 72.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.31 | ||
| EV/EBITDA | 4.78 |
4.3 Compensation for Growth
MRO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MRO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.08
PEG (5Y)0.38
EPS Next 2Y12.74%
EPS Next 3Y4.69%
5. Dividend
5.1 Amount
MRO has a Yearly Dividend Yield of 1.47%. Purely for dividend investing, there may be better candidates out there.
MRO's Dividend Yield is slightly below the industry average, which is at 5.93.
MRO's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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 Years3
Div Non Decr Years3
5.3 Sustainability
17.57% of the earnings are spent on dividend by MRO. This is a low number and sustainable payout ratio.
DP17.57%
EPS Next 2Y12.74%
EPS Next 3Y4.69%
MARATHON OIL CORP
NYSE:MRO (7/26/2024, 7:04:00 PM)
After market: 27.87 0 (0%)27.87
-0.02 (-0.07%)
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 Cap15.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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 | 11.19 | ||
| Fwd PE | 8.4 | ||
| 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)1.08
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.29% | ||
| ROE | 12.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.74% | ||
| PM (TTM) | 21.87% | ||
| GM | 87.07% | ||
| 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 Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.48 | ||
| 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)-39.42%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y10.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.01%
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