MARATHON OIL CORP (MRO)

US5658491064 - Common Stock

27.65  +0.15 (+0.55%)

After market: 27.65 0 (0%)

Fundamental Rating

5

Taking everything into account, MRO scores 5 out of 10 in our fundamental rating. MRO was compared to 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.



6

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.
Each year in the past 5 years MRO had a positive operating cash flow.

1.2 Ratios

MRO's Return On Assets of 7.94% is in line compared to the rest of the industry. MRO outperforms 54.93% of its industry peers.
MRO has a Return On Equity of 13.87%. This is comparable to the rest of the industry: MRO outperforms 46.95% of its industry peers.
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.
MRO had an Average Return On Invested Capital over the past 3 years of 13.87%. This is significantly below the industry average of 45.80%.
Industry RankSector 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

With a decent Profit Margin value of 23.26%, MRO is doing good in the industry, outperforming 61.03% 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 (33.43%) is better than 61.97% of its industry peers.
In the last couple of years the Operating Margin of MRO has grown nicely.
MRO has a better Gross Margin (87.60%) than 92.02% of its industry peers.
MRO's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%

5

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
MRO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MRO has been reduced compared to a year ago.

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.
Looking at the Altman-Z score, with a value of 2.56, MRO is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
MRO has a debt to FCF ratio of 2.65. This is a good value and a sign of high solvency as MRO would need 2.65 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.65, MRO is in the better half of the industry, outperforming 69.48% of the companies in the same industry.
MRO has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.34, MRO perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
Industry RankSector 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.
MRO has a Quick Ratio of 0.40. 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's Quick ratio of 0.35 is on the low side compared to the rest of the industry. MRO is outperformed by 89.20% of its industry peers.
Industry RankSector Rank
Current Ratio 0.4
Quick Ratio 0.35

3

3. Growth

3.1 Past

MRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.48%.
MRO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.38% yearly.
MRO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.27%.
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

The Earnings Per Share is expected to grow by 1.62% 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 0.97% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.59, 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.
MRO is valuated cheaply when we compare the Price/Earnings ratio to 24.95, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.34, the valuation of MRO can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRO indicates a somewhat cheap valuation: MRO is cheaper than 65.73% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MRO to the average of the S&P500 Index (21.40), we can say MRO is valued rather cheaply.
Industry RankSector Rank
PE 10.59
Fwd PE 10.34

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MRO is valued a bit cheaper than 67.61% of the companies in the same industry.
73.71% of the companies in the same industry are more expensive than MRO, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.69
EV/EBITDA 4.63

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)4.3
PEG (5Y)0.36
EPS Next 2Y9.23%
EPS Next 3Y3.72%

4

5. Dividend

5.1 Amount

MRO has a Yearly Dividend Yield of 1.53%. Purely for dividend investing, there may be better candidates out there.
MRO's Dividend Yield is slightly below the industry average, which is at 5.79.
MRO's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
Industry RankSector Rank
Dividend Yield 1.53%

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

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 (4/22/2024, 5:30:00 PM)

After market: 27.65 0 (0%)

27.65

+0.15 (+0.55%)

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 Cap15.80B
Analysts
Price Target
Dividend
Industry RankSector 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 RankSector Rank
PE 10.59
Fwd PE 10.34
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)4.3
PEG (5Y)0.36
Profitability
Industry RankSector 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 RankSector 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