MURPHY OIL CORP (MUR) Stock Fundamental Analysis
NYSE:MUR - US6267171022 - Common Stock
24.06 USD
+1.45 (+6.41%)
24.06 USD
0 (0%)
Taking everything into account, MUR scores 5 out of 10 in our fundamental rating. MUR was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of MUR get a neutral evaluation. Nothing too spectacular is happening here. MUR is valued correctly, but it does not seem to be growing. Finally MUR also has an excellent dividend rating. These ratings could make MUR a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year MUR was profitable.
In the past year MUR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MUR reported negative net income in multiple years.
Each year in the past 5 years MUR had a positive operating cash flow.
1.2 Ratios
MUR has a Return On Assets of 2.89%. This is comparable to the rest of the industry: MUR outperforms 47.12% of its industry peers.
MUR's Return On Equity of 5.48% is in line compared to the rest of the industry. MUR outperforms 45.19% of its industry peers.
With a Return On Invested Capital value of 5.12%, MUR perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
MUR had an Average Return On Invested Capital over the past 3 years of 10.38%. This is significantly below the industry average of 23.40%.
The 3 year average ROIC (10.38%) for MUR is well above the current ROIC(5.12%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.89% | ||
| ROE | 5.48% | ||
| ROIC | 5.12% |
ROA(3y)6.78%
ROA(5y)1.76%
ROE(3y)13.16%
ROE(5y)2.09%
ROIC(3y)10.39%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 10.25%, MUR is in line with its industry, outperforming 54.81% of the companies in the same industry.
In the last couple of years the Profit Margin of MUR has declined.
MUR has a Operating Margin of 19.96%. This is comparable to the rest of the industry: MUR outperforms 53.37% of its industry peers.
MUR's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 68.91%, MUR is doing good in the industry, outperforming 78.37% of the companies in the same industry.
In the last couple of years the Gross Margin of MUR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.96% | ||
| PM (TTM) | 10.25% | ||
| GM | 68.91% |
OM growth 3Y1.83%
OM growth 5Y6.15%
PM growth 3YN/A
PM growth 5Y-19.86%
GM growth 3Y-1.01%
GM growth 5Y-1.15%
2. Health
2.1 Basic Checks
MUR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for MUR has been reduced compared to 1 year ago.
MUR has less shares outstanding than it did 5 years ago.
MUR has a better debt/assets ratio than last year.
2.2 Solvency
MUR has an Altman-Z score of 1.86. This is not the best score and indicates that MUR is in the grey zone with still only limited risk for bankruptcy at the moment.
MUR's Altman-Z score of 1.86 is fine compared to the rest of the industry. MUR outperforms 64.90% of its industry peers.
MUR has a debt to FCF ratio of 3.27. This is a good value and a sign of high solvency as MUR would need 3.27 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.27, MUR is doing good in the industry, outperforming 75.48% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that MUR is not too dependend on debt financing.
MUR's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. MUR outperforms 64.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.57
WACC8.95%
2.3 Liquidity
MUR has a Current Ratio of 0.84. This is a bad value and indicates that MUR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.84, MUR is doing worse than 65.87% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that MUR may have some problems paying its short term obligations.
With a Quick ratio value of 0.77, MUR is not doing good in the industry: 62.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
MUR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.73%.
Measured over the past years, MUR shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.59% on average per year.
Looking at the last year, MUR shows a very negative growth in Revenue. The Revenue has decreased by -18.09% in the last year.
The Revenue has been growing slightly by 1.39% on average over the past years.
EPS 1Y (TTM)-53.73%
EPS 3Y28.7%
EPS 5Y25.59%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-18.09%
Revenue growth 3Y9.87%
Revenue growth 5Y1.39%
Sales Q2Q%-14.72%
3.2 Future
MUR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.60% yearly.
The Revenue is expected to decrease by -0.06% on average over the next years.
EPS Next Y-50.74%
EPS Next 2Y-9.01%
EPS Next 3Y7.74%
EPS Next 5Y13.6%
Revenue Next Year-13.87%
Revenue Next 2Y-5.27%
Revenue Next 3Y-0.06%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.53 indicates a correct valuation of MUR.
62.98% of the companies in the same industry are more expensive than MUR, based on the Price/Earnings ratio.
MUR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.24.
The Price/Forward Earnings ratio is 10.57, which indicates a very decent valuation of MUR.
MUR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MUR is cheaper than 66.35% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, MUR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 10.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MUR is valued cheaper than 88.46% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MUR is valued cheaper than 83.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.6 | ||
| EV/EBITDA | 3.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y-9.01%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
MUR has a Yearly Dividend Yield of 5.75%, which is a nice return.
Compared to an average industry Dividend Yield of 6.33, MUR pays a bit more dividend than its industry peers.
MUR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
5.2 History
The dividend of MUR has a limited annual growth rate of 3.72%.
MUR has been paying a dividend for at least 10 years, so it has a reliable track record.
MUR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.72%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
63.86% of the earnings are spent on dividend by MUR. This is not a sustainable payout ratio.
MUR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.86%
EPS Next 2Y-9.01%
EPS Next 3Y7.74%
24.06
+1.45 (+6.41%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners93.69%
Inst Owner Change3.1%
Ins Owners5.57%
Ins Owner Change0.13%
Market Cap3.43B
Analysts65.45
Price Target28.39 (18%)
Short Float %13.54%
Short Ratio6.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
Yearly Dividend1.21
Dividend Growth(5Y)3.72%
DP63.86%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.65%
Min EPS beat(2)9.22%
Max EPS beat(2)34.08%
EPS beat(4)3
Avg EPS beat(4)2.94%
Min EPS beat(4)-38.67%
Max EPS beat(4)34.08%
EPS beat(8)6
Avg EPS beat(8)2.7%
EPS beat(12)9
Avg EPS beat(12)4.74%
EPS beat(16)12
Avg EPS beat(16)9.79%
Revenue beat(2)1
Avg Revenue beat(2)1.91%
Min Revenue beat(2)-1.22%
Max Revenue beat(2)5.05%
Revenue beat(4)1
Avg Revenue beat(4)-2.02%
Min Revenue beat(4)-10.44%
Max Revenue beat(4)5.05%
Revenue beat(8)3
Avg Revenue beat(8)-0.63%
Revenue beat(12)7
Avg Revenue beat(12)3.97%
Revenue beat(16)10
Avg Revenue beat(16)5.18%
PT rev (1m)0.91%
PT rev (3m)-8.92%
EPS NQ rev (1m)-47.42%
EPS NQ rev (3m)-73.27%
EPS NY rev (1m)-13.89%
EPS NY rev (3m)-28.96%
Revenue NQ rev (1m)-3.16%
Revenue NQ rev (3m)-13.85%
Revenue NY rev (1m)-0.99%
Revenue NY rev (3m)-3.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 10.57 | ||
| P/S | 1.24 | ||
| P/FCF | 7.6 | ||
| P/OCF | 2.26 | ||
| P/B | 0.66 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 3.13 |
EPS(TTM)1.92
EY7.98%
EPS(NY)2.28
Fwd EY9.46%
FCF(TTM)3.17
FCFY13.16%
OCF(TTM)10.66
OCFY44.3%
SpS19.46
BVpS36.42
TBVpS36.42
PEG (NY)N/A
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.89% | ||
| ROE | 5.48% | ||
| ROCE | 6.21% | ||
| ROIC | 5.12% | ||
| ROICexc | 5.35% | ||
| ROICexgc | 5.35% | ||
| OM | 19.96% | ||
| PM (TTM) | 10.25% | ||
| GM | 68.91% | ||
| FCFM | 16.27% |
ROA(3y)6.78%
ROA(5y)1.76%
ROE(3y)13.16%
ROE(5y)2.09%
ROIC(3y)10.39%
ROIC(5y)N/A
ROICexc(3y)10.9%
ROICexc(5y)N/A
ROICexgc(3y)10.9%
ROICexgc(5y)N/A
ROCE(3y)12.59%
ROCE(5y)N/A
ROICexcg growth 3Y13.29%
ROICexcg growth 5Y12.74%
ROICexc growth 3Y13.29%
ROICexc growth 5Y12.74%
OM growth 3Y1.83%
OM growth 5Y6.15%
PM growth 3YN/A
PM growth 5Y-19.86%
GM growth 3Y-1.01%
GM growth 5Y-1.15%
F-Score5
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.27 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 119.81% | ||
| Cap/Sales | 38.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.13% | ||
| Profit Quality | 158.72% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 1.86 |
F-Score5
WACC8.95%
ROIC/WACC0.57
Cap/Depr(3y)118.5%
Cap/Depr(5y)106.09%
Cap/Sales(3y)28.76%
Cap/Sales(5y)32.24%
Profit Quality(3y)142.37%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-53.73%
EPS 3Y28.7%
EPS 5Y25.59%
EPS Q2Q%-66.67%
EPS Next Y-50.74%
EPS Next 2Y-9.01%
EPS Next 3Y7.74%
EPS Next 5Y13.6%
Revenue 1Y (TTM)-18.09%
Revenue growth 3Y9.87%
Revenue growth 5Y1.39%
Sales Q2Q%-14.72%
Revenue Next Year-13.87%
Revenue Next 2Y-5.27%
Revenue Next 3Y-0.06%
Revenue Next 5YN/A
EBIT growth 1Y-43.5%
EBIT growth 3Y11.87%
EBIT growth 5Y7.62%
EBIT Next Year96.73%
EBIT Next 3Y38.1%
EBIT Next 5Y23.86%
FCF growth 1Y-45.46%
FCF growth 3Y3.8%
FCF growth 5YN/A
OCF growth 1Y-22.23%
OCF growth 3Y6.73%
OCF growth 5YN/A