MURPHY USA INC (MUSA) Stock Fundamental Analysis
NYSE:MUSA - New York Stock Exchange, Inc. - US6267551025 - Common Stock - Currency: USD
Taking everything into account, MUSA scores 5 out of 10 in our fundamental rating. MUSA was compared to 121 industry peers in the Specialty Retail industry. MUSA has an excellent profitability rating, but there are some minor concerns on its financial health. MUSA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MUSA had positive earnings in the past year.
MUSA had a positive operating cash flow in the past year.
Each year in the past 5 years MUSA has been profitable.
MUSA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.06%, MUSA belongs to the best of the industry, outperforming 85.12% of the companies in the same industry.
The Return On Equity of MUSA (59.81%) is better than 96.69% of its industry peers.
MUSA has a better Return On Invested Capital (16.10%) than 85.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MUSA is significantly above the industry average of 13.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.06% | ||
| ROE | 59.81% | ||
| ROIC | 16.1% |
ROA(3y)13.41%
ROA(5y)12.88%
ROE(3y)77.34%
ROE(5y)66.09%
ROIC(3y)19%
ROIC(5y)18.15%
1.3 Margins
MUSA's Profit Margin of 2.48% is fine compared to the rest of the industry. MUSA outperforms 63.64% of its industry peers.
In the last couple of years the Profit Margin of MUSA has grown nicely.
MUSA's Operating Margin of 3.74% is in line compared to the rest of the industry. MUSA outperforms 57.02% of its industry peers.
In the last couple of years the Operating Margin of MUSA has grown nicely.
Looking at the Gross Margin, with a value of 11.39%, MUSA is doing worse than 92.56% of the companies in the same industry.
MUSA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.74% | ||
| PM (TTM) | 2.48% | ||
| GM | 11.39% |
OM growth 3Y1.87%
OM growth 5Y14.26%
PM growth 3Y2.77%
PM growth 5Y17.58%
GM growth 3Y2.28%
GM growth 5Y7.25%
2. Health
2.1 Basic Checks
MUSA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, MUSA has less shares outstanding
The number of shares outstanding for MUSA has been reduced compared to 5 years ago.
Compared to 1 year ago, MUSA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.74 indicates that MUSA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.74, MUSA belongs to the top of the industry, outperforming 96.69% of the companies in the same industry.
MUSA has a debt to FCF ratio of 4.75. This is a neutral value as MUSA would need 4.75 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.75, MUSA is in the better half of the industry, outperforming 60.33% of the companies in the same industry.
A Debt/Equity ratio of 2.18 is on the high side and indicates that MUSA has dependencies on debt financing.
With a Debt to Equity ratio value of 2.18, MUSA is not doing good in the industry: 71.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 4.75 | ||
| Altman-Z | 7.74 |
ROIC/WACC1.78
WACC9.06%
2.3 Liquidity
MUSA has a Current Ratio of 0.79. This is a bad value and indicates that MUSA is not financially healthy enough and could expect problems in meeting its short term obligations.
MUSA has a worse Current ratio (0.79) than 86.78% of its industry peers.
A Quick Ratio of 0.37 indicates that MUSA may have some problems paying its short term obligations.
MUSA has a worse Quick ratio (0.37) than 67.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The earnings per share for MUSA have decreased by -5.14% in the last year.
The Earnings Per Share has been growing by 35.75% on average over the past years. This is a very strong growth
The Revenue has decreased by -5.97% in the past year.
Measured over the past years, MUSA shows a small growth in Revenue. The Revenue has been growing by 7.60% on average per year.
EPS 1Y (TTM)-5.14%
EPS 3Y16.64%
EPS 5Y35.75%
EPS Q2Q%-0.57%
Revenue 1Y (TTM)-5.97%
Revenue growth 3Y5.25%
Revenue growth 5Y7.6%
Sales Q2Q%-7.07%
3.2 Future
Based on estimates for the next years, MUSA will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.02% on average per year.
The Revenue is expected to grow by 2.43% on average over the next years.
EPS Next Y8.11%
EPS Next 2Y10.34%
EPS Next 3Y10.1%
EPS Next 5Y10.02%
Revenue Next Year0.26%
Revenue Next 2Y2.21%
Revenue Next 3Y2.99%
Revenue Next 5Y2.43%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
With a Price/Earnings ratio of 20.96, MUSA is valued on the expensive side.
Based on the Price/Earnings ratio, MUSA is valued a bit cheaper than 63.64% of the companies in the same industry.
When comparing the Price/Earnings ratio of MUSA to the average of the S&P500 Index (28.10), we can say MUSA is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 19.38, the valuation of MUSA can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as MUSA.
The average S&P500 Price/Forward Earnings ratio is at 20.74. MUSA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 19.38 |
4.2 Price Multiples
MUSA's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, MUSA is valued a bit cheaper than 62.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.77 | ||
| EV/EBITDA | 11.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MUSA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.58
PEG (5Y)0.59
EPS Next 2Y10.34%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
MUSA has a yearly dividend return of 0.40%, which is pretty low.
Compared to an average industry Dividend Yield of 5.47, MUSA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, MUSA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
MUSA has been paying a dividend for over 5 years, so it has already some track record.
MUSA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
7.32% of the earnings are spent on dividend by MUSA. This is a low number and sustainable payout ratio.
DP7.32%
EPS Next 2Y10.34%
EPS Next 3Y10.1%
507.13
+3.9 (+0.77%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners85.35%
Inst Owner Change2.72%
Ins Owners7.48%
Ins Owner Change-5.4%
Market Cap10.04B
Analysts77.33
Price Target541.91 (6.86%)
Short Float %5.73%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly Dividend1.8
Dividend Growth(5Y)N/A
DP7.32%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.52%
Min EPS beat(2)5.33%
Max EPS beat(2)5.7%
EPS beat(4)2
Avg EPS beat(4)-6.02%
Min EPS beat(4)-33.21%
Max EPS beat(4)5.7%
EPS beat(8)5
Avg EPS beat(8)2.46%
EPS beat(12)8
Avg EPS beat(12)15.57%
EPS beat(16)12
Avg EPS beat(16)21.83%
Revenue beat(2)0
Avg Revenue beat(2)-6.56%
Min Revenue beat(2)-8.63%
Max Revenue beat(2)-4.49%
Revenue beat(4)0
Avg Revenue beat(4)-5.66%
Min Revenue beat(4)-8.63%
Max Revenue beat(4)-2.85%
Revenue beat(8)2
Avg Revenue beat(8)-4.15%
Revenue beat(12)5
Avg Revenue beat(12)-1.57%
Revenue beat(16)9
Avg Revenue beat(16)-0.6%
PT rev (1m)0.66%
PT rev (3m)2.17%
EPS NQ rev (1m)1.54%
EPS NQ rev (3m)-21.94%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-4.94%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)-4.15%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 19.38 | ||
| P/S | 0.5 | ||
| P/FCF | 25.77 | ||
| P/OCF | 11.84 | ||
| P/B | 11.95 | ||
| P/tB | 26.94 | ||
| EV/EBITDA | 11.78 |
EPS(TTM)24.2
EY4.77%
EPS(NY)26.16
Fwd EY5.16%
FCF(TTM)19.68
FCFY3.88%
OCF(TTM)42.83
OCFY8.45%
SpS1022.96
BVpS42.45
TBVpS18.83
PEG (NY)2.58
PEG (5Y)0.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.06% | ||
| ROE | 59.81% | ||
| ROCE | 21.05% | ||
| ROIC | 16.1% | ||
| ROICexc | 16.31% | ||
| ROICexgc | 18.79% | ||
| OM | 3.74% | ||
| PM (TTM) | 2.48% | ||
| GM | 11.39% | ||
| FCFM | 1.92% |
ROA(3y)13.41%
ROA(5y)12.88%
ROE(3y)77.34%
ROE(5y)66.09%
ROIC(3y)19%
ROIC(5y)18.15%
ROICexc(3y)19.48%
ROICexc(5y)19%
ROICexgc(3y)22.67%
ROICexgc(5y)21.44%
ROCE(3y)24.85%
ROCE(5y)23.74%
ROICexcg growth 3Y1.96%
ROICexcg growth 5Y11.65%
ROICexc growth 3Y2.7%
ROICexc growth 5Y8.54%
OM growth 3Y1.87%
OM growth 5Y14.26%
PM growth 3Y2.77%
PM growth 5Y17.58%
GM growth 3Y2.28%
GM growth 5Y7.25%
F-Score6
Asset Turnover4.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 4.75 | ||
| Debt/EBITDA | 1.82 | ||
| Cap/Depr | 184.72% | ||
| Cap/Sales | 2.26% | ||
| Interest Coverage | 8.13 | ||
| Cash Conversion | 84.37% | ||
| Profit Quality | 77.51% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 7.74 |
F-Score6
WACC9.06%
ROIC/WACC1.78
Cap/Depr(3y)156.66%
Cap/Depr(5y)148.5%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.75%
Profit Quality(3y)86.83%
Profit Quality(5y)92.66%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.14%
EPS 3Y16.64%
EPS 5Y35.75%
EPS Q2Q%-0.57%
EPS Next Y8.11%
EPS Next 2Y10.34%
EPS Next 3Y10.1%
EPS Next 5Y10.02%
Revenue 1Y (TTM)-5.97%
Revenue growth 3Y5.25%
Revenue growth 5Y7.6%
Sales Q2Q%-7.07%
Revenue Next Year0.26%
Revenue Next 2Y2.21%
Revenue Next 3Y2.99%
Revenue Next 5Y2.43%
EBIT growth 1Y-8.49%
EBIT growth 3Y7.22%
EBIT growth 5Y22.94%
EBIT Next Year40.15%
EBIT Next 3Y16.47%
EBIT Next 5Y12.32%
FCF growth 1Y-13.14%
FCF growth 3Y-5.58%
FCF growth 5Y29.13%
OCF growth 1Y8.11%
OCF growth 3Y4.75%
OCF growth 5Y22.02%