MURPHY USA INC (MUSA)
US6267551025 - Common Stock
Taking everything into account, MUSA scores 5 out of 10 in our fundamental rating. MUSA was compared to 126 industry peers in the Specialty Retail industry. While MUSA has a great profitability rating, there are some minor concerns on its financial health. MUSA has a correct valuation and a medium growth rate.
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.
In the past 5 years MUSA has always been profitable.
In the past 5 years MUSA always reported a positive cash flow from operatings.
1.2 Ratios
MUSA has a better Return On Assets (12.83%) than 89.68% of its industry peers.
MUSA has a better Return On Equity (67.17%) than 96.03% of its industry peers.
With an excellent Return On Invested Capital value of 18.12%, MUSA belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
MUSA had an Average Return On Invested Capital over the past 3 years of 18.16%. This is above the industry average of 13.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.83% | ||
| ROE | 67.17% | ||
| ROIC | 18.12% |
ROA(3y)12.99%
ROA(5y)11.82%
ROE(3y)73.8%
ROE(5y)57.99%
ROIC(3y)18.16%
ROIC(5y)16.72%
1.3 Margins
MUSA has a Profit Margin (2.59%) which is comparable to the rest of the industry.
MUSA's Profit Margin has improved in the last couple of years.
MUSA has a Operating Margin of 3.84%. This is comparable to the rest of the industry: MUSA outperforms 57.14% of its industry peers.
MUSA's Operating Margin has improved in the last couple of years.
MUSA has a Gross Margin of 10.75%. This is amonst the worse of the industry: MUSA underperforms 92.06% of its industry peers.
MUSA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.84% | ||
| PM (TTM) | 2.59% | ||
| GM | 10.75% |
OM growth 3Y-8.25%
OM growth 5Y14.85%
PM growth 3Y-8.95%
PM growth 5Y11.66%
GM growth 3Y-5.69%
GM growth 5Y7.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MUSA is creating value.
The number of shares outstanding for MUSA has been reduced compared to 1 year ago.
Compared to 5 years ago, MUSA has less shares outstanding
Compared to 1 year ago, MUSA has an improved debt to assets ratio.
2.2 Solvency
MUSA has an Altman-Z score of 8.04. This indicates that MUSA is financially healthy and has little risk of bankruptcy at the moment.
MUSA has a better Altman-Z score (8.04) than 97.62% of its industry peers.
The Debt to FCF ratio of MUSA is 4.01, which is a neutral value as it means it would take MUSA, 4.01 years of fcf income to pay off all of its debts.
MUSA's Debt to FCF ratio of 4.01 is fine compared to the rest of the industry. MUSA outperforms 60.32% of its industry peers.
A Debt/Equity ratio of 2.15 is on the high side and indicates that MUSA has dependencies on debt financing.
The Debt to Equity ratio of MUSA (2.15) is worse than 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.15 | ||
| Debt/FCF | 4.01 | ||
| Altman-Z | 8.04 |
ROIC/WACC2.08
WACC8.71%
2.3 Liquidity
MUSA has a Current Ratio of 0.95. This is a bad value and indicates that MUSA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.95, MUSA is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
A Quick Ratio of 0.56 indicates that MUSA may have some problems paying its short term obligations.
MUSA's Quick ratio of 0.56 is in line compared to the rest of the industry. MUSA outperforms 46.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
MUSA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.21%.
Measured over the past years, MUSA shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.52% on average per year.
The Revenue has decreased by -8.17% in the past year.
MUSA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.43% yearly.
EPS 1Y (TTM)-9.21%
EPS 3Y24.13%
EPS 5Y36.52%
EPS growth Q2Q34.36%
Revenue 1Y (TTM)-8.17%
Revenue growth 3Y24.1%
Revenue growth 5Y8.43%
Revenue growth Q2Q-5.54%
3.2 Future
MUSA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.84% yearly.
MUSA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.70% yearly.
EPS Next Y-2.47%
EPS Next 2Y3.56%
EPS Next 3Y1.55%
EPS Next 5Y3.84%
Revenue Next Year-0.03%
Revenue Next 2Y1.33%
Revenue Next 3Y1.91%
Revenue Next 5Y2.7%
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 15.38, which indicates a correct valuation of MUSA.
Based on the Price/Earnings ratio, MUSA is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
MUSA is valuated rather cheaply when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.77, which indicates a correct valuation of MUSA.
MUSA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MUSA is cheaper than 69.05% of the companies in the same industry.
MUSA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.38 | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MUSA is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MUSA indicates a somewhat cheap valuation: MUSA is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.22 | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
The decent profitability rating of MUSA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y3.56%
EPS Next 3Y1.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.42%, MUSA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.56, MUSA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, MUSA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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 Years3
Div Non Decr Years3
5.3 Sustainability
6.00% of the earnings are spent on dividend by MUSA. This is a low number and sustainable payout ratio.
DP6%
EPS Next 2Y3.56%
EPS Next 3Y1.55%
MURPHY USA INC
NYSE:MUSA (5/3/2024, 7:07:44 PM)
After market: 392.44 0 (0%)392.44
-3.92 (-0.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Dividend Growth(5Y)
DP
Div Incr Years
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Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.38 | ||
| Fwd PE | 15.77 | ||
| 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)N/A
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.83% | ||
| ROE | 67.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.84% | ||
| PM (TTM) | 2.59% | ||
| GM | 10.75% | ||
| 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 Turnover4.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.56 | ||
| 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)-9.21%
EPS 3Y24.13%
EPS 5Y
EPS growth Q2Q
EPS Next Y-2.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.17%
Revenue growth 3Y24.1%
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
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EBIT Next 5Y
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FCF growth 3Y
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