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 122 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MUSA was profitable.
In the past year MUSA had a positive cash flow from operations.
MUSA had positive earnings in each of the past 5 years.
MUSA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.88%, MUSA belongs to the top of the industry, outperforming 84.30% of the companies in the same industry.
MUSA has a Return On Equity of 68.05%. This is amongst the best in the industry. MUSA outperforms 97.52% of its industry peers.
With an excellent Return On Invested Capital value of 15.67%, MUSA belongs to the best of the industry, outperforming 85.12% of the companies in the same industry.
MUSA had an Average Return On Invested Capital over the past 3 years of 19.00%. This is significantly above the industry average of 12.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.88% | ||
| ROE | 68.05% | ||
| ROIC | 15.67% |
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 2.46% is fine compared to the rest of the industry. MUSA outperforms 62.81% of its industry peers.
In the last couple of years the Profit Margin of MUSA has grown nicely.
With a Operating Margin value of 3.71%, MUSA perfoms like the industry average, outperforming 59.50% of the companies in the same industry.
In the last couple of years the Operating Margin of MUSA has grown nicely.
MUSA has a Gross Margin of 11.60%. This is amonst the worse of the industry: MUSA underperforms 91.74% of its industry peers.
MUSA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.71% | ||
| PM (TTM) | 2.46% | ||
| GM | 11.6% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MUSA is creating value.
MUSA has less shares outstanding than it did 1 year ago.
MUSA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MUSA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.43 indicates that MUSA is not in any danger for bankruptcy at the moment.
MUSA has a better Altman-Z score (7.43) than 96.69% of its industry peers.
The Debt to FCF ratio of MUSA is 5.37, which is a neutral value as it means it would take MUSA, 5.37 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.37, MUSA is doing good in the industry, outperforming 63.64% of the companies in the same industry.
MUSA has a Debt/Equity ratio of 2.74. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MUSA (2.74) is worse than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 7.43 |
ROIC/WACC1.7
WACC9.24%
2.3 Liquidity
MUSA has a Current Ratio of 0.80. 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's Current ratio of 0.80 is on the low side compared to the rest of the industry. MUSA is outperformed by 85.95% of its industry peers.
MUSA has a Quick Ratio of 0.80. This is a bad value and indicates that MUSA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.39, MUSA is in line with its industry, outperforming 40.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The earnings per share for MUSA have decreased by -0.51% in the last year.
MUSA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.75% yearly.
Looking at the last year, MUSA shows a decrease in Revenue. The Revenue has decreased by -6.43% in the last year.
The Revenue has been growing slightly by 7.60% on average over the past years.
EPS 1Y (TTM)-0.51%
EPS 3Y16.64%
EPS 5Y35.75%
EPS Q2Q%-15.71%
Revenue 1Y (TTM)-6.43%
Revenue growth 3Y5.25%
Revenue growth 5Y7.6%
Sales Q2Q%-6.57%
3.2 Future
MUSA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.79% yearly.
The Revenue is expected to grow by 2.13% on average over the next years.
EPS Next Y0.69%
EPS Next 2Y7.72%
EPS Next 3Y7.54%
EPS Next 5Y5.79%
Revenue Next Year-2.84%
Revenue Next 2Y0.75%
Revenue Next 3Y1.21%
Revenue Next 5Y2.13%
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.
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
Based on the Price/Earnings ratio of 17.91, the valuation of MUSA can be described as rather expensive.
MUSA's Price/Earnings ratio is a bit cheaper when compared to the industry. MUSA is cheaper than 72.73% of the companies in the same industry.
MUSA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.12, the valuation of MUSA can be described as correct.
MUSA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MUSA is cheaper than 66.12% of the companies in the same industry.
MUSA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.91 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
MUSA's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MUSA indicates a somewhat cheap valuation: MUSA is cheaper than 69.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.65 | ||
| EV/EBITDA | 10.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MUSA does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of MUSA may justify a higher PE ratio.
PEG (NY)25.83
PEG (5Y)0.5
EPS Next 2Y7.72%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.47%, MUSA is not a good candidate for dividend investing.
MUSA's Dividend Yield is a higher than the industry average which is at 4.90.
With a Dividend Yield of 0.47, MUSA pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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
MUSA pays out 7.72% of its income as dividend. This is a sustainable payout ratio.
DP7.72%
EPS Next 2Y7.72%
EPS Next 3Y7.54%
424.65
-2.31 (-0.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.09%
Inst Owner Change-0.01%
Ins Owners7.41%
Ins Owner Change-5.33%
Market Cap8.39B
Analysts76
Price Target504.05 (18.7%)
Short Float %5.5%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend1.8
Dividend Growth(5Y)N/A
DP7.72%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.17%
Min EPS beat(2)-35.68%
Max EPS beat(2)5.33%
EPS beat(4)2
Avg EPS beat(4)-6.64%
Min EPS beat(4)-35.68%
Max EPS beat(4)5.7%
EPS beat(8)4
Avg EPS beat(8)-4.12%
EPS beat(12)7
Avg EPS beat(12)4.43%
EPS beat(16)11
Avg EPS beat(16)16.5%
Revenue beat(2)0
Avg Revenue beat(2)-4.86%
Min Revenue beat(2)-5.23%
Max Revenue beat(2)-4.49%
Revenue beat(4)0
Avg Revenue beat(4)-6.26%
Min Revenue beat(4)-8.63%
Max Revenue beat(4)-4.49%
Revenue beat(8)1
Avg Revenue beat(8)-4.86%
Revenue beat(12)4
Avg Revenue beat(12)-2.47%
Revenue beat(16)8
Avg Revenue beat(16)-1.06%
PT rev (1m)-2.15%
PT rev (3m)-6.37%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-6.29%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-7.34%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)-3.71%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-3.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.91 | ||
| Fwd PE | 15.12 | ||
| P/S | 0.42 | ||
| P/FCF | 22.65 | ||
| P/OCF | 9.99 | ||
| P/B | 11.66 | ||
| P/tB | 33.28 | ||
| EV/EBITDA | 10.36 |
EPS(TTM)23.71
EY5.58%
EPS(NY)28.08
Fwd EY6.61%
FCF(TTM)18.74
FCFY4.41%
OCF(TTM)42.52
OCFY10.01%
SpS1008.4
BVpS36.42
TBVpS12.76
PEG (NY)25.83
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.88% | ||
| ROE | 68.05% | ||
| ROCE | 20.5% | ||
| ROIC | 15.67% | ||
| ROICexc | 15.89% | ||
| ROICexgc | 18.29% | ||
| OM | 3.71% | ||
| PM (TTM) | 2.46% | ||
| GM | 11.6% | ||
| FCFM | 1.86% |
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-Score5
Asset Turnover4.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.74 | ||
| Debt/FCF | 5.37 | ||
| Debt/EBITDA | 1.98 | ||
| Cap/Depr | 182.41% | ||
| Cap/Sales | 2.36% | ||
| Interest Coverage | 7.98 | ||
| Cash Conversion | 84.21% | ||
| Profit Quality | 75.64% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 7.43 |
F-Score5
WACC9.24%
ROIC/WACC1.7
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)-0.51%
EPS 3Y16.64%
EPS 5Y35.75%
EPS Q2Q%-15.71%
EPS Next Y0.69%
EPS Next 2Y7.72%
EPS Next 3Y7.54%
EPS Next 5Y5.79%
Revenue 1Y (TTM)-6.43%
Revenue growth 3Y5.25%
Revenue growth 5Y7.6%
Sales Q2Q%-6.57%
Revenue Next Year-2.84%
Revenue Next 2Y0.75%
Revenue Next 3Y1.21%
Revenue Next 5Y2.13%
EBIT growth 1Y-3.71%
EBIT growth 3Y7.22%
EBIT growth 5Y22.94%
EBIT Next Year34.25%
EBIT Next 3Y15.04%
EBIT Next 5Y10.86%
FCF growth 1Y-24.59%
FCF growth 3Y-5.58%
FCF growth 5Y29.13%
OCF growth 1Y4.33%
OCF growth 3Y4.75%
OCF growth 5Y22.02%