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Marathon Oil Corp
MRO : NYSE : Basic Materials
$14.10 -0.25 | -1.70%
Today's Range: 13.72 - 14.88
Avg. Daily Volume: 36,026,700
04/29/16 - 3:59 PM ET

Financial Analysis


MARATHON OIL CORP's gross profit margin for the fourth quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income fell significantly, but still managed to outperform when compared to the average company in its industry. MARATHON OIL CORP has average liquidity. Currently, the Quick Ratio is 1.23 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 11.73% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)1164.02398.0
EBITDA ($mil)174.0727.0
EBIT ($mil)-877.0-242.0
Net Income ($mil)-793.0926.0


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)1221.02398.0
Total Assets ($mil)32311.036011.0
Total Debt ($mil)7277.06391.0
Equity ($mil)18553.021020.0


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin40.5550.38
EBITDA Margin14.9430.31
Operating Margin-75.34-10.09
Sales Turnover0.170.3
Return on Assets-6.828.45
Return on Equity-11.874.6
Debt Q4 FY15 Q4 FY14
Current Ratio1.51.05
Debt/Capital0.280.23
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)677.0675.0
Div / share0.050.21
EPS-1.17-0.14
Book value / share27.431.14
Institutional Own % n/a n/a
Avg Daily Volume3.55163E71.5564831E7

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.51 indicates a significant discount versus the S&P 500 average of 2.76 and a significant discount versus the industry average of 8.65. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, MARATHON OIL CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MRO NM Peers 63.93   MRO 6.00 Peers 18.35

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

MRO's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

MRO is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MRO NM Peers 36.14   MRO NA Peers 0.95

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

MRO's ratio is negative making this valuation measure meaningless.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MRO 0.51 Peers 8.65   MRO -331.20 Peers -184.62

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

MRO is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, MRO is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MRO 1.70 Peers 2.09   MRO -49.09 Peers -17.25

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

MRO is trading at a discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

MRO significantly trails its peers on the basis of sales growth

 

 

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