Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
-- Marathon Oil
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.8%. Since the same quarter one year prior, revenues slightly increased by 2.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, MRO's share price has jumped by 43.41%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MRO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for MARATHON OIL CORP is rather high; currently it is at 68.90%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.89% is above that of the industry average.
- Net operating cash flow has significantly increased by 57.04% to $1,528.00 million when compared to the same quarter last year. In addition, MARATHON OIL CORP has also vastly surpassed the industry average cash flow growth rate of -13.28%.
Marathon Oil Corporation operates as an energy company worldwide. Marathon Oil has a market cap of $25.1 billion and is part of the basic materials sector and energy industry. The company has a P/E ratio of 16.00, below the S&P 500 P/E ratio of 18.00. Shares are up 14.9% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.
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