NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, growth in earnings per share and compelling growth in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- MUR's revenue growth has slightly outpaced the industry average of 36.3%. Since the same quarter one year prior, revenues rose by 38.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MUR's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.03, which illustrates the ability to avoid short-term cash problems.
- MURPHY OIL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, MURPHY OIL CORP increased its bottom line by earning $4.17 versus $3.84 in the prior year. This year, the market expects an improvement in earnings ($6.09 versus $4.17).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 100.2% when compared to the same quarter one year prior, rising from $202.83 million to $406.11 million.
Murphy Oil Corporation, through its subsidiaries, engages in the exploration and production of oil and gas properties worldwide. The company explores for and produces crude oil, natural gas, and natural gas liquids. The company has a P/E ratio of 9.5, above the average energy industry P/E ratio of 8.6 and below the S&P 500 P/E ratio of 17.7. Murphy Oil has a market cap of $9.88 billion and is part of the
industry. Shares are down 33.7% year to date as of the close of trading on Monday.
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