Marathon Petroleum Corp

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MPC : NYSE : Basic Materials
$49.66 up 0.21 | 0.42%
Today's Range: 49.3 - 49.96
Avg. Daily Volume: 3855800.0
08/22/17 - 3:59 PM ET

Financial Analysis


MARATHON PETROLEUM CORP's gross profit margin for the second quarter of its fiscal year 2017 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. MARATHON PETROLEUM CORP has weak liquidity. Currently, the Quick Ratio is 0.70 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 6.33% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)16254.014918.0
EBITDA ($mil)1415.01837.0
EBIT ($mil)894.01337.0
Net Income ($mil)483.0801.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1450.01754.0
Total Assets ($mil)45447.044133.0
Total Debt ($mil)12606.011059.0
Equity ($mil)12636.013490.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin11.1615.0
EBITDA Margin8.712.31
Operating Margin5.58.96
Sales Turnover1.341.27
Return on Assets1.944.38
Return on Equity7.014.35
Debt Q2 FY17 Q2 FY16
Current Ratio1.551.52
Debt/Capital0.50.45
Interest Expense180.0154.0
Interest Coverage4.978.68


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)506.0528.0
Div / share0.360.32
EPS0.931.51
Book value / share24.9725.55
Institutional Own % n/a n/a
Avg Daily Volume3871634.04486231.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 61.94 for the Oil, Gas & Consumable Fuels industry and a premium compared to the S&P 500 average of 24.23. To use another comparison, its price-to-book ratio of 1.99 indicates a discount versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 524.92. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, MARATHON PETROLEUM 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
MPC 29.41 Peers 61.94   MPC 7.62 Peers 10.76

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

MPC is trading at a significant discount to its peers.

 

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.

MPC 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
MPC 13.62 Peers 36.45   MPC 1.18 Peers 0.57

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

MPC is trading at a significant discount to its peers.

 

Premium. 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.

MPC trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MPC 1.99 Peers 524.92   MPC -53.32 Peers 163.55

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.

MPC 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, MPC 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
MPC 0.41 Peers 1.98   MPC 7.93 Peers 20.11

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.

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

 

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

MPC significantly trails its peers on the basis of sales growth

 

 

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