Marathon Petroleum Corp

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MPC : NYSE : Basic Materials
$51.5 | %
Today's Range: 50.74 - 51.65
Avg. Daily Volume: 4447200.0
06/23/17 - 4:01 PM ET

Financial Analysis


MARATHON PETROLEUM CORP's gross profit margin for the first quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing net income growth, but not when comparing revenue growth. MARATHON PETROLEUM CORP has weak liquidity. Currently, the Quick Ratio is 0.79 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.30% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)14475.010929.0
EBITDA ($mil)723.0619.0
EBIT ($mil)187.0129.0
Net Income ($mil)30.01.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)2167.0308.0
Total Assets ($mil)45821.041758.0
Total Debt ($mil)12598.011566.0
Equity ($mil)13070.012902.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin7.689.12
EBITDA Margin4.995.66
Operating Margin1.291.18
Sales Turnover1.31.44
Return on Assets2.624.69
Return on Equity9.215.2
Debt Q1 FY17 Q1 FY16
Current Ratio1.611.45
Debt/Capital0.490.47
Interest Expense170.0159.0
Interest Coverage1.10.81


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)519.0530.0
Div / share0.360.32
EPS0.060.0
Book value / share25.1824.34
Institutional Own % n/a n/a
Avg Daily Volume4377188.05207997.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 51.24 for the Oil, Gas & Consumable Fuels industry and a discount compared to the S&P 500 average of 25.73. To use another comparison, its price-to-book ratio of 2.10 indicates a discount versus the S&P 500 average of 3.08 and a significant discount versus the industry average of 81.35. 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 23.34 Peers 51.24   MPC 5.84 Peers 14.91

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 14.48 Peers 23.97   MPC 0.70 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MPC 2.10 Peers 81.35   MPC -37.30 Peers 98.97

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 0.46 Peers 2.16   MPC -0.92 Peers 6.96

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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