Marathon Oil Corp

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MRO : NYSE : Basic Materials
$18.2 | %
Today's Range: 17.84 - 18.39
Avg. Daily Volume: 1.82187E7
12/02/16 - 4:02 PM ET

Financial Analysis


MARATHON OIL CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. MARATHON OIL CORP has strong liquidity. Currently, the Quick Ratio is 1.94 which shows 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 remained virtually unchanged only decreasing by 2.13% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)1100.01384.0
EBITDA ($mil)450.0612.0
EBIT ($mil)-219.0-1005.0
Net Income ($mil)-192.0-749.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1953.02380.0
Total Assets ($mil)32310.034674.0
Total Debt ($mil)7278.08358.0
Equity ($mil)18922.019335.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin55.4554.55
EBITDA Margin40.944.21
Operating Margin-19.91-72.62
Sales Turnover0.120.19
Return on Assets-4.83-1.39
Return on Equity-8.25-7.77
Debt Q3 FY16 Q3 FY15
Current Ratio2.161.35
Debt/Capital0.280.3
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)847.0677.0
Div / share0.050.21
EPS-0.23-1.11
Book value / share22.3428.56
Institutional Own % n/a n/a
Avg Daily Volume1.7097104E71.8435616E7

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 0.69 indicates a significant discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 20.54. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, MARATHON OIL CORP seems to be trading at a premium 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 38.75   MRO 12.37 Peers 12.67

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.

 

Average. 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 valuation on par 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 44.30   MRO NA Peers 0.47

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 0.69 Peers 20.54   MRO 3.14 Peers -239.55

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.

MRO is trading at a significant discount to its peers.

 

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

MRO is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MRO 3.28 Peers 2.56   MRO -40.87 Peers -20.64

Premium. 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 significant premium to its industry.

 

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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