Marathon Oil CorpFind Ratings Reports
MARATHON OIL CORP's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. MARATHON OIL CORP has strong liquidity. Currently, the Quick Ratio is 1.50 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 5.45% 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||Q4 FY16||Q4 FY15|
|Net Sales ($mil)||1200.0||1164.0|
|Net Income ($mil)||-1371.0||-793.0|
|Balance Sheet||Q4 FY16||Q4 FY15|
|Cash & Equiv. ($mil)||2490.0||1221.0|
|Total Assets ($mil)||31094.0||32311.0|
|Total Debt ($mil)||7275.0||7277.0|
|Profitability||Q4 FY16||Q4 FY15|
|Gross Profit Margin||52.08||37.89|
|Return on Assets||-6.88||-6.82|
|Return on Equity||-12.19||-11.87|
|Debt||Q4 FY16||Q4 FY15|
|Share Data||Q4 FY16||Q4 FY15|
|Shares outstanding (mil)||847.0||677.0|
|Div / share||0.05||0.05|
|Book value / share||20.71||27.4|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.1899325E7||1.8047376E7|
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 0.75 indicates a significant discount versus the S&P 500 average of 2.98 and a significant discount versus the industry average of 34.50. 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.
|MRO NM||Peers 145.31||MRO 12.27||Peers 12.23|
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.
|MRO 124.40||Peers 35.06||MRO NA||Peers 0.51|
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.
|MRO 0.75||Peers 34.50||MRO 19.94||Peers 23.65|
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.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, MRO is expected to trail its peers on the basis of its earnings growth rate.
|MRO 3.27||Peers 2.55||MRO -27.01||Peers -10.24|
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