Marathon Oil Corp

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MRO : NYSE : Basic Materials
$10.77 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1.56606E7
08/21/17 - 4:01 PM ET

Financial Analysis


MARATHON OIL CORP's gross profit margin for the second quarter of its fiscal year 2017 has significantly increased 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 revenue growth, but not when comparing net income growth. MARATHON OIL CORP has strong liquidity. Currently, the Quick Ratio is 1.98 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 35.23% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)993.0761.0
EBITDA ($mil)525.0200.0
EBIT ($mil)-92.0-445.0
Net Income ($mil)-139.0-170.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)2614.02584.0
Total Assets ($mil)24241.032527.0
Total Debt ($mil)7263.07281.0
Equity ($mil)12405.019153.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin62.7449.8
EBITDA Margin52.8726.28
Operating Margin-9.26-58.48
Sales Turnover0.180.12
Return on Assets-27.46-6.51
Return on Equity-14.23-10.65
Debt Q2 FY17 Q2 FY16
Current Ratio2.122.72
Debt/Capital0.370.28
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)850.0848.0
Div / share0.050.05
EPS-0.18-0.16
Book value / share14.5922.59
Institutional Own % n/a n/a
Avg Daily Volume1.5388771E71.3897069E7

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 0.74 indicates a significant discount versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 524.92. The current price-to-sales ratio is similar to the S&P 500 average, but it is above 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 61.94   MRO 4.87 Peers 10.76

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.

 

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.

MRO 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
MRO NM Peers 36.45   MRO NA Peers 0.57

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 0.74 Peers 524.92   MRO 28.67 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.

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 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
MRO 2.15 Peers 1.98   MRO 9.18 Peers 20.11

Average. 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 valuation on par with its industry on this measurement.

 

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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