Marathon Oil Corp

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MRO : NYSE : Basic Materials
$15.35 up 0.2 | 1.3%
Today's Range: 15.05 - 15.42
Avg. Daily Volume: 1.31854E7
04/25/17 - 1:07 PM ET

Financial Analysis


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 ($mil)1200.01164.0
EBITDA ($mil)518.0143.0
EBIT ($mil)-136.0-877.0
Net Income ($mil)-1371.0-793.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)2490.01221.0
Total Assets ($mil)31094.032311.0
Total Debt ($mil)7275.07277.0
Equity ($mil)17541.018553.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin52.0837.89
EBITDA Margin43.1612.28
Operating Margin-11.33-75.34
Sales Turnover0.130.17
Return on Assets-6.88-6.82
Return on Equity-12.19-11.87
Debt Q4 FY16 Q4 FY15
Current Ratio1.641.5
Debt/Capital0.290.28
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)847.0677.0
Div / share0.050.05
EPS-1.62-1.17
Book value / share20.7127.4
Institutional Own % n/a n/a
Avg Daily Volume1.3138451E71.5484129E7

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 0.73 indicates a significant discount versus the S&P 500 average of 2.99 and a significant discount versus the industry average of 38.31. 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 145.46   MRO 11.91 Peers 11.69

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 503.00 Peers 26.05   MRO NA Peers 0.64

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 0.73 Peers 38.31   MRO 19.94 Peers 41.17

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 3.17 Peers 2.53   MRO -27.01 Peers -9.44

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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