Marathon Oil Corp.

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MRO : NYSE : Energy Minerals
$15.3 -0.55 | -3.47%
Today's Range: 15.29 - 16.04
Avg. Daily Volume: 1.2014E7
02/21/18 - 4:03 PM ET

Financial Analysis

MARATHON OIL CORP's gross profit margin for the fourth quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. MARATHON OIL CORP has average liquidity. Currently, the Quick Ratio is 1.22 which shows that technically this company has 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 33.25% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)1230.01200.0
EBITDA ($mil)0.0518.0
EBIT ($mil)797.0-136.0
Net Income ($mil)-28.0-1371.0

Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)563.02490.0
Total Assets ($mil)22012.031094.0
Total Debt ($mil)5494.07275.0
Equity ($mil)11708.017541.0

Profitability Q4 FY17 Q4 FY16
Gross Profit Margin64.852.08
EBITDA Margin0.043.16
Operating Margin0.0-11.33
Sales Turnover0.20.11
Return on Assets-25.99-6.88
Return on Equity-7.08-11.82
Debt Q4 FY17 Q4 FY16
Current Ratio1.31.64
Interest Expense0.00.0
Interest Coverage0.00.0

Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)850.0847.0
Div / share0.050.05
Book value / share13.7720.71
Institutional Own % n/a n/a
Avg Daily Volume1.2245194E71.2204E7


HOLD. 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 1.18 indicates a significant discount versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 5.16. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MRO NM Peers 274.94   MRO 6.51 Peers 8.95

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
MRO 41.85 Peers 46.08   MRO NA Peers 0.60

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

MRO is trading at a premium to its peers.


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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MRO 1.18 Peers 5.16   MRO 61.36 Peers 488.23

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MRO 3.17 Peers 2.06   MRO 27.34 Peers 30.08

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.


Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

MRO is keeping pace with its peers on the basis of sales growth.



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