Marathon Oil Corp

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MRO : NYSE : Basic Materials
$11.53 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1.37571E7
06/26/17 - 4:03 PM ET

Financial Analysis


MARATHON OIL CORP's gross profit margin for the first quarter of its fiscal year 2017 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 average liquidity. Currently, the Quick Ratio is 1.05 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 34.96% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)988.0612.0
EBITDA ($mil)554.075.0
EBIT ($mil)-22.0-485.0
Net Income ($mil)-4957.0-407.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)2490.02072.0
Total Assets ($mil)24537.032868.0
Total Debt ($mil)7264.07281.0
Equity ($mil)12584.019351.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin67.9137.91
EBITDA Margin56.0712.25
Operating Margin-2.23-79.25
Sales Turnover0.170.14
Return on Assets-27.26-7.1
Return on Equity-14.16-11.82
Debt Q1 FY17 Q1 FY16
Current Ratio1.212.14
Debt/Capital0.370.27
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)850.0848.0
Div / share0.050.05
EPS-0.06-0.49
Book value / share14.822.82
Institutional Own % n/a n/a
Avg Daily Volume1.3700734E71.2037546E7

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 0.78 indicates a significant discount versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 80.37. The current price-to-sales ratio is 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 50.87   MRO 6.51 Peers 14.93

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 1159.00 Peers 23.67   MRO NA Peers 0.54

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 0.78 Peers 80.37   MRO 36.83 Peers 98.98

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 2.32 Peers 2.12   MRO -8.67 Peers 7.09

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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