One Reason Marathon Oil (MRO) Stock Closed Down

NEW YORK (TheStreet) -- Shares of Marathon Oil Corp  (MRO) finished Friday's regular trading session down 2.28% to $25.92 on heavy volume, along with other energy related stocks as oil prices slumped to trade in the red.

Oil prices fell amid concerns over Greece, Reuters reports.

Also the U.S. shale oil output forecast that production would continue to grow this year, countered signs of a pickup in demand, according to Reuters.

Brent crude for August delivery was down 2.15% to $62.88 a barrel as of 4:27 p.m. ET today, while U.S. crude for July delivery was lower by 1.65% to $59.45 a barrel.

About 8.02 million shares have traded hands as of 4:23 p.m. ET today, compared to its average trading volume of about 5.73 million shares a day.

Houston, Texas-based Marathon Oil is an energy company that explores for, produces and markets crude oil and condensate and natural gas.

Separately, TheStreet Ratings team rates MARATHON OIL CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate MARATHON OIL CORP (MRO) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that MRO's debt-to-equity ratio is low, the quick ratio, which is currently 0.69, displays a potential problem in covering short-term cash needs.
  • 44.54% is the gross profit margin for MARATHON OIL CORP which we consider to be strong. Regardless of MRO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MRO's net profit margin of -18.59% significantly underperformed when compared to the industry average.
  • Net operating cash flow has significantly decreased to $309.00 million or 78.97% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, MARATHON OIL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: MRO Ratings Report

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