MMP Stock Overview
Magellan Midstream Partners, L.P. engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States.
Magellan Midstream Partners Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$50.57|
|52 Week High||US$53.85|
|52 Week Low||US$43.58|
|1 Month Change||-0.47%|
|3 Month Change||4.33%|
|1 Year Change||2.66%|
|3 Year Change||-19.45%|
|5 Year Change||-32.27%|
|Change since IPO||742.83%|
Recent News & Updates
Magellan Midstream Partners: Attractive, But Risky
Without much doubt, Magellan Midstream Partners has a wide economic moat due to the cost advantages stemming from its pipeline. However, the company is also facing major risks like high debt levels and the threat of switching to alternative energy sources. If I had to choose between being bearish and bullish, I would rather choose the latter, but Magellan Midstream Partners is not a bargain right now.
|MMP||US Oil and Gas||US Market|
Return vs Industry: MMP underperformed the US Oil and Gas industry which returned 47.8% over the past year.
Return vs Market: MMP exceeded the US Market which returned -10.8% over the past year.
|MMP Average Weekly Movement||3.9%|
|Oil and Gas Industry Average Movement||8.7%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.9%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: MMP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: MMP's weekly volatility (4%) has been stable over the past year.
About the Company
Magellan Midstream Partners, L.P. engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. It operates through Refined Products and Crude Oil segments. The company operates refined products pipeline that transports gasoline, diesel fuel, aviation fuel, kerosene, and heating oil to wholesalers, retailers, traders, railroads, airlines, and regional farm cooperatives; and to end markets, including retail gasoline stations, truck stops, farm cooperatives, railroad fueling depots, military bases, and commercial airports.
Magellan Midstream Partners Fundamentals Summary
|MMP fundamental statistics|
Is MMP overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MMP income statement (TTM)|
|Cost of Revenue||US$1.42b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||4.17|
|Net Profit Margin||31.75%|
How did MMP perform over the long term?See historical performance and comparison
8.2%Current Dividend Yield
Is Magellan Midstream Partners undervalued compared to its fair value and its price relative to the market?
Valuation Score 4/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MMP ($50.57) is trading below our estimate of fair value ($70.32)
Significantly Below Fair Value: MMP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MMP is good value based on its PE Ratio (12.1x) compared to the US Oil and Gas industry average (13.6x).
PE vs Market: MMP is good value based on its PE Ratio (12.1x) compared to the US market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: MMP is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: MMP is overvalued based on its PB Ratio (5.9x) compared to the US Oil and Gas industry average (2.1x).
How is Magellan Midstream Partners forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MMP's forecast earnings growth (6.3% per year) is above the savings rate (1.9%).
Earnings vs Market: MMP's earnings (6.3% per year) are forecast to grow slower than the US market (12.5% per year).
High Growth Earnings: MMP's earnings are forecast to grow, but not significantly.
Revenue vs Market: MMP's revenue (7.9% per year) is forecast to grow slower than the US market (7.9% per year).
High Growth Revenue: MMP's revenue (7.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MMP's Return on Equity is forecast to be very high in 3 years time (59.3%).
How has Magellan Midstream Partners performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MMP has high quality earnings.
Growing Profit Margin: MMP's current net profit margins (31.7%) are lower than last year (32.9%).
Past Earnings Growth Analysis
Earnings Trend: MMP's earnings have declined by 1.6% per year over the past 5 years.
Accelerating Growth: MMP's earnings growth over the past year (21.6%) exceeds its 5-year average (-1.6% per year).
Earnings vs Industry: MMP earnings growth over the past year (21.6%) underperformed the Oil and Gas industry 86.4%.
Return on Equity
High ROE: Whilst MMP's Return on Equity (48.9%) is outstanding, this metric is skewed due to their high level of debt.
How is Magellan Midstream Partners's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: MMP's short term assets ($951.2M) exceed its short term liabilities ($635.8M).
Long Term Liabilities: MMP's short term assets ($951.2M) do not cover its long term liabilities ($5.7B).
Debt to Equity History and Analysis
Debt Level: MMP's net debt to equity ratio (294.7%) is considered high.
Reducing Debt: MMP's debt to equity ratio has increased from 198.6% to 295% over the past 5 years.
Debt Coverage: MMP's debt is well covered by operating cash flow (22.5%).
Interest Coverage: MMP's interest payments on its debt are well covered by EBIT (4x coverage).
What is Magellan Midstream Partners's current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MMP's dividend (8.21%) is higher than the bottom 25% of dividend payers in the US market (1.54%).
High Dividend: MMP's dividend (8.21%) is in the top 25% of dividend payers in the US market (4.06%)
Stability and Growth of Payments
Stable Dividend: MMP's dividends per share have been stable in the past 10 years.
Growing Dividend: MMP's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its high payout ratio (101.9%), MMP's dividend payments are not well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: At its current cash payout ratio (83.8%), MMP's dividend payments are covered by cash flows.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Aaron Milford (47 yo)
Mr. Aaron L. Milford serves as President & Chief Executive Officer and Director of Magellan GP, LLC, at Magellan Midstream Partners, L.P. since May 01, 2022 and serves as General Partner of Magellan Midstr...
CEO Compensation Analysis
Compensation vs Market: Aaron's total compensation ($USD3.61M) is below average for companies of similar size in the US market ($USD13.27M).
Compensation vs Earnings: Aaron's compensation has been consistent with company performance over the past year.
Experienced Management: MMP's management team is seasoned and experienced (5.5 years average tenure).
Experienced Board: MMP's board of directors are considered experienced (7.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MMP insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Magellan Midstream Partners, L.P.'s employee growth, exchange listings and data sources
- Name: Magellan Midstream Partners, L.P.
- Ticker: MMP
- Exchange: NYSE
- Founded: 2000
- Industry: Oil and Gas Storage and Transportation
- Sector: Energy
- Implied Market Cap: US$10.466b
- Shares outstanding: 211.56m
- Website: https://www.magellanlp.com
Number of Employees
- Magellan Midstream Partners, L.P.
- One Williams Center
- P.O. Box 22186
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/17 00:00|
|End of Day Share Price||2022/05/17 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.