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MMP

Magellan Midstream Partners NYSE:MMP Stock Report

Last Price

US$50.57

Market Cap

US$10.5b

7D

6.2%

1Y

2.7%

Updated

17 May, 2022

Data

Company Financials +
MMP fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance2/6
Financial Health3/6
Dividends5/6

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

Summary of all time highs, changes and price drops for Magellan Midstream Partners
Historical stock prices
Current Share PriceUS$50.57
52 Week HighUS$53.85
52 Week LowUS$43.58
Beta0.96
1 Month Change-0.47%
3 Month Change4.33%
1 Year Change2.66%
3 Year Change-19.45%
5 Year Change-32.27%
Change since IPO742.83%

Recent News & Updates

May 12

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.

Shareholder Returns

MMPUS Oil and GasUS Market
7D6.2%8.2%2.7%
1Y2.7%53.4%-8.1%

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.

Price Volatility

Is MMP's price volatile compared to industry and market?
MMP volatility
MMP Average Weekly Movement3.9%
Oil and Gas Industry Average Movement8.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market2.9%

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

FoundedEmployeesCEOWebsite
20001,715Aaron Milfordhttps://www.magellanlp.com

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

How do Magellan Midstream Partners's earnings and revenue compare to its market cap?
MMP fundamental statistics
Market CapUS$10.47b
Earnings (TTM)US$881.60m
Revenue (TTM)US$2.78b

12.1x

P/E Ratio

3.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MMP income statement (TTM)
RevenueUS$2.78b
Cost of RevenueUS$1.42b
Gross ProfitUS$1.36b
Other ExpensesUS$476.00m
EarningsUS$881.60m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.17
Gross Margin48.89%
Net Profit Margin31.75%
Debt/Equity Ratio295.0%

How did MMP perform over the long term?

See historical performance and comparison

Dividends

8.2%

Current Dividend Yield

102%

Payout Ratio

Valuation

Is Magellan Midstream Partners undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


28.1%

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).


Future Growth

How is Magellan Midstream Partners forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.3%

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%).


Past Performance

How has Magellan Midstream Partners performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-1.6%

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.


Financial Health

How is Magellan Midstream Partners's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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).


Balance Sheet


Dividend

What is Magellan Midstream Partners's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


8.21%

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Aaron Milford (47 yo)

no data

Tenure

US$3,609,012

Compensation

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.


Leadership Team

Experienced Management: MMP's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: MMP's board of directors are considered experienced (7.1 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Magellan Midstream Partners, L.P.'s employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Magellan Midstream Partners, L.P.
  • One Williams Center
  • P.O. Box 22186
  • Tulsa
  • Oklahoma
  • 74121-2186
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/17 00:00
End of Day Share Price2022/05/17 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.