Magellan Midstream Partners
Market Cap
US$9.7b
Last Updated
2020/11/26 23:29 UTC
Data Sources
Company Financials +
Executive Summary
Magellan Midstream Partners, L.P. engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. More Details
Rewards
Risk Analysis
Dividend of 9.5% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Average dividend payer and slightly overvalued.
Similar Companies
Share Price & News
How has Magellan Midstream Partners's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MMP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: MMP's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
3.0%
MMP
8.6%
US Oil and Gas
2.1%
US Market
1 Year Return
-26.7%
MMP
-31.2%
US Oil and Gas
19.8%
US Market
Return vs Industry: MMP exceeded the US Oil and Gas industry which returned -31.1% over the past year.
Return vs Market: MMP underperformed the US Market which returned 19.7% over the past year.
Shareholder returns
| MMP | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.0% | 8.6% | 2.1% |
| 30 Day | 20.8% | 29.6% | 8.1% |
| 90 Day | 10.4% | 8.3% | 6.0% |
| 1 Year | -19.4%-26.7% | -26.5%-31.2% | 22.5%19.8% |
| 3 Year | -19.8%-35.4% | -32.8%-42.0% | 46.5%36.8% |
| 5 Year | -1.7%-28.1% | -21.8%-37.3% | 96.9%75.3% |
Long-Term Price Volatility Vs. Market
How volatile is Magellan Midstream Partners's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 years ago | Simply Wall St
Shareholders Should Check If Insiders Own Shares In Magellan Midstream Partners LP (NYSE:MMP)2 years ago | Simply Wall St
Is Magellan Midstream Partners LP's (NYSE:MMP) Balance Sheet Strong Enough To Weather A Storm?2 years ago | Simply Wall St
Investors' Favorite Dividend StocksValuation
Is Magellan Midstream Partners undervalued compared to its fair value and its price relative to the market?
16.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MMP ($43.26) is trading below our estimate of fair value ($51.83)
Significantly Below Fair Value: MMP is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MMP is poor value based on its PE Ratio (10.7x) compared to the US Oil and Gas industry average (9.3x).
PE vs Market: MMP is good value based on its PE Ratio (10.7x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: MMP is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: MMP is overvalued based on its PB Ratio (4.1x) compared to the US Oil and Gas industry average (1x).
Next Steps
Future Growth
How is Magellan Midstream Partners forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
4.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MMP's forecast earnings growth (4.5% per year) is above the savings rate (2.2%).
Earnings vs Market: MMP's earnings (4.5% per year) are forecast to grow slower than the US market (22% per year).
High Growth Earnings: MMP's earnings are forecast to grow, but not significantly.
Revenue vs Market: MMP's revenue (0.5% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: MMP's revenue (0.5% 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 (41.4%).
Next Steps
Past Performance
How has Magellan Midstream Partners performed over the past 5 years?
7.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MMP has high quality earnings.
Growing Profit Margin: MMP's current net profit margins (35.6%) are lower than last year (36.8%).
Past Earnings Growth Analysis
Earnings Trend: MMP's earnings have grown by 7.4% per year over the past 5 years.
Accelerating Growth: MMP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MMP had negative earnings growth (-12.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (-29.6%).
Return on Equity
High ROE: Whilst MMP's Return on Equity (38.5%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Magellan Midstream Partners's financial position?
Financial Position Analysis
Short Term Liabilities: MMP's short term assets ($341.2M) do not cover its short term liabilities ($531.6M).
Long Term Liabilities: MMP's short term assets ($341.2M) do not cover its long term liabilities ($5.2B).
Debt to Equity History and Analysis
Debt Level: MMP's debt to equity ratio (205.2%) is considered high.
Reducing Debt: MMP's debt to equity ratio has increased from 171.9% to 205.2% over the past 5 years.
Debt Coverage: MMP's debt is well covered by operating cash flow (25.3%).
Interest Coverage: MMP's interest payments on its debt are well covered by EBIT (4.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Magellan Midstream Partners's current dividend yield, its reliability and sustainability?
9.50%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MMP's dividend (9.5%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: MMP's dividend (9.5%) is in the top 25% of dividend payers in the US market (4.05%)
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.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (101.3%), MMP's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MMP's dividends in 3 years are not forecast to be well covered by earnings (94.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.7yrs
Average management tenure
CEO
Mike Mears (57 yo)
9.75yrs
Tenure
US$7,210,215
Compensation
Mr. Michael N. Mears, also known as Mike, serves as the Director of Sempra Energy since October 11, 2018. He is the Chief Executive Officer, President and Chairman of Magellan GP, LLC, General Partner of M...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD7.21M) is below average for companies of similar size in the US market ($USD10.79M).
Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 9.75yrs | US$7.21m | 0.085% $ 8.2m | |
| Senior VP | 1.5yrs | US$1.84m | 0.011% $ 1.1m | |
| Chief Operating Officer of Magellan GP | 1.5yrs | US$3.12m | 0.017% $ 1.7m | |
| Senior Vice President of Human Resources & Administration - Magellan GP LLC | 13.83yrs | US$2.13m | 0.039% $ 3.7m | |
| Senior VP | 9.75yrs | US$2.02m | 0.020% $ 1.9m | |
| Senior Vice President of Commercial for Refined Products - Magellan GP LLC | 13.83yrs | US$1.90m | 0.0097% $ 942.6k | |
| Senior Vice President of Commercial for Crude Oil - Magellan GP LLC | 6.83yrs | US$1.89m | 0.029% $ 2.8m | |
| Senior Vice President of Technical Services - Magellan GP LLC | 1.17yrs | no data | 0.029% $ 2.8m | |
| Associate Vice President of Investor Relations | no data | no data | no data | |
| Senior Vice President of Business Development - Magellan GP LLC | 4.58yrs | no data | 0.0089% $ 857.4k | |
| Senior Vice President of Operations & EHS&S- Magellan GP | 3.33yrs | no data | 0.013% $ 1.3m | |
| Secretary of Magellan GP LLC | no data | no data | no data |
5.7yrs
Average Tenure
52.5yo
Average Age
Experienced Management: MMP's management team is seasoned and experienced (5.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 9.75yrs | US$7.21m | 0.085% $ 8.2m | |
| Independent Presiding Director of Magellan GP | no data | US$249.50k | 0.0088% $ 853.5k | |
| Independent Director of Magellan GP | 11.17yrs | US$240.00k | 0.0017% $ 162.6k | |
| Independent Director of Magellan GP | 11.17yrs | US$246.50k | 0.0023% $ 225.5k | |
| Independent Director of Magellan GP | 17yrs | US$240.00k | 0.0098% $ 949.3k | |
| Independent Director of Magellan GP | 1.5yrs | US$133.42k | 0.018% $ 1.7m | |
| Independent Director of Magellan GP | 4.42yrs | US$222.00k | 0.00095% $ 91.9k | |
| Independent Director of Magellan GP | 5.58yrs | US$226.50k | 0.0026% $ 254.5k | |
| Independent Director of Magellan GP | 4.42yrs | US$226.50k | 0.00089% $ 86.1k |
7.7yrs
Average Tenure
63yo
Average Age
Experienced Board: MMP's board of directors are considered experienced (7.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MMP insiders have bought more shares than they have sold 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 company bio, 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
- Market Cap: US$9.677b
- Shares outstanding: 223.70m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MMP | NYSE (New York Stock Exchange) | Yes | Limited Partnership Units | US | USD | Feb 2001 |
| WEP | DB (Deutsche Boerse AG) | Yes | Limited Partnership Units | DE | EUR | Feb 2001 |
Biography
Magellan Midstream Partners, L.P. engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. The company operates through Refined Products, C...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/26 23:29 |
| End of Day Share Price | 2020/11/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.