Marathon Petroleum
Market Cap
US$15.8b
Last Updated
2020/03/31 02:04 UTC
Data Sources
Company Financials +
Executive Summary
Marathon Petroleum Corporation, together with its subsidiaries, engages in refining, marketing, retailing, and transporting petroleum products primarily in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued average dividend payer.
Similar Companies
Share Price & News
How has Marathon Petroleum's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MPC's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
39.0%
MPC
5.9%
US Oil and Gas
7.2%
US Market
1 Year Return
-59.4%
MPC
-56.4%
US Oil and Gas
-10.4%
US Market
Return vs Industry: MPC underperformed the US Oil and Gas industry which returned -57.2% over the past year.
Return vs Market: MPC underperformed the US Market which returned -12.7% over the past year.
Shareholder returns
| MPC | Industry | Market | |
|---|---|---|---|
| 7 Day | 39.0% | 5.9% | 7.2% |
| 30 Day | -48.7% | -35.6% | -12.6% |
| 90 Day | -59.6% | -51.6% | -19.4% |
| 1 Year | -57.7%-59.4% | -54.6%-56.4% | -8.5%-10.4% |
| 3 Year | -46.8%-51.6% | -51.8%-56.5% | 15.8%8.3% |
| 5 Year | -42.2%-50.5% | -55.3%-62.2% | 35.8%21.0% |
Price Volatility Vs. Market
How volatile is Marathon Petroleum's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
What Is Marathon Petroleum's (NYSE:MPC) P/E Ratio After Its Share Price Tanked?2 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At Marathon Petroleum Corporation's (NYSE:MPC) P/E Ratio3 weeks ago | Simply Wall St
Is Marathon Petroleum Corporation’s (NYSE:MPC) Return On Capital Employed Any Good?Valuation
Is Marathon Petroleum undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MPC ($23.15) is trading below our estimate of fair value ($51.87)
Significantly Below Fair Value: MPC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MPC is good value based on its PE Ratio (5.8x) compared to the Oil and Gas industry average (6.7x).
PE vs Market: MPC is good value based on its PE Ratio (5.8x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: MPC is poor value based on its PEG Ratio (20.1x)
Price to Book Ratio
PB vs Industry: MPC is good value based on its PB Ratio (0.4x) compared to the US Oil and Gas industry average (0.5x).
Next Steps
Future Growth
How is Marathon Petroleum forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
1.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MPC's forecast earnings growth (0.3% per year) is below the savings rate (1.7%).
Earnings vs Market: MPC's earnings (0.3% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: MPC's earnings are forecast to grow, but not significantly.
Revenue vs Market: MPC's revenue (2.2% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: MPC's revenue (2.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MPC's Return on Equity is forecast to be low in 3 years time (7%).
Next Steps
Past Performance
How has Marathon Petroleum performed over the past 5 years?
4.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MPC has high quality earnings.
Growing Profit Margin: MPC's current net profit margins (2.1%) are lower than last year (2.9%).
Past Earnings Growth Analysis
Earnings Trend: MPC's earnings have grown by 4.3% per year over the past 5 years.
Accelerating Growth: MPC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MPC had negative earnings growth (-5.1%) over the past year, making it difficult to compare to the Oil and Gas industry average (-11.4%).
Return on Equity
High ROE: MPC's Return on Equity (7.6%) is considered low.
Next Steps
Financial Health
How is Marathon Petroleum's financial position?
Financial Position Analysis
Short Term Liabilities: MPC's short term assets ($20.2B) exceed its short term liabilities ($16.1B).
Long Term Liabilities: MPC's short term assets ($20.2B) do not cover its long term liabilities ($39.3B).
Debt to Equity History and Analysis
Debt Level: MPC's debt to equity ratio (65.3%) is considered high.
Reducing Debt: MPC's debt to equity ratio has increased from 57.9% to 65.3% over the past 5 years.
Debt Coverage: MPC's debt is well covered by operating cash flow (33.6%).
Interest Coverage: MPC's interest payments on its debt are well covered by EBIT (5.1x coverage).
Balance Sheet
Inventory Level: MPC has a high level of physical assets or inventory.
Debt Coverage by Assets: MPC's debt is not covered by short term assets (assets are 0.7x debt).
Next Steps
Dividend
What is Marathon Petroleum's current dividend yield, its reliability and sustainability?
9.54%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MPC's dividend (10.02%) is higher than the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: MPC's dividend (10.02%) is in the top 25% of dividend payers in the US market (5.49%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, MPC has been paying a dividend for less than 10 years.
Growing Dividend: MPC's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (54.3%), MPC's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MPC's dividends in 3 years are forecast to be covered by earnings (58.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.9yrs
Average management tenure
CEO
Mike Hennigan (60yo)
no data
Tenure
US$7,656,867
Compensation
Mr. Michael J. Hennigan, also known as Mike, has been President and Chief Executive Officer at Marathon Petroleum Corporation since March 18, 2020. Mr. Hennigan serves as Chief Executive Officer at MPLX GP ...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD7.66M) is below average for companies of similar size in the US market ($USD11.74M).
Compensation vs Earnings: Insufficient data to compare Mike's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | no data | US$7.66m | 0.053% $8.4m | |
| Executive VP & CFO | 0.67yr | US$8.12m | 0.017% $2.7m | |
| President of Speedway LLC | 0.67yr | US$6.54m | 0.0098% $1.5m | |
| Senior VP of Labor Relations | no data | no data | no data | |
| VP, Controller & Principal Accounting Officer | 5.42yrs | no data | 0.0033% $518.7k | |
| VP & Chief Technology Officer | 1.42yrs | no data | no data | |
| Chief Information Officer & VP | 8.67yrs | no data | no data | |
| Vice President of Investor Relations | 1.83yrs | no data | no data | |
| VP, Chief Securities | 4yrs | no data | no data | |
| General Counsel | 4yrs | no data | 0.0039% $612.0k |
2.9yrs
Average Tenure
52.5yo
Average Age
Experienced Management: MPC's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 1.42yrs | US$385.00k | 0.0016% $259.4k | |
| Lead Independent Director | 1.83yrs | US$410.00k | 0.0042% $669.0k | |
| Independent Director | 4.42yrs | US$360.00k | 0.00086% $136.0k | |
| Director | 0.25yr | US$493.21k | no data | |
| Independent Director | 8.67yrs | US$585.00k | 0.0015% $243.5k | |
| Independent Director | 8.67yrs | US$350.00k | 0.0017% $270.4k | |
| Chairman of the Board | 3.83yrs | US$24.13m | 0.11% $17.2m | |
| Independent Director | 3.42yrs | US$360.00k | no data | |
| Independent Director | 6.67yrs | US$356.25k | 0.0022% $352.7k | |
| Independent Director | 3yrs | US$560.00k | no data |
3.6yrs
Average Tenure
65.5yo
Average Age
Experienced Board: MPC's board of directors are considered experienced (3.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 27.2%.
Top Shareholders
Company Information
Marathon Petroleum Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Marathon Petroleum Corporation
- Ticker: MPC
- Exchange: NYSE
- Founded: 1887
- Industry: Oil and Gas Refining and Marketing
- Sector: Energy
- Market Cap: US$15.815b
- Shares outstanding: 650.00m
- Website: https://www.marathonpetroleum.com
Number of Employees
Location
- Marathon Petroleum Corporation
- 539 South Main Street
- Findlay
- Ohio
- 45840
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MPC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jun 2011 |
| MPN | BST (Boerse-Stuttgart) | Yes | Common Stock | DE | EUR | Jun 2011 |
| MPN | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 2011 |
| MPC * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jun 2011 |
| 0JYA | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jun 2011 |
| MPN | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jun 2011 |
| M1PC34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 |
Biography
Marathon Petroleum Corporation, together with its subsidiaries, engages in refining, marketing, retailing, and transporting petroleum products primarily in the United States. It operates through three segments: Refining & Marketing, Retail, and Midstream. The Refining & Marketing segment refines crude oil and other feed stocks at its 16 refineries in the West Coast, Gulf Coast, and Mid-Continent regions of the United States; and purchases refined products and ethanol for resale. Its refined products include transportation fuels, such as reformulated gasolines and blend-grade gasolines; heavy fuel oil; and asphalt. This segment also manufactures aromatics, propane, propylene, and sulfur. It sells refined products wholesale marketing customers domestically and internationally, buyers on the spot market, and independent entrepreneurs who operate primarily Marathon branded outlets. The Retail segment sells transportation fuels and convenience products in the retail market through company-owned and operated convenience stores, primarily under the Speedway brand; and long-term fuel supply contracts with direct dealers who operate locations mainly under the ARCO brand. The Midstream segment transports, stores, distributes, and markets crude oil and refined products through refining logistics assets, pipelines, terminals, towboats and barges; gathers, processes, and transports natural gas; and gathers, transports, fractionates, stores, and markets natural gas liquids. The company also exports its refined products. As of December 31, 2019, it owned, leased, and had ownership interests in approximately 17,200 miles of crude oil and refined product pipelines, as well as owned and operated 3,900 convenience stores; and had 6,900 retail outlets operated by independent entrepreneurs in 35 states of the United States, the District of Columbia, and Mexico. The company was founded in 1887 and is headquartered in Findlay, Ohio.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 02:04 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| 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.