NYSE:MPC

Stock Analysis Report

Executive Summary

Marathon Petroleum Corporation, together with its subsidiaries, engages in refining, marketing, retailing, and transporting petroleum products primarily in the United States.

Snowflake

Mediocre balance sheet second-rate dividend payer.

Rewards

PE ratio (13.7x) is below the US market (18.2x)

Earnings are forecast to grow by 39.04% next year

Earnings have grown 4.7% per year over the past 5 years

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Current net profit margin (2.5%) is lower than last year (4.5%)

+ 1 more risk


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

-3.0%

MPC

-1.2%

US Oil and Gas

0.4%

US Market


1 Year Return

-1.7%

MPC

-12.4%

US Oil and Gas

13.1%

US Market

Return vs Industry: MPC exceeded the US Oil and Gas industry which returned -12.4% over the past year.

Return vs Market: MPC underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

MPCIndustryMarket
7 Day-3.0%-1.2%0.4%
30 Day0.3%2.0%4.0%
90 Day39.0%5.3%7.4%
1 Year2.0%-1.7%-9.3%-12.4%15.6%13.1%
3 Year61.1%48.2%-6.0%-14.6%48.2%38.6%
5 Year55.6%35.0%-23.0%-34.0%62.6%44.6%

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

Valuation

Is Marathon Petroleum undervalued compared to its fair value and its price relative to the market?

13.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MPC ($64.25) is trading above our estimate of fair value ($61.18)

Significantly Below Fair Value: MPC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MPC is poor value based on its PE Ratio (13.7x) compared to the Oil and Gas industry average (10.5x).

PE vs Market: MPC is good value based on its PE Ratio (13.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: MPC is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: MPC is overvalued based on its PB Ratio (1.2x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Marathon Petroleum forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPC's forecast earnings growth (8.2% per year) is above the savings rate (2.7%).

Earnings vs Market: MPC's earnings (8.2% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: MPC's earnings are forecast to grow, but not significantly.

Revenue vs Market: MPC's revenue (3.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MPC's revenue (3.1% 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 (9.4%).


Next Steps

Past Performance

How has Marathon Petroleum performed over the past 5 years?

4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MPC has high quality earnings.

Growing Profit Margin: MPC's current net profit margins (2.5%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: MPC's earnings have grown by 4.7% 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 (-18.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (-7.6%).


Return on Equity

High ROE: MPC's Return on Equity (9.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Marathon Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: MPC's short term assets ($19.1B) exceeds its short term liabilities ($15.3B)

Long Term Liabilities: MPC's short term assets (19.1B) do not cover its long term liabilities (39.2B)


Debt to Equity History and Analysis

Debt Level: MPC's debt to equity ratio (64.5%) is considered high

Reducing Debt: MPC's debt to equity ratio has increased from 55.6% to 64.5% over the past 5 years.

Debt Coverage: MPC's debt is well covered by operating cash flow (34.7%).

Interest Coverage: MPC's interest payments on its debt are well covered by EBIT (5x 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?

3.30%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Marathon Petroleum before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.3%marketbottom25%1.4%markettop25%3.7%industryaverage4.1%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: MPC's dividend (3.3%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: MPC's dividend (3.3%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.1%), MPC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MPC's dividends in 3 years are forecast to be well covered by earnings (41.5% payout ratio).


Next Steps

Management

What is the CEO of Marathon Petroleum's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Gary Heminger (66yo)

8.4yrs

Tenure

US$19,806,050

Compensation

Mr. Gary R. Heminger serves as Chairman of the Board of MPLX LP and at MPLX GP LLC since November 01, 2019. Mr. Heminger has been Chief Executive Officer and Director of Tesoro Logistics Logistics GP, LLC  ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD19.81M) is above average for companies of similar size in the US market ($USD10.97M).

Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.7yrs

Average Tenure

55yo

Average Age

Experienced Management: MPC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

3.3yrs

Average Tenure

65yo

Average Age

Experienced Board: MPC's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$601,75013 Jun 19
James Rohr
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares12,500
Max PriceUS$48.14
BuyUS$253,69717 May 19
Donald Templin
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares5,000
Max PriceUS$50.74
BuyUS$217,49018 Dec 18
Steven Davis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$62.14
BuyUS$155,50021 Nov 18
Steven Davis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$65.15

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 42.9%.


Management Team

  • Gary Heminger (66yo)

    Chairman of the Board & CEO

    • Tenure: 8.4yrs
    • Compensation: US$19.81m
  • Greg Goff (62yo)

    Executive Vice Chairman

    • Tenure: 1.1yrs
    • Compensation: US$7.38m
  • Tim Griffith (50yo)

    President of Speedway LLC

    • Tenure: 0.3yrs
    • Compensation: US$4.52m
  • Don Templin (56yo)

    Executive VP & CFO

    • Tenure: 0.3yrs
    • Compensation: US$6.42m
  • Donald Wehrly (60yo)

    Chief Information Officer & Vice President

    • Tenure: 8.4yrs
  • Kristina Kazarian (36yo)

    Vice President of Investor Relations

    • Tenure: 1.6yrs
  • Sue Gagle (53yo)

    General Counsel

    • Tenure: 3.7yrs
  • Molly Benson (52yo)

    VP, Chief Securities

    • Tenure: 3.7yrs
  • Dave Sauber (55yo)

    Senior VP of Labor Relations

    • Tenure: 1.8yrs
  • Timothy Harris

    VP & Chief Technology Officer

    • Tenure: 1.1yrs

Board Members

  • Susan Tomasky (66yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$78.75k
  • Jim Rohr (70yo)

    Lead Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$342.10k
  • Charles Bunch (69yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$310.00k
  • John Surma (65yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$502.50k
  • Evan Bayh (64yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$300.00k
  • Gary Heminger (66yo)

    Chairman of the Board & CEO

    • Tenure: 8.4yrs
    • Compensation: US$19.81m
  • Greg Goff (62yo)

    Executive Vice Chairman

    • Tenure: 1.1yrs
    • Compensation: US$7.38m
  • Abdulaziz Alkhayyal (65yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$300.00k
  • Steve Davis (61yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$303.50k
  • Mike Stice (60yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$429.71k

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$41.719b
  • Shares outstanding: 649.32m
  • Website: https://www.marathonpetroleum.com

Number of Employees


Location

  • Marathon Petroleum Corporation
  • 539 South Main Street
  • Findlay
  • Ohio
  • 45840
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MPCNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2011
MPNBST (Boerse-Stuttgart)YesCommon StockDEEURJun 2011
MPNDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2011
MPC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2011
0JYALSE (London Stock Exchange)YesCommon StockGBUSDJun 2011

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 segm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 00:31
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.