Marathon Petroleum
Market Cap
US$41.7b
Last Updated
2019/11/14 00:31 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.
Snowflake
Mediocre balance sheet second-rate 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
-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
| MPC | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.0% | -1.2% | 0.4% |
| 30 Day | 0.3% | 2.0% | 4.0% |
| 90 Day | 39.0% | 5.3% | 7.4% |
| 1 Year | 2.0%-1.7% | -9.3%-12.4% | 15.6%13.1% |
| 3 Year | 61.1%48.2% | -6.0%-14.6% | 48.2%38.6% |
| 5 Year | 55.6%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
18 hours ago | Simply Wall St
Here's What We Like About Marathon Petroleum Corporation (NYSE:MPC)'s Upcoming Dividend1 week ago | Simply Wall St
Results: Marathon Petroleum Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates1 week ago | Simply Wall St
Here's Why Marathon Petroleum (NYSE:MPC) Can Manage Its Debt ResponsiblyValuation
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
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
| Entity | Individual |
| Role | Lead Director Lead Independent Director |
| Shares | 12,500 |
| Max Price | US$48.14 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 5,000 |
| Max Price | US$50.74 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 3,500 |
| Max Price | US$62.14 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,500 |
| Max Price | US$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
| 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 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/14 00:31 |
| End of Day Share Price | 2019/11/13 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.