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 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

MPCIndustryMarket
7 Day39.0%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

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

NamePositionTenureCompensationOwnership
Michael Hennigan
Presidentno dataUS$7.66m0.053% $8.4m
Donald Templin
Executive VP & CFO0.67yrUS$8.12m0.017% $2.7m
Timothy Griffith
President of Speedway LLC0.67yrUS$6.54m0.0098% $1.5m
David Sauber
Senior VP of Labor Relationsno datano datano data
John Quaid
VP, Controller & Principal Accounting Officer5.42yrsno data0.0033% $518.7k
Timothy Harris
VP & Chief Technology Officer1.42yrsno datano data
Donald Wehrly
Chief Information Officer & VP8.67yrsno datano data
Kristina Kazarian
Vice President of Investor Relations1.83yrsno datano data
Molly Benson
VP, Chief Securities4yrsno datano data
Suzanne Gagle
General Counsel4yrsno data0.0039% $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

NamePositionTenureCompensationOwnership
Susan Tomasky
Independent Director1.42yrsUS$385.00k0.0016% $259.4k
James Rohr
Lead Independent Director1.83yrsUS$410.00k0.0042% $669.0k
Charles Bunch
Independent Director4.42yrsUS$360.00k0.00086% $136.0k
Frank Semple
Director0.25yrUS$493.21kno data
John Surma
Independent Director8.67yrsUS$585.00k0.0015% $243.5k
B. Bayh
Independent Director8.67yrsUS$350.00k0.0017% $270.4k
Gary Heminger
Chairman of the Board3.83yrsUS$24.13m0.11% $17.2m
Abdulaziz Bin Fahd Al-Khayyal
Independent Director3.42yrsUS$360.00kno data
Steven Davis
Independent Director6.67yrsUS$356.25k0.0022% $352.7k
J. Stice
Independent Director3yrsUS$560.00kno 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

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
MPNETLX (Eurotlx)YesCommon StockITEURJun 2011
M1PC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 02:04
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.