NYSE:MPC

Stock Analysis Report

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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

Reasonable growth potential 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

MPC

1.7%

US Oil and Gas

2.6%

US Market


1 Year Return

-26.4%

MPC

-34.7%

US Oil and Gas

15.4%

US Market

Return vs Industry: MPC exceeded the US Oil and Gas industry which returned -34% over the past year.

Return vs Market: MPC underperformed the US Market which returned 16.2% over the past year.


Shareholder returns

MPCIndustryMarket
7 Day-4.3%1.7%2.6%
30 Day5.0%1.6%6.1%
90 Day10.3%-2.8%16.6%
1 Year-23.0%-26.4%-31.5%-34.7%17.8%15.4%
3 Year-22.5%-30.2%-31.4%-38.7%43.9%34.7%
5 Year-24.5%-36.1%-32.9%-43.6%76.2%57.3%

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?

17.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MPC ($36.43) is trading below our estimate of fair value ($43.95)

Significantly Below Fair Value: MPC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MPC is unprofitable, so we can't compare its PE Ratio to the US Oil and Gas industry average.

PE vs Market: MPC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MPC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MPC is overvalued based on its PB Ratio (1x) compared to the US Oil and Gas industry average (0.7x).


Next Steps

Future Growth

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

89.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: MPC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MPC's is expected to become profitable in the next 3 years.

Revenue vs Market: MPC's revenue (15.8% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: MPC's revenue (15.8% 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 (5.7%).


Next Steps

Past Performance

How has Marathon Petroleum performed over the past 5 years?

-27.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MPC is currently unprofitable.

Growing Profit Margin: MPC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MPC is unprofitable, and losses have increased over the past 5 years at a rate of 27.4% per year.

Accelerating Growth: Unable to compare MPC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MPC is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-13.9%).


Return on Equity

High ROE: MPC has a negative Return on Equity (-26.13%), as it is currently unprofitable.


Next Steps

Financial Health

How is Marathon Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: MPC's short term assets ($14.6B) exceed its short term liabilities ($11.5B).

Long Term Liabilities: MPC's short term assets ($14.6B) do not cover its long term liabilities ($41.3B).


Debt to Equity History and Analysis

Debt Level: MPC's debt to equity ratio (98.9%) is considered high.

Reducing Debt: MPC's debt to equity ratio has increased from 54.4% to 98.9% over the past 5 years.

Debt Coverage: MPC's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: MPC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Marathon Petroleum current dividend yield, its reliability and sustainability?

6.37%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: MPC's dividend (6.37%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: MPC's dividend (6.37%) is in the top 25% of dividend payers in the US market (4.48%)


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: MPC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: MPC's dividends in 3 years are forecast to be covered by earnings (79.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Mike Hennigan (61 yo)

0.42

Tenure

US$7,656,867

Compensation

Mr. Michael J. Hennigan, also known as Mike, serves as Chairman of the Board of MPLX GP LLC at MPLX LP since April 29, 2020. He serves as Director at Marathon Petroleum Corporation since April 29, 2020. He ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD7.66M) is below average for companies of similar size in the US market ($USD11.29M).

Compensation vs Earnings: Insufficient data to compare Mike's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Hennigan
President0.42yrUS$7.66m0.052%
$ 13.1m
Donald Templin
Executive VP & CFO1.08yrsUS$8.12m0.017%
$ 4.2m
Timothy Griffith
President of Speedway LLC1.08yrsUS$6.54m0.0098%
$ 2.5m
David Sauber
Senior VP of Labor Relationsno datano datano data
John Quaid
Senior VP5.83yrsno data0.0033%
$ 822.6k
Timothy Harris
VP & Chief Technology Officer1.83yrsno datano data
Donald Wehrly
Chief Information Officer & VP9.17yrsno datano data
Kristina Kazarian
Vice President of Investor Relations2.33yrsno datano data
Molly Benson
VP, Chief Securities4.42yrsno datano data
Suzanne Gagle
General Counsel4.42yrsno data0.0039%
$ 970.6k
Hamish Banks
Vice President of Communicationsno datano datano data
Brian Partee
Senior Vice President of Marketing1.83yrsno datano data

2.1yrs

Average Tenure

53yo

Average Age

Experienced Management: MPC's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Hennigan
President0.42yrUS$7.66m0.052%
$ 13.1m
Susan Tomasky
Independent Director1.83yrsUS$385.00k0.0016%
$ 413.8k
James Rohr
Lead Independent Director2.33yrsUS$410.00k0.0042%
$ 1.1m
Charles Bunch
Independent Director4.92yrsUS$360.00k0.00086%
$ 215.7k
Frank Semple
Director0.67yrUS$493.21kno data
John Surma
Independent Non Executive Chairman of the Board0.33yrUS$585.00k0.0015%
$ 386.2k
B. Bayh
Independent Director9.08yrsUS$350.00k0.0017%
$ 428.9k
Edward Galante
Independent Director1.83yrsUS$360.00k0.00099%
$ 248.3k
Kim K. Rucker
Independent Director1.83yrsUS$350.00k0.0088%
$ 2.2m
Abdulaziz Bin Fahd Al-Khayyal
Independent Director3.83yrsUS$360.00kno data
Steven Davis
Independent Director7.08yrsUS$356.25k0.0022%
$ 559.3k
J. Stice
Independent Director3.5yrsUS$560.00k0.0015%
$ 376.2k

2.1yrs

Average Tenure

66yo

Average Age

Experienced Board: MPC's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$25.081b
  • Shares outstanding: 650.26m
  • 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 segm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 00:55
End of Day Share Price2020/08/05 00:00
Earnings2020/06/30
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.