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MPC

Marathon PetroleumNYSE:MPC Stock Report

Market Cap

US$42.8b

7D

0.5%

1Y

127.1%

Updated

21 Oct, 2021

Data

Company Financials +
MPC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance0/6
Financial Health2/6
Dividends4/6

MPC Overview

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

Marathon Petroleum Competitors

Phillips 66

NYSE:PSX

US$36.5b

Valero Energy

NYSE:VLO

US$33.1b

HollyFrontier

NYSE:HFC

US$6.0b

Sunoco

NYSE:SUN

US$3.5b

Price History & Performance

Summary of all time highs, changes and price drops for Marathon Petroleum
Historical stock prices
Current Share PriceUS$67.03
52 Week HighUS$26.77
52 Week LowUS$67.99
Beta2.08
1 Month Change15.89%
3 Month Change25.45%
1 Year Change127.14%
3 Year Change-4.19%
5 Year Change56.58%
Change since IPO243.74%

Recent News & Updates

Oct 03

Marathon Petroleum: The Refining Sector Is Back

Marathon Petroleum reported a better-than-expected adjusted income of $437 million, or $0.67 per share, for the second quarter. The company repurchased shares worth $981 million during the second quarter as part of its announcement to buy back $10 billion in common stock. I recommend buying MPC below $59.

Sep 01

Marathon Petroleum Corp.: An Old Rig Rat Swims Downstream

Marathon has a strong business and is managing it effectively. The sale of the Speedway retail business has provided a timely cash infusion that will be targeted toward deleveraging and share count reduction. We think the company is attractive at current levels for investors looking for growth and income.

Aug 15
Marathon Petroleum (NYSE:MPC) Will Pay A Dividend Of US$0.58

Marathon Petroleum (NYSE:MPC) Will Pay A Dividend Of US$0.58

The board of Marathon Petroleum Corporation ( NYSE:MPC ) has announced that it will pay a dividend of US$0.58 per share...

Aug 01
Marathon Petroleum (NYSE:MPC) Has Affirmed Its Dividend Of US$0.58

Marathon Petroleum (NYSE:MPC) Has Affirmed Its Dividend Of US$0.58

Marathon Petroleum Corporation ( NYSE:MPC ) has announced that it will pay a dividend of US$0.58 per share on the 10th...

Shareholder Returns

MPCUS Oil and GasUS Market
7D0.5%3.6%3.8%
1Y127.1%97.5%31.5%

Return vs Industry: MPC exceeded the US Oil and Gas industry which returned 92.2% over the past year.

Return vs Market: MPC exceeded the US Market which returned 30.5% over the past year.

Price Volatility

Is MPC's price volatile compared to industry and market?
MPC volatility
MPC Beta2.08
Industry Beta1.74
Market Beta1

Stable Share Price: MPC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MPC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188757,900Mike Henniganhttps://www.marathonpetroleum.com

Marathon Petroleum Corporation, together with its subsidiaries, engages in refining, marketing, retailing, and transporting petroleum products primarily in the United States. It operates in two segments: Refining & Marketing, and Midstream. The Refining & Marketing segment refines crude oil and other feedstocks at its refineries in the Gulf Coast, Mid-Continent, and West Coast regions of the United States; and purchases refined products and ethanol for resale.

Marathon Petroleum Fundamentals Summary

How do Marathon Petroleum's earnings and revenue compare to its market cap?
MPC fundamental statistics
Market CapUS$42.78b
Earnings (TTM)-US$1.47b
Revenue (TTM)US$87.97b

0.5x

P/S Ratio

-29.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MPC income statement (TTM)
RevenueUS$87.97b
Cost of RevenueUS$80.44b
Gross ProfitUS$7.54b
ExpensesUS$9.01b
Earnings-US$1.47b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 02, 2021

Earnings per share (EPS)-2.31
Gross Margin8.57%
Net Profit Margin-1.68%
Debt/Equity Ratio75.5%

How did MPC perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

-102%

Payout Ratio

Valuation

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

21.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MPC ($67.21) is trading below our estimate of fair value ($85.1)

Significantly Below Fair Value: MPC is trading below fair value by more than 20%.


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 good value based on its PB Ratio (1.5x) compared to the US Oil and Gas industry average (2x).


Future Growth

How is Marathon Petroleum forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-26.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPC's earnings are forecast to decline over the next 3 years (-22.5% per year).

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 is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: MPC's revenue is forecast to decline over the next 3 years (-0.6% 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 (11.9%).


Past Performance

How has Marathon Petroleum performed over the past 5 years?

-51.6%

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 51.6% 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 (-18.6%).


Return on Equity

High ROE: MPC has a negative Return on Equity (-0.85%), as it is currently unprofitable.


Financial Health

How is Marathon Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: MPC's short term assets ($38.6B) exceed its short term liabilities ($19.5B).

Long Term Liabilities: MPC's short term assets ($38.6B) exceed its long term liabilities ($38.1B).


Debt to Equity History and Analysis

Debt Level: MPC's debt to equity ratio (75.5%) is considered high.

Reducing Debt: MPC's debt to equity ratio has increased from 52.8% to 75.5% over the past 5 years.

Debt Coverage: MPC's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: MPC's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet


Dividend

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

3.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MPC's dividend (3.45%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: MPC's dividend (3.45%) is low compared to the top 25% of dividend payers in the US market (3.49%).


Stability and Growth of Payments

Stable Dividend: MPC's dividends per share have been stable in the past 10 years.

Growing Dividend: MPC's dividend payments have increased over the past 10 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 (55.2% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Mike Hennigan (62 yo)

1.58yrs

Tenure

US$15,927,901

Compensation

Mr. Michael J. Hennigan, also known as Mike, is Chairman of the Board of MPLX GP LLC, the General Partner of MPLX LP since April 29, 2020. Mr. Hennigan is Chief Executive Officer at MPLX GP LLC, the Genera...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD15.93M) is above average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Mike's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: MPC's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: MPC's board of directors are considered experienced (3.4 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Marathon Petroleum Corporation's 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$42.779b
  • Shares outstanding: 638.20m
  • Website: https://www.marathonpetroleum.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 23:04
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.