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Marathon Petroleum

NYSE:MPC
Snowflake Description

High growth potential and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MPC
NYSE
$41B
Market Cap
  1. Home
  2. US
  3. Energy
Company description

Marathon Petroleum Corporation, together with its subsidiaries, engages in refining, marketing, retailing, and transporting petroleum products primarily in the United States. The last earnings update was 57 days ago. More info.


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MPC Share Price and Events
7 Day Returns
1.4%
NYSE:MPC
1.8%
US Oil and Gas
0.9%
US Market
1 Year Returns
-25.5%
NYSE:MPC
-4.9%
US Oil and Gas
9.6%
US Market
MPC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Marathon Petroleum (MPC) 1.4% -2.5% -5.4% -25.5% 55.2% 26.7%
US Oil and Gas 1.8% 4.7% 10.9% -4.9% 3.6% -26.4%
US Market 0.9% 4.6% 10.9% 9.6% 39% 47.2%
1 Year Return vs Industry and Market
  • MPC underperformed the Oil and Gas industry which returned -4.9% over the past year.
  • MPC underperformed the Market in United States of America which returned 9.6% over the past year.
Price Volatility
MPC
Industry
5yr Volatility vs Market

Value

 Is Marathon Petroleum undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Marathon Petroleum to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Marathon Petroleum.

NYSE:MPC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MPC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.94
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.937 (1 + (1- 21%) (67.47%))
1.292
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.29
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.292 * 5.96%)
10.43%

Discounted Cash Flow Calculation for NYSE:MPC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Marathon Petroleum is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:MPC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.43%)
2019 3,527.80 Analyst x5 3,194.52
2020 5,044.86 Analyst x8 4,136.68
2021 4,041.00 Analyst x1 3,000.49
2022 3,448.62 Est @ -14.66% 2,318.73
2023 3,122.98 Est @ -9.44% 1,901.41
2024 2,942.14 Est @ -5.79% 1,622.07
2025 2,846.97 Est @ -3.23% 1,421.32
2026 2,805.83 Est @ -1.45% 1,268.44
2027 2,800.42 Est @ -0.19% 1,146.39
2028 2,819.58 Est @ 0.68% 1,045.19
Present value of next 10 years cash flows $21,055.23
NYSE:MPC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $2,819.58 × (1 + 2.73%) ÷ (10.43% – 2.73%)
$37,602.96
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $37,602.96 ÷ (1 + 10.43%)10
$13,939.05
NYSE:MPC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $21,055.23 + $13,939.05
$34,994.28
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $34,994.28 / 672.65
$52.02
NYSE:MPC Discount to Share Price
Calculation Result
Value per share (USD) From above. $52.02
Current discount Discount to share price of $60.65
= -1 x ($60.65 - $52.02) / $52.02
-16.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Marathon Petroleum is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Marathon Petroleum's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Marathon Petroleum's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MPC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $5.36
NYSE:MPC Share Price ** NYSE (2019-04-25) in USD $60.65
United States of America Oil and Gas Industry PE Ratio Median Figure of 107 Publicly-Listed Oil and Gas Companies 13.3x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.28x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Marathon Petroleum.

NYSE:MPC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MPC Share Price ÷ EPS (both in USD)

= 60.65 ÷ 5.36

11.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Marathon Petroleum is good value based on earnings compared to the US Oil and Gas industry average.
  • Marathon Petroleum is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Marathon Petroleum's expected growth come at a high price?
Raw Data
NYSE:MPC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.31x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
27.4%per year
United States of America Oil and Gas Industry PEG Ratio Median Figure of 76 Publicly-Listed Oil and Gas Companies 0.6x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:MPC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.31x ÷ 27.4%

0.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Marathon Petroleum is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Marathon Petroleum's assets?
Raw Data
NYSE:MPC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $51.73
NYSE:MPC Share Price * NYSE (2019-04-25) in USD $60.65
United States of America Oil and Gas Industry PB Ratio Median Figure of 191 Publicly-Listed Oil and Gas Companies 1.18x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NYSE:MPC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MPC Share Price ÷ Book Value per Share (both in USD)

= 60.65 ÷ 51.73

1.17x

* Primary Listing of Marathon Petroleum.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Marathon Petroleum is good value based on assets compared to the US Oil and Gas industry average.
X
Value checks
We assess Marathon Petroleum's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Marathon Petroleum has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Marathon Petroleum expected to grow at an attractive rate?
  • Marathon Petroleum's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Marathon Petroleum's earnings growth is expected to exceed the United States of America market average.
  • Marathon Petroleum's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MPC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MPC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 27.4%
NYSE:MPC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 13%
United States of America Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 10.5%
United States of America Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 5.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MPC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MPC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 136,303 9,041 4,978 3
2020-12-31 135,714 10,208 5,565 7
2019-12-31 113,917 8,575 4,082 6
NYSE:MPC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 96,706 6,158 2,779
2018-09-30 77,690 6,173 3,843
2018-06-30 73,957 6,897 4,008
2018-03-31 69,859 5,364 3,437
2017-12-31 75,053 6,612 3,430
2017-09-30 69,251 4,860 1,642
2017-06-30 64,702 3,359 885
2017-03-31 61,385 4,773 1,202
2016-12-31 63,517 4,017 1,173
2016-09-30 54,372 3,810 1,132
2016-06-30 56,364 4,474 1,935
2016-03-31 60,040 3,201 1,959

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Marathon Petroleum's earnings are expected to grow significantly at over 20% yearly.
  • Marathon Petroleum's revenue is expected to grow by 13% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MPC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Marathon Petroleum Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MPC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 8.25 8.58 7.92 2.00
2020-12-31 8.64 9.89 7.51 9.00
2019-12-31 6.02 7.67 4.91 9.00
NYSE:MPC Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 5.36
2018-09-30 8.21
2018-06-30 8.33
2018-03-31 6.95
2017-12-31 6.77
2017-09-30 3.17
2017-06-30 1.69
2017-03-31 2.28
2016-12-31 2.22
2016-09-30 2.14
2016-06-30 3.65
2016-03-31 3.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Marathon Petroleum is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Marathon Petroleum's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Marathon Petroleum has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Marathon Petroleum performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Marathon Petroleum's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Marathon Petroleum's year on year earnings growth rate has been positive over the past 5 years.
  • Marathon Petroleum's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Marathon Petroleum's 1-year earnings growth is negative, it can't be compared to the US Oil and Gas industry average.
Earnings and Revenue History
Marathon Petroleum's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Marathon Petroleum Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MPC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 96,706.00 2,779.00 2,424.00
2018-09-30 77,690.00 3,843.00 1,818.00
2018-06-30 73,957.00 4,008.00 1,744.00
2018-03-31 69,859.00 3,437.00 1,727.00
2017-12-31 75,053.00 3,430.00 1,714.00
2017-09-30 69,251.00 1,642.00 1,606.00
2017-06-30 64,702.00 885.00 1,614.00
2017-03-31 61,385.00 1,202.00 1,616.00
2016-12-31 63,517.00 1,173.00 1,605.00
2016-09-30 54,372.00 1,132.00 1,602.00
2016-06-30 56,364.00 1,935.00 1,574.00
2016-03-31 60,040.00 1,959.00 1,566.00
2015-12-31 64,471.00 2,848.00 1,546.00
2015-09-30 71,111.00 3,459.00 1,500.00
2015-06-30 78,194.00 3,182.00 1,450.00
2015-03-31 84,848.00 3,211.00 1,373.00
2014-12-31 91,254.00 2,520.00 1,361.00
2014-09-30 94,230.00 2,347.00 1,340.00
2014-06-30 95,035.00 1,844.00 1,303.00
2014-03-31 93,857.00 1,583.00 1,345.00
2013-12-31 93,949.00 2,108.00 1,248.00
2013-09-30 89,884.00 2,238.00 1,226.00
2013-06-30 84,843.00 3,292.00 1,214.00
2013-03-31 79,563.00 3,512.00 1,221.00
2012-12-31 76,568.00 3,383.00 1,223.00
2012-09-30 75,425.00 2,554.00 1,164.00
2012-06-30 75,137.00 2,463.00 1,170.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Marathon Petroleum has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Marathon Petroleum used its assets less efficiently than the US Oil and Gas industry average last year based on Return on Assets.
  • Marathon Petroleum's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Marathon Petroleum's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Marathon Petroleum has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Marathon Petroleum's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Marathon Petroleum's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Marathon Petroleum is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Marathon Petroleum's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Marathon Petroleum's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Marathon Petroleum Company Filings, last reported 3 months ago.

NYSE:MPC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 45,053.00 27,524.00 1,687.00
2018-09-30 20,034.00 18,449.00 4,992.00
2018-06-30 19,821.00 17,267.00 4,999.00
2018-03-31 19,863.00 17,258.00 4,653.00
2017-12-31 21,828.00 12,946.00 3,011.00
2017-09-30 20,802.00 12,782.00 2,088.00
2017-06-30 20,564.00 12,606.00 1,450.00
2017-03-31 20,797.00 12,598.00 2,167.00
2016-12-31 21,203.00 10,572.00 887.00
2016-09-30 20,957.00 10,566.00 709.00
2016-06-30 20,928.00 11,059.00 1,754.00
2016-03-31 19,494.00 11,566.00 308.00
2015-12-31 19,675.00 11,925.00 1,127.00
2015-09-30 12,925.00 6,692.00 2,044.00
2015-06-30 12,290.00 6,698.00 1,881.00
2015-03-31 11,980.00 6,743.00 2,078.00
2014-12-31 11,390.00 6,602.00 1,494.00
2014-09-30 11,266.00 6,264.00 1,854.00
2014-06-30 11,037.00 3,638.00 2,125.00
2014-03-31 10,758.00 3,659.00 2,166.00
2013-12-31 11,332.00 3,396.00 2,292.00
2013-09-30 11,264.00 3,403.00 2,018.00
2013-06-30 12,197.00 3,410.00 3,069.00
2013-03-31 12,412.00 3,416.00 4,737.00
2012-12-31 12,105.00 3,361.00 4,860.00
2012-09-30 11,467.00 3,349.00 3,387.00
2012-06-30 10,326.00 3,335.00 1,895.00
  • Marathon Petroleum's level of debt (61.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (30% vs 61.1% today).
  • Debt is well covered by operating cash flow (22.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6x coverage).
X
Financial health checks
We assess Marathon Petroleum's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Marathon Petroleum has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.5%
Current annual income from Marathon Petroleum dividends. Estimated to be 3.9% next year.
If you bought $2,000 of Marathon Petroleum shares you are expected to receive $70 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Marathon Petroleum's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
  • Marathon Petroleum's dividend is below the markets top 25% of dividend payers in United States of America (3.61%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MPC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United States of America Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 65 Stocks 3.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MPC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.83 5.00
2020-12-31 2.40 13.00
2019-12-31 2.15 13.00
NYSE:MPC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-24 2.120 3.529
2019-01-28 2.120 3.407
2018-10-31 1.840 2.915
2018-07-25 1.840 2.301
2018-04-25 1.840 2.448
2018-01-29 1.840 2.624
2017-10-25 1.600 2.464
2017-07-26 1.600 2.955
2017-04-26 1.440 2.724
2017-01-27 1.440 2.894
2016-10-26 1.440 3.051
2016-07-27 1.440 3.436
2016-04-27 1.280 3.529
2016-02-01 1.280 3.534
2015-10-28 1.280 2.561
2015-07-29 1.280 2.602
2015-04-29 1.000 1.899
2015-02-02 1.000 1.988
2014-10-29 1.000 2.247
2014-07-30 1.000 2.328
2014-04-30 0.840 1.982
2014-01-27 0.840 1.915
2013-10-30 0.840 2.034
2013-07-31 0.840 2.426
2013-04-24 0.700 1.838
2013-01-30 0.700 1.683
2012-11-09 0.700 2.287
2012-11-01 0.700 2.569
2012-08-08 0.700 2.661
2012-07-31 0.700 2.878
2012-05-09 0.500 2.480
2012-02-29 0.500 2.382
2011-10-26 0.500 2.755
2011-07-27 0.400 2.303

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Marathon Petroleum has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Marathon Petroleum only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Marathon Petroleum's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).
X
Income/ dividend checks
We assess Marathon Petroleum's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Marathon Petroleum afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Marathon Petroleum has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Gary Heminger
COMPENSATION $19,806,050
AGE 65
TENURE AS CEO 7.8 years
CEO Bio

Mr. Gary R. Heminger has been Chief Executive Officer and Director of Tesoro Logistics Logistics GP, LLC since October 1, 2018. Mr. Heminger is the Chief Executive Officer of MarkWest New Mexico L.L.C. He also serves as Chairman of the Board at Andeavor Logistics LP since 2018. Mr. Heminger has been the Chief Executive Officer of Marathon Petroleum Corporation since June 30, 2011 and as its Chairman of the Board since April 27, 2016. Mr. Heminger has been the Chairman and Chief Executive Officer at MPLX GP LLC, a General Partner of MPLX LP since June 2012. He served as the President of Marathon Petroleum Corporation from June 30, 2011 to July 1, 2017. He served as an Executive Vice President of Downstream at Marathon Oil Corporation from September 2001 to June 30, 2011 and served as its Executive Vice President since January 2005. He served as the President of Marathon Petroleum Company LP since September 2001, Executive Vice President of Supply, Transportation & Marketing since January 2001, Senior Vice President of Business Development since 1999 and Vice President of Business Development since January 1998. He served as an Executive Vice President of Downstream at Marathon Petroleum Company LP. He joined Marathon Petroleum Company LP in 1975. He spent over 40 years in a variety of leadership, financial and marketing positions with Marathon Petroleum Company LP. He served as President of Marathon Ashland Petroleum LLC since September 2001, he was named Vice President of Business Development upon its formation in 1998, and Senior Vice President of Business Development in 1999. He also served as President of Refining, Marketing & Transportation Operations of Marathon Petroleum Company LP. He served for 37 years at Marathon serving in a variety of groups and functions. Along with five years in various financial and administrative roles, he served for three years in London, England as an Audit Supervisor of the Brae Project. He served as the Vice President of Western Division of Emro Marketing (predecessor of Speedway SuperAmerica LLC) since 1991 and served in several marketing and commercial roles, for eight years. From 1995 to 1996, He served as the President of Marathon Pipe Line Company and also served as Manager of Business Development & Joint Interest of Marathon Petroleum Company LP since November 1996. He served as the Chairman of the Board of Trustees at Tiffin University from 1996 to 2014. He was Chairman of Louisiana Offshore Oil Port. Mr. Heminger has been a Director of Fifth Third Bank since December 20, 2006 and Marathon Petroleum Corporation since 2011. He has been Director at PPG Industries, Inc. since July 20, 2017. He is an emeritus Trustee of the Board of trustees at Tiffin University and has been its Trustee since joining in 1991. He serves as a Director of American Chemistry Council Inc. and of JobsOhio. Mr. Heminger has been a Director at Fifth Third BanCorp since December 20, 2006 and MPLX GP LLC., since 2012. He served as Director of Northern Tier Energy LP until July 2012. He was a Member of the Oxford Institute for Energy Studies. He served as Chairman of the American Petroleum Institute (API) Downstream Committee. He serves on the Executive Committee in the U.S.-Saudi Arabian Business Council. Mr. Heminger holds an MBA from the University of Dayton in 1982. Mr. Heminger holds Executive Management Program from the University of Pennsylvania - The Wharton School. Mr. Heminger holds Bachelor’s Degree in Accounting from Tiffin University in 1976.

CEO Compensation
  • Gary's compensation has been consistent with company performance over the past year.
  • Gary's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Marathon Petroleum management team in years:

2.2
Average Tenure
55
Average Age
  • The tenure for the Marathon Petroleum management team is about average.
Management Team

Gary Heminger

TITLE
Chairman of the Board & CEO
COMPENSATION
$20M
AGE
65
TENURE
7.8 yrs

Greg Goff

TITLE
Executive Vice Chairman
COMPENSATION
$7M
AGE
61
TENURE
0.5 yrs

Tim Griffith

TITLE
Senior VP & CFO
COMPENSATION
$5M
AGE
49
TENURE
4.1 yrs

Don Templin

TITLE
President of Refining
COMPENSATION
$6M
AGE
55
TENURE
0.5 yrs

Tony Kenney

TITLE
President of Speedway LLC
COMPENSATION
$4M
AGE
65
TENURE
13.7 yrs

Timothy Harris

TITLE
VP & Chief Technology Officer
TENURE
0.5 yrs

Donald Wehrly

TITLE
Chief Information Officer & Vice President
AGE
59
TENURE
7.8 yrs

Dave Sauber

TITLE
Senior VP of Labor Relations
AGE
54
TENURE
1.3 yrs

Kristina Kazarian

TITLE
Vice President of Investor Relations
AGE
35
TENURE
1 yrs

Molly Benson

TITLE
VP, Chief Securities
AGE
51
TENURE
3.1 yrs
Board of Directors Tenure

Average tenure and age of the Marathon Petroleum board of directors in years:

2.8
Average Tenure
64
Average Age
  • The average tenure for the Marathon Petroleum board of directors is less than 3 years, this suggests a new board.
Board of Directors

Greg Goff

TITLE
Executive Vice Chairman
COMPENSATION
$7M
AGE
61
TENURE
0.5 yrs

John Surma

TITLE
Independent Director
COMPENSATION
$503K
AGE
64
TENURE
7.8 yrs

Gary Heminger

TITLE
Chairman of the Board & CEO
COMPENSATION
$20M
AGE
65
TENURE
3 yrs

Jim Rohr

TITLE
Lead Independent Director
COMPENSATION
$342K
AGE
69
TENURE
1 yrs

Susan Tomasky

TITLE
Director
COMPENSATION
$79K
AGE
65
TENURE
0.5 yrs

Evan Bayh

TITLE
Independent Director
COMPENSATION
$300K
AGE
63
TENURE
7.8 yrs

Steve Davis

TITLE
Independent Director
COMPENSATION
$304K
AGE
60
TENURE
5.8 yrs

Charles Bunch

TITLE
Independent Director
COMPENSATION
$310K
AGE
68
TENURE
3.6 yrs

Abdulaziz Alkhayyal

TITLE
Independent Director
COMPENSATION
$300K
AGE
64
TENURE
2.5 yrs

Mike Stice

TITLE
Independent Director
COMPENSATION
$430K
AGE
59
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
21. Dec 18 Buy Gregory Goff Individual 09. Oct 18 12. Oct 18 140 $83.42 $11,131
18. Dec 18 Buy Steven Davis Individual 14. Dec 18 14. Dec 18 3,500 $62.14 $217,490
21. Nov 18 Buy Steven Davis Individual 19. Nov 18 20. Nov 18 2,500 $65.15 $155,500
X
Management checks
We assess Marathon Petroleum's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Marathon Petroleum has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Estimating The Intrinsic Value Of Marathon Petroleum Corporation (NYSE:MPC)

This is done using the Discounted Cash Flow (DCF) model. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows

Simply Wall St -

Does Marathon Petroleum Corporation (NYSE:MPC) Have A Good P/E Ratio?

Based on the last twelve months, Marathon Petroleum's P/E ratio is 11.28. … How Do I Calculate Marathon Petroleum's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is Marathon Petroleum Corporation's (NYSE:MPC) Balance Sheet A Threat To Its Future?

There are a number of reasons that attract investors towards large-cap companies such as Marathon Petroleum Corporation (NYSE:MPC), with a market cap of US$43b. … This article will examine Marathon Petroleum’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … View our latest analysis for Marathon Petroleum

Simply Wall St -

How Many Insiders Bought Marathon Petroleum Corporation (NYSE:MPC) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Marathon Petroleum Corporation (NYSE:MPC). … The Last 12 Months Of Insider Transactions At Marathon Petroleum. … In the last twelve months there was more buying than selling by Marathon Petroleum insiders

Simply Wall St -

Is Marathon Petroleum Corporation (NYSE:MPC) Undervalued After Accounting For Its Future Growth?

Marathon Petroleum Corporation (NYSE:MPC) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of $62.03 is based on unrealistic expectations. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … Marathon Petroleum's extremely high growth potential in the near future is attracting investors

Simply Wall St -

Did Marathon Petroleum's Share Price Deserve to Gain 67%?

For example, Marathon Petroleum Corporation (NYSE:MPC) shareholders have seen the share price rise 67% over three years, well in excess of the market return (40%, not including dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Marathon Petroleum was able to grow its EPS at 0.5% per year over three years, sending the share price higher.

Simply Wall St -

Should You Buy Marathon Petroleum Corporation (NYSE:MPC) For Its Dividend?

Historically, Marathon Petroleum Corporation (NYSE:MPC) has paid dividends to shareholders, and these days it yields 3.3%. … Let's dig deeper into whether Marathon Petroleum should have a place in your portfolio. … Check out our latest analysis for Marathon Petroleum

Simply Wall St -

What Kind Of Shareholders Own Marathon Petroleum Corporation (NYSE:MPC)?

A look at the shareholders of Marathon Petroleum Corporation (NYSE:MPC) can tell us which group is most powerful. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that have been privatized tend to have low insider ownership.

Simply Wall St -

Marathon Petroleum Corporation (NYSE:MPC) Earns Among The Best Returns In Its Industry

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

An Examination Of Marathon Petroleum Corporation (NYSE:MPC)

I've been keeping an eye on Marathon Petroleum Corporation (NYSE:MPC) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe MPC has a lot to offer.

Simply Wall St -

Company Info

Description

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; and 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, 2018, it owned, leased, and had ownership interests in approximately 16,600 miles of crude oil and refined product pipelines, as well as owned and operated 3,920 convenience stores; and had 6,813 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.

Details
Name: Marathon Petroleum Corporation
MPC
Exchange: NYSE
Founded: 1887
$40,796,294,370
672,651,185
Website: http://www.marathonpetroleum.com
Address: Marathon Petroleum Corporation
539 South Main Street,
Findlay,
Ohio, 45840,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MPC Common Stock New York Stock Exchange US USD 23. Jun 2011
DB MPN Common Stock Deutsche Boerse AG DE EUR 23. Jun 2011
BST MPN Common Stock Boerse-Stuttgart DE EUR 23. Jun 2011
LSE 0JYA Common Stock London Stock Exchange GB USD 23. Jun 2011
BMV MPC * Common Stock Bolsa Mexicana de Valores MX MXN 23. Jun 2011
Number of employees
Current staff
Staff numbers
60,350
Marathon Petroleum employees.
Industry
Oil and Gas Refining and Marketing
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/26 02:40
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/04/23
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.