| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 2/6 |
| Past Performance | 0/6 |
| Financial Health | 3/6 |
| Dividends | 1/6 |
MRO Overview
Marathon Oil Corporation operates as an independent exploration and production company in the United States and Equatorial Guinea.
Rewards
Risk Analysis
No risks detected for MRO from our risk checks.
Marathon Oil Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$16.58 |
| 52 Week High | US$3.73 |
| 52 Week Low | US$16.84 |
| Beta | 3.11 |
| 1 Month Change | 37.94% |
| 3 Month Change | 44.17% |
| 1 Year Change | 273.42% |
| 3 Year Change | -11.29% |
| 5 Year Change | 20.85% |
| Change since IPO | -7.89% |
Recent News & Updates
Marathon Oil Stock Price Forecast: Will The Upward Trend Continue Or Reverse?
Marathon Oil Corporation has seen its shares rise rapidly over the last year. That was driven by fundamental improvements, not by speculation. MRO is vulnerable to a potential oil price decline, but the macro picture for oil remains constructive for now. MRO will ramp up its shareholder returns going forward, which should benefit its share price.
Estimating The Fair Value Of Marathon Oil Corporation (NYSE:MRO)
Today we will run through one way of estimating the intrinsic value of Marathon Oil Corporation ( NYSE:MRO ) by taking...
Marathon Oil Stock: It Just Keeps Getting Better
Marathon Oil is finally showing upside momentum again as investors recognize the company's benefits in a world desperately in need of affordable energy. The company is on pace to generate $2.0 billion in free cash flow this year, which will do wonders to balance sheet health, and dividend growth. Even after doubling this year, the stock is attractively valued and well-positioned for strong, long-term gains.
Marathon Oil: A Good Bet At The Right Price
The second quarter's revenues were $1,143 million, up significantly from the same quarter a year ago and up 6.7% sequentially. US production was 283K Boepd which represents 81.3% of the total output of 348K Boepd. MRO raised quarterly base dividend by 25% to $0.05 per share.
Marathon Oil Has The Ability To Drive Strong Shareholder Returns
Marathon Oil Corporation has an impressive portfolio of assets and the ability to drive strong returns at current share prices. The company is currently a free cash flow machine at current prices, generating a double-digit cash flow yield that its been using to pay down debt. We expect the company to aggressively pay down its long-term debt. It'll soon hit a limit to how much debt it can paydown. That'll save the company on interest expenditures and enable it to redirect to share repurchases. That'll generate double-digit shareholder rewards.
Shareholder Returns
| MRO | US Oil and Gas | US Market | |
|---|---|---|---|
| 7D | 2.5% | 1.2% | 1.7% |
| 1Y | 273.4% | 88.5% | 30.3% |
Return vs Industry: MRO exceeded the US Oil and Gas industry which returned 85.8% over the past year.
Return vs Market: MRO exceeded the US Market which returned 31.1% over the past year.
Price Volatility
| MRO volatility | |
|---|---|
| MRO Beta | 3.11 |
| Industry Beta | 1.74 |
| Market Beta | 1 |
Stable Share Price: MRO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: MRO's weekly volatility (7%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1887 | 1,672 | Lee Tillman | https://www.marathonoil.com |
Marathon Oil Corporation operates as an independent exploration and production company in the United States and Equatorial Guinea. The company engages in the exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas; and the production and marketing of products manufactured from natural gas, such as liquefied natural gas and methanol, as well as owns and operates 32 central gathering and treating facilities and the Sugarloaf gathering system, a 42-mile natural gas pipeline through Karnes and Atascosa Counties. As of December 31, 2020, it had estimated proved developed reserves totaling 674 million barrels of oil equivalent (mmboe); and estimated proved undeveloped reserves totaling 298 mmboe.
Marathon Oil Fundamentals Summary
| MRO fundamental statistics | |
|---|---|
| Market Cap | US$13.07b |
| Earnings (TTM) | -US$542.00m |
| Revenue (TTM) | US$4.03b |
3.2x
P/S Ratio-24.1x
P/E RatioIs MRO overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| MRO income statement (TTM) | |
|---|---|
| Revenue | US$4.03b |
| Cost of Revenue | US$1.18b |
| Gross Profit | US$2.86b |
| Expenses | US$3.40b |
| Earnings | -US$542.00m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 03, 2021
| Earnings per share (EPS) | -0.69 |
| Gross Margin | 70.77% |
| Net Profit Margin | -13.44% |
| Debt/Equity Ratio | 46.2% |
How did MRO perform over the long term?
See historical performance and comparisonDividends
1.2%
Current Dividend Yield-22%
Payout RatioValuation
Is Marathon Oil undervalued compared to its fair value and its price relative to the market?
1.23x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: MRO ($16.58) is trading above our estimate of fair value ($13.43)
Significantly Below Fair Value: MRO is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MRO is unprofitable, so we can't compare its PE Ratio to the US Oil and Gas industry average.
PE vs Market: MRO 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 MRO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: MRO is good value based on its PB Ratio (1.2x) compared to the US Oil and Gas industry average (2x).
Future Growth
How is Marathon Oil forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
1.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MRO's forecast earnings growth (1.2% per year) is below the savings rate (2%).
Earnings vs Market: MRO is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: MRO's is expected to become profitable in the next 3 years.
Revenue vs Market: MRO's revenue (0.8% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: MRO's revenue (0.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MRO's Return on Equity is forecast to be low in 3 years time (5.9%).
Past Performance
How has Marathon Oil performed over the past 5 years?
26.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MRO is currently unprofitable.
Growing Profit Margin: MRO is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: MRO is unprofitable, but has reduced losses over the past 5 years at a rate of 26.8% per year.
Accelerating Growth: Unable to compare MRO's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: MRO 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: MRO has a negative Return on Equity (-5.1%), as it is currently unprofitable.
Financial Health
How is Marathon Oil's financial position?
Financial Position Analysis
Short Term Liabilities: MRO's short term assets ($2.1B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: MRO's short term assets ($2.1B) do not cover its long term liabilities ($5.6B).
Debt to Equity History and Analysis
Debt Level: MRO's debt to equity ratio (46.2%) is considered high.
Reducing Debt: MRO's debt to equity ratio has increased from 38% to 46.2% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable MRO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: MRO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 54.6% per year.
Dividend
What is Marathon Oil current dividend yield, its reliability and sustainability?
1.21%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MRO's dividend (1.21%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: MRO's dividend (1.21%) is low compared to the top 25% of dividend payers in the US market (3.49%).
Stability and Growth of Payments
Stable Dividend: MRO's dividend payments have been volatile in the past 10 years.
Growing Dividend: MRO's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: MRO is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: MRO's dividends in 3 years are forecast to be thoroughly covered by earnings (14.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Lee Tillman (59 yo)
8.17yrs
Tenure
US$12,063,718
Compensation
Mr. Lee M. Tillman has been the Chief Executive Officer, President and Director of Marathon Oil Corporation since August 1, 2013 and its Chairman since February 1, 2019. Mr. Tillman served as a Vice Presid...
CEO Compensation Analysis
Compensation vs Market: Lee's total compensation ($USD12.06M) is about average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Lee's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: MRO's management team is considered experienced (4.3 years average tenure).
Board Members
Experienced Board: MRO's board of directors are not considered experienced ( 2.5 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Marathon Oil Corporation's employee growth, exchange listings and data sources
Key Information
- Name: Marathon Oil Corporation
- Ticker: MRO
- Exchange: NYSE
- Founded: 1887
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: US$13.072b
- Shares outstanding: 788.40m
- Website: https://www.marathonoil.com
Number of Employees
Location
- Marathon Oil Corporation
- 5555 San Felipe Street
- Houston
- Texas
- 77056-2723
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/22 22:56 |
| End of Day Share Price | 2021/10/22 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.