Marathon Oil
Market Cap
US$5.1b
Last Updated
2020/11/26 23:40 UTC
Data Sources
Company Financials +
Executive Summary
Marathon Oil Corporation operates as an independent exploration and production company in the United States and Equatorial Guinea. More Details
Risk Analysis
Dividend of 1.87% is not well covered by earnings or forecast to be in the next 3 years
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Mediocre balance sheet and overvalued.
Similar Companies
Share Price & News
How has Marathon Oil's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MRO is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.
Volatility Over Time: MRO's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.
Market Performance
7 Day Return
13.0%
MRO
8.6%
US Oil and Gas
2.1%
US Market
1 Year Return
-45.9%
MRO
-31.2%
US Oil and Gas
19.8%
US Market
Return vs Industry: MRO underperformed the US Oil and Gas industry which returned -31.1% over the past year.
Return vs Market: MRO underperformed the US Market which returned 19.7% over the past year.
Shareholder returns
| MRO | Industry | Market | |
|---|---|---|---|
| 7 Day | 13.0% | 8.6% | 2.1% |
| 30 Day | 55.7% | 29.6% | 8.1% |
| 90 Day | 19.3% | 8.3% | 6.0% |
| 1 Year | -45.3%-45.9% | -26.5%-31.2% | 22.5%19.8% |
| 3 Year | -55.1%-56.7% | -32.8%-42.0% | 46.5%36.8% |
| 5 Year | -58.4%-61.1% | -21.8%-37.3% | 96.9%75.3% |
Long-Term Price Volatility Vs. Market
How volatile is Marathon Oil's share price compared to the market and industry in the last 5 years?
Simply Wall St News
17 hours ago | Simply Wall St
Marathon Oil Corporation (NYSE:MRO) Insiders Increased Their Holdings2 weeks ago | Simply Wall St
Why It Might Not Make Sense To Buy Marathon Oil Corporation (NYSE:MRO) For Its Upcoming DividendValuation
Is Marathon Oil undervalued compared to its fair value and its price relative to the market?
0.47x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: MRO ($6.43) is trading above our estimate of fair value ($5.53)
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 (0.5x) compared to the US Oil and Gas industry average (1x).
Next Steps
Future Growth
How is Marathon Oil forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
68.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MRO is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: MRO is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: MRO is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: MRO's revenue (6% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: MRO's revenue (6% 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 (0.5%).
Next Steps
Past Performance
How has Marathon Oil performed over the past 5 years?
45.8%
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 45.8% 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 (-29.6%).
Return on Equity
High ROE: MRO has a negative Return on Equity (-10.4%), as it is currently unprofitable.
Next Steps
Financial Health
How is Marathon Oil's financial position?
Financial Position Analysis
Short Term Liabilities: MRO's short term assets ($1.9B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: MRO's short term assets ($1.9B) do not cover its long term liabilities ($6.2B).
Debt to Equity History and Analysis
Debt Level: MRO's debt to equity ratio (54.4%) is considered high.
Reducing Debt: MRO's debt to equity ratio has increased from 43.1% to 54.4% 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 35.4% per year.
Next Steps
Dividend
What is Marathon Oil current dividend yield, its reliability and sustainability?
1.87%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MRO's dividend (1.87%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: MRO's dividend (1.87%) is low compared to the top 25% of dividend payers in the US market (4.05%).
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 is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.7yrs
Average management tenure
CEO
Lee Tillman (58 yo)
7.25yrs
Tenure
US$14,050,851
Compensation
Mr. Lee M. Tillman has been the Chief Executive Officer, President and Director of Marathon Oil Corporation since August 1, 2013 and has been its Chairman since February 1, 2019. Mr. Tillman served as a Vi...
CEO Compensation Analysis
Compensation vs Market: Lee's total compensation ($USD14.05M) is above average for companies of similar size in the US market ($USD6.86M).
Compensation vs Earnings: Lee's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 7.25yrs | US$14.05m | 0.090% $ 4.6m | |
| Executive VP & CFO | 3.67yrs | US$4.07m | 0.035% $ 1.8m | |
| EVP, General Counsel & Chief Administrative Officer | 1.25yrs | US$3.28m | 0.018% $ 921.8k | |
| Executive Vice President of Corporate Development & Strategy | 3yrs | US$3.56m | 0.028% $ 1.4m | |
| Executive VP and Advisor to CEO & E.G. Operations | 0.50yr | US$5.31m | 0.041% $ 2.1m | |
| Senior Vice President of Operations | 0.50yr | no data | 0.025% $ 1.3m | |
| VP, Controller & Chief Accounting Officer | 6.08yrs | no data | 0.0079% $ 403.0k | |
| Senior VP of Technology & Innovation and Chief Information Officer | 4.25yrs | no data | no data | |
| Vice President of Investor Relations | 2.33yrs | no data | no data | |
| Senior Vice President of Business Planning | 0.67yr | no data | no data |
2.7yrs
Average Tenure
57yo
Average Age
Experienced Management: MRO's management team is considered experienced (2.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 7.25yrs | US$14.05m | 0.090% $ 4.6m | |
| Independent Director | 2.58yrs | US$343.75k | 0.0076% $ 385.8k | |
| Independent Director | 6.83yrs | US$342.50k | 0.0032% $ 165.0k | |
| Lead Independent Director | 1.75yrs | US$350.00k | 0.0072% $ 364.4k | |
| Independent Director | 5.92yrs | US$350.00k | 0.0026% $ 130.4k | |
| Independent Director | 1.58yrs | US$243.75k | 0% $ 0 | |
| Independent Director | 2.58yrs | US$337.50k | 0% $ 0 | |
| Independent Director | 1.58yrs | US$243.75k | no data |
2.2yrs
Average Tenure
62yo
Average Age
Experienced Board: MRO's board of directors are not considered experienced ( 2.2 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 company bio, 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$5.076b
- Shares outstanding: 789.39m
- Website: https://www.marathonoil.com
Number of Employees
Location
- Marathon Oil Corporation
- 5555 San Felipe Street
- Houston
- Texas
- 77056-2723
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MRO | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| USS | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| MRO * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| MROIL | ENXTBR (Euronext Brussels) | Yes | Common Stock | BE | USD | Jan 1968 |
| 0JY9 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| M1RO34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 |
Biography
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...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/26 23:40 |
| End of Day Share Price | 2020/11/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.