MRO Stock Overview
Marathon Oil Corporation operates as an independent exploration and production company in the United States and internationally.
Marathon Oil Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$22.05|
|52 Week High||US$33.24|
|52 Week Low||US$10.41|
|1 Month Change||-23.99%|
|3 Month Change||-15.32%|
|1 Year Change||56.72%|
|3 Year Change||55.17%|
|5 Year Change||86.08%|
|Change since IPO||22.50%|
Recent News & Updates
There's Been No Shortage Of Growth Recently For Marathon Oil's (NYSE:MRO) Returns On Capital
What trends should we look for it we want to identify stocks that can multiply in value over the long term? In a...
Marathon Oil: Shareholder Distribution Could Reach +10%
Even after its strong rally, Marathon Oil is going to return more than 10% of its market cap to shareholders via repurchases and dividends. Marathon Oil is not ''more of the same'' E&P stock. I discuss what sets Marathon Oil apart from its peers. I estimate that Marathon Oil is now priced at just under 4x free cash flow. I lay out my estimates for Marathon Oil returning approximately $2.5 billion to shareholders. As always, happy to discuss my thesis further in the comments section.
Is Marathon Oil A Good Dividend Stock? Focus On Yield And Safety
Marathon Oil's dividend yields are not as appealing as most of its peers and are also below that of the broad market index. However, MRO scores well on the dividend safety measure, as its dividend payout ratio is sufficiently low which will enable the company to maintain dividends in absolute terms. My rating for Marathon Oil is a Hold.
|MRO||US Oil and Gas||US Market|
Return vs Industry: MRO exceeded the US Oil and Gas industry which returned 24.6% over the past year.
Return vs Market: MRO exceeded the US Market which returned -20.5% over the past year.
|MRO Average Weekly Movement||8.5%|
|Oil and Gas Industry Average Movement||8.7%|
|Market Average Movement||7.9%|
|10% most volatile stocks in US Market||16.5%|
|10% least volatile stocks in US Market||3.1%|
Stable Share Price: MRO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: MRO's weekly volatility (8%) has been stable over the past year.
About the Company
Marathon Oil Corporation operates as an independent exploration and production company in the United States and internationally. 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. It also 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.
Marathon Oil Fundamentals Summary
|MRO fundamental statistics|
Is MRO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MRO income statement (TTM)|
|Cost of Revenue||US$1.33b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Aug 04, 2022
|Earnings per share (EPS)||3.04|
|Net Profit Margin||34.70%|
How did MRO perform over the long term?See historical performance and comparison
1.5%Current Dividend Yield
Is MRO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for MRO?
Other financial metrics that can be useful for relative valuation.
|What is MRO's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does MRO's PE Ratio compare to its peers?
|MRO PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
Price-To-Earnings vs Peers: MRO is good value based on its Price-To-Earnings Ratio (7.2x) compared to the peer average (24.3x).
Price to Earnings Ratio vs Industry
How does MRO's PE Ratio compare vs other companies in the U.S. Oil and Gas Industry?
Price-To-Earnings vs Industry: MRO is good value based on its Price-To-Earnings Ratio (7.2x) compared to the US Oil and Gas industry average (11.4x)
Price to Earnings Ratio vs Fair Ratio
What is MRO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||7.2x|
|Fair PE Ratio||8.6x|
Price-To-Earnings vs Fair Ratio: MRO is good value based on its Price-To-Earnings Ratio (7.2x) compared to the estimated Fair Price-To-Earnings Ratio (8.6x).
Share Price vs Fair Value
What is the Fair Price of MRO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: MRO ($22.05) is trading below our estimate of fair value ($39.97)
Significantly Below Fair Value: MRO is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: MRO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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How is Marathon Oil forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MRO's earnings are forecast to decline over the next 3 years (-40% per year).
Earnings vs Market: MRO's earnings are forecast to decline over the next 3 years (-40% per year).
High Growth Earnings: MRO's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MRO's revenue is expected to decline over the next 3 years (-13.8% per year).
High Growth Revenue: MRO's revenue is forecast to decline over the next 3 years (-13.8% 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 (11.8%).
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How has Marathon Oil performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MRO has high quality earnings.
Growing Profit Margin: MRO became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: MRO has become profitable over the past 5 years, growing earnings by 30.1% per year.
Accelerating Growth: MRO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: MRO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (98.5%).
Return on Equity
High ROE: MRO's Return on Equity (18.9%) is considered low.
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How is Marathon Oil's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: MRO's short term assets ($2.2B) exceed its short term liabilities ($2.0B).
Long Term Liabilities: MRO's short term assets ($2.2B) do not cover its long term liabilities ($4.6B).
Debt to Equity History and Analysis
Debt Level: MRO's net debt to equity ratio (29.3%) is considered satisfactory.
Reducing Debt: MRO's debt to equity ratio has reduced from 57.7% to 35.3% over the past 5 years.
Debt Coverage: MRO's debt is well covered by operating cash flow (91.8%).
Interest Coverage: MRO's interest payments on its debt are well covered by EBIT (8.3x coverage).
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What is Marathon Oil current dividend yield, its reliability and sustainability?
Dividend Score 2/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MRO's dividend (1.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).
High Dividend: MRO's dividend (1.45%) is low compared to the top 25% of dividend payers in the US market (4.34%).
Stability and Growth of Payments
Stable Dividend: MRO's dividend payments have been volatile in the past 10 years.
Growing Dividend: MRO's dividend payments have fallen over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (9.3%), MRO's dividend payments are thoroughly covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its low cash payout ratio (9%), MRO's dividend payments are thoroughly covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Lee Tillman (59 yo)
Mr. Lee M. Tillman has been the Chief Executive Officer, President and Director of Marathon Oil Corporation since August 1, 2013 and its Chairman since February 1, 2019. Mr. Tillman served as a Vice Presid...
CEO Compensation Analysis
Compensation vs Market: Lee's total compensation ($USD13.00M) is about average for companies of similar size in the US market ($USD13.59M).
Compensation vs Earnings: Lee's compensation has been consistent with company performance over the past year.
Experienced Management: MRO's management team is considered experienced (3.9 years average tenure).
Experienced Board: MRO's board of directors are considered experienced (4.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MRO insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Marathon Oil Corporation's employee growth, exchange listings and data sources
- Name: Marathon Oil Corporation
- Ticker: MRO
- Exchange: NYSE
- Founded: 1887
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Implied Market Cap: US$15.583b
- Shares outstanding: 707.69m
- Website: https://www.marathonoil.com
Number of Employees
- Marathon Oil Corporation
- 990 Town and Country Boulevard
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/24 00:00|
|End of Day Share Price||2022/06/24 00:00|
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.