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Market Cap

US$8.5b

Last Updated

2021/04/14 22:06 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


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: MRO's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

1.4%

MRO

-2.0%

US Oil and Gas

1.3%

US Market


1 Year Return

162.2%

MRO

45.9%

US Oil and Gas

53.9%

US Market

Return vs Industry: MRO exceeded the US Oil and Gas industry which returned 45.9% over the past year.

Return vs Market: MRO exceeded the US Market which returned 53.9% over the past year.


Shareholder returns

MROIndustryMarket
7 Day1.4%-2.0%1.3%
30 Day-8.0%-8.6%2.8%
90 Day27.9%11.5%6.6%
1 Year164.5%162.2%55.7%45.9%56.6%53.9%
3 Year-37.0%-39.2%-18.2%-29.4%62.7%52.3%
5 Year-15.9%-21.1%-4.1%-22.9%120.5%95.9%

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

Valuation

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

0.83x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MRO ($10.76) is trading above our estimate of fair value ($9.71)

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 (0.8x) compared to the US Oil and Gas industry average (1.4x).


Future Growth

How is Marathon Oil forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

80.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRO is forecast to become profitable over the next 3 years, which is considered faster growth than 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 (12.2% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: MRO's revenue (12.2% 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 (2.2%).


Past Performance

How has Marathon Oil performed over the past 5 years?

38.9%

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 38.9% 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 (-44.6%).


Return on Equity

High ROE: MRO has a negative Return on Equity (-13.74%), 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 ($1.6B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: MRO's short term assets ($1.6B) do not cover its long term liabilities ($6.2B).


Debt to Equity History and Analysis

Debt Level: MRO's debt to equity ratio (51.3%) is considered high.

Reducing Debt: MRO's debt to equity ratio has increased from 39.2% to 51.3% 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 46.1% per year.


Dividend

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

1.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MRO's dividend (1.11%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.26%).

High Dividend: MRO's dividend (1.11%) is low compared to the top 25% of dividend payers in the US market (3.5%).


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 well covered by earnings (38.1% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Lee Tillman (58 yo)

7.67yrs

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 ($USD14.05M) is above average for companies of similar size in the US market ($USD6.39M).

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


Leadership Team

Experienced Management: MRO's management team is considered experienced (3.8 years average tenure).


Board Members

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: MRO insiders have only sold shares 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$8.482b
  • Shares outstanding: 788.25m
  • Website: https://www.marathonoil.com

Number of Employees


Location

  • Marathon Oil Corporation
  • 5555 San Felipe Street
  • Houston
  • Texas
  • 77056-2723
  • United States

Listings


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/14 22:06
End of Day Share Price2021/04/14 00:00
Earnings2020/12/31
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.