NYSE:MRO

Stock Analysis Report

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Executive Summary

Marathon Oil Corporation operates as an independent exploration and production company in the United States and Equatorial Guinea. More Details


Snowflake Analysis

Slightly overvalued with worrying 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.6%

MRO

1.9%

US Oil and Gas

0.4%

US Market


1 Year Return

-62.8%

MRO

-45.8%

US Oil and Gas

17.8%

US Market

Return vs Industry: MRO underperformed the US Oil and Gas industry which returned -45.8% over the past year.

Return vs Market: MRO underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

MROIndustryMarket
7 Day11.6%1.9%0.4%
30 Day7.2%3.4%6.1%
90 Day-19.7%-14.4%8.9%
1 Year-62.5%-62.8%-42.4%-45.8%20.5%17.8%
3 Year-67.6%-68.6%-45.3%-52.5%42.3%32.9%
5 Year-75.1%-76.6%-43.2%-54.2%84.2%63.4%

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?

7.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MRO ($4.44) is trading below our estimate of fair value ($4.81)

Significantly Below Fair Value: MRO is trading below fair value, but not by a significant amount.


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 (0.3x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Marathon Oil forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

72.3%

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 (4.9% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: MRO's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRO is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Marathon Oil performed over the past 5 years?

48.1%

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 48.1% 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 (-35%).


Return on Equity

High ROE: MRO has a negative Return on Equity (-5.83%), 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 ($1.4B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: MRO's short term assets ($1.4B) do not cover its long term liabilities ($6.3B).


Debt to Equity History and Analysis

Debt Level: MRO's debt to equity ratio (49.5%) is considered high.

Reducing Debt: MRO's debt to equity ratio has increased from 41.4% to 49.5% 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: Insufficient data to determine if MRO has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MRO has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

2.70%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: MRO's dividend (2.7%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: MRO's dividend (2.7%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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?

2.6yrs

Average management tenure


CEO

Lee Tillman (58 yo)

7.17yrs

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 ($USD14.05M) is above average for companies of similar size in the US market ($USD5.60M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lee Tillman
Chairman7.17yrsUS$14.05m0.090%
$ 3.1m
Dane Whitehead
Executive VP & CFO3.58yrsUS$4.07m0.035%
$ 1.2m
Reginald Hedgebeth
EVP, General Counsel & Chief Administrative Officer1.17yrsUS$3.28m0.018%
$ 636.5k
Patrick Wagner
Executive Vice President of Corporate Development & Strategy2.92yrsUS$3.56m0.028%
$ 991.6k
T. Little
Executive VP and Advisor to CEO & E.G. Operations0.42yrUS$5.31m0.041%
$ 1.5m
Michael Henderson
Senior Vice President of Operations0.42yrno data0.025%
$ 863.7k
Gary Wilson
VP, Controller & Chief Accounting Officer6yrsno data0.0079%
$ 278.3k
Bruce McCullough
Senior VP of Technology & Innovation and Chief Information Officer4.17yrsno datano data
Guy Baber
Vice President of Investor Relations2.25yrsno datano data
Todd Abbott
Senior Vice President of Business Planning0.58yrno datano data

2.6yrs

Average Tenure

57yo

Average Age

Experienced Management: MRO's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lee Tillman
Chairman7.17yrsUS$14.05m0.090%
$ 3.1m
Douglas Foshee
Independent Director2.5yrsUS$343.75k0.0076%
$ 266.4k
Chadwick Deaton
Independent Director6.75yrsUS$342.50k0.0032%
$ 113.9k
Gregory Boyce
Lead Independent Director1.67yrsUS$350.00k0.0072%
$ 251.7k
Marcela Donadio
Independent Director5.83yrsUS$350.00k0.0026%
$ 90.1k
Jason Few
Independent Director1.5yrsUS$243.75k0%
$ 0
M. Hyland
Independent Director2.5yrsUS$337.50k0%
$ 0
J. Wells
Independent Director1.5yrsUS$243.75kno data

2.1yrs

Average Tenure

62yo

Average Age

Experienced Board: MRO's board of directors are not considered experienced ( 2.1 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$3.505b
  • Shares outstanding: 789.44m
  • Website: https://www.marathonoil.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRONYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
USSDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
MRO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
MROILENXTBR (Euronext Brussels)YesCommon StockBEUSDJan 1968
0JY9LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
M1RO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 05:26
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.