NYSE:MUR

Stock Analysis Report

Executive Summary

Murphy Oil Corporation operates as an oil and natural gas exploration and production company in the United States, Canada, and internationally.


Snowflake Analysis

Undervalued with limited growth.


Similar Companies

Share Price & News

How has Murphy Oil's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MUR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.2%

MUR

17.5%

US Oil and Gas

12.5%

US Market


1 Year Return

-80.5%

MUR

-57.2%

US Oil and Gas

-12.7%

US Market

Return vs Industry: MUR underperformed the US Oil and Gas industry which returned -57.2% over the past year.

Return vs Market: MUR underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

MURIndustryMarket
7 Day9.2%17.5%12.5%
30 Day-69.3%-36.4%-14.7%
90 Day-78.4%-52.2%-21.5%
1 Year-79.6%-80.5%-55.5%-57.2%-10.9%-12.7%
3 Year-77.0%-79.5%-52.3%-56.9%12.6%5.4%
5 Year-85.8%-88.4%-55.6%-62.5%31.9%17.5%

Price Volatility Vs. Market

How volatile is Murphy Oil's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

35.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MUR ($5.79) is trading below our estimate of fair value ($9.02)

Significantly Below Fair Value: MUR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MUR is poor value based on its PE Ratio (11.1x) compared to the Oil and Gas industry average (6.7x).

PE vs Market: MUR is good value based on its PE Ratio (11.1x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: MUR is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: MUR is good value based on its PB Ratio (0.2x) compared to the US Oil and Gas industry average (0.5x).


Next Steps

Future Growth

How is Murphy Oil forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MUR's forecast earnings growth (19.7% per year) is above the savings rate (1.7%).

Earnings vs Market: MUR's earnings (19.7% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: MUR's earnings are forecast to grow, but not significantly.

Revenue vs Market: MUR's revenue is expected to decline over the next 3 years (-7.5% per year).

High Growth Revenue: MUR's revenue is forecast to decline over the next 3 years (-7.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MUR's Return on Equity is forecast to be low in 3 years time (4.4%).


Next Steps

Past Performance

How has Murphy Oil performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MUR has high quality earnings.

Growing Profit Margin: MUR's current net profit margins (3%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: MUR has become profitable over the past 5 years, growing earnings by 23.3% per year.

Accelerating Growth: MUR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MUR had negative earnings growth (-47%) over the past year, making it difficult to compare to the Oil and Gas industry average (-11.4%).


Return on Equity

High ROE: MUR's Return on Equity (3.3%) is considered low.


Next Steps

Financial Health

How is Murphy Oil's financial position?


Financial Position Analysis

Short Term Liabilities: MUR's short term assets ($974.3M) exceed its short term liabilities ($942.8M).

Long Term Liabilities: MUR's short term assets ($974.3M) do not cover its long term liabilities ($5.0B).


Debt to Equity History and Analysis

Debt Level: MUR's debt to equity ratio (48.3%) is considered high.

Reducing Debt: MUR's debt to equity ratio has increased from 31.2% to 48.3% over the past 5 years.


Balance Sheet

Inventory Level: MUR has a high level of physical assets or inventory.

Debt Coverage by Assets: MUR's debt is not covered by short term assets (assets are 0.3x debt).


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: MUR is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: MUR is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Murphy Oil's current dividend yield, its reliability and sustainability?

17.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MUR's dividend (17.27%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: MUR's dividend (17.27%) is in the top 25% of dividend payers in the US market (5.49%)


Stability and Growth of Payments

Stable Dividend: MUR's dividend payments have been volatile in the past 10 years.

Growing Dividend: MUR's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (192.4%), MUR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MUR 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?

3.3yrs

Average management tenure


CEO

David Looney (62yo)

no data

Tenure

US$4,352,374

Compensation

Mr. David R. Looney has served as an Executive Vice President & Chief Financial Officer at Murphy Oil Corporation since March 01, 2018 and also serves as an Interim Chief Executive Officer and President si ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD4.35M) is above average for companies of similar size in the US market ($USD3.18M).

Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
David Looney
Executive VPno dataUS$4.35mno data
Roger Jenkins
CEO, President & Director (Leave of Absence)10.58yrsUS$13.37m0.36% $3.2m
Walter Compton
Executive VP & General Counsel9yrsUS$2.95m0.090% $794.3k
Michael McFadyen
Executive Vice President of Offshore3.25yrsUS$4.22m0.10% $913.7k
Eugene Coleman
Consultant0.92yrUS$4.41m0.065% $572.7k
Thomas Mireles
Senior Vice President of Technical Services1.5yrsno data0.013% $115.6k
Maria Martinez
Vice President of Human Resources & Administration1.5yrsno data0.0040% $35.2k
Kelly Whitley
Vice President of Investor Relations & Communications4.67yrsno data0.0098% $86.8k
Eric Hambly
Executive Vice President of Onshore1.5yrsno data0.018% $158.1k
John Gardner
VP & Treasurer6.58yrsno data0.015% $134.5k

3.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: MUR's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
T. Collins
Independent Director6.58yrsUS$306.05k0.018% $157.2k
Neal Schmale
Independent Director16.17yrsUS$349.55k0.14% $1.3m
James Kelley
Independent Director13.58yrsUS$315.05k0.040% $353.5k
Claiborne Deming
Independent Non-Employee Chairman & Presiding Director8yrsUS$430.78k1.78% $15.8m
Steven Cossé
Independent Director8.58yrsUS$321.05k0.073% $649.8k
Walentin Mirosh
Independent Director8.58yrsUS$299.05k0.019% $166.7k
Lawrence Dickerson
Independent Director5.58yrsUS$324.55k0.015% $133.2k
Robert Murphy
Independent Director27.17yrsUS$361.55k2.23% $19.7m
Laura Sugg
Independent Director5yrsUS$297.54k0.014% $121.6k
Jeffrey Nolan
Director7.58yrsUS$329.05k0.39% $3.4m

8.3yrs

Average Tenure

68.5yo

Average Age

Experienced Board: MUR's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MUR 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

Murphy Oil Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Murphy Oil Corporation
  • Ticker: MUR
  • Exchange: NYSE
  • Founded: 1950
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$886.850m
  • Shares outstanding: 153.17m
  • Website: https://www.murphyoilcorp.com

Number of Employees


Location

  • Murphy Oil Corporation
  • 300 Peach Street
  • PO Box 7000
  • El Dorado
  • Arkansas
  • 71730-7000
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MURNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
MUQDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0K3SLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

Biography

Murphy Oil Corporation operates as an oil and natural gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. Murphy Oil Corporation was incorporated in 1950 and is headquartered in El Dorado, Arkansas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 01:22
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.