Marathon Petroleum Corp. (MPC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

HF Sinclair Corp.

Par Pacific Holdings, Inc.

CVR Energy, Inc.

Valero Energy Corp.

Icahn Enterprises LP

Star Group LP

Marathon Petroleum Corp.

Phillips 66

Delek US Holdings, Inc.

PBF Energy, Inc.

Calumet Specialty Products Partners LP

Why is Marathon Petroleum Corp. ?

High Management Efficiency with a high ROCE of 20.70%

Healthy long term growth as Net Sales has grown by an annual rate of 5.51% and Operating profit at 18.58%

The company has declared Negative results for the last 8 consecutive quarters

NET PROFIT(HY) At USD 1,174.95 MM has Grown at -53.94%
OPERATING CASH FLOW(Y) Lowest at USD 6,466 MM
ROCE(HY) Lowest at 11.24%

With ROCE of 10.71%, it has a fair valuation with a 3.06 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 21.83%, its profits have fallen by -55.7%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Marathon Petroleum Corp. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Marathon Petroleum Corp. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Marathon Petroleum Corp.

26.43%

0.25

34.65%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.51%

EBIT Growth (5y)

18.58%

EBIT to Interest (avg)

7.00

Debt to EBITDA (avg)

3.33

Net Debt to Equity (avg)

1.68

Sales to Capital Employed (avg)

2.95

Tax Ratio

13.39%

Dividend Payout Ratio

33.54%

Pledged Shares

Institutional Holding

79.62%

ROCE (avg)

20.70%

ROE (avg)

30.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.53

EV to EBIT

28.60

EV to EBITDA

16.80

EV to Capital Employed

3.06

EV to Sales

0.98

PEG Ratio

Dividend Yield

98.85%

ROCE (Latest)

10.71%

ROE (Latest)

25.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

NET PROFIT(Q)

At USD 1,188.42 MM has Grown at 89.66%

RAW MATERIAL COST(Y)

Fallen by -5.14% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 11.36

OPERATING PROFIT MARGIN(Q)

Highest at 8.13 %

PRE-TAX PROFIT(Q)

At USD 1,847 MM has Grown at 53.25%

-16What is not working for the Company

NET PROFIT(HY)

At USD 1,174.95 MM has Grown at -53.94%

OPERATING CASH FLOW(Y)

Lowest at USD 6,466 MM

ROCE(HY)

Lowest at 11.24%

DEBT-EQUITY RATIO (HY)

Highest at 170.61 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 12.59 times

Here's what is working for Marathon Petroleum Corp.

Net Profit

At USD 1,188.42 MM has Grown at 89.66%

over average net sales of the previous four periods of USD 626.61 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Profit Margin

Highest at 8.13 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At USD 1,847 MM has Grown at 53.25%

over average net sales of the previous four periods of USD 1,205.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Dividend per share

Highest at USD 11.36

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -5.14% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Marathon Petroleum Corp.

Operating Cash Flow

Lowest at USD 6,466 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at 170.61 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 12.59 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio