Murphy USA, Inc. (MUSA) 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

Casey's General Stores, Inc.

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BJ's Wholesale Club Holdings, Inc.

Target Corp.

Murphy USA, Inc.

Tractor Supply Co.

Ulta Beauty, Inc.

CarMax, Inc.

AutoZone, Inc.

Why is Murphy USA, Inc. ?

High Management Efficiency with a high ROCE of 31.68%

Healthy long term growth as Net Sales has grown by an annual rate of 8.96% and Operating profit at 5.77%

Flat results in Jun 25

CASH AND EQV(HY) Lowest at USD 103.5 MM
DEBT-EQUITY RATIO (HY) Highest at 396.3 %
DEBTORS TURNOVER RATIO(HY) Lowest at 57.06 times

With ROCE of 28.66%, it has a fair valuation with a 7.46 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -26.39%, its profits have fallen by -3.9%

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 13.22% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -26.39% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Murphy USA, Inc. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Murphy USA, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Murphy USA, Inc.

-26.39%

-0.32

33.30%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.96%

EBIT Growth (5y)

5.77%

EBIT to Interest (avg)

8.67

Debt to EBITDA (avg)

1.66

Net Debt to Equity (avg)

2.58

Sales to Capital Employed (avg)

8.34

Tax Ratio

22.47%

Dividend Payout Ratio

7.42%

Pledged Shares

Institutional Holding

93.98%

ROCE (avg)

31.68%

ROE (avg)

66.27%

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

24.17

EV to EBIT

26.05

EV to EBITDA

19.25

EV to Capital Employed

7.46

EV to Sales

0.97

PEG Ratio

Dividend Yield

23.69%

ROCE (Latest)

28.66%

ROE (Latest)

68.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly 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

DIVIDEND PER SHARE(HY)

Highest at USD 57.06

DIVIDEND PAYOUT RATIO(Y)

Highest at 6.79%

RAW MATERIAL COST(Y)

Fallen by -7.58% (YoY

OPERATING PROFIT(Q)

Highest at USD 286 MM

EPS(Q)

Highest at USD 7.37

-4What is not working for the Company

CASH AND EQV(HY)

Lowest at USD 103.5 MM

DEBT-EQUITY RATIO (HY)

Highest at 396.3 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 57.06 times

INTEREST(Q)

Highest at USD 27.8 MM

Here's what is working for Murphy USA, Inc.

Dividend per share

Highest at USD 57.06 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit

Highest at USD 286 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

EPS

Highest at USD 7.37

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Dividend Payout Ratio

Highest at 6.79%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -7.58% (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 Murphy USA, Inc.

Interest

Highest at USD 27.8 MM

in the last five periods and Increased by 9.45% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Cash and Eqv

Lowest at USD 103.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 396.3 %

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

Debtors Turnover Ratio

Lowest at 57.06 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio