Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. Fundamental Analysis
Magellan Midstream Partners, L.P. (MMP) shows moderate financial fundamentals with a PE ratio of 13.94, profit margin of 32.38%, and ROE of -8.33%. The company generates $3.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -295.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MMP's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMMP demonstrates superior asset utilization.
Valuation Score
ExcellentMMP trades at attractive valuation levels.
Growth Score
ModerateMMP shows steady but slowing expansion.
Financial Health Score
ModerateMMP shows balanced financial health with some risks.
Profitability Score
ModerateMMP maintains healthy but balanced margins.
Key Financial Metrics
Is MMP Expensive or Cheap?
P/E Ratio
MMP trades at 13.94 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MMP's PEG of 0.14 indicates potential undervaluation.
Price to Book
The market values Magellan Midstream Partners, L.P. at -153.87 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.07 times EBITDA. This is generally considered low.
How Well Does MMP Make Money?
Net Profit Margin
For every $100 in sales, Magellan Midstream Partners, L.P. keeps $32.38 as profit after all expenses.
Operating Margin
Core operations generate 24.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-8.33 in profit for every $100 of shareholder equity.
ROA
Magellan Midstream Partners, L.P. generates $13.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Magellan Midstream Partners, L.P. generates strong operating cash flow of $1.10B, reflecting robust business health.
Free Cash Flow
Magellan Midstream Partners, L.P. generates strong free cash flow of $932.31M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.61 in free cash annually.
FCF Yield
MMP converts 6.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
-153.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-54.98
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-8.33
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How MMP Stacks Against Its Sector Peers
| Metric | MMP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.94 | 20.19 | Better (Cheaper) |
| ROE | -832.78% | 1019.00% | Weak |
| Net Margin | 32.38% | -44017.00% (disorted) | Strong |
| Debt/Equity | -54.98 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.98 | 4.60 | Weak Liquidity |
| ROA | 13.45% | -11655350.00% (disorted) | Strong |
MMP outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Magellan Midstream Partners, L.P.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity