Marathon Petroleum Corporation
Marathon Petroleum Corporation Fundamental Analysis
Marathon Petroleum Corporation (MPC) shows moderate financial fundamentals with a PE ratio of 14.55, profit margin of 3.04%, and ROE of 21.87%. The company generates $133.7B in annual revenue with weak year-over-year growth of -6.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MPC's fundamental strength across five key dimensions:
Efficiency Score
WeakMPC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMPC trades at attractive valuation levels.
Growth Score
WeakMPC faces weak or negative growth trends.
Financial Health Score
ModerateMPC shows balanced financial health with some risks.
Profitability Score
ModerateMPC maintains healthy but balanced margins.
Key Financial Metrics
Is MPC Expensive or Cheap?
P/E Ratio
MPC trades at 14.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MPC's PEG of 0.34 indicates potential undervaluation.
Price to Book
The market values Marathon Petroleum Corporation at 2.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.09 times EBITDA. This is generally considered low.
How Well Does MPC Make Money?
Net Profit Margin
For every $100 in sales, Marathon Petroleum Corporation keeps $3.04 as profit after all expenses.
Operating Margin
Core operations generate 4.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.87 in profit for every $100 of shareholder equity.
ROA
Marathon Petroleum Corporation generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Marathon Petroleum Corporation generates limited operating cash flow of $5.21B, signaling weaker underlying cash strength.
Free Cash Flow
Marathon Petroleum Corporation generates weak or negative free cash flow of $2.89B, restricting financial flexibility.
FCF Per Share
Each share generates $9.63 in free cash annually.
FCF Yield
MPC converts 4.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How MPC Stacks Against Its Sector Peers
| Metric | MPC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.55 | 20.19 | Better (Cheaper) |
| ROE | 21.87% | 1019.00% | Weak |
| Net Margin | 3.04% | -44017.00% (disorted) | Weak |
| Debt/Equity | 0.00 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.00 | 4.60 | Weak Liquidity |
| ROA | 0.00% | -11655350.00% (disorted) | Weak |
MPC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Marathon Petroleum Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
142.31%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
152.35%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
77.37%
Industry Style: Cyclical, Value, Commodity
High Growth