Marathon Oil Corporation
Marathon Oil Corporation Fundamental Analysis
Marathon Oil Corporation (MRO) shows moderate financial fundamentals with a PE ratio of 11.15, profit margin of 24.25%, and ROE of 13.75%. The company generates $5.9B 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 63.7/100 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 MRO's fundamental strength across five key dimensions:
Efficiency Score
WeakMRO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMRO trades at attractive valuation levels.
Growth Score
ModerateMRO shows steady but slowing expansion.
Financial Health Score
ModerateMRO shows balanced financial health with some risks.
Profitability Score
ModerateMRO maintains healthy but balanced margins.
Key Financial Metrics
Is MRO Expensive or Cheap?
P/E Ratio
MRO trades at 11.15 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MRO's PEG of -1.19 indicates potential undervaluation.
Price to Book
The market values Marathon Oil Corporation at 1.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.39 times EBITDA. This is generally considered low.
How Well Does MRO Make Money?
Net Profit Margin
For every $100 in sales, Marathon Oil Corporation keeps $24.25 as profit after all expenses.
Operating Margin
Core operations generate 35.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.75 in profit for every $100 of shareholder equity.
ROA
Marathon Oil Corporation generates $7.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Marathon Oil Corporation generates strong operating cash flow of $3.77B, reflecting robust business health.
Free Cash Flow
Marathon Oil Corporation generates strong free cash flow of $1.89B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.38 in free cash annually.
FCF Yield
MRO converts 12.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How MRO Stacks Against Its Sector Peers
| Metric | MRO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.15 | 20.19 | Better (Cheaper) |
| ROE | 13.75% | 1019.00% | Weak |
| Net Margin | 24.25% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.48 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.40 | 4.60 | Weak Liquidity |
| ROA | 7.94% | -11655350.00% (disorted) | Weak |
MRO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Marathon Oil Corporation'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