Murphy Oil Corporation Fundamental Analysis (NYSE: MUR)
Murphy Oil Corporation Fundamental Analysis (NYSE: MUR)
Murphy Oil Corporation (NYSE: MUR) shows weak financial fundamentals with a PE ratio of 16.99, profit margin of 9.72%, and ROE of 5.71%. The company generates $3.0B in annual revenue with weak year-over-year growth of -10.89%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 25.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MUR's fundamental strength across five key dimensions:
Efficiency Score
WeakMUR struggles to generate sufficient returns from assets.
Valuation Score
ModerateMUR shows balanced valuation metrics.
Growth Score
WeakMUR faces weak or negative growth trends.
Financial Health Score
ModerateMUR shows balanced financial health with some risks.
Profitability Score
WeakMUR struggles to sustain strong margins.
Key Financial Metrics
Is MUR Expensive or Cheap?
P/E Ratio
MUR trades at 16.99 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MUR's PEG of 3.31 indicates potential overvaluation.
Price to Book
The market values Murphy Oil Corporation at 0.95 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.12 times EBITDA. This is generally considered low.
How Well Does MUR Make Money?
Net Profit Margin
For every $100 in sales, Murphy Oil Corporation keeps $9.72 as profit after all expenses.
Operating Margin
Core operations generate 18.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.71 in profit for every $100 of shareholder equity.
ROA
Murphy Oil Corporation generates $2.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Murphy Oil Corporation generates strong operating cash flow of $1.57B, reflecting robust business health.
Free Cash Flow
Murphy Oil Corporation generates strong free cash flow of $329.79M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.30 in free cash annually.
FCF Yield
MUR converts 6.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How MUR Stacks Against Its Sector Peers
| Metric | MUR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.99 | 21.78 | Better (Cheaper) |
| ROE | 5.71% | 1231.00% | Weak |
| Net Margin | 9.72% | 1251.00% | Weak |
| Debt/Equity | 0.43 | 2.78 | Strong (Low Leverage) |
| Current Ratio | 0.85 | 5.46 | Weak Liquidity |
| ROA | 2.86% | 4417.00% | Weak |
MUR outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Murphy Oil Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
64.70%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
109.73%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
66.73%
Industry Style: Cyclical, Value, Commodity
High Growth