Murphy USA Inc.
Murphy USA Inc. Fundamental Analysis
Murphy USA Inc. (MUSA) shows moderate financial fundamentals with a PE ratio of 15.52, profit margin of 2.43%, and ROE of 74.25%. The company generates $19.5B in annual revenue with weak year-over-year growth of -5.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MUSA's fundamental strength across five key dimensions:
Efficiency Score
WeakMUSA struggles to generate sufficient returns from assets.
Valuation Score
ModerateMUSA shows balanced valuation metrics.
Growth Score
WeakMUSA faces weak or negative growth trends.
Financial Health Score
WeakMUSA carries high financial risk with limited liquidity.
Profitability Score
ModerateMUSA maintains healthy but balanced margins.
Key Financial Metrics
Is MUSA Expensive or Cheap?
P/E Ratio
MUSA trades at 15.52 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MUSA's PEG of 6.90 indicates potential overvaluation.
Price to Book
The market values Murphy USA Inc. at 11.72 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.12 times EBITDA. This is generally considered low.
How Well Does MUSA Make Money?
Net Profit Margin
For every $100 in sales, Murphy USA Inc. keeps $2.43 as profit after all expenses.
Operating Margin
Core operations generate 3.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $74.25 in profit for every $100 of shareholder equity.
ROA
Murphy USA Inc. generates $9.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Murphy USA Inc. generates limited operating cash flow of $817.72M, signaling weaker underlying cash strength.
Free Cash Flow
Murphy USA Inc. generates weak or negative free cash flow of $376.06M, restricting financial flexibility.
FCF Per Share
Each share generates $20.07 in free cash annually.
FCF Yield
MUSA converts 5.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.74
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How MUSA Stacks Against Its Sector Peers
| Metric | MUSA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.52 | 25.25 | Better (Cheaper) |
| ROE | 74.25% | 1170.00% | Weak |
| Net Margin | 2.43% | 742.00% | Weak |
| Debt/Equity | 5.22 | 0.77 | Weak (High Leverage) |
| Current Ratio | 0.80 | 9.19 | Weak Liquidity |
| ROA | 9.96% | -6467.00% (disorted) | Weak |
MUSA outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Murphy USA Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
121.95%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
399.48%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
316.28%
Industry Style: Cyclical, Growth, Discretionary
High Growth