Marathon Petroleum Intrinsic Value Calculation – Marathon Petroleum: Investing for the Future
December 21, 2023
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Marathon Petroleum ($NYSE:MPC) is one of the leading energy companies in the United States, providing reliable and affordable fuel to homes and businesses. As a company that is committed to investing in the future, Marathon Petroleum is dedicated to providing top-notch products and services to its customers. With a history of over a century, Marathon Petroleum has a strong foothold in the energy industry and is well-known for its commitment to safety, innovation, and excellence. Marathon Petroleum is a diversified energy company with operations in exploration and production, refining, marketing, transportation, and petrochemicals. The company’s transportation activities include retail, terminal, and pipeline operations. Its retail operations are conducted through its Speedway gas station chain and other retail outlets. Marathon Petroleum also has a number of refining operations throughout the United States.
Marathon Petroleum has made a commitment to investing in technology and research to improve its operations and expand its reach. The company is focused on developing more efficient energy sources, expanding into new markets, and increasing production. Marathon Petroleum has also committed itself to protecting the environment by investing in renewable energy sources and reducing its greenhouse gas emissions. Marathon Petroleum is an attractive investment for those looking to diversify their portfolio. The company’s consistent growth, commitment to innovation, and strong foothold in the energy market make it an attractive option for both short-term and long-term investments. Investing in Marathon Petroleum will enable investors to benefit from the company’s commitment to the journey ahead.
Market Price
Marathon Petroleum Corporation (MPC) has demonstrated strong performance in the stock market as of Tuesday. The stock opened at $151.9 and closed at $153.8, which marks a 1.3% increase from the previous closing price of $151.8. This positive trend is indicative of Marathon Petroleum’s capacity to remain competitive in the industry and invest for the future of the company. This move has enabled Marathon Petroleum to expand its refining, marketing, and transportation capabilities, and become one of the largest independent refiners in the United States. Marathon Petroleum is also investing heavily in renewable energies and making efforts to reduce its carbon emissions.
These investments are designed to further strengthen the company’s presence in the industry and help it to meet future market demands. The stock’s performance on Tuesday is a sign that investors are confident in Marathon Petroleum’s efforts to remain competitive and diversify its operations. As this trend continues, Marathon Petroleum is likely to remain a major player in the industry and ensure long-term success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Marathon Petroleum. More…
| Total Revenues | Net Income | Net Margin |
| 151.94k | 11.54k | 7.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Marathon Petroleum. More…
| Operations | Investing | Financing |
| 17.38k | -2.63k | -13.67k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Marathon Petroleum. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 89.97k | 57.17k | 68.11 |
Key Ratios Snapshot
Some of the financial key ratios for Marathon Petroleum are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.9% | 47.5% | 11.5% |
| FCF Margin | ROE | ROA |
| 10.1% | 42.4% | 12.2% |
Analysis – Marathon Petroleum Intrinsic Value Calculation
At GoodWhale, our team evaluated the fundamentals of MARATHON PETROLEUM and arrived at a fair value of ~$137.3 per share. This fair value was estimated using our proprietary Valuation Line algorithm. Currently, the stock is trading at $153.8; this means that it is overvalued by around 12%. More…
Peers
Marathon Petroleum Corp is one of the largest oil refining and marketing companies in the United States. Its competitors include Valero Energy Corp, Phillips 66, MPLX LP.
– Valero Energy Corp ($NYSE:VLO)
Valero Energy Corp is a publicly traded company with a market capitalization of over $54 billion as of early 2021. The company is involved in the refining, marketing, and transportation of petroleum products. Valero is one of the largest refiners in the United States with operations in Canada, the Caribbean, the United Kingdom, and Ireland. The company’s return on equity (ROE) was over 37% in 2020.
Valero Energy Corp was founded in 1980 and is headquartered in San Antonio, Texas. The company operates through three segments: Refining, Ethanol, and Power. The Refining segment refines crude oil and other feedstocks into transportation fuels, including gasoline, jet fuel, diesel fuel, and propane. The Ethanol segment produces and sells ethanol and distillers grains. The Power segment generates and sells electricity and steam.
– Phillips 66 ($NYSE:PSX)
Phillips 66 is a holding company that owns and operates a diversified portfolio of midstream, chemicals, refining, and marketing businesses. Its midstream segment gathers, processes, transports, stores, and markets crude oil and refined products. The chemicals segment manufactures and markets petrochemicals and plastics. The refining segment refines crude oil and other feedstocks into petroleum products. The marketing segment buys, sells, and transports crude oil, refined products, natural gas, and power.
– MPLX LP ($NYSE:MPLX)
MPLX LP is a publicly traded master limited partnership that owns and operates midstream energy infrastructure assets in the United States. The company’s assets include a network of crude oil and refined product pipelines, storage facilities, and terminals. MPLX LP is headquartered in Findlay, Ohio.
MPLX LP has a market cap of $34.05 billion as of 2022. The company has a return on equity of 20.4%. MPLX LP’s assets include a network of crude oil and refined product pipelines, storage facilities, and terminals.
Summary
Marathon Petroleum (MPC) is an attractive investment opportunity due to its strong financials, broad operational reach, and potential for growth. MPC’s investments in oil and natural gas assets have provided strong growth potential. The company has seen significant growth in its stock price over the past year and shows strong potential for continued growth. Marathon’s diversified business model and strong financial position make it a solid pick for investors looking for a long-term return on their investments.
