Marathon Petroleum Stock Intrinsic Value – Investors Agree: Marathon Petroleum is a Long-Term Winner
January 3, 2024
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Marathon Petroleum ($NYSE:MPC) is a leading integrated energy company with a long-term outlook, making it an attractive option for investors. As an integrated energy company, Marathon Petroleum is involved in all parts of the energy industry, from exploration and production to refining and marketing. Investors are drawn to Marathon Petroleum because of its strong financials and long-term outlook. Over the past several years, Marathon Petroleum has reported strong quarterly results. The company is also well positioned for future growth, with a plan to invest billions of dollars in new projects and expansion. Marathon Petroleum is also committed to returning value to shareholders, with a steady dividend payout and share buybacks. The company has consistently demonstrated strong financial performance, and its long-term prospects look bright.
In addition, its integrated approach to the energy industry gives it the potential to benefit from various aspects of the sector. With its sound financials and long-term outlook, Marathon Petroleum remains an attractive investment for those looking for a stable stock with good returns.
Stock Price
On Tuesday, MARATHON PETROLEUM stock opened at $149.0 and closed at $152.4, up by 2.7% from prior closing price of 148.4. This is indicative of investors’ belief in the company’s long-term prospects and confidence in its ability to deliver sustainable returns. The trend was supported by positive news that the company has seen increased demand for its products in recent quarters.
In addition, the company has been active in expanding its operations which has seen its margins improve. This has made MARATHON PETROLEUM a favorable investment option for many investors. The long-term outlook for MARATHON PETROLEUM is positive as the company looks to capitalize on the growth of the US energy industry. MARATHON PETROLEUM is well positioned to take advantage of any potential opportunities that may arise in the industry. Its financial position is also strong, with strong cash flows and a healthy balance sheet, which provides further confidence in the firm’s ability to sustain its performance over the long term. With these factors in mind, it is no surprise that investors are bullish on MARATHON PETROLEUM. The stock’s performance on Tuesday is further proof that the company is still viewed as a long-term winner by many investors. 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 Stock Intrinsic Value
At GoodWhale, we have conducted an in-depth analysis on the financials of MARATHON PETROLEUM. Through our proprietary Valuation Line tool, we have determined that the fair value of a MARATHON PETROLEUM share is around $137.4. However, the current stock rate of MARATHON PETROLEUM is valued at $152.4, which is a 10.9% overvaluation. Our analysis indicates that while the current stock rate is still higher than the fair value, it is still possible to make a good return if MARATHON PETROLEUM stock is purchased at today’s rate. More…
Peers
Marathon Petroleum Corp is one of the largest oil refining and marketing companies in the United States. Its competitors include Valero Energy Corp, Phillips 66, MPLX LP.
– Valero Energy Corp ($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 a top pick for long-term investors. The company has a strong balance sheet, continues to generate significant free cash flow, and has clear plans to invest in its core business. Analyst ratings are generally bullish and the stock is trading at an attractive valuation.
Additionally, the company is also focusing on reducing debt and investing in its refining, retail, and midstream businesses. MPC’s focus on prudent capital allocation and streamlining operations makes it an appealing investment even in today’s volatile market.
