Is Marathon Petroleum Stock a Good Investment?
Marathon Petroleum Investment Advice | MPC |
- Examine Marathon Petroleum's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Marathon Petroleum's leadership team and their track record. Good management can help Marathon Petroleum navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Oil & Gas Refining & Marketing space and any emerging trends that could impact Marathon Petroleum's business and its evolving consumer preferences.
- Compare Marathon Petroleum's performance and market position to its competitors. Analyze how Marathon Petroleum is positioned in terms of product offerings, innovation, and market share.
- Check if Marathon Petroleum pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Marathon Petroleum's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Marathon Petroleum Corp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Marathon Petroleum Corp is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Marathon Petroleum Stock
Researching Marathon Petroleum's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 75.0% of the company shares are owned by institutional investors. The book value of Marathon Petroleum was now reported as 58.26. The company recorded earning per share (EPS) of 12.89. Marathon Petroleum Corp last dividend was issued on the 20th of November 2024. The entity had 2:1 split on the 11th of June 2015.
To determine if Marathon Petroleum is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Marathon Petroleum's research are outlined below:
| Marathon Petroleum generated a negative expected return over the last 90 days | |
| Over 75.0% of the company shares are owned by institutional investors | |
| Latest headline from benzinga.com: 100 Invested In This Stock 10 Years Ago Would Be Worth 300 Today |
Marathon Petroleum Quarterly Cash And Short Term Investments |
|
Marathon Petroleum uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Marathon Petroleum Corp. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Marathon Petroleum's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 30th of January 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 30th of January 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Marathon Petroleum's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Marathon Petroleum's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2020-05-05 | 2020-03-31 | -0.21 | -0.16 | 0.05 | 23 | ||
2012-02-01 | 2011-12-31 | -0.03 | -0.1 | -0.07 | 233 | ||
2016-04-28 | 2016-03-31 | 0.15 | 0.06 | -0.09 | 60 | ||
2016-07-28 | 2016-06-30 | 0.97 | 1.07 | 0.1 | 10 | ||
2016-02-03 | 2015-12-31 | 0.69 | 0.79 | 0.1 | 14 | ||
2017-04-27 | 2017-03-31 | -0.05 | 0.06 | 0.11 | 220 | ||
2014-05-01 | 2014-03-31 | 0.52 | 0.41 | -0.11 | 21 | ||
2018-04-30 | 2018-03-31 | 0.16 | 0.04 | -0.12 | 75 |
Know Marathon Petroleum's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Marathon Petroleum is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Marathon Petroleum Corp backward and forwards among themselves. Marathon Petroleum's institutional investor refers to the entity that pools money to purchase Marathon Petroleum's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Norges Bank | 2024-06-30 | 3.5 M | Northern Trust Corp | 2024-09-30 | 3.5 M | T. Rowe Price Associates, Inc. | 2024-06-30 | 3.2 M | Amvescap Plc. | 2024-06-30 | 3.2 M | Legal & General Group Plc | 2024-06-30 | 3.1 M | Bank Of America Corp | 2024-06-30 | 2.9 M | Amundi | 2024-06-30 | 2.7 M | Pacer Advisors, Inc. | 2024-06-30 | 2.7 M | Goldman Sachs Group Inc | 2024-06-30 | 2.6 M | Vanguard Group Inc | 2024-09-30 | 32.1 M | Blackrock Inc | 2024-06-30 | 28.2 M |
Marathon Petroleum's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 50.5 B.Market Cap |
|
Marathon Petroleum's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.12 | 0.06 | |
| Return On Capital Employed | 0.22 | 0.14 | |
| Return On Assets | 0.11 | 0.06 | |
| Return On Equity | 0.40 | 0.42 |
Determining Marathon Petroleum's profitability involves analyzing its financial statements and using various financial metrics to determine if Marathon Petroleum is a good buy. For example, gross profit margin measures Marathon Petroleum's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Marathon Petroleum's profitability and make more informed investment decisions.
Please note, the presentation of Marathon Petroleum's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Marathon Petroleum's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Marathon Petroleum's management manipulating its earnings.
Evaluate Marathon Petroleum's management efficiency
Marathon Petroleum Corp has Return on Asset of 0.0516 % which means that on every $100 spent on assets, it made $0.0516 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.2105 %, implying that it generated $0.2105 on every 100 dollars invested. Marathon Petroleum's management efficiency ratios could be used to measure how well Marathon Petroleum manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Equity is expected to grow to 0.42, whereas Return On Tangible Assets are forecasted to decline to 0.06. At present, Marathon Petroleum's Other Current Assets are projected to increase significantly based on the last few years of reporting. The current year's Intangible Assets is expected to grow to about 3.1 B, whereas Total Assets are forecasted to decline to about 58.4 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 77.15 | 81.00 | |
| Tangible Book Value Per Share | 56.89 | 59.74 | |
| Enterprise Value Over EBITDA | 4.47 | 6.35 | |
| Price Book Value Ratio | 2.47 | 1.39 | |
| Enterprise Value Multiple | 4.47 | 6.35 | |
| Price Fair Value | 2.47 | 1.39 | |
| Enterprise Value | 39.3 B | 33 B |
Effective leadership at Marathon Petroleum drives its competitive edge in the market. Our analysis focuses on how this translates to financial performance and stock value.
Dividend Yield 0.0232 | Forward Dividend Yield 0.0232 | Forward Dividend Rate 3.64 | Beta 1.371 |
Basic technical analysis of Marathon Stock
As of the 28th of November, Marathon Petroleum secures the Standard Deviation of 1.92, mean deviation of 1.34, and Risk Adjusted Performance of (0.04). In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Marathon Petroleum Corp, as well as the relationship between them.Marathon Petroleum's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Marathon Petroleum insiders, such as employees or executives, is commonly permitted as long as it does not rely on Marathon Petroleum's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Marathon Petroleum insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
J Stice over two months ago Acquisition by J Stice of 225 shares of Marathon Petroleum subject to Rule 16b-3 | ||
Molly Benson over six months ago Disposition of 480 shares by Molly Benson of Marathon Petroleum at 202.48 subject to Rule 16b-3 |
Marathon Petroleum's Outstanding Corporate Bonds
Marathon Petroleum issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Marathon Petroleum Corp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Marathon bonds can be classified according to their maturity, which is the date when Marathon Petroleum Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| MARATHON PETE P Corp BondUS56585AAF93 | View | |
| MARATHON PETE P Corp BondUS56585AAM45 | View | |
| MARATHON PETE P Corp BondUS56585AAJ16 | View | |
| MARATHON PETE P Corp BondUS56585AAH59 | View | |
| MARATHON PETROLEUM P Corp BondUS56585ABH41 | View |
Understand Marathon Petroleum's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Marathon Petroleum's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.04) | |||
| Market Risk Adjusted Performance | (0.19) | |||
| Mean Deviation | 1.34 | |||
| Coefficient Of Variation | (1,600) | |||
| Standard Deviation | 1.92 | |||
| Variance | 3.7 | |||
| Information Ratio | (0.13) | |||
| Jensen Alpha | (0.21) | |||
| Total Risk Alpha | (0.43) | |||
| Treynor Ratio | (0.20) | |||
| Maximum Drawdown | 13.39 | |||
| Value At Risk | (3.01) | |||
| Potential Upside | 3.19 | |||
| Skewness | (0.41) | |||
| Kurtosis | 3.72 |
| Risk Adjusted Performance | (0.04) | |||
| Market Risk Adjusted Performance | (0.19) | |||
| Mean Deviation | 1.34 | |||
| Coefficient Of Variation | (1,600) | |||
| Standard Deviation | 1.92 | |||
| Variance | 3.7 | |||
| Information Ratio | (0.13) | |||
| Jensen Alpha | (0.21) | |||
| Total Risk Alpha | (0.43) | |||
| Treynor Ratio | (0.20) | |||
| Maximum Drawdown | 13.39 | |||
| Value At Risk | (3.01) | |||
| Potential Upside | 3.19 | |||
| Skewness | (0.41) | |||
| Kurtosis | 3.72 |
Consider Marathon Petroleum's intraday indicators
Marathon Petroleum intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Marathon Petroleum stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 31950.6 | |||
| Daily Balance Of Power | (0.45) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 157.01 | |||
| Day Typical Price | 156.46 | |||
| Price Action Indicator | (2.54) | |||
| Period Momentum Indicator | (1.78) | |||
| Relative Strength Index | 55.82 |
Marathon Petroleum Corporate Filings
F4 | 13th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F3 | 12th of November 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
8K | 5th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 10th of September 2024 An amended filing to the original Schedule 13G | ViewVerify |
Marathon Stock media impact
Far too much social signal, news, headlines, and media speculation about Marathon Petroleum that are available to investors today. That information is available publicly through Marathon media outlets and privately through word of mouth or via Marathon internal channels. However, regardless of the origin, that massive amount of Marathon data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Marathon Petroleum news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Marathon Petroleum relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Marathon Petroleum's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Marathon Petroleum alpha.
Marathon Petroleum Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Marathon Petroleum can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Marathon Petroleum Corp Historical Investor Sentiment
Investor biases related to Marathon Petroleum's public news can be used to forecast risks associated with an investment in Marathon. The trend in average sentiment can be used to explain how an investor holding Marathon can time the market purely based on public headlines and social activities around Marathon Petroleum Corp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Marathon Petroleum's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Marathon Petroleum and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Marathon Petroleum news discussions. The higher the estimate score, the more favorable the investor's outlook on Marathon Petroleum.
Marathon Petroleum Corporate Directors
| Evan Bayh | Non-Executive Independent Director | Profile | |
| Kim Rucker | Non-Executive Independent Director | Profile | |
| Frank Semple | Non-Executive Independent Director | Profile | |
| Geri Ewing | Director Insurance | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Marathon Petroleum Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Is Oil & Gas Refining & Marketing space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Marathon Petroleum. If investors know Marathon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Marathon Petroleum listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.77) | Dividend Share 3.385 | Earnings Share 12.89 | Revenue Per Share 403.307 | Quarterly Revenue Growth (0.15) |
The market value of Marathon Petroleum Corp is measured differently than its book value, which is the value of Marathon that is recorded on the company's balance sheet. Investors also form their own opinion of Marathon Petroleum's value that differs from its market value or its book value, called intrinsic value, which is Marathon Petroleum's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Marathon Petroleum's market value can be influenced by many factors that don't directly affect Marathon Petroleum's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Marathon Petroleum's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Marathon Petroleum is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Marathon Petroleum's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.