$166.00
arrow_drop_down1.46%Is MPC a Buy or Sell based on AI Analysis?
Fundamental Analysis
Marathon Petroleum Corp (MPC) showcases strong fundamentals in its financial performance. With a market capitalization of $63.94 billion, MPC has a solid enterprise value of $79.27 billion, indicating a stable financial position. The company's price-to-earnings (P/E) ratio of 7.35 suggests that investors are willing to pay $7.35 for every dollar of earnings, underscoring its attractive valuation compared to industry peers. Additionally, MPC's return on equity (ROE) of 33.61% reflects its ability to generate healthy returns for shareholders, indicating efficient utilization of equity capital. Furthermore, MPC's dividend yield of 1.91% and a history of annual dividend per share of $3.15 demonstrate a commitment to rewarding shareholders through regular dividend payments, signifying a stable and sustainable dividend policy. Furthermore, Marathon Petroleum Corp's strong cash position is evident in its cash on hand of $5.44 billion, providing ample liquidity for operational activities and potential investments. The company's free cash flow of $6.61 billion underscores its ability to generate substantial cash from its operations, allowing for flexibility in pursuing growth opportunities or returning capital to shareholders. Moreover, MPC's healthy operating margin of 5.83% indicates efficient cost management and profitability in its core operations. These fundamental indicators highlight Marathon Petroleum Corp's robust financial standing and strategic position within the energy sector, positioning it as a compelling investment opportunity for investors seeking long-term growth potential and steady dividend income.
Positive Development
Marathon Petroleum Corp has been outperforming its competitors in the market, indicating a strong performance. The company's solid financial performance, with an asset turnover of 1.7372, book value of 25862, and a cash ratio of 0.3888658845180584, shows a healthy financial position. The company's earnings per share (EPS) and earnings before interest, taxes, depreciation, and amortization (EBITDA) are positive, indicating a strong financial performance.
Negative Development
Marathon Petroleum Corp's high debt-to-equity ratio of 1.0549 could indicate a potential risk for investors. The company's long-term debt total equity of 1.0232 and long-term debt total capital of 0.4979, could suggest a high level of debt and potential financial strain. The company's net debt to total capital of 0.3543 and net debt to total equity of 0.7281 indicate a high level of debt relative to equity, which could be a concern for investors.
Technical Analysis
Marathon Petroleum Corp (MPC) currently has a technical rating of "SELL" based on various indicators such as ATR, MACD, ADX, ROC, RSI, CCI, WILLR, and STOCHRSI. The company's stock price is at $173.75, with a market capitalization of $63.94 billion. Its technical indicators suggest a mixed performance, with one buy indicator, three hold indicators, and four sell indicators. Additionally, the stock has a beta of 1.5, indicating higher volatility compared to the overall market. In terms of technical analysis, Marathon Petroleum Corp's stock is showing a slight upward trend, with a 7-day price change of 2.56%. The stock's price has seen a positive change in the last month and three months, with a 1.54% and 14.83% increase, respectively. However, the company's technical indicators suggest caution, with more sell signals than buy signals. Investors may need to closely monitor the stock's performance and consider the overall market conditions before making any trading decisions.
Conclusion and recommendation
Based on the data provided, Marathon Petroleum Corp (MPC) appears to be a solid investment opportunity. With a dividend yield of 1.91% and a relatively low payout ratio of 13.39%, the company offers a steady income for investors. Additionally, the stock has shown consistent growth over the past five years, with a 180.2% increase in price. The company also boasts a strong financial position, with a market cap of $63.94B and a healthy balance sheet, including $5.44B in cash on hand. In conclusion, Marathon Petroleum Corp presents a compelling investment opportunity for those looking for a stable and profitable stock. With a respectable PE ratio of 7.35 and a strong return on equity of 33.61%, the company demonstrates solid financial performance. Furthermore, the fact that the stock pays dividends and has a history of dividend growth adds to its attractiveness for income-focused investors. Overall, MPC's strong financials and consistent growth make it a promising option for long-term investors seeking a reliable and profitable addition to their portfolio.