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China’s stimulus disappointsSell-off continues, Bitcoin downU.S. stocks sink on Fed dayThis summary was created by AI, based on 2 opinions in the last 12 months.
Marathon Petroleum (MPC-N) has been aggressively buying back its shares and has increased its dividend by 10%. The company is generating a lot of cash flow and has a forward PE of 11x. Despite a decline in revenue, the balance sheet remains strong, and the company is committed to buying back more shares. The experts believe that the company had a solid quarter and still looks cheap, with its fundamentals and share price heavily affected by the movement in oil prices.
MPC is now trading at 8.2x times' Forward P/E. In the most recent quarter, MPC’s revenue declined 32% to $36.8B, beating estimates of $33.9B and adjusted EBITDA came down from $9B to around $4.5B; the decline was largely expected after high oil prices in 2022. The balance sheet is strong, with net debt of $17.1B and net debt/EBITDA of around 0.8x. Given the record cash flow generated from the oil tailwind in the last few years, the company has implemented one of the more aggressive share-repurchasing programs. Going forward, MPC’s fundamentals and share price would be heavily affected by the movement in oil prices. However, we think MPC just had a solid quarter, and still looks cheap, while MPC is fully committed to buying back more shares. We would be comfortable buying in the context of the sector.
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When OPEC raises oil prices, it will hurt MPC's margin, but this is a cheap stock that's well run.
From a PE valuation standpoint, refiners tend to work together. You see spreads widen or narrow off the raw product of oil, into the different commercial products. This company has been a good performer over the years. Not having great visibility into the cycle and to the spreads, he would probably pass on making this a core holding.
He sees resistance around $51. The chart shows a double top in 2015. This is a good indicator that the 2nd time the bulls tried to do it, they got exhausted. Currently the chart is showing a nice upward trend. He likes energy. If this breaks above $51, he would be keen to add.
You can expect resistance on this at around $42. It is now at $38, so it is reaching a Sell target zone. If there is any further rally, he would Sell.
With refiners, from late summer to end of Sept, this sector goes through a process. They shut down refineries and move into producing heating oil. Mid July until end of Sept is seasonal strength. Watch inventories of gas and heating oil.
Marathon Petroleum is a American stock, trading under the symbol MPC-N on the New York Stock Exchange (MPC). It is usually referred to as NYSE:MPC or MPC-N
In the last year, 1 stock analyst published opinions about MPC-N. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Marathon Petroleum.
Marathon Petroleum was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Marathon Petroleum.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
1 stock analyst on Stockchase covered Marathon Petroleum In the last year. It is a trending stock that is worth watching.
On 2024-10-29, Marathon Petroleum (MPC-N) stock closed at a price of $145.28.
He just bought it. Since 2021, they've bought nearly half their shares. Been buying aggressively and will buy another $5.9 billion. They're printing cash by generating so much cash flow. They increased their dividend by 10% with a forward PE of 11x.