This summary was created by AI, based on 1 opinions in the last 12 months.
Marathon Petroleum, represented by the symbol MPC-N, is currently facing challenges as investors react to external pressures impacting the oil market. According to recent reviews, there is a heightened concern regarding the potential for declining oil prices, driven in part by governmental influences, like those suggested by former President Trump. The call for lower oil prices aims to counteract inflationary effects stemming from tariffs, leading to a notable shift in investor sentiment. This context has resulted in a wave of selling among oil shares, which poses questions about the long-term valuation and prospects for stocks in the industry. Experts are closely monitoring these developments as they could significantly influence not only Marathon Petroleum but also the broader oil market landscape.
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.
Unlock Premium - Try 5i Free
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.
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. 0 analysts recommended to BUY the stock. 1 analyst 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 2025-04-01, Marathon Petroleum (MPC-N) stock closed at a price of $146.63.
Trump wants the oil price to come down to offset any inflation from tariffs. This is why investors have been selling oil shares.