This summary was created by AI, based on 1 opinions in the last 12 months.
Marathon Petroleum has been under scrutiny as geopolitical factors have influenced the oil market, particularly with discussions around tariffs and inflation. Recent comments from influential figures like Trump indicate a desire for lower oil prices to mitigate inflationary pressures, leading to a downturn in investors’ confidence in oil shares. This has prompted a wave of selling, as investors react to the fluctuating market conditions. The overall sentiment suggests a challenging environment for oil companies, including Marathon Petroleum, as external variables like political decisions and economic indicators weigh heavily on stock performance.
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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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, 3 stock analysts published opinions about MPC-N. 1 analyst 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.
3 stock analysts on Stockchase covered Marathon Petroleum In the last year. It is a trending stock that is worth watching.
On 2025-04-02, Marathon Petroleum (MPC-N) stock closed at a price of $147.9.
Trump wants the oil price to come down to offset any inflation from tariffs. This is why investors have been selling oil shares.