Murphy Oil Return On Equity vs. Current Valuation
| MUR Stock | USD 33.40 0.25 0.75% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.12336088 | Current Value 0.0714 | Quarterly Volatility 0.16703772 |
For Murphy Oil profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Murphy Oil to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Murphy Oil utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Murphy Oil's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Murphy Oil over time as well as its relative position and ranking within its peers.
Murphy |
Murphy Oil's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Oil & Gas Exploration & Production 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 Murphy Oil. If investors know Murphy 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 Murphy Oil 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 (0.43) | Dividend Share 1.173 | Earnings Share 3.11 | Revenue Per Share 20.999 | Quarterly Revenue Growth (0.21) |
The market value of Murphy Oil is measured differently than its book value, which is the value of Murphy that is recorded on the company's balance sheet. Investors also form their own opinion of Murphy Oil's value that differs from its market value or its book value, called intrinsic value, which is Murphy Oil'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 Murphy Oil's market value can be influenced by many factors that don't directly affect Murphy Oil's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Murphy Oil's value and its price as these two are different measures arrived at by different means. Investors typically determine if Murphy Oil is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Murphy Oil'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.
Murphy Oil Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Murphy Oil's current stock value. Our valuation model uses many indicators to compare Murphy Oil value to that of its competitors to determine the firm's financial worth. Murphy Oil is rated below average in return on equity category among its peers. It is rated below average in current valuation category among its peers reporting about 65,313,454,449 of Current Valuation per Return On Equity. At this time, Murphy Oil's Return On Equity is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Murphy Oil by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Murphy Current Valuation vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.1 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Murphy Oil |
| = | 6.75 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Murphy Current Valuation vs Competition
Murphy Oil is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Energy industry is now estimated at about 386.38 Billion. Murphy Oil claims roughly 6.75 Billion in current valuation contributing just under 2% to equities under Energy industry.
Murphy Oil Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Murphy Oil, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Murphy Oil will eventually generate negative long term returns. The profitability progress is the general direction of Murphy Oil's change in net profit over the period of time. It can combine multiple indicators of Murphy Oil, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -521.1 M | -547.2 M | |
| Operating Income | 1 B | 669.5 M | |
| Income Before Tax | 921.1 M | 464 M | |
| Total Other Income Expense Net | -121 M | -127 M | |
| Net Income | 723.7 M | 759.9 M | |
| Income Tax Expense | 195.9 M | 192.6 M | |
| Net Income Applicable To Common Shares | 868.5 M | 912 M | |
| Net Income From Continuing Ops | 725.1 M | 761.4 M | |
| Interest Income | 173.4 M | 106 M | |
| Non Operating Income Net Other | -19.3 M | -20.3 M | |
| Net Interest Income | -112.4 M | -118 M | |
| Change To Netincome | 456.5 M | 309.4 M | |
| Net Income Per Share | 4.26 | 4.47 | |
| Income Quality | 2.42 | 2.54 | |
| Net Income Per E B T | 0.72 | 0.65 |
Murphy Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Murphy Oil. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Murphy Oil position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Murphy Oil's important profitability drivers and their relationship over time.
Use Murphy Oil in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Murphy Oil position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Murphy Oil will appreciate offsetting losses from the drop in the long position's value.Murphy Oil Pair Trading
Murphy Oil Pair Trading Analysis
The ability to find closely correlated positions to Murphy Oil could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Murphy Oil when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Murphy Oil - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Murphy Oil to buy it.
The correlation of Murphy Oil is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Murphy Oil moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Murphy Oil moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Murphy Oil can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Murphy Oil position
In addition to having Murphy Oil in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Transportation
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Transportation theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Transportation Theme or any other thematic opportunities.
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Additional Tools for Murphy Stock Analysis
When running Murphy Oil's price analysis, check to measure Murphy Oil's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Murphy Oil is operating at the current time. Most of Murphy Oil's value examination focuses on studying past and present price action to predict the probability of Murphy Oil's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Murphy Oil's price. Additionally, you may evaluate how the addition of Murphy Oil to your portfolios can decrease your overall portfolio volatility.