Marathon Oil Valuation
| MRO Stock | USD 28.55 0.37 1.28% |
At this time, the firm appears to be undervalued. Marathon Oil secures a last-minute Real Value of $30.87 per share. The latest price of the firm is $28.55. Our model forecasts the value of Marathon Oil from analyzing the firm fundamentals such as Current Valuation of 20.7 B, return on equity of 0.12, and Profit Margin of 0.20 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Marathon Oil's valuation include:
Price Book 1.4065 | Enterprise Value 20.7 B | Enterprise Value Ebitda 4.7265 | Price Sales 2.4658 | Forward PE 11.7786 |
Undervalued
Today
Please note that Marathon Oil's price fluctuation is very steady at this time. Calculation of the real value of Marathon Oil is based on 3 months time horizon. Increasing Marathon Oil's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Marathon Oil is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Marathon Stock. However, Marathon Oil's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 28.55 | Real 30.87 | Target 33.78 | Hype 28.55 | Naive 28.32 |
The intrinsic value of Marathon Oil's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Marathon Oil's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Marathon Oil helps investors to forecast how Marathon stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Marathon Oil more accurately as focusing exclusively on Marathon Oil's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Marathon Oil's intrinsic value based on its ongoing forecasts of Marathon Oil's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Marathon Oil's closest peers.
Marathon Oil Cash |
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Marathon Valuation Trend
Knowing Marathon Oil's actual value is paramount for traders when making sound investment determinations. Using both Marathon Oil's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Marathon Revenue by Product
Marathon Oil Total Value Analysis
Marathon Oil is now projected to have company total value of 20.7 B with market capitalization of 16.18 B, debt of 5.43 B, and cash on hands of 334 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Marathon Oil fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
20.7 B | 16.18 B | 5.43 B | 334 M |
Marathon Oil Investor Information
About 76.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.41. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Marathon Oil last dividend was issued on the 15th of November 2024. The entity had 10000:5965 split on the 1st of July 2011. Based on the analysis of Marathon Oil's profitability, liquidity, and operating efficiency, Marathon Oil may be sliding down financialy. It has an above-average risk of going through some form of financial distress next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 3.5 B | 4.1 B |
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Marathon Oil Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Marathon Oil has an asset utilization ratio of 32.73 percent. This suggests that the Company is making $0.33 for each dollar of assets. An increasing asset utilization means that Marathon Oil is more efficient with each dollar of assets it utilizes for everyday operations.Marathon Oil Ownership Allocation
Marathon Oil maintains a total of 559.41 Million outstanding shares. The majority of Marathon Oil outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Marathon Oil to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Marathon Oil. Please pay attention to any change in the institutional holdings of Marathon Oil as this could imply that something significant has changed or is about to change at the company. Please note that on September 6, 2024, Representative Lance Gooden of US Congress acquired under $15k worth of Marathon Oil's common stock.Marathon Oil Profitability Analysis
The company reported the last year's revenue of 6.41 B. Total Income to common stockholders was 1.55 B with profit before taxes, overhead, and interest of 6.15 B.Marathon Oil Past Distributions to stockholders
About Marathon Oil Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Marathon Oil. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Marathon Oil based exclusively on its fundamental and basic technical indicators. By analyzing Marathon Oil's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Marathon Oil's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Marathon Oil. We calculate exposure to Marathon Oil's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Marathon Oil's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.7 B | 3.6 B | |
| Pretax Profit Margin | 0.30 | 0.31 | |
| Operating Profit Margin | 0.35 | 0.37 | |
| Net Profit Margin | 0.24 | 0.25 | |
| Gross Profit Margin | 0.42 | 0.44 |
Marathon Oil Quarterly Retained Earnings |
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A single share of Marathon Oil represents a small ownership stake in the entity. As a stockholder of Marathon, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Marathon Oil Dividends Analysis For Valuation
At this time, Marathon Oil's Dividends Paid is very stable compared to the past year. As of the 22nd of November 2024, Dividend Payout Ratio is likely to grow to 0.17, while Dividend Yield is likely to drop 0.02. . At this time, Marathon Oil's Retained Earnings Total Equity is very stable compared to the past year. As of the 22nd of November 2024, Price Earnings Ratio is likely to grow to 9.91, while Retained Earnings are likely to drop about 11.6 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 251 M | 376.4 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.16 | 0.17 | |
| Dividend Paid And Capex Coverage Ratio | 1.79 | 0.98 |
There are various types of dividends Marathon Oil can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Marathon shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Marathon Oil directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Marathon pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Marathon Oil by the value of the dividends paid out.
Marathon Oil Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 608 M | |
| Quarterly Earnings Growth Y O Y | -0.32 | |
| Forward Price Earnings | 11.7786 |
Marathon Oil Current Valuation Indicators
Marathon Oil's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Marathon Oil's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Marathon Oil, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Marathon Oil's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Marathon Oil's worth.When determining whether Marathon Oil offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Marathon Oil's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Marathon Oil Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Marathon Oil Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Marathon Oil. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Marathon Stock, please use our How to Invest in Marathon Oil guide.You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
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 Marathon Oil. If investors know Marathon 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 Marathon 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 (0.32) | Dividend Share 0.44 | Earnings Share 2.32 | Revenue Per Share 11.445 | Quarterly Revenue Growth (0.02) |
The market value of Marathon Oil is measured differently than its book value, which is the value of Marathon that is recorded on the company's balance sheet. Investors also form their own opinion of Marathon Oil's value that differs from its market value or its book value, called intrinsic value, which is Marathon 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 Marathon Oil's market value can be influenced by many factors that don't directly affect Marathon 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 Marathon Oil's value and its price as these two are different measures arrived at by different means. Investors typically determine if Marathon Oil is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Marathon 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.