Last Updated: 15 Sep 2024
Executive Summary
Marathon Petroleum Corp (MPC) is a leading American petroleum refining, marketing, and transportation company. The company has a strong financial position with a market capitalization of $54.7 billion. MPC's fundamentals are solid, with a trailing P/E ratio of 8.58 and a forward P/E ratio of 11.78. The company's technical analysis indicates that it is currently in a downtrend, but there are signs that a reversal may be in the works. The short-term outlook for MPC is mixed, but the long-term outlook is positive. Analysts have a consensus Strong Buy rating on the stock, with a target price of $192.07.
Company Overview
Marathon Petroleum Corp is headquartered in Findlay, Ohio. The company operates through three segments: Refining & Marketing, Midstream, and Retail. The Refining & Marketing segment refines crude oil into gasoline, diesel fuel, and other products. The Midstream segment transports and stores crude oil and refined products. The Retail segment sells gasoline, diesel fuel, and other products to consumers through a network of gas stations.
Fundamental Analysis
MPC's financial performance has been strong in recent years. The company's revenue has grown from $128.7 billion in 2019 to $148.8 billion in 2023. Net income has also increased, from $6.6 billion in 2019 to $9.2 billion in 2023. The company's profit margin has remained relatively stable, at around 5%.
MPC's balance sheet is also strong. The company has a total debt of $18.7 billion, which is offset by $11.2 billion in cash and equivalents. The company's debt-to-equity ratio is 0.68, which is considered to be a manageable level.
Technical Analysis
MPC's stock price has been in a downtrend since early 2023. The stock price has fallen from a high of $219.01 in January 2023 to a low of $136.57 in June 2023. The stock price is currently trading at $163.58.
The technical analysis of MPC's stock price indicates that the stock is currently oversold. The relative strength index (RSI) is below 30, which is a sign of oversold conditions. The moving average convergence divergence (MACD) indicator is also below zero, which is another sign of oversold conditions.
Short Term Outlook
The short-term outlook for MPC is mixed. The stock price is currently in a downtrend, but there are signs that a reversal may be in the works. The RSI and MACD indicators are both below zero, which is a sign of oversold conditions. This suggests that the stock price may be due for a rebound.
However, there are also some headwinds that could weigh on MPC's stock price in the short term. The global economy is slowing down, which could reduce demand for oil and refined products. The war in Ukraine is also creating uncertainty in the global oil market.
Long Term Outlook
The long-term outlook for MPC is positive. The company is a leader in the refining and marketing of petroleum products. The company has a strong financial position and a track record of solid financial performance. The long-term demand for oil and refined products is expected to grow, which should benefit MPC.
Analyst Recommendations
Analysts have a consensus Strong Buy rating on MPC's stock. The average target price is $192.07, which represents a potential upside of 17.8% from the current price. Four analysts have a Strong Buy rating on the stock, nine have a Buy rating, five have a Hold rating, and none have a Sell or Strong Sell rating.
