Last Updated: 08 Nov 2024
Executive Summary
Marathon Petroleum Corp (MPC) is a leading petroleum refining, marketing, and transportation company with a market capitalization of $49.9 billion. The company has a strong financial position with an EBITDA of $10.3 billion and a trailing P/E ratio of 12.05. Analysts have a positive outlook on MPC, with a consensus target price of $172.65 and 11 out of 19 analysts rating the stock as a "Buy" or "Strong Buy."
Company Overview
Marathon Petroleum Corp is headquartered in Findlay, Ohio, and operates a diversified portfolio of businesses, including refining, marketing, and transportation. The company's refining operations include 16 refineries with a combined capacity of 3.1 million barrels per day. Marathon Petroleum also has a network of more than 7,000 retail gasoline stations and convenience stores in the United States.
Fundamental Analysis
MPC's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 5.8% over the past five years, and its net income has grown at a CAGR of 10.2%. MPC's profitability metrics are also strong, with a gross profit margin of 18.6% and a net profit margin of 5.2%. The company's balance sheet is also strong, with total debt to equity ratio of 0.36.
Technical Analysis
MPC's stock price has been trading in a range between $138.96 and $219.01 over the past 52 weeks. The stock is currently trading below its 50-day and 200-day moving averages, which indicates that it may be in a downtrend. However, the stock's relative strength index (RSI) is above 50, which indicates that it may be oversold.
Short Term Outlook
In the short term, MPC's stock price may continue to trade in a range. The company's earnings are expected to be flat in the next quarter, and the stock market is expected to remain volatile. However, MPC's strong financial position and positive analyst outlook suggest that the stock could rebound in the coming months.
Long Term Outlook
In the long term, MPC's stock price is expected to grow as the company benefits from the increasing demand for refined petroleum products. The company's investment in renewable energy is also expected to drive growth in the future.
Analyst Recommendations
Analysts have a positive outlook on MPC, with a consensus target price of $172.65. Eleven out of 19 analysts rate the stock as a "Buy" or "Strong Buy." Analysts cite the company's strong financial position, positive analyst outlook, and long-term growth potential as reasons for their bullishness.
