Last Updated: 19 Sep 2024
Executive Summary
Murphy USA Inc. (MUSA) is a leading marketer of retail motor fuel products and convenience merchandise in the United States. The company has a strong financial position with a market capitalization of $10.56 billion, EBITDA of $1.02 billion, and EPS of $24.68. MUSA's stock price has outperformed the broader market in recent years, and analysts are bullish on the company's long-term prospects.
Company Overview
Murphy USA Inc. was founded in 1996 and is headquartered in El Dorado, Arkansas. The company operates a network of over 1,400 retail fuel stations and convenience stores in 26 states. MUSA also owns and operates a wholesale fuel distribution business.
Fundamental Analysis
MUSA's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 5.4% over the past five years. Net income has grown at a CAGR of 12.3% over the same period.
MUSA has a strong balance sheet with low debt and ample liquidity. The company's debt-to-equity ratio is 0.34, and its current ratio is 1.52.
Technical Analysis
MUSA's stock price has been in a strong uptrend in recent years. The stock has broken out of a multi-year trading range and is now trading above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is above 70, which indicates that it is overbought.
Short Term Outlook
MUSA's stock price is likely to continue to rise in the short term. The company's strong financial performance and positive analyst sentiment are likely to support the stock's upward momentum. However, the stock's RSI is above 70, which indicates that it is overbought. A pullback in the stock price is possible in the near term.
Long Term Outlook
MUSA's long-term outlook is positive. The company's strong financial position and growing market share are likely to drive continued growth in the years to come. The company's focus on renewable fuels and alternative energy sources is also likely to benefit the company in the long term.
Analyst Recommendations
Analysts are bullish on MUSA's long-term prospects. The average analyst target price for the stock is $511.4, which represents a potential upside of 12.3% from the current price. Of the 10 analysts covering the stock, 1 has a strong buy rating, 2 have a buy rating, 2 have a hold rating, 1 has a sell rating, and 0 have a strong sell rating.
