Marathon Petroleum Earnings: No Change to Competitive Position, but Shares Look Expensive
Narrow-moat Marathon Petroleum's first-quarter 2024 earnings fell to $937 million from $2.7 billion a year ago, far surpassing market expectations.
Narrow-moat Marathon Petroleum's first-quarter 2024 earnings fell to $937 million from $2.7 billion a year ago, far surpassing market expectations.
High-complexity facilities in the midcontinent and Gulf Coast position Marathon to capitalize on a variety of discount crude streams, endowing it with a feedstock cost advantage.
The acquisition of Andeavor added refineries on the West Coast, where costs are higher, crude cost advantage is minimal, and long-term demand is more threatened by EVs.
Metric
|
MPC
|
PSX
|
VLO
|
---|---|---|---|
Price/Earnings (Normalized) | 9.16 | 10.89 | 7.84 |
Price/Book Value | 2.83 | 2.10 | 1.99 |
Price/Sales | 0.49 | 0.44 | 0.39 |
Price/Cash Flow | 6.08 | 8.60 | 5.54 |
Metric
|
MPC
|
PSX
|
VLO
|
---|---|---|---|
Quick Ratio | 0.95 | 0.74 | 1.06 |
Current Ratio | 1.43 | 1.17 | 1.59 |
Interest Coverage | 9.58 | 8.79 | 16.69 |
Metric
|
MPC
|
PSX
|
VLO
|
---|---|---|---|
Return on Assets (Normalized) | 10.60% | 7.88% | 11.36% |
Return on Equity (Normalized) | 36.66% | 19.90% | 27.22% |
Return on Invested Capital (Normalized) | 16.02% | 12.71% | 18.44% |
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Name
|
Morningstar Rating for Stocks
|
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|
Economic Moat
|
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|
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