Marathon Oil Stock Analysis, Valuation (NYSE:MRO)

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$21.5 $0.63 (3.02%) MRO stock closing price Sep 18, 2018 (Closing)

Take a look at Amigobulls Marathon Oil stock analysis video. Our MRO analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Marathon Oil Corporation Stock Rating 2.7/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for MRO stock analysis. We compare Marathon Oil valuation with its sector peers to gauge relative attractiveness of MRO stock. Marathon Oil stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy MRO stock?

  • Marathon Oil's revenue growth came in at 61.7% in 2018-03.
  • The operating cash flow looks good at 1.823 times the net income.
  • The company has a good Free Cash Flow (FCF) margin of 67.3.

Should you sell MRO stock?

  • The company saw an average annual sales decline of -19.7 in sales over the last 5 years.
  • Marathon Oil registered an average TTM Net loss of -7.6%.
  • Trading at a PE ratio of 60.4, MRO stock is overvalued in comparison to sector average multiple of 20.4.
  • The company is trading at a price to sales multiple of 2.9, which is overvalued in comparison to the Oils-Energy sector average multiple of 1.6.
  • -10's negative ROIC of -10 indicates operational inefficiency.
  • Marathon Oil has a negative return on equity of -3.4. This indicates that the firm is inefficient at generating profits.

Comments on this video and Marathon Oil stock

Investors can make use of the Amigobulls Marathon Oil stock analysis to ascertain how MRO stock fares in fundamental analysis investment criteria. The fundamentals of a company are vital to identify long-term investment opportunities.

Marathon Oil revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Marathon Oil stock.