Marathon Oil Stock Analysis, Valuation (NYSE:MRO)

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$21.48 $1.56 (7.83%) MRO stock closing price Jun 22, 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 2.9/5

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?

  • The Year Over Year (YoY) revenue growth for Marathon Oil was 61.7% in 2018-03.
  • The company has an operating cash flow which is 1.823 times the net income.
  • The company has a healthy free cash flow margin of 67.3.

Should you sell MRO stock?

  • Revenue declined at a CAGR of -19.7 over the last 5 years.
  • Over the last 12 months, Marathon Oil had an average Net loss of -7.6%.
  • PE ratio is meaningless for MRO stock as the company has losses.
  • The company is trading at a price to sales multiple of 3.4, which is higher in comparison to the Oils-Energy sector average of 1.7, making MRO stock expensive.
  • The company has a negative Return on Invested Capital of -10, which is a red flag.
  • A negative ROE of -3.4 indicates that the company is not able to generate profits with the money shareholders have invested.

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.