Murphy USA Stock Analysis, Valuation (NYSE:MUSA)

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$82.8 $0.76 (0.93%) MUSA stock closing price Sep 18, 2018 (Closing)

View the Murphy USA stock analysis video on Amigobulls. Our MUSA 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.

Murphy USA Inc Stock Rating 3.2/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for MUSA stock analysis. We also use relative valuation metrics like PE ratio and price to sales ratio for Murphy USA valuation analysis. Murphy USA stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy MUSA stock?

  • The company has an operating cash flow which is 2.7328 times the net income. We see this as a positive signal.
  • MUSA stock is trading at a favorable price to sales multiple of 0.2 as against the Oils-Energy sector average multiple of 1.6.
  • Murphy USA has an attractive ROIC (Return on Invested Capital) of 23
  • Murphy USA has a good Return On Equity (ROE) of 41.5.
  • Murphy USA has a healthy FCF (Free Cash Flow) margin of 1.8.

Should you sell MUSA stock?

  • Murphy USA had a low YoY revenue growth of 8.2% in the 2018-03.
  • Murphy USA is debt laden and has a high debt/equity ratio of 1.24.

Comments on this video and Murphy USA stock

Investors can use Amigobulls Murphy USA stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Murphy USA 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. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.