Marathon Oil Corporation
Exchange: NYSESector: EnergyIndustry: Oil & Gas E&P
Marathon Oil is an independent oil and gas exploration and production (E&P) company focused on four of the most competitive resource plays in the U.S. - Eagle Ford, Texas ; Bakken, North Dakota ; Permian in New Mexico and Texas, and STACK and SCOOP in Oklahoma, complemented by a world-class integrated gas business in Equatorial Guinea. The Company's Framework for Success is founded in a strong balance sheet, ESG excellence, and the competitive advantages of a high-quality multi-basin portfolio. On May 28, 2024, Marathon Oil entered a merger agreement with ConocoPhillips. The transaction is expected to close late in the fourth quarter of 2024.
Did you know?
Generated $1.0 in free cash flow for every $1 of capital expenditure in FY23.
Current Price
$28.55
GoodMoat Value
$97.84
242.7% undervaluedProfile
Valuation (TTM)
Market Cap$15.97B
P/E12.01
EV$20.59B
P/B1.43
Shares Out559.38M
P/Sales2.37
Revenue$6.74B
EV/EBITDA4.77
Marathon Oil Corporation (MRO) Stock Analysis
GoodMoat Analysis
Marathon Oil is a large, profitable oil & gas exploration and production company. While its financial metrics like a 12.0x P/E and 12.7% FCF Yield appear attractive, it scores low on the GoodMoat framework for durable competitive advantages, failing the initial quality gate for further valuation analysis.
Read full analysis
Marathon Oil Corporation (MRO) is an independent exploration and production (E&P) company focused on developing oil and natural gas resources, primarily in the United States. Applying the GoodMoat Investment Framework, the company's competitive advantage analysis is challenging. The framework's 14-point moat criteria are heavily geared towards technology, network effects, and intangible assets, which are less common in the capital-intensive, commodity-driven E&P sector. Marathon Oil would likely score low on this scale, as its advantages are more operational and financial (scale, cost efficiency) rather than the durable structural moats the framework prioritizes. This results in a low 'X-Ray Business Score,' failing the Step 1 Moat & Quality Gate for proceeding to a full valuation assessment. Financially, the company shows strength with a solid 19.7% profit margin, a reasonable 12.0x P/E, and a compelling 12.7% Free Cash Flow Yield. However, the framework's decision logic indicates that without a clear, high-scoring moat, the attractive valuation alone is insufficient to qualify the stock for a favourable rating. For a value investor, this signals that while the price appears cheap, the underlying business may lack the long-term protective characteristics the framework seeks, making it an unfavourable candidate under this specific analytical lens.
Market Cap$15.97B
Current Price$28.55
P/E Ratio12.01
Forward P/E—
PEG Ratio-0.38
EPS$2.56
Book Value$20.03
P/B Ratio1.43
MRO Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 50.0% FCF growth (CAGR)
Cash vs Debt
Net Debt: 5.3B
Revenue
4.8B
FY17
6.6B
FY18
5.2B
FY19
3.1B
FY20
5.5B
FY21
8.0B
FY22
6.7B
FY23
Net Income
—
FY17
1.1B
FY18
480M
FY19
—
FY20
946M
FY21
3.6B
FY22
1.6B
FY23
Did you know?
Pays a 1.57% dividend yield.
Marathon Oil Corporation (MRO) Financial Summary
Marathon Oil Corporation (MRO) is a Energy company in the Oil & Gas E&P industry, listed on NYSE. The stock currently trades at $28.55 with a market capitalization of $15.97B.
Key valuation metrics include a P/E ratio of 12.01, price-to-book ratio of 1.43, and EPS of $2.56. The company reports a profit margin of 19.7% and return on equity of 11.9%.
MRO Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $15.97B |
| P/E Ratio | 12.01 |
| EPS | $2.56 |
| P/B Ratio | 1.43 |
| P/S Ratio | 2.37 |
| EV/EBITDA | 4.77 |
| Dividend Yield | 1.57% |
| Profit Margin | 19.7% |
| Return on Equity | 11.9% |
| Debt/Equity | 0.48 |
MRO Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY17 | $4.76B | $-5.72B |
| FY18 | $6.58B | $1.10B |
| FY19 | $5.19B | $480.00M |
| FY20 | $3.09B | $-1.45B |
| FY21 | $5.47B | $946.00M |
| FY22 | $8.04B | $3.61B |
| FY23 | $6.70B | $1.55B |
Marathon Oil Corporation (MRO) Valuation
Based on GoodMoat's DCF model, Marathon Oil Corporation has a fair value estimate of $97.84. At the current price of $28.55, the stock appears 70.8% undervalued relative to our intrinsic value estimate.
MRO Quality Indicators
Marathon Oil Corporation maintains a profit margin of 19.7% and an operating margin of 33.6%. Return on equity stands at 11.9%. The current ratio is 0.40. Debt-to-equity ratio is 0.48.
About Marathon Oil Corporation
Marathon Oil is an independent oil and gas exploration and production (E&P) company focused on four of the most competitive resource plays in the U.S. - Eagle Ford, Texas ; Bakken, North Dakota ; Permian in New Mexico and Texas, and STACK and SCOOP in Oklahoma, complemented by a world-class integrated gas business in Equatorial Guinea. The Company's Framework for Success is founded in a strong balance sheet, ESG excellence, and the competitive advantages of a high-quality multi-basin portfolio. On May 28, 2024, Marathon Oil entered a merger agreement with ConocoPhillips. The transaction is expected to close late in the fourth quarter of 2024.
MRO Free Cash Flow
Marathon Oil Corporation generated $2.03B in trailing twelve-month free cash flow, representing an FCF yield of 12.70%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
MRO Shares Outstanding
Marathon Oil Corporation has 0.56 billion shares outstanding at a share price of $28.55, giving it a market capitalization of $15.97B.