Is Marathon Oil Corporation (MRO) A Solid Choice On The Value Front?


The stock of Marathon Oil Corporation (NYSE:MRO) increased by $0.29 on Friday to finish at $27.07, up 1.08 percent. The last five days have seen an average of 7,501,140 shares of common stock traded. 40 times new highs were reached in the current year, with a gain of $10.65. The average number of shares traded over the last 20 days was 11,366,040, while the average volume over the last 50 days totaled 11,323,782.

MRO stock dropped -11.62% since last month. On 12/22/22, the company’s shares reached a one-month low of $26.02. The stock touched a high of $33.42 on 11/07/22, after rallying from a low of $16.23 in 52 weeks. The price of MRO stock has risen by 64.86% or $10.65 this year, reaching a new high 40 times. Still, the stock price is down -19.00% from the 52-week high.

Will You Miss Out On This Growth Stock Boom?

A new megatrend in the fintech market is well underway. Mobile payments are projected to boom into a massive $12 trillion market by 2028. According to Motley Fool this growth stock could "deliver huge returns." Not only in the immediate future but also over the next decade. Especially since the man behind this company is a serial entrepreneur who has been wildly successful over the years.

And this is just one of our 5 Best Growth Stocks To Own For 2023.


Insider Transactions

MRO stock investors should be aware that Marathon Oil Corporation (MRO) stock had its last reported insider trading activity 48 days ago on Nov 16. On Nov 16, Executive VP and CFO Whitehead Dane E sold 90,588 shares at $32.16 each. This transaction resulted in the insider making $2,913,149. On Nov 11, Warnica Kimberly O. sold 5,000 shares at a price of US$32.72. After the transaction, the insider now owns 62,230 shares. Chairman, President and CEO TILLMAN LEE M had earlier sold 30,000 shares on Nov 11 for $32.49 a share. The transaction was completed for $974,691.

Valuation Metrics

Marathon Oil Corporation (MRO) has a trailing price-to-earnings (P/E) ratio of 5.20. Beta for the stock is 2.44. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 2.09, the price-to-book (PB) ratio of 1.62, and the price-to-cash flow ratio of 4.42.

Company paid $0.09 per share in dividends, an increase of 12.5% from $0.08 last year. A $0.01 dividend increase was reported on Wednesday October 26 2022.

Financial Health

For the three months ended June 29, Marathon Oil Corporation’s quick ratio was 1.00, while its current ratio was 1.10, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.32, and the total debt to equity ratio is 0.36. As far as profitability goes, gross margin for the trailing twelve months is 91.80% percent. Marathon Oil Corporation’s operating margin stood at 48.50% for the same period. Based on annual data, it had gross profit of $1.31 billion and revenue of $5.6 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. MRO’s return on assets (ROA) during the last 12 months has been 21.00%. There was a 7.50% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 33.40%.

Earnings Surprise

According to Marathon Oil Corporation’s quarterly financial report for the quarter that ended June 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $2.25 billion, while revenues rose by 35.34% to $2.3 billion. It was predicted that Marathon Oil Corporation’s quarterly earnings would be $1.32, but it ended up being $1.26, beating the consensus by 4.80%. EBITDA was $1.57 billion for the quarter. At the end of Marathon Oil Corporation’s most recent quarter ended June 29, its liabilities totaled 6.67 billion, while its total debt was $4.13 billion. Equity owned by shareholders amounts to $635.07 million.

Technical Picture

Here’s a quick look at Marathon Oil Corporation’s (MRO) price momentum from a technical perspective. As of 30 December, the RSI 9-day stood at 44.52%, suggesting the stock is Neutral, with a 35.84% historical volatility rate.

The stochastic %K and %D were 34.93% and 42.11% respectively, while the average true range (ATR) was 0.96. Based on the 14-day stochastic reading of 46.67%, the RSI (14) reading is 43.84%. On the 9-day MACD Oscillator, the stock is at -0.32, and the 14-day reading is at -0.45.

Analyst Ratings

In its analyst report released on October 19, 2022, Jefferies began covering Marathon Oil Corporation (NYSE: MRO). The stock was rated as a Hold by the brokerage firm. Analysts have assigned Marathon Oil Corporation (MRO) an Overweight rating. MRO is a stock that is recommended for selling by 2 brokerage firms, while 8 companies recommend holding. The stock is underweighted by 2 analysts. Among the analysts who rate the stock, 2 rates it overweight and 11 others recommend it as a buy.

What is MRO’s price target for the next 12 months?

The current consensus forecast for the stock is between $27.00 and $48.00, with a median target price of $35.00. In analyzing these forecasts, the average price target given by analysts for Marathon Oil Corporation (MRO) is $35.05.


Please enter your comment!
Please enter your name here