Marathon Oil Corporation (MRO): What the Financials Tell Us


Marathon Oil Corporation (NYSE:MRO) saw an upside of 0.79% to close Monday at $28.10 after adding $0.22 on the day. The 5-day average trading volume is 9,133,561 shares of the company’s common stock. It has gained $28.35 in the past week and touched a new high 4 times within the past 5 days. An average of 8,911,385 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 10,399,812.

MRO’s 1-month performance is 3.50% or $0.66 on its low of $24.78 reached on 01/04/23. The company’s shares have touched a 52-week low of $17.01 and high of $33.42, with the stock’s rally to the 52-week high happening on 01/23/23. YTD, MRO has achieved 3.80% or $1.03 and has reached a new high 6 times. However, the current price is down -15.92% from the 52-week high price.

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Insider Transactions

MRO stock investors last saw insider trading activity on Nov 16.Whitehead Dane E (Executive VP and CFO) most recently sold 90,588 shares at $32.16 per share on Nov 16. This transaction cost the insider $2,913,149. Chairman, President and CEO, TILLMAN LEE M, sold 30,000 shares at a price of $32.49 on Nov 11. Then, on Nov 11, Warnica Kimberly O. sold 5,000 shares at a price of $32.72 per share. This transaction amounted to $163,575.

Valuation Metrics

MRO stock has a beta of 2.45. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.16 while the price-to-book (PB) in the most recent quarter is 1.68, with the price to cash flow ratio at 4.56.

Marathon Oil Corporation’s quick ratio for the period ended June 29 was 1.00, with the current ratio over the same period at 1.10. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.32, while the total debt to equity was 0.36. In terms of profitability, the gross margin trailing 12 months is 91.80%. The firm’s gross profit as reported stood at $1.31 billion against revenue of $5.6 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 77.48% to $817.0 million, while revenue of $966.0 million was -18.24% off the previous quarter. Analysts expected MRO to announce $1.26 per share in earnings in its latest quarter, but it posted $1.32, representing a 4.80% surprise. EBITDA for the quarter stood at more than $1.57 billion. MRO stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 6.67 billion, with total debt at $4.13 billion. Shareholders hold equity totaling $635.07 million.

Let’s look briefly at Marathon Oil Corporation (MRO) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 64.16% to suggest the stock is trending Neutral, with historical volatility in this time period at 15.92%.

The stock’s 5-day moving average is $27.41, reflecting a +3.77% or $1.02 change from its current price. MRO is currently trading +1.30% above its 20-day SMA, +4.89% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -14.15% and SMA200 by+13.31%.

Stochastic %K and %D was 91.08% and 81.60% and the average true range (ATR) pointed at 0.85. The RSI (14) points at 56.39%, while the 14-day stochastic is at 93.10% with the period’s ATR at 0.92. The stock’s 9-day MACD Oscillator is pointing at 0.50 and 0.93 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Marathon Oil Corporation (NYSE: MRO), Mizuho downgraded it to a Neutral rating. They previously had a Buy rating on the stock.


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