Murphy USA Price To Book vs. Profit Margin

MUSA Stock  USD 540.66  0.50  0.09%   
Based on the key profitability measurements obtained from Murphy USA's financial statements, Murphy USA's profitability may be sliding down. It has an above-average risk of reporting lower numbers next quarter. Profitability indicators assess Murphy USA's ability to earn profits and add value for shareholders. At present, Murphy USA's Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's EV To Sales is expected to grow to 0.48, whereas Days Sales Outstanding is forecasted to decline to 5.70. At present, Murphy USA's Net Income Applicable To Common Shares is projected to increase significantly based on the last few years of reporting. The current year's Interest Income is expected to grow to about 4.2 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (603.8 K).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin1.00.9529
Sufficiently Up
Slightly volatile
Net Profit Margin0.01420.0259
Way Down
Slightly volatile
Operating Profit Margin0.01990.0384
Way Down
Slightly volatile
Pretax Profit Margin0.01820.0341
Way Down
Slightly volatile
Return On Assets0.0880.1283
Way Down
Pretty Stable
Return On Equity0.710.6717
Notably Up
Slightly volatile
For Murphy USA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Murphy USA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Murphy USA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Murphy USA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Murphy USA over time as well as its relative position and ranking within its peers.
  

Murphy USA's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
For information on how to trade Murphy Stock refer to our How to Trade Murphy Stock guide.
Is Automotive Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Murphy USA. If investors know Murphy will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Murphy USA listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.06)
Dividend Share
1.72
Earnings Share
24.2
Revenue Per Share
880.266
Quarterly Revenue Growth
(0.11)
The market value of Murphy USA is measured differently than its book value, which is the value of Murphy that is recorded on the company's balance sheet. Investors also form their own opinion of Murphy USA's value that differs from its market value or its book value, called intrinsic value, which is Murphy USA's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Murphy USA's market value can be influenced by many factors that don't directly affect Murphy USA's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Murphy USA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Murphy USA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Murphy USA's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Murphy USA Profit Margin vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Murphy USA's current stock value. Our valuation model uses many indicators to compare Murphy USA value to that of its competitors to determine the firm's financial worth.
Murphy USA is considered to be number one stock in price to book category among its peers. It is regarded fourth in profit margin category among its peers . The ratio of Price To Book to Profit Margin for Murphy USA is about  474.31 . At present, Murphy USA's Net Profit Margin is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Murphy USA's earnings, one of the primary drivers of an investment's value.

Murphy Profit Margin vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Murphy USA

P/B

 = 

MV Per Share

BV Per Share

 = 
13.23 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Murphy USA

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.03 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Murphy Profit Margin Comparison

Murphy USA is currently under evaluation in profit margin category among its peers.

Murphy USA Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Murphy USA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Murphy USA will eventually generate negative long term returns. The profitability progress is the general direction of Murphy USA's change in net profit over the period of time. It can combine multiple indicators of Murphy USA, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-575 K-603.8 K
Operating Income826 M448.5 M
Income Before Tax734.4 M409.9 M
Total Other Income Expense Net-91.6 M-87 M
Net Income556.8 M296.9 M
Income Tax Expense177.6 M113 M
Net Income Applicable To Common Shares773.8 M812.5 M
Net Income From Continuing Ops524.5 M344.8 M
Non Operating Income Net Other630 K598.5 K
Interest Income2.7 M4.2 M
Net Interest Income-95.2 M-100 M
Change To Netincome62.1 M65.2 M
Net Income Per Share 25.91  27.20 
Income Quality 1.41  1.91 
Net Income Per E B T 0.76  0.86 

Murphy Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Murphy USA. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Murphy USA position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Murphy USA's important profitability drivers and their relationship over time.

Use Murphy USA in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Murphy USA position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Murphy USA will appreciate offsetting losses from the drop in the long position's value.

Murphy USA Pair Trading

Murphy USA Pair Trading Analysis

The ability to find closely correlated positions to Murphy USA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Murphy USA when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Murphy USA - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Murphy USA to buy it.
The correlation of Murphy USA is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Murphy USA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Murphy USA moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Murphy USA can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Murphy USA position

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When determining whether Murphy USA offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Murphy USA's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Murphy Usa Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Murphy Usa Stock:
Check out Correlation Analysis.
For information on how to trade Murphy Stock refer to our How to Trade Murphy Stock guide.
You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
To fully project Murphy USA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Murphy USA at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Murphy USA's income statement, its balance sheet, and the statement of cash flows.
Potential Murphy USA investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Murphy USA investors may work on each financial statement separately, they are all related. The changes in Murphy USA's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Murphy USA's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.