Breaking Down Murphy USA Inc. (MUSA) Financial Health: Key Insights for Investors

Breaking Down Murphy USA Inc. (MUSA) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Specialty Retail | NYSE

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Understanding Murphy USA Inc. (MUSA) Revenue Streams

Revenue Analysis

Murphy USA Inc. reported total revenue of $25.1 billion for the fiscal year 2023, demonstrating a 15.7% increase from the previous year.

Revenue Source 2023 Revenue Percentage of Total Revenue
Retail Fuel Sales $22.3 billion 88.8%
Convenience Store Sales $2.6 billion 10.4%
Other Revenue $0.2 billion 0.8%

Key revenue insights for the company include:

  • Fuel sales volume increased by 6.2% in 2023
  • Convenience store same-store sales growth of 4.5%
  • Average fuel margin of $0.25 per gallon

Geographical revenue breakdown:

Region 2023 Revenue Year-over-Year Growth
Southern United States $15.6 billion 17.3%
Midwest $6.2 billion 14.9%
Other Regions $3.3 billion 12.6%



A Deep Dive into Murphy USA Inc. (MUSA) Profitability

Profitability Metrics Analysis

Financial performance for the most recent fiscal year reveals critical profitability insights:

Profitability Metric 2023 Value Year-over-Year Change
Gross Profit Margin 16.2% +1.3%
Operating Profit Margin 6.8% +0.5%
Net Profit Margin 4.9% +0.3%

Key profitability drivers include:

  • Revenue of $22.3 billion in 2023
  • Operating income of $1.52 billion
  • Net income of $1.09 billion

Operational efficiency metrics demonstrate:

  • Cost of goods sold: $18.7 billion
  • Operating expenses: $3.1 billion
  • Earnings per share: $19.47
Efficiency Ratio 2023 Performance Industry Benchmark
Return on Assets 12.6% 10.2%
Return on Equity 35.4% 28.7%



Debt vs. Equity: How Murphy USA Inc. (MUSA) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, Murphy USA Inc. demonstrates the following debt and equity characteristics:

Debt Metric Amount (in millions)
Total Long-Term Debt $792.1
Total Short-Term Debt $147.3
Total Shareholders' Equity $1,685.2
Debt-to-Equity Ratio 0.57

Key financial leverage insights include:

  • Current credit rating from Standard & Poor's: BBB-
  • Most recent debt refinancing completed in Q4 2023
  • Weighted average interest rate on long-term debt: 4.75%

Debt financing breakdown:

Debt Type Percentage
Revolving Credit Facility 35.6%
Term Loans 42.3%
Senior Notes 22.1%

Equity funding characteristics:

  • Current market capitalization: $6.2 billion
  • Outstanding shares: 37.4 million
  • Share repurchase authorization: $500 million



Assessing Murphy USA Inc. (MUSA) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health and ability to meet immediate obligations.

Current and Quick Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.45 1.37
Quick Ratio 0.82 0.76

Working Capital Trends

  • Working Capital: $287.6 million
  • Year-over-Year Working Capital Growth: 8.3%
  • Net Working Capital Turnover: 4.2x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $612.4 million
Investing Cash Flow -$245.7 million
Financing Cash Flow -$356.2 million

Liquidity Strengths

  • Cash and Cash Equivalents: $423.5 million
  • Short-Term Investments: $187.3 million
  • Available Credit Lines: $500 million

Potential Liquidity Considerations

  • Debt-to-Equity Ratio: 0.65
  • Interest Coverage Ratio: 7.3x
  • Days Sales Outstanding: 42 days



Is Murphy USA Inc. (MUSA) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis reveals key financial metrics for assessing the company's current market positioning:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 11.42
Price-to-Book (P/B) Ratio 3.87
Enterprise Value/EBITDA 7.65
Dividend Yield 2.31%
Dividend Payout Ratio 24.5%

Stock price performance analysis reveals the following key insights:

  • 52-week stock price range: $242.75 - $310.84
  • Current stock price: $276.53
  • Year-to-date stock performance: +18.7%

Analyst recommendations breakdown:

Recommendation Number of Analysts Percentage
Buy 12 60%
Hold 7 35%
Sell 1 5%

Key financial multiples comparison indicates potential undervaluation relative to industry peers with attractive valuation metrics.




Key Risks Facing Murphy USA Inc. (MUSA)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

Market and Competitive Risks

Risk Category Potential Impact Severity Level
Fuel Price Volatility Direct impact on profit margins High
Retail Competition Market share erosion Medium
Economic Recession Reduced consumer spending High

Operational Risks

  • Supply chain disruptions
  • Regulatory compliance challenges
  • Technology infrastructure vulnerabilities

Financial Risk Metrics

Key financial risk indicators include:

  • Debt-to-equity ratio: 0.85
  • Current liquidity ratio: 1.45
  • Working capital: $247 million

Strategic Risks

Risk Element Potential Consequence
Expansion Strategy Capital investment uncertainty
Market Consolidation Potential reduced market opportunities

Regulatory Compliance Risks

Potential regulatory risks include environmental regulations and fuel standards compliance.

  • Environmental compliance costs: $12.5 million annually
  • Potential regulatory penalties range: $500,000 to $2.3 million



Future Growth Prospects for Murphy USA Inc. (MUSA)

Growth Opportunities

Murphy USA Inc. demonstrates significant growth potential through strategic market positioning and diversified revenue streams.

Key Growth Drivers

  • Retail fuel station network expansion
  • Convenience store merchandise sales growth
  • Electric vehicle charging infrastructure development

Financial Growth Projections

Metric 2023 Value 2024 Projected Growth Percentage
Revenue $25.4 billion $26.8 billion 5.5%
Net Income $628 million $675 million 7.5%
Store Count 1,687 locations 1,750 locations 3.7%

Strategic Expansion Initiatives

  • Planned geographic expansion in Southeastern United States
  • Investment in digital payment technologies
  • Enhanced loyalty program development

Competitive Advantages

Key competitive strengths include:

  • Strategically located retail fuel stations
  • Low-cost operational model
  • Robust supply chain management

Market Opportunity Metrics

Market Segment Current Market Share Growth Potential
Retail Fuel Sales 2.3% 4.5%
Convenience Store Merchandise 1.8% 3.2%

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