Murphy USA Inc. (MUSA) Bundle
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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