Education
About Us
Working with TipRanks
Follow Us
Murphy USA Inc (MUSA)
NYSE:MUSA
Top Page
Murphy USA
(NYSE:MUSA)58Neutral
Positive Factors
Market share
MUSA continues to take fuel market share and expects to ultimately reach approximately 5 billion gallons.
Sales growth
MUSA's efforts to drive in-store sales yield results for both nicotine and non-nicotine categories.
Negative Factors
Consumer trends
QuickChek and its food-led offer continues to see pressure from changing consumer trends and 'value wars' amongst QSR peers.
Murphy USA (MUSA) vs. S&P 500 (SPY)
Market Cap
$9.12B
Dividend Yield0.41%
Average Volume (3M)260.18K
Price to Earnings (P/E)18.9
Beta (1Y)0.38
Revenue Growth-5.97%
EPS Growth-5.45%
CountryUS
Employees17,200
SectorConsumer Cyclical
Sector Strength53
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)24.20
Shares Outstanding20,016,228
10 Day Avg. Volume292,903
30 Day Avg. Volume260,175
Financial Highlights & Ratios
PEG Ratio11.58
Price to Book (P/B)N/A
Price to Sales (P/S)0.49
Price to Cash Flow (P/CF)9.20
P/FCF Ratio8.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$531.25Price Target Upside16.64% Upside
Rating ConsensusHold
Number of Analyst Covering4
Murphy USA Business Overview & Revenue Model
Company DescriptionMurphy USA Inc. (MUSA) is a leading retailer of gasoline and convenience merchandise in the United States. The company primarily operates retail gas stations under the Murphy USA and Murphy Express brands. Founded in 1996, Murphy USA serves customers at more than 1,600 locations, primarily situated near Walmart stores. Apart from selling fuel, Murphy USA offers a range of convenience items such as snacks, beverages, and tobacco products, catering to the needs of on-the-go consumers.
How the Company Makes MoneyMurphy USA generates revenue through the sale of retail fuel and convenience merchandise. The majority of the company's income comes from fuel sales, as it sells millions of gallons of gasoline annually to consumers across its extensive network of stations. Additionally, Murphy USA benefits from the sale of convenience store items, which includes snacks, drinks, and other everyday necessities. The company's strategic placement near Walmart stores helps attract a steady flow of traffic, enhancing its sales opportunities. Furthermore, Murphy USA may engage in partnerships and promotional activities with suppliers and brands to drive additional revenue and customer engagement.
Murphy USA Financial Statement Overview
Summary
Murphy USA demonstrates strong operational efficiency and profitability with solid margins and return on equity. However, the company faces challenges with high leverage and declining revenue and free cash flow, which could impact future financial flexibility. While the operating cash flow remains healthy, the high debt levels necessitate careful financial management to sustain growth and profitability.Income Statement
Murphy USA shows a solid gross profit margin of 28.54% in TTM, demonstrating effective cost management. However, the net profit margin at 2.48% suggests room for improvement in profitability. Revenue has decreased by 5.96% from the previous year, indicating a slowdown in growth. EBIT and EBITDA margins are moderate at 3.67% and 4.70% respectively, reflecting stable operating performance despite revenue challenges.70
Positive
Balance Sheet
The debt-to-equity ratio is high at 2.79, indicating significant leverage, which could pose financial risk if revenues decline. Return on equity is robust at 59.81%, showcasing strong profitability relative to equity. The equity ratio of 18.50% shows limited equity financing, suggesting potential vulnerability to financial stress.60
Neutral
Cash Flow
Free cash flow has decreased by 40.11% compared to the previous year, raising concerns about cash generation. The operating cash flow to net income ratio is favorable at 1.19, indicating efficient cash conversion from earnings. However, the free cash flow to net income ratio stands at 0.53, reflecting constraints in free cash flow relative to profitability.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 20.24B | 21.53B | 23.45B | 17.36B | 11.26B | Gross Profit |
| 20.24B | 20.51B | 2.40B | 1.85B | 1.44B | EBIT |
| 742.90M | 826.00M | 968.40M | 604.00M | 559.00M | EBITDA |
| 996.70M | 1.07B | 1.19B | 820.30M | 722.70M | Net Income Common Stockholders |
| 502.50M | 556.80M | 672.90M | 396.90M | 386.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 47.00M | 124.90M | 78.40M | 256.40M | 163.60M | Total Assets |
| 4.54B | 4.34B | 4.12B | 4.05B | 2.69B | Total Debt |
| 2.37B | 2.27B | 2.25B | 2.22B | 1.00B | Net Debt |
| 2.32B | 2.15B | 2.19B | 1.97B | 838.80M | Total Liabilities |
| 3.70B | 3.51B | 3.48B | 3.24B | 1.90B | Stockholders Equity |
| 840.10M | 828.90M | 640.70M | 807.20M | 784.10M |
| Cash Flow | Free Cash Flow | |||
| 32.80M | 448.40M | 689.40M | 462.70M | 333.00M | Operating Cash Flow |
| 32.80M | 784.00M | 994.70M | 737.40M | 563.70M | Investing Cash Flow |
| -445.80M | -323.60M | -319.30M | -914.20M | -224.30M | Financing Cash Flow |
| -472.60M | -403.10M | -871.30M | 269.60M | -456.10M |
Murphy USA Technical Analysis
Negative
455.45
Price Trends
485.50
Negative
500.01
Negative
493.24
Negative
Market Momentum
-9.27
Positive
40.82
Neutral
37.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MUSA, the sentiment is Negative. The current price of 455.45 is below the 20-day moving average (MA) of 470.82, below the 50-day MA of 485.50, and below the 200-day MA of 493.24, indicating a bearish trend. The MACD of -9.27 indicates Positive momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 37.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MUSA.
Murphy USA Risk Analysis
Murphy USA disclosed 33 risk factors in its most recent earnings report. Murphy USA reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Murphy USA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.67B | 9.47 | 28.38% | 6.18% | -1.63% | 80.11% | |
68 Neutral | $14.80B | 27.79 | 17.16% | 0.48% | 2.60% | 11.03% | |
67 Neutral | $42.99B | 13.63 | 16.33% | 2.52% | -6.70% | -57.84% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
58 Neutral | $9.12B | 18.89 | 60.22% | 0.41% | -5.97% | -5.45% | |
58 Neutral | $721.58M | 3.02 | -2.64% | ― | -3.13% | -105.02% | |
47 Neutral | $923.95M | ― | -108.21% | 6.80% | -28.68% | -4373.94% |
* Consumer Cyclical Sector Average
Performance Comparison
MUSA
Murphy USA
455.45
51.40
12.72%
CASY
Casey's General
398.73
101.48
34.14%
DK
Delek US Holdings
14.26
-11.00
-43.55%
MPC
Marathon Petroleum
137.55
-40.08
-22.56%
SUN
Sunoco
56.81
-2.38
-4.02%
PARR
Par Pacific Holdings
13.18
-22.74
-63.31%
Murphy USA Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -11.63% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance for Murphy USA in 2024. While there were significant areas of growth, such as strong EBITDA performance, merchandise sales growth, and an increase in retail fuel margins, the company faced challenges including a slow start to the year, pressure on food inflation affecting QuickCheck Markets, and under-delivery on new store targets. The balanced presentation of both achievements and setbacks suggests a neutral outlook.Highlights
Strong EBITDA Performance
Murphy USA delivered over $1 billion of EBITDA in 2024, indicating the sustainability of the earnings potential of the business.
Merchandise Sales Growth
Murphy branded network grew per store merchandise sales and margin dollars by 3.5% and 5.9% respectively for the full year 2024.
Fuel Performance Improvement
Retail margins increased by 50 basis points to $0.281 per gallon, despite conditions historically less favorable to retail margin capture.
New Store Growth
Completed 32 new-to-industry stores in 2024 and opened four additional stores since the year-end, with plans to open up to 50 new stores in 2025.
Merchandise Contribution Growth
Generated $834 million in merchandise contribution dollars in 2024, up 3.8% versus 2023, with notable acceleration in the fourth quarter.
Capital Allocation and Share Repurchase
Repurchased approximately 938 thousand shares for the full year 2024, resulting in a cash and cash equivalents balance of $47 million at year-end.
Lowlights
Disappointing Year Start
2024 started slowly due to rising prices and severe weather, impacting transactions across the Murphy USA network.
Pressure on Food Inflation and Market Challenges
Continued pressure on food inflation affected QuickCheck Markets, with lower than expected all-in margins in 2024.
Under-Delivery on New Store Targets
Despite opening more new stores than the prior year, the company under-delivered against internal schedule targets, impacting fuel gallons and merchandise sales.
Soft Fuel Volumes
Average 2024 fuel volumes of 240.6 thousand gallons per store month were closer to the low end of guidance due to softness in Q4 volumes.
Company Guidance
During the Murphy USA Fourth Quarter 2024 earnings call, the company provided guidance for 2025, outlining expectations for various financial metrics. They plan to open up to 50 new stores in 2025, building on the 32 new stores completed in 2024, and continue with 30 raise and rebuild projects. Fuel volumes are projected to remain within the range of 240 to 245 thousand gallons per store month, with total fuel sales expected to increase by 4.5% to over 5 billion gallons. Merchandise contribution dollars are forecasted to grow by nearly 4%, reaching a range of $855 million to $875 million. Operating expenses per store month are anticipated to rise by 4% to 6%, aligning with larger format store expansions. The SG&A expense is expected to be between $245 million and $255 million, while capital spending will be in the range of $450 million to $500 million. Murphy USA projects EBITDA between $1 billion and $1.12 billion, based on an all-in margin range of 30.5 to 32.5 cents per gallon. The company remains committed to its balanced capital allocation strategy, including share repurchases that have significantly reduced the share count to approximately 20 million shares.Murphy USA Corporate Events
Business Operations and StrategyFinancial Disclosures
Murphy USA Highlights Strategic Initiatives at Investor Conference
Positive
Mar 3, 2025
On March 3, 2025, Murphy USA Inc. presented at the Raymond James 2025 Institutional Investors Conference, highlighting its strategic initiatives and financial performance. The company emphasized its transformational investments, which have enhanced its competitiveness and shareholder value. Murphy USA’s strategies include organic growth, merchandise diversification, and cost leadership, supported by a strong relationship with Walmart and a focus on digital transformation. The company has demonstrated resilience in volatile market conditions, maintaining market share and optimizing fuel pricing strategies, which have contributed to significant volume gains and enhanced customer loyalty.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.