Murphy Oil Corp (MUR) stock analysis

P/E above its 5-year median

Murphy Oil's P/E of 11.2 is above its own 5-year median of 10.4.

P/E above the industry

Murphy Oil's P/E of 11.2 is above the Crude Petroleum and Natural Gas median of 10.4.

EV/EBITDA below its 5-year median

Murphy Oil's EV/EBITDA of 3.5 is below its 5-year median of 4.0.

P/B below the industry

Murphy Oil's price-to-book of 0.96 is below the Crude Petroleum and Natural Gas median of 1.33.

Trading below fair value

The share price of $35.93 is below our fair value estimate of $55.14.

Margin of safety over 20%

The price is 34.8% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -11.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -51.0% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 13.2% over the last twelve months; the Crude Petroleum and Natural Gas median is 8.7%.

Guidance issued

The latest outlook (Full Year 2026 Total Net Production, excl. NCI, Jan 28, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 8.9% over the last twelve months and averaged 8.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.7%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Murphy Oil's return on equity of 8.9% is above the Crude Petroleum and Natural Gas median of 5.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 15.0% over the last twelve months, against a 5-year average of 11.5%.

Net margin above the industry

Murphy Oil's net margin of 15.0% is above the Crude Petroleum and Natural Gas median of 3.8%.

Low debt

Debt is 30.4% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 70.9% five years ago to 30.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 108% of total debt.

Interest well covered

Operating income covers interest expense 8.0 times.

Short-term assets don't cover short-term debts

Current assets are 0.95 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.11; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Murphy Oil paid dividends worth 3.8% of the share price over the last twelve months.

Yield below Treasuries

The 3.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Murphy Oil yields 3.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 42.1% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.