Murphy USA Inc. (MUSA) stock analysis

P/E below its 5-year median

Murphy USA's P/E of 15.2 is below its own 5-year median of 15.9.

P/E above the industry

Murphy USA's P/E of 15.2 is above the Retail-auto dealers & gasoline stations median of 12.4.

EV/EBITDA below its 5-year median

Murphy USA's EV/EBITDA of 9.3 is below its 5-year median of 9.8.

P/B above the industry

Murphy USA's price-to-book of 12.40 is above the Retail-auto dealers & gasoline stations median of 2.34.

Trading above fair value

The share price of $543.88 is above our fair value estimate of $503.92.

Margin of safety under 20%

The price is 7.9% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -6.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -5.0% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 40.8% over the last twelve months, against a 5-year average of 4.0% a year.

Growing faster than the industry

Revenue grew 20.2% over the last twelve months; the Retail-auto dealers & gasoline stations median is 1.5%.

Guidance raised

Murphy USA raised its 2026 SG&A outlook on Aug 5, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 99.0% over the last twelve months and averaged 68.6% over five years.

Return on capital over 10%

Return on invested capital was 27.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Murphy USA's return on equity of 99.0% is above the Retail-auto dealers & gasoline stations median of 12.4%.

Earnings grew over 5 years

Net income grew 4.0% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 2.9% over the last twelve months, against a 5-year average of 2.5%.

Net margin above the industry

Murphy USA's net margin of 2.9% is above the Retail-auto dealers & gasoline stations median of 2.6%.

High debt

Debt is 276% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 128% five years ago to 276%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 52.5% of total debt.

Interest well covered

Operating income covers interest expense 8.5 times.

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

Current assets are 0.87 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 7.68; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Murphy USA paid dividends worth 0.4% of the share price over the last twelve months.

Yield below Treasuries

The 0.4% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Murphy USA yields 0.4%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 6 fiscal years.

Covered by earnings

Dividends take 7.1% of net income.

Covered by free cash flow

Dividends take 7.1% of free cash flow.