Home Sectors Consumer Cyclical Stock Valuation: Murphy USA (NYSE: MUSA)

Stock Valuation: Murphy USA (NYSE: MUSA)


Murphy USA is part of the retail apparel and specialty industry and is in the consumer cyclical sector. The company CEO is R. Andrew Clyde. Murphy USA is engaged in the marketing of retail motor fuel products and convenience merchandise through a chain of retail stores in the United States.

Previous Intraday Trading Performance:

The MUSA stock showed a previous change of 3.67% with an open at 81.88 and a close of 84.46. It reached an intraday high of 84.58 and a low of 81.48.

SeekingAlpha:  Murphy USA, Inc. (MUSA) CEO Andrew Clyde on Q1 2019 Results – Earnings Call Transcript


The stock has a market cap of $2.7b with 32.2m shares outstanding, of which the float is 31.5m shares. Trading volume reached 313,775 shares compared to its average volume of 399,807 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Murphy USA shares returned 4.53% and in the past 30 trading days it returned 2.49%. Over three months, it changed 8.74%. In one year it has changed 24.15% and within that year its 52-week high was 88.58 and its 52-week low was 67.91. MUSA stock is 24.37% above its 52 Week Low.

Our calculations show a 200 day moving average of 80.98 and a 50 day moving average of 83.52. Currently MUSA stock is trading 4.30% above its 200 day moving average and may be a good opportunity to buy.

SeekingAlpha:  More on Murphy USA Q1 results


The last annual fiscal EPS for the company was reported at 6.49 that ended on 31st of December 2018, which according to the previous close, that is a PE of 13.01. Based on 4 analyst estimates, the consensus EPS for the next quarter is 0.32. The TTM EPS is 5.46, which comes to a TTM PE of 15.47. Historically, the PE high was 19.90 and the PE low was 7.80. If the stock reached its PE low, that would represent a price of 42.58, which is a decrease of -49.58%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/29/2019): 0.16
4thQtr of 2018 (Reported on 01/30/2019): 2.38
3rdQtr of 2018 (Reported on 10/31/2018): 1.38
2ndQtr of 2018 (Reported on 08/01/2018): 1.58
1stQtr of 2018 (Reported on 05/01/2018): 1.16

Base on our calculations, the intrinsic value per share is 16.13, which means it may be overvalued by -423.67%.

Indicators to Watch:

Based on the latest filings, there is 2.10% of insider ownership. Short-interest was 2,561,861, which was 7.96% of shares outstanding. The short-interest ratio or days-to-cover ratio was 5.77. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 0.74.

SeekingAlpha:  More on Murphy USA Q1 results

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 23.90%, return on assets is 7.55%, profit margin is 1.27%, price-to-sales is 0.18 and price-to-book is 3.29.

Company Scores:

All scores are out of six:
 1  :Valuation Score
 2  :Past Performance Score
 3  :Financial Strength Score
 0  :Future Growth Score
 0  :Dividend Score
 1  :Overall Score

Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.