Marathon Oil Corporation (NYSE:MRO) is one of the more popular stocks investors are adding into their watchlist. Now trading with a market value of 13.80B, the company has a mix of catalysts and obstacles that spring from the nature of its operations. In light of the many issues surrounding this company, we thought it was a good time to take a close look at the numbers in order to form a realistic perspective on the fundamental picture for this stock.
Marathon Oil Corporation (NYSE:MRO) Fundamentals That Matter
It’s generally a good idea to start with the most fundamental piece of the picture: the balance sheet. The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For MRO, the company currently has 1.8 billion of cash on the books. The trend over time is important to note. In this case, the company’s debt has been growing. The company also has 22.95 billion in total assets, balanced by 11.17 billion in total liabilities, which should give you a sense of the viability of the company under any number of imagined business contexts.
Marathon Oil Corporation (MRO) saw 34 million in free cash flow last quarter, representing a quarterly net change in cash of -819 million. Perhaps most importantly where cash movements are concerned, the company saw about 564 million in net operating cash flow.
Marathon Oil Corporation (NYSE:MRO) Revenue Growth Potential
As far as key trends that demonstrate something of the future investment potential of this stock, we need to take a closer look at the top line, first and foremost. Last quarter, the company saw 1.18 billion in total revenues. That represents a quarterly year/year change in revenues of 0.11 in sequential terms, the MRO saw sales decline by 0.26.
But what about the bottom line? After all, that’s what really matters in the end. Marathon Oil Corporation (MRO) is intriguing when broken down to its core data. The cost of selling goods last quarter was 1.29 billion, yielding a gross basic income of -103 million . For shareholders, given the total diluted outstanding shares of 850 million, this means overall earnings per share of -0.70. Note, this compares with a consensus analyst forecast of 0.02 in earnings per share for its next fiscal quarterly report.
Is Marathon Oil Corporation (NYSE:MRO) Valuation Attractive
Looking ahead at valuations, according to the consensus, the next fiscal year is forecast to bring about 0.31 in total earnings per share. If we consider a median price to earnings ratio on the stock, that corresponds with a stock price of 74.07. However, one should always remember: the trends are more important than the forecasts. This continues to be an interesting story, and we look forward to updating it again soon on Marathon Oil Corporation.