Murphy's USA (NYSE: MUSA) earnings release for the 2nd quarter of their 2020 fiscal year
Category: Stock Market and Murphy's USA (MUSA)
Date: 22 July 2020 Stock Price of Murphy's : $138.64 We take a look at the 2nd quarter earnings report of their 2020 fiscal year of Murphy's USA (MUSA), one of the largest independent retailers of gasoline products and convenience store merchandise with over 1,400 locations in 26 states across the Southern and Midwestern United States. Revenues declined by -37% for the quarter compared to the same quarter of the previous year.
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Murphy USA’s record second quarter performance once again demonstrated the competitive advantages of our distinctive business model and customer positioning-President and CEO Andrew Clyde"
About Murphy's USA
Murphy USA is one of the largest independent retailers of gasoline products and convenience store merchandise with over 1,400 locations in 26 states across the Southern and Midwestern United States. Our stores are 100% company operated and 90% company owned; most are adjacent to Walmart stores. Murphy USA serves approximately 1.6 million customers per day. Our business includes a network of seven owned terminals which support an advantaged fuel supply allowing the company to source fuel at or below the industry benchmark prices.
Overview of Murphy's USA 2nd quarter 2020 earnings report
Data below refers to the latest quarter unless specified otherwise:
- Revenues: $2.389 billion (down from $3.8 billion for the same period of the previous year)
- Revenues decreased by -37.1% over the last 12 months
- Total operating expenses: $2.145 billion (down from $3.774 billion for the same period of the previous year)
- Cost of goods sold decreased by -43.2% over the last 12 months
- Net earnings: $168.9 million (down from $32.7 million for the same period of the previous year)
- Diluted earnings per share: $5.73 (down from $1.02 for the same period of the previous year)
- PE ratio: 6.1
- Diluted weighted-average shares outstanding: 29.495 million (down from 32.328 million for the same period of the previous year)
- Cash and cash equivalents: $403.6 million
- Cash and cash equivalents per share: $13.7
- Cash and cash equivalents makes up 9.9% of Murphy's market capital
- Cash and cash equivalents makes up 14.1% of Murphy's total assets
- Inventories of Murphy's: $257.7 million
- Inventories makes up 9% of Murphy's total assets
- Inventories makes up 9% of Murphy's total assets
- Stockholders equity of Murphy's: $918 million
- Stockholders equity per share: $31.12
- So Murphy's is trading at 4.4 times its stockholders equity per share which is outside the expected range of between 2 and 4 times that most firms tend to trade at.
- For some perspective firms in the S&P 500 trade at an average price to book value of 3.7
- Stockholders equity per share: $31.12
Murphy's management commentary on their 2nd quarter 2020 earnings report
El Dorado, Arkansas, July 21, 2020 (GLOBE NEWSWIRE) – Murphy USA Inc. (NYSE: MUSA), a leading marketer of retail motor fuel products and convenience merchandise, today announced financial results for the three and six months ended June 30, 2020.
“Murphy USA’s record second quarter performance once again demonstrated the competitive advantages of our distinctive business model and customer positioning," said President and CEO Andrew Clyde. "Fuel margins significantly outpaced volume declines due to COVID-19 related demand destruction even as commodity prices rose sharply in May and June. As volume recovers in July to over 90-percent of prior year levels reflecting our every-day low price positioning and more favorable geographies and locations, robust fuel margins continue to generate higher than normal fuel contribution for Murphy USA. Merchandise sales and margins have kept record pace as prior and current investments in tobacco categories led to further acceleration of additional market share gains while innovation in general merchandise and recovering traffic boosted non-tobacco categories. Our outlook for the remainder of 2020 and 2021 remains very positive as the underlying structural basis for these trends further solidifies. With a strong cash position and flexible balance sheet, Murphy USA remains well positioned to accelerate its balanced strategic capital allocation priorities over the next few years, including the previously announced growth in new-to-industry sites and front-loaded share repurchase program.”
“Murphy USA’s record second quarter performance once again demonstrated the competitive advantages of our distinctive business model and customer positioning," said President and CEO Andrew Clyde. "Fuel margins significantly outpaced volume declines due to COVID-19 related demand destruction even as commodity prices rose sharply in May and June. As volume recovers in July to over 90-percent of prior year levels reflecting our every-day low price positioning and more favorable geographies and locations, robust fuel margins continue to generate higher than normal fuel contribution for Murphy USA. Merchandise sales and margins have kept record pace as prior and current investments in tobacco categories led to further acceleration of additional market share gains while innovation in general merchandise and recovering traffic boosted non-tobacco categories. Our outlook for the remainder of 2020 and 2021 remains very positive as the underlying structural basis for these trends further solidifies. With a strong cash position and flexible balance sheet, Murphy USA remains well positioned to accelerate its balanced strategic capital allocation priorities over the next few years, including the previously announced growth in new-to-industry sites and front-loaded share repurchase program.”
Station Openings
Murphy USA opened 3 new retail locations, re-opened 8 raze-and-rebuild sites and sold 9 locations in Q2 2020, bringing the store count to 1,485, consisting of 1,152 Murphy USA sites and 333 Murphy Express sites. A total of 17 stores are currently under construction which includes 11 new retail locations and 6 kiosks undergoing raze-andrebuild that will return to operation as 1400 sq. ft. stores. During Q2 2020, Murphy USA sold all 9 Minnesota stores to a private company and recognized an immaterial gain on the disposition of these properties.
Murphy USA opened 3 new retail locations, re-opened 8 raze-and-rebuild sites and sold 9 locations in Q2 2020, bringing the store count to 1,485, consisting of 1,152 Murphy USA sites and 333 Murphy Express sites. A total of 17 stores are currently under construction which includes 11 new retail locations and 6 kiosks undergoing raze-andrebuild that will return to operation as 1400 sq. ft. stores. During Q2 2020, Murphy USA sold all 9 Minnesota stores to a private company and recognized an immaterial gain on the disposition of these properties.
Murphy's USA (MUSA) stock price history
The image below, obtained from Google, shows the stock price history of Murphy's over the last 5 years. And it's been a very good time for Murphy's stockholders. 5 years ago the stock was trading at around $54 a stock and its currently trading at $138.64 a stock. That's a strong return of of % provided to Murphy's stockholders over the last 5 years
The stock of Murphy's is trading at a lot closer to its 52 week high of $139.33 than it is to its 52 week low of $78.75, which to us is a clear indication that the short term sentiment and momentum towards Murphy's stock is very positive at this point in time.
The stock of Murphy's is trading at a lot closer to its 52 week high of $139.33 than it is to its 52 week low of $78.75, which to us is a clear indication that the short term sentiment and momentum towards Murphy's stock is very positive at this point in time.
Murphy's (MUSA) stock vs Casey (CASY) stock over the last 5 years
The image below shows the stock price performance of Murphy's (MUSA) stock vs Casey (CASY) over the last 5 years. These to firms are direct rivals in the fuel and gasoline services sector. The summary below shows the stock price performance of Murphy's (MUSA) stock vs Casey (CASY) over the last 5 years
So the stock of Murphy's (MUSA) has easily outperformed the stock of Casey (CASY) over the last 2 years.
- Murphy's: 168.4%
- Casey's: 51%
So the stock of Murphy's (MUSA) has easily outperformed the stock of Casey (CASY) over the last 2 years.
Recent coverage of Murphy's USA
The extract below covers the latest news regarding Murphy's
Murphy USA Inc. [MUSA] has traded in a range of $78.75 to $121.24 in the last 1 year. As of this writing, the stock is at $134.72, up 14.26%. To check whether the stock’s short-term amount has a thrust, its good to check stock’s recent movement. Over the last week, MUSA shares are 16.17% up with the monthly amount drift of 18.39% and seems well in a long time frame.
On 21, July 2020, Murphy USA Inc. Reports Second Quarter 2020 Results. According to news published on Yahoo Finance, Murphy USA Inc. (NYSE: MUSA), a leading marketer of retail motor fuel products and convenience merchandise, today announced financial results for the three and six months ended June 30, 2020.
Analyst Birdseye View:
The most recent analyst activity for Murphy USA Inc. [NYSE:MUSA] stock was on October 15, 2019, when it was Upgrade with an Overweight rating from Stephens, which also raised its 12-month price target on the stock from $92 to $100. Before that, on February 03, 2020, JP Morgan Recapitulated a Neutral rating and elevated its amount target to $102. On April 13, 2018, Jefferies Downgrade a Hold rating. On January 11, 2018, Gabelli & Co Downgrade a Hold rating and increased its price target to $92. On November 07, 2017, JP Morgan Downgrade an Underweight rating. On July 12, 2017, William Blair Initiated a Mkt perform rating. On April 19, 2017, Wells Fargo Downgrade a Market perform rating.
In the past 52 weeks of trading, this stock has oscillated between a low of $78.75 and a peak of $121.24. Right now, the middling Wall Street analyst 12-month amount mark is $120.00. At the most recent market close, shares of Murphy USA Inc. [NYSE:MUSA] were valued at $134.72. According to the average price forecast, investors can expect a potential return of -15.42%.
Read the full article here
Murphy USA Inc. [MUSA] has traded in a range of $78.75 to $121.24 in the last 1 year. As of this writing, the stock is at $134.72, up 14.26%. To check whether the stock’s short-term amount has a thrust, its good to check stock’s recent movement. Over the last week, MUSA shares are 16.17% up with the monthly amount drift of 18.39% and seems well in a long time frame.
On 21, July 2020, Murphy USA Inc. Reports Second Quarter 2020 Results. According to news published on Yahoo Finance, Murphy USA Inc. (NYSE: MUSA), a leading marketer of retail motor fuel products and convenience merchandise, today announced financial results for the three and six months ended June 30, 2020.
Analyst Birdseye View:
The most recent analyst activity for Murphy USA Inc. [NYSE:MUSA] stock was on October 15, 2019, when it was Upgrade with an Overweight rating from Stephens, which also raised its 12-month price target on the stock from $92 to $100. Before that, on February 03, 2020, JP Morgan Recapitulated a Neutral rating and elevated its amount target to $102. On April 13, 2018, Jefferies Downgrade a Hold rating. On January 11, 2018, Gabelli & Co Downgrade a Hold rating and increased its price target to $92. On November 07, 2017, JP Morgan Downgrade an Underweight rating. On July 12, 2017, William Blair Initiated a Mkt perform rating. On April 19, 2017, Wells Fargo Downgrade a Market perform rating.
In the past 52 weeks of trading, this stock has oscillated between a low of $78.75 and a peak of $121.24. Right now, the middling Wall Street analyst 12-month amount mark is $120.00. At the most recent market close, shares of Murphy USA Inc. [NYSE:MUSA] were valued at $134.72. According to the average price forecast, investors can expect a potential return of -15.42%.
Read the full article here
Murphy's USA (MUSA) latest stock valuation
So what is Murphy's stock worth based on the release of their 2nd quarter 2020 earnings report ? Based on Murphy's latest earnings report our valuation models provide a target price (full value price) for Murphy's stock at $132.70 a stock. Based on our target price (full value price) we believe the stock of Murphy's is close to being fully valued
We usually recommend that long term fundamental or value investors look to enter the stock at 10% below our target price (full value price) which in this case is $132.70, so a good entry point into Murphy's' stock would be at $119.40 or below. We expect the stock of Murphy's (MUSA) to trade in a narrow range around its current price in coming weeks and months.
We usually recommend that long term fundamental or value investors look to enter the stock at 10% below our target price (full value price) which in this case is $132.70, so a good entry point into Murphy's' stock would be at $119.40 or below. We expect the stock of Murphy's (MUSA) to trade in a narrow range around its current price in coming weeks and months.
Next earnings release of Murphy's USA (MUSA)
It is expected that Murphy's USA (MUSA) will release their 3rd quarter 2020 earnings report in late October 2020