8 Analysts Have This To Say About Marathon Oil

8 analysts have shared their evaluations of Marathon Oil MRO during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $31.69, a high estimate of $39.00, and a low estimate of $25.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 5.74%.

Breaking Down Analyst Ratings: A Detailed Examination

The analysis of recent analyst actions sheds light on the perception of Marathon Oil by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Marathon Oil. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Marathon Oil compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Marathon Oil's stock. This examination reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Marathon Oil's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Marathon Oil analyst ratings.

Delving into Marathon Oil's Background

Marathon is an independent exploration and production company primarily focusing on unconventional resources in the United States. At the end of 2022, the company reported net proved reserves of 1.3 billion barrels of oil equivalent. Net production averaged 343 thousand barrels of oil equivalent per day in 2022 at a ratio of 70% oil and NGLs and 30% natural gas.

Unraveling the Financial Story of Marathon Oil

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Marathon Oil faced challenges, resulting in a decline of approximately -11.8% in revenue growth as of 30 September, 2023. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.

Net Margin: Marathon Oil's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 25.58%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Marathon Oil's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 4.03%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Marathon Oil's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.27% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Marathon Oil's debt-to-equity ratio is below the industry average. With a ratio of 0.51, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Basics of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.