Demystifying Marathon Oil: Insights From 7 Analyst Reviews

Throughout the last three months, 7 analysts have evaluated Marathon Oil MRO, offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $30.29, a high estimate of $35.00, and a low estimate of $25.00. Experiencing a 12.02% decline, the current average is now lower than the previous average price target of $34.43.

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive Marathon Oil is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Marathon Oil. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Marathon Oil compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Marathon Oil's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Marathon Oil's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Marathon Oil analyst ratings.

Get to Know Marathon Oil Better

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.

Breaking Down Marathon Oil's Financial Performance

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Marathon Oil's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -11.8% in revenue growth, reflecting a decrease in 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 net margin excels beyond industry benchmarks, reaching 25.58%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Marathon Oil's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 4.03%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Marathon Oil's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 2.27%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Marathon Oil's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.51.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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