Demystifying Marathon Oil: Insights From 6 Analyst Reviews

In the latest quarter, 6 analysts provided ratings for Marathon Oil MRO, showcasing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $31.93, a high estimate of $39.00, and a low estimate of $27.61. A negative shift in sentiment is evident as analysts have decreased the average price target by 10.31%.

Investigating Analyst Ratings: An Elaborate Study

The standing of Marathon Oil among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Marathon Oil. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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 2023, the company reported net proved reserves of 1.1 billion barrels of oil equivalent. Net production averaged 405 thousand barrels of oil equivalent per day in 2023 at a ratio of roughly 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.

Revenue Growth: Marathon Oil displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 12.26%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 20.95%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.12%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Marathon Oil's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.77%, the company showcases efficient use of assets and strong financial health.

Debt Management: Marathon Oil's debt-to-equity ratio is below the industry average. With a ratio of 0.47, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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