Expert Outlook: Marathon Oil Through The Eyes Of 10 Analysts

Ratings for Marathon Oil MRO were provided by 10 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have recently evaluated Marathon Oil and provided 12-month price targets. The average target is $30.5, accompanied by a high estimate of $37.00 and a low estimate of $27.00. Observing a downward trend, the current average is 7.18% lower than the prior average price target of $32.86.

Interpreting Analyst Ratings: A Closer Look

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 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: 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: Delving into movements, analysts provide estimates for the future value of Marathon Oil's stock. This analysis reveals shifts 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 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.

Financial Milestones: Marathon Oil's Journey

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.

Negative Revenue Trend: Examining Marathon Oil's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -1.69% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Energy sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 16.48%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Marathon Oil's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.54%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Marathon Oil's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.47%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.42.

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.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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