Murphy USA Inc. has announced a 2.4% increase in its quarterly cash dividend on the common stock, bringing it to $0.42 per share, or $1.68 per share on an annualized basis. The dividend will be payable on March 7, 2024, to stockholders of record as of February 26, 2024.
Andrew Clyde, President and CEO of Murphy USA, commented on the dividend increase, saying, "We are pleased to deliver on our commitment to return excess cash to our shareholders through a meaningful increase in our quarterly dividend. This action reflects our continued confidence in the strength of our business and our ongoing commitment to creating value for our shareholders."
In terms of the company's stock performance, the shares have moved 1.0% and are currently trading at a price of $396.56.
Looking ahead, Mr. Clyde added, "We remain focused on executing our strategy, driving organic growth, and delivering value for our shareholders. We are confident in our ability to navigate the current operating environment and remain well-positioned for the future."
Murphy USA Inc. is a leading retailer of gasoline and convenience merchandise with over 1,700 stores across 27 states, primarily located in the southwest, southeast, midwest, and northeast United States.
For more detailed information, the company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $14,363 | $14,035 | $11,264 | $17,360 | $23,446 | $21,827 |
| Operating Margins | 2% | 2% | 5% | 3% | 4% | 4% |
| Net Margins | 1% | 1% | 3% | 2% | 3% | 2% |
| Net Income (M) | $214 | $155 | $386 | $397 | $673 | $524 |
| Net Interest Expense (M) | $53 | $55 | $51 | $82 | $85 | $98 |
| Depreciation & Amort. (M) | $134 | $152 | $161 | $213 | $220 | $228 |
| Diluted Shares (M) | 33 | 32 | 30 | 27 | 24 | 22 |
| Earnings Per Share | $6.48 | $4.86 | $13.08 | $14.92 | $28.1 | $23.72 |
| EPS Growth | n/a | -25.0% | 169.14% | 14.07% | 88.34% | -15.59% |
| Avg. Price | $75.82 | $88.3 | $116.72 | $147.93 | $211.77 | $397.77 |
| P/E Ratio | 11.59 | 18.02 | 8.81 | 9.77 | 7.4 | 16.45 |
| Free Cash Flow (M) | $194 | $108 | $333 | $463 | $689 | $427 |
| CAPEX (M) | $204 | $205 | $231 | $275 | $305 | $307 |
| EV / EBITDA | 7.07 | 8.57 | 6.1 | 6.84 | 5.89 | 10.19 |
| Total Debt (M) | $863 | $1,038 | $1,002 | $1,815 | $1,807 | $1,786 |
| Net Debt / EBITDA | 1.48 | 1.8 | 1.16 | 1.91 | 1.47 | 1.65 |
| Current Ratio | 1.19 | 1.41 | 1.18 | 1.14 | 0.85 | 1.02 |
The company's strengths include robust revenue growth at a rate of 9.0%, increasing capital expenditures, and a strong earnings per share growth at an annualized rate of 24.1% over the last 6 years. The PEG ratio of 0.96 indicates potential undervaluation based on the company's earning growth potential.
However, the company's operating margins have consistently lagged behind the industry average, although they are showing improvement, with an average yearly growth rate of 14.9%. Additionally, Murphy USA's total liabilities far exceed its current assets, with a net current asset level of -$2.62 billion. The current ratio of 1.02 indicates that the company has just enough current assets to cover its current liabilities.
