Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas company Marathon Oil
With that in mind, let's take a closer look at Marathon's business and see what CAPS investors are saying about the stock right now.
Marathon facts
Headquarters (founded) | Houston (1887) |
Market Cap | $24.88 billion |
Industry | Integrated oil and gas |
Trailing-12-Month Revenue | $63.52 billion |
Management |
CEO Clarence Cazalot Jr. (since 2002) CFO Janet Clark (since 2004) |
Return on Equity (average, past 3 years) | 11.5% |
Cash/Debt | $1.64 billion / $7.94 billion |
Dividend Yield | 2.9% |
Competitors |
ConocoPhillips
Sunoco
BP |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 1,517 members who have rated Marathon believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars imajerbear and Staka, both of whom are ranked in the top 2% of our community.
Earlier this year, imajerbear tapped Marathon as a great stock for the long run:
Energy is one of the long term places to be. I feel that we are 15 to 20 years out from alt energy making significant inroads on oil and gas usage. Barring a global meltdown, oil can only go up from here. Too many people not enough energy.
Marathon has made nice progress in transforming from a downstream operator to a fully integrated oil and gas company over the past few years, but Mr. Market doesn't seem willing to give it any credit. Thanks to industry-lagging price performance, Marathon currently trades at a forward P/E (7.8) discount to close foes Conoco (9.5) and Sunoco (14.9), as well as integrated gorillas like ExxonMobil
CAPS All-Star Staka sums up the Marathon bull case:
- Close to tangible book
- Dividend
- No insider selling
- Value energy play worth to be recommended for another year!
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