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 Murphy Oil
With that in mind, let's take a closer look at Murphy's business and see what CAPS investors are saying about the stock right now.
Murphy facts
|
Headquarters (Founded) |
El Dorado, Ark. (1950) |
|
Market Cap |
$13.68 billion |
|
Industry |
Integrated oil and gas |
|
Trailing-12-Month Revenue |
$23.4 billion |
|
Management |
CEO David Wood (since 2009) CFO Kevin Fitzgerald (since 2007) |
|
Return on Equity (Average, Past 3 Years) |
17.3% |
|
Cash/Debt |
$1.15 billion / $939.4 million |
|
Dividend Yield |
1.6% |
|
Competitors |
BP
Chevron
ExxonMobil |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 485 members who have rated Murphy believe the stock will outperform the S&P 500 going forward. These bulls include ice23bear and Princepts.
Just last month, ice23bear touched on Murphy as a solid income opportunity: "Good growth, growing dividends with income."
Currently, Murphy even sports a paltry price-to-cash flow of 4.4. That represents a discount to integrated energy giants BP (10.6), Chevron (6.8), and Exxon (8.4).
CAPS member Princepts elaborates on the bull case:
Oil will continue to be humanity's answer for cheap energy as long as it remains that, cheap. That said, oil also has a bulwark of protection versus alternative industries like natural gas because its consumption and availability are deeply ingrained in our society. Change takes time and oil is no exception. Also, [Wal-Mart] uses Murphy for all its statistically cheaper than average gas. Thus consumers are more likely to buy Murphy gas increasing revenue. Consequently, to complement its sound financial standing it remains in an industry viable for profitability.
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