📊 MUSA Key Takeaways
Is Murphy USA Inc. (MUSA) a Good Investment?
Murphy USA demonstrates solid operational cash generation ($221.7M FCF) and strong ROE (20.7%), but deteriorating fundamentals present significant concerns. Revenue and net income both contracted YoY while the company carries excessive leverage (3.24x Debt/Equity) and weak liquidity (0.83x current ratio), creating vulnerability to further margin compression.
Murphy USA shows resilient profitability—double-digit ROA, strong interest coverage, and solid free cash flow—despite a modest YoY revenue decline. Positive FCF after sizable capex indicates durable cash generation to fund reinvestment and service debt. However, elevated leverage and tight liquidity constrain flexibility, warranting a neutral stance until growth re-accelerates or the balance sheet strengthens.
Murphy USA Inc. Key Strengths (MUSA)
- Strong free cash flow generation of $221.7M with 4.6% FCF margin demonstrates core business profitability
- Exceptional return on equity of 20.7% indicates efficient capital deployment despite leverage
- Adequate interest coverage ratio of 4.1x supports debt service capability at current earnings levels
- Robust operating cash flow with positive FCF after significant capex
- High capital efficiency (ROA 10%, ROE 75% aided by leverage)
- Strong interest coverage (14.4x) supports debt service capacity
MUSA Stock Risks: Murphy USA Inc. Investment Risks
- Revenue decline of 4.2% YoY and net income contraction of 6.3% signal deteriorating market conditions or competitive pressure
- Current ratio of 0.83x and quick ratio of 0.48x indicate potential short-term liquidity stress
- Excessive leverage at 3.24x Debt/Equity with $2.1B long-term debt becomes untenable if earnings trajectory continues downward
- Elevated leverage (3.47x D/E) and weak liquidity (current 0.80x, quick 0.36x)
- Top-line and net income declines YoY; fuel margin cyclicality
- Very low cash balance relative to scale and working capital needs
Key Metrics to Watch
- Revenue trend reversal - must stabilize or show growth to justify leverage levels
- Current and quick ratios - monitor for further deterioration indicating refinancing risk
- Operating margin pressure - thin 4.3% margin leaves minimal buffer for adverse conditions
- Free cash flow sustainability - ensure FCF remains positive to service $2.1B debt load
- Free cash flow and OCF-to-NI conversion
- Leverage and liquidity (Debt/Equity, current ratio, interest coverage)
Murphy USA Inc. (MUSA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.6% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
MUSA Profit Margin, ROE & Profitability Analysis
MUSA vs Automotive Sector: How Murphy USA Inc. Compares
How Murphy USA Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Murphy USA Inc. Stock Overvalued? MUSA Valuation Analysis 2026
Based on fundamental analysis, Murphy USA Inc. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Murphy USA Inc. Balance Sheet: MUSA Debt, Cash & Liquidity
MUSA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Murphy USA Inc.'s revenue has grown significantly by 24% over the 5-year period, indicating strong business expansion. The most recent EPS of $25.49 reflects profitable operations.
MUSA Revenue Growth, EPS Growth & YoY Performance
MUSA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $4.5B | $53.2M | $2.63 |
| Q3 2025 | $5.1B | $53.2M | $6.76 |
| Q2 2025 | $5.0B | $53.2M | $6.92 |
| Q1 2025 | $4.5B | $53.2M | $2.63 |
| Q3 2024 | $5.2B | $66.0M | $7.20 |
| Q2 2024 | $5.5B | $66.0M | $6.02 |
| Q1 2024 | $4.8B | $66.0M | $3.12 |
| Q3 2023 | $5.8B | $106.3M | $7.69 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Murphy USA Inc. Dividends, Buybacks & Capital Allocation
MUSA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Murphy USA Inc. (CIK: 0001573516)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MUSA
What is the AI rating for MUSA?
Murphy USA Inc. (MUSA) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MUSA's key strengths?
Claude: Strong free cash flow generation of $221.7M with 4.6% FCF margin demonstrates core business profitability. Exceptional return on equity of 20.7% indicates efficient capital deployment despite leverage. ChatGPT: Robust operating cash flow with positive FCF after significant capex. High capital efficiency (ROA 10%, ROE 75% aided by leverage).
What are the risks of investing in MUSA?
Claude: Revenue decline of 4.2% YoY and net income contraction of 6.3% signal deteriorating market conditions or competitive pressure. Current ratio of 0.83x and quick ratio of 0.48x indicate potential short-term liquidity stress. ChatGPT: Elevated leverage (3.47x D/E) and weak liquidity (current 0.80x, quick 0.36x). Top-line and net income declines YoY; fuel margin cyclicality.
What is MUSA's revenue and growth?
Murphy USA Inc. reported revenue of $4.8B.
Does MUSA pay dividends?
Murphy USA Inc. pays dividends, with $11.7M distributed to shareholders in the trailing twelve months.
Where can I find MUSA SEC filings?
Official SEC filings for Murphy USA Inc. (CIK: 0001573516) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MUSA's EPS?
Murphy USA Inc. has a diluted EPS of $7.28.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is MUSA's fundamental grade?
Based on our AI fundamental analysis in May 2026, Murphy USA Inc. has a B grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is MUSA stock overvalued or undervalued?
Valuation metrics for MUSA: ROE of 20.7% (sector avg: 12%), net margin of 2.8% (sector avg: 6%). Higher ROE suggests strong returns relative to peers.
What is MUSA's AI grade for 2026?
Our dual AI analysis gives Murphy USA Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MUSA's free cash flow?
Murphy USA Inc.'s operating cash flow is $320.0M, with capital expenditures of $98.3M. FCF margin is 4.6%.
How does MUSA compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 2.8% (avg: 6%), ROE 20.7% (avg: 12%), current ratio 0.83 (avg: 1.2).
Is Murphy USA Inc. carrying too much debt?
MUSA has a debt-to-equity ratio of 3.24x, which is above the Automotive sector average of 1x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.