MMarketMath

MPC

Fast growerQuality: Medium (58/100)2 red flags

Marathon Petroleum · Energy · Oil & Gas Refining & Marketing

$362.52

52w 161.93 – 367.60

20y monthly, adjusted

Mkt cap

$101.8B

P/E

25.4

P/FCF

21.6

FCF yield

4.6%

ROE

23.4%

Shldr yield

4.5%

div 1.1% + bb 3.4%

What today's price assumes

At $101.8B, the market is pricing in 8.7% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 8.7% per year — expectations are roughly in line with history.

Simple DCF per-share range: $259 · $364 · $454 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 4.6× across 15 years, MPC would trade near $134/share (25th–75th percentile: $114–$171); it trades at 12.3× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

−9.2%

Rev 5y

+13.7%

Rev 10y

+6.3%

EPS 5y

EPS 10y

+9.7%

FCF 5y

FCF 10y

+8.7%

Fundamentals

Fiscal 2009–2025, from SEC filings

Revenue

2009: $45.5B
2010: $62.5B
2011: $78.6B
2012: $82.2B
2013: $100.2B
2014: $97.8B
2015: $72.1B
2016: $63.3B
2017: $74.7B
2018: $86.1B
2019: $111.1B
2020: $69.8B
2021: $120.0B
2022: $177.5B
2023: $148.4B
2024: $138.9B
2025: $132.7B
$0$50.0B$100.0B$150.0B
09
12
15
18
21
24

Net income

2009: $449.0M
2010: $623.0M
2011: $2.4B
2012: $3.4B
2013: $2.1B
2014: $2.5B
2015: $2.9B
2016: $1.2B
2017: $3.4B
2018: $2.8B
2019: $2.6B
2020: −$9.8B
2021: $9.7B
2022: $14.5B
2023: $9.7B
2024: $3.4B
2025: $4.0B
$0$10.0B
09
12
15
18
21
24

Free cash flow

2009: −$436.0M
2010: $1.0B
2011: $2.1B
2012: $3.1B
2013: $2.2B
2014: $1.6B
2015: $2.1B
2016: $1.1B
2017: $3.9B
2018: $3.0B
2019: $4.6B
2020: −$368.0M
2021: $2.9B
2022: $13.9B
2023: $12.2B
2024: $6.1B
2025: $4.8B
$0$5.0B$10.0B
09
12
15
18
21
24

Diluted shares (lower is better)

2009: 663.7M
2010: 663.7M
2011: 661.8M
2012: 634.0M
2013: 634.0M
2014: 574.0M
2015: 542.0M
2016: 530.0M
2017: 512.0M
2018: 526.0M
2019: 664.0M
2020: 649.0M
2021: 638.0M
2022: 516.0M
2023: 409.0M
2024: 341.0M
2025: 306.0M
0200.0M400.0M600.0M
09
12
15
18
21
24

Margins

-10%0%10%091215182124
Net marginFCF marginGross margin

Capital returned (dividends + buybacks)

2011: $160.0M
2012: $1.8B
2013: $3.3B
2014: $2.7B
2015: $1.6B
2016: $916.0M
2017: $3.1B
2018: $4.2B
2019: $3.3B
2020: $1.5B
2021: $6.1B
2022: $13.2B
2023: $12.8B
2024: $10.3B
2025: $4.6B
$0$5.0B$10.0B
09
12
15
18
21
24

Cash vs long-term debt

$0$10.0B$20.0B$30.0B091215182124
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $36.3B
Q3'23: $40.9B
Q4'23: $36.3B
Q1'24: $32.7B
Q2'24: $37.9B
Q3'24: $35.1B
Q4'24: $33.1B
Q1'25: $31.5B
Q2'25: $33.8B
Q3'25: $34.8B
Q4'25: $32.6B
Q1'26: $34.2B
Q2'26: $52.0B
$0$20.0B$40.0B
23
24
24
25
26

Net income by quarter

Q2'23: $2.2B
Q3'23: $3.3B
Q4'23: $1.5B
Q1'24: $937.0M
Q2'24: $1.5B
Q3'24: $622.0M
Q4'24: $371.0M
Q1'25: −$74.0M
Q2'25: $1.2B
Q3'25: $1.4B
Q4'25: $1.5B
Q1'26: $511.0M
Q2'26: $5.1B
$0$2.0B$4.0B
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$52.0B+53.8%$5.1B+322.5%17.73$10.3B
Q1'26$34.2B+8.5%$511.0M1.73$1.1B
Q4'25 *$32.6B−1.7%$1.5B+313.7%4.99$3.1B
Q3'25$34.8B−0.8%$1.4B+120.3%4.51$2.6B
Q2'25$33.8B−10.9%$1.2B−19.7%3.96$2.6B
Q1'25$31.5B−3.6%−$74.0M−107.9%-0.24−$64.0M
Q4'24 *$33.1B−8.6%$371.0M−74.4%1.30$2.2B
Q3'24$35.1B−14.2%$622.0M−81.0%1.87$1.7B
Q2'24$37.9B+4.3%$1.5B−31.9%4.33$3.2B
Q1'24$32.7B−6.2%$937.0M−65.6%2.58$1.5B
Q4'23 *$36.3B−8.9%$1.5B−56.3%3.94$1.1B
Q3'23$40.9B−10.6%$3.3B−26.7%8.28$5.0B
Q2'23$36.3B−32.4%$2.2B−62.1%5.32$4.0B

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue−9.2%+13.7%+6.3%+5.1%
Operating cash flow−20.4%+27.8%+7.3%+9.2%
Free cash flow−30.1%+0.5%+8.7%+11.0%
EPS (diluted)−22.2%+22.2%+9.7%+19.3%
Equity−14.5%−4.8%+2.7%+5.1%
LT debt+6.0%+1.2%+9.9%+37.1%
Diluted shares−16.0%−14.0%−5.6%−5.0%
Stock price+39.0%+46.8%+27.6%+25.4%

$100, 3 years ago

$269vs $176 in SPY

39.0% vs 20.7%/yr

$100, 5 years ago

$682vs $181 in SPY

46.8% vs 12.6%/yr

$100, 10 years ago

$1,146vs $412 in SPY

27.6% vs 15.2%/yr

$100, 15 years ago

$2,975vs $813 in SPY

25.4% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$0.83

$29.1B created / $35.1B retained

Last 10 years

$1.24

$37.1B created / $30.0B retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

17.3%

OCF ÷ (equity + debt)

OCF / EV yield

6.4%

MC vs 10× OCF

1.25

≤1 = priced under 10× OCF

Debt / FCF

6.4y

SBC / FCF

3.4%

Owner earnings

$4.6B

OCF − capex − SBC

OE yield

4.5%

Share count 5y

−4.7%

per year; negative = buybacks

Capital intensity

net PP&E ÷ revenue

Sales efficiency

new PP&E per $1 new revenue, 5y

Checklist

13 of 24 checks pass · 54%. Checks with structurally missing inputs are excluded.

Growth & Consistency

4/5

  • Revenue growth

    13.7% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    · 5y CAGR ≥ 5%

    na
  • FCF growth

    · 5y CAGR ≥ 5%

    na
  • Revenue rises consistently

    5 of 9 · up in ≥ 7 of last 10 years

    fail
  • FCF consistently positive

    9 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    9 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    27.8% vs 13.7% · OCF CAGR ≥ 0.9× revenue CAGR

    pass

Profitability

3/6

  • Net margin

    3.0% · ≥ 8%

    fail
  • Operating margin

    6.2% · ≥ 10%

    fail
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    23.4% · ≥ 12%

    pass
  • Cash ROIC

    17.3% · ≥ 12%

    pass
  • FCF margin

    3.6% · ≥ 5%

    fail
  • Earnings back their cash

    OCF $8.3B vs NI $4.0B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

0/5

  • Debt payable from cash flow

    6.4y · LT debt ≤ 3× FCF

    fail
  • Cash cushion

    12% · cash ≥ 50% of LT debt

    fail
  • Leverage

    1.76 · LT debt ≤ 1.5× equity

    fail
  • Equity positive and compounding

    $17.3B · equity > 0 and grew over ~5y

    fail
  • Interest burden

    18% · interest ≤ 15% of operating income

    fail

Capital Allocation

4/4

  • Share count flat or shrinking

    -4.7% · ≤ +0.5%/yr over ~5y

    pass
  • Stock comp restrained

    3% · SBC ≤ 15% of FCF

    pass
  • Distributions funded by FCF

    97% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    9 of 10 · buybacks in ≥ 5 of last 10 years

    pass

Valuation Discipline

2/4

  • FCF yield

    4.6% · ≥ 3%

    pass
  • Earnings multiple

    25.4 · P/E ≤ 25

    fail
  • Price asks less than history delivered

    8.7% vs 8.7% · implied FCF growth ≤ historical FCF CAGR

    fail
  • Shareholder yield

    4.5% · dividends + buybacks ≥ 2% of market cap

    pass

Red flags

Mechanical checks — a flag is a question to investigate, not a verdict

Revenue declining

Latest fiscal-year revenue fell more than 3% versus the prior year.

Heavy debt load

Long-term debt exceeds 5 years of free cash flow.

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
2025132,6998,2914,04713.228,2533,4864,7671,1403,4881603,67230,50517,314306
2024138,8646,7963,44510.088,6652,5336,1321,1549,1891373,21024,43217,745341
2023148,37914,5149,68123.6314,1171,89012,2271,26111,5722115,44325,32924,404409
2022177,45321,46914,51628.1216,3612,42013,9411,27911,9221538,62525,63427,715516
2021119,9834,3009,73815.244,3601,4642,8961,4844,654885,29124,96826,206638
202069,779-12,247-9,826-15.132,4192,787-3681,510010041528,73022,199649
2019111,1484,4622,6373.979,4414,8104,6311,3981,9501531,39328,02033,694664
201886,0864,6902,7805.286,1583,1792,9799543,2871271,68726,98035,175526
201774,7334,0183,4326.706,6122,7323,8807732,372513,01112,32214,033512
201663,2772,3861,1742.214,0172,8921,1257191974588710,54413,557530
201572,0514,6922,8525.264,0731,9982,075613965421,12711,89613,237542
201497,8174,0512,5244.393,1101,4801,6305242,131401,4946,57510,751574
2013100,1603,4252,1123.323,4051,2062,1994842,793422,2923,37310,920634
201282,2435,3473,3895.334,4921,3693,1234071,350354,8603,34211,694634
201178,6383,7452,3893.603,3091,1852,1241600283,0793,2929,505662
201062,4871,0116230.942,2171,2171,000161182688,244664
200945,5308364490.672,4552,891-436181289,172664

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.