Fact based stock research
Magellan Midstream (NYSE:MMP)

US5590801065

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Magellan Midstream stock research in summary

magellanlp.com

ANALYSIS: With an Obermatt Combined Rank of 23 (worse than 77% compared with investment alternatives), Magellan Midstream (Oil & Gas Transportation, USA) shares have lower financial characteristics compared with similar stocks. Shares of Magellan Midstream are low in value (priced high) with a consolidated Value Rank of 4 (worse than 96% of alternatives), and are riskily financed (Safety Rank of 45, which means above-average debt burdens) but show above-average growth (Growth Rank of 85). ...read more

RECOMMENDATION: A Combined Rank of 23, is a sell recommendation based on Magellan Midstream's financial characteristics. As the company Magellan Midstream shows low value with an Obermatt Value Rank of 4 (96% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 85% of comparable companies (Obermatt Growth Rank is 85). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 45 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Magellan Midstream, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	4
Growth Rank	85
Safety Rank	45
Combined Rank	23

Country	USA
Industry	Oil & Gas Transportation
Index	Dividends USA
Size class	Large

18-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Magellan Midstream

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	43	13	4	4
GROWTH
GROWTH	14	33	27	85
SAFETY
SAFETY	65	73	38	45
SENTIMENT
SENTIMENT	n/a	85	24	^new
360° VIEW
360° VIEW	n/a	43	14	^new

Most recent update of the stock research: 18-Apr-2024. Financial reporting date used for calculating ranks: 31-Aug-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Magellan Midstream is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	43	13	4	4
GROWTH
GROWTH	14	33	27	85
SAFETY
SAFETY	65	73	38	45
COMBINED
COMBINED	32	27	23	23

Last update of combined financial performance: 28-Sep-2023. Stock analysis on combined financial performance: The higher the rank of Magellan Midstream the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 4 (worse than 96% compared with alternatives), Magellan Midstream shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Magellan Midstream. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 71% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 9 which means that the stock price compared with what market professionals expect for future profits is higher than 91% of comparable companies, indicating a low value concerning Magellan Midstream's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 26 which means that the stock price compared with what market professionals expect for future profit levels is higher than 74% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 5 is also low. Compared with invested capital, the stock price is higher than for 95% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 4, is a sell recommendation based on Magellan Midstream's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Magellan Midstream? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Magellan Midstream only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	11	8	9	9
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	74	51	26	26
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	2	8	5	5
DIVIDEND YIELD
DIVIDEND YIELD	100	87	73	71
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	43	13	4	4

Last update of Value Rank: 28-Sep-2023. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Magellan Midstream; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 85 (better than 85% compared with alternatives) for 2023, Magellan Midstream shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Magellan Midstream. Sales Growth has a value of 95, which means that, currently, professionals expect the company to grow more than 95% of its competitors. The same is valid for Profit Growth with a value of 70 and for Capital Growth with 53. In addition, Stock Returns had an above-average rank value of 61, which means they have been higher than 61% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 85, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Magellan Midstream exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	11	26	25	95
PROFIT GROWTH
PROFIT GROWTH	67	19	23	70
CAPITAL GROWTH
CAPITAL GROWTH	n/a	96	25	53
STOCK RETURNS
STOCK RETURNS	51	17	97	61
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	14	33	27	85

Last update of Growth Rank: 18-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Magellan Midstream.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 45 (better than 45% compared with alternatives), the company Magellan Midstream has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Magellan Midstream is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Magellan Midstream. Refinancing is at 55, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 55% of its competitors. Liquidity is also good at 51, meaning the company generates more profit to service its debt than 51% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 16, which means the company has an above-average debt-to-equity ratio. It has more debt than 84% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 45 (worse than 55% compared with alternatives), Magellan Midstream has a financing structure that is riskier than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Magellan Midstream could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Magellan Midstream and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	53	28	18	16
REFINANCING
REFINANCING	55	61	47	55
LIQUIDITY
LIQUIDITY	71	87	47	51
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	65	73	38	45

Last update of Safety Rank: 18-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Magellan Midstream and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	23	3	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	69	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	83	20	^new
MARKET PULSE
MARKET PULSE	n/a	90	85	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	85	24	^new

Last update of Sentiment Rank: 28-Sep-2023. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Magellan Midstream.
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