September 28, 2023
Top 10 Stock MPLX LP Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View MPLX LP Strong Buy

360 METRICS	September 28, 2023
VALUE
VALUE	37
GROWTH
GROWTH	81
SAFETY
SAFETY	54
SENTIMENT
SENTIMENT	94
360° VIEW
360° VIEW	84

ANALYSIS: With an Obermatt 360° View of 84 (better than 84% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock MPLX LP are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for MPLX LP. The consolidated Growth Rank has a good rank of 81, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth, as well as stock returns. This means that growth is higher than for 81% of competitors in the same industry. The consolidated Safety Rank at 54 means that the company has a financing structure that is safer than 54% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, the consolidated Sentiment Rank has a good rank of 94, which means that professional investors are more optimistic about the stock than for 94% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 37, meaning that the share price of MPLX LP is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 63% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 84, MPLX LP is better positioned than 84% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as above-average growth (Growth Rank of 81), a safe financing structure (Safety Rank of 54), and positive professional market sentiment (Sentiment Rank of 94), it is a solid stock investment where growth may be the strongest driver of the investment rationale, also reflected by institutional investors. It is typical for growth companies to have low value, as is the case here. Investors are willing to pay more for companies that outperform their competitors. So the question is, how much more do you pay for the stock of MPLX LP compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (81% better than peers). The value rank could be the reverse reflection of that (19%). A Value Rank below that level may be assessed as expensive, a rank above that is still good value. Sometimes market sentiment just reflects the past, sometimes the reality. You pay more than the market average for this stock, but it may be worth it. ...read more

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Sentiment Strategy: Professional Market Sentiment for MPLX LP very positive

SENTIMENT METRICS	September 28, 2023
ANALYST OPINION
ANALYST OPINION	63
OPINIONS CHANGE
OPINIONS CHANGE	88
PRO HOLDINGS
PRO HOLDINGS	85
MARKET PULSE
MARKET PULSE	77
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	94

ANALYSIS: With an Obermatt Sentiment Rank of 94 (better than 94% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock MPLX LP is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all four indicators above average for MPLX LP. Analyst Opinions are at a rank of 63 (better than 63% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. Analyst Opinions Change is also positive with a rank of 88, which means that stock research experts are changing their opinions for the better and recommending investing in the company. They are getting more optimistic about stock investments in MPLX LP. The Professional Investors rank is 85, which means that currently, professional investors hold more stock in this company than in 85% of alternative investment opportunities. Pros tend to favor investing in this company. Finally, Market Pulse has a rank of 77 which means that the current professional news and professional social networks are on the positive side when discussing this company (more positive news than for 77% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 94 (more positive than 94% compared with investment alternatives), MPLX LP has a reputation among professional investors that is significantly higher than that of its competitors. Since all market sentiment indicators are positive, the professional community highly recommends investment in the company. Does this mean MPLX LP stocks are a safe investment? Far from it. Even professionals make mistakes. Especially in stock investing, there is a tendency to follow the leaders. Since trees don't grow to the heavens, such positive sentiment may also be interpreted as a danger sign. A lot of optimism can often be a sign of troubles to come, albeit unforeseen by most. ...read more

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Value Strategy: MPLX LP Stock Price Value below-average critical

VALUE METRICS	September 28, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	12
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	61
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	22
DIVIDEND YIELD
DIVIDEND YIELD	92
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	37

ANALYSIS: With an Obermatt Value Rank of 37 (worse than 63% compared with alternatives), MPLX LP shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for MPLX LP. Price-to-Profit (also referred to as price-earnings, P/E) is 61 which means that the stock price compared with what market professionals expect for future profits is lower than for 61% of comparable companies, indicating a good value concerning MPLX LP's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 22, which means that the stock price is lower as regards to invested capital than for 22% of comparable investments. On the other hand, Price-to-Sales is less favorable than 88% of alternatives (only 12% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 8% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 37, is a hold recommendation based on MPLX LP's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. ...read more

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Growth Strategy: MPLX LP Growth Momentum high

GROWTH METRICS	September 28, 2023
REVENUE GROWTH
REVENUE GROWTH	48
PROFIT GROWTH
PROFIT GROWTH	65
CAPITAL GROWTH
CAPITAL GROWTH	84
STOCK RETURNS
STOCK RETURNS	65
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	81

ANALYSIS: With an Obermatt Growth Rank of 81 (better than 81% compared with alternatives) for 2023, MPLX LP 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 but one indicator above average for MPLX LP. Profit Growth has a rank of 65 which means that currently professionals expect the company to grow its profits more than 65% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 84, and Stock Returns has a rank of 65 which means that the stock returns have recently been above 65% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 48 (52% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 81, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. ...read more

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Safety Strategy: MPLX LP Debt Financing Safety above-average

SAFETY METRICS	September 28, 2023
LEVERAGE
LEVERAGE	28
REFINANCING
REFINANCING	68
LIQUIDITY
LIQUIDITY	42
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	54

ANALYSIS: With an Obermatt Safety Rank of 54 (better than 54% compared with alternatives), the company MPLX LP has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of MPLX LP is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for MPLX LP and the other two below average. Refinancing is at 68, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 68% of its competitors. But Leverage is high with a rank of 28, meaning the company has an above-average debt-to-equity ratio. It has more debt than 72% of its competitors. Liquidity is also on the riskier side with a rank of 42, meaning the company generates less profit to service its debt than 58% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 54 (better than 54% compared with alternatives), MPLX LP has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for MPLX LP are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. ...read more

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Combined financial peformance: MPLX LP Above-Average Financial Performance

COMBINED PERFORMANCE	September 28, 2023
VALUE
VALUE	37
GROWTH
GROWTH	81
SAFETY
SAFETY	42
COMBINED
COMBINED	69

ANALYSIS: With an Obermatt Combined Rank of 69 (better than 69% compared with investment alternatives), MPLX LP (Oil & Gas Transportation, USA) shares have above-average financial characteristics compared with similar stocks. Shares of MPLX LP are low in value (priced high) with a consolidated Value Rank of 37 (worse than 63% of alternatives). But they show above-average growth (Growth Rank of 81) and are safely financed (Safety Rank of 54, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 69, is a buy recommendation based on MPLX LP's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company MPLX LP exhibits low value (Obermatt Value Rank of 37), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 81). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 54) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). ...read more

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