
40.21 USD (+8.0%)
14 analysts
What does it do?
Murphy Oil Corporation is an independent oil and gas exploration and production company with assets in the Gulf of Mexico and US shale formations (Eagle Ford and Tufts).
Key points
from its scores- ✓Good share-price trend8.2
- ✓Favourable backdrop8.2
- ✓Attractive dividend7.4
- !Average business quality5.8
AI analysis
bottom line, main risk, context and newsValuation and balance sheet are solid, but current growth is at a cyclical peak and free cash flow generation does not keep pace.
Murphy Oil shows solid financial health (net debt/EBITDA of 1.00) and an attractive valuation (EV/EBITDA of 4.10, P/B of 1.02), although the 916.60% earnings growth reflects a cyclical peak that is not extrapolable and free cash flow conversion (19.43%) is weak.
The main risk is the normalization of the commodity cycle: if oil and gas prices fall from current levels, the record profit (916.60% growth) and the 37.93% operating margin would compress quickly.
Context and risks
Murphy Oil is an oil and gas producer focused on the Gulf of Mexico and US shale (Eagle Ford, Tufts). The context of rising rates and a stronger dollar does not materially affect its exploration and production business, and there are no recent relevant news items that modify its risk profile.
Is Murphy Oil stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 16% below the Energy median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 18.4 | 15.7 | +17% |
| EV / EBITDA | 4.1 | 8.0 | −49% |
| Price / book | 1.0 | 2.2 | −55% |
| Price / sales | 1.8 | 1.9 | −7% |
Sector: median of the 102 Energy companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.3 out of 10 (median for Energy: 5.9).
Average analyst target: 40.21 USD, +8.0% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 7.1 (sector 6.8), Growth 7.2 (sector 7.2).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Energy medianValuation
- P/E
- 18.4
- Forward P/E
- 11.7
- EV / EBITDA
- 4.1
- Price / book
- 1.0
- Price / sales
- 1.8
- PEG
- 0.33
- Market cap
- 5.3B USD
- Enterprise value
- 7.3B USD
Profitability
- ROE
- 6.5%
- ROA
- 3.3%
- ROIC (approx.)
- 15.1%
- Gross margin
- 82.7%
- Operating margin
- 37.9%
- Net margin
- 9.8%
- Free cash flow
- 344.7M USD
- FCF yield
- 6.5%
- Cash conversion
- 19%
Solvency
- Total debt
- 2.3B USD
- Net debt
- 1.8B USD
- Cash
- 483.9M USD
- EBITDA
- 1.8B USD
- Net debt / EBITDA
- 1.00
- Debt / equity
- 41.90
- Current ratio
- 0.85
- Quick ratio
- 0.77
Growth
- Revenue growth
- +35.6%
- Earnings growth
- +916.6%
- EPS (TTM)
- 2.02 USD
- EPS (forward)
- 3.18 USD
Dividend
- Dividend yield
- 3.8%
- Payout
- 66.8%
Risk and market
- Beta
- 0.58
- Analyst consensus
- Hold (14)
- Target price
- 40.21 USD
- 52-week range
- 26.49 – 43.34
Recent news
All MUR news →Compare it with its sector
All 102 in Energy →Frequently asked questions about Murphy Oil
Is Murphy Oil stock cheap or expensive?
On P/E and EV / EBITDA, it trades 16% below the Energy median on average. Valuation score: 7.3 out of 10 (median for Energy: 5.9). Average analyst target: 40.21 USD, +8.0% versus the price. This is not investment advice.
What score does Murphy Oil get on MeridIAn Screener?
It scores 7.3 out of 10, rank 95 of 2,130 (better than 95% of the companies analysed). Its strongest category is Momentum (8.2) and its weakest, Quality / Moat (5.8). Analysis of 08/10/2026.
What is Murphy Oil's P/E ratio?
Its P/E is 18.4: the share price equals 18.4 times earnings per share over the last 12 months. The Energy median is 15.7. Based on the earnings analysts expect, the forward P/E is 11.7.
How much is Murphy Oil worth on the stock market?
Its market capitalisation is 5.3B USD and its enterprise value, debt included, is 7.3B USD.
How much debt does Murphy Oil have?
Its net debt (debt minus cash) is 1.8B USD. That is 1.00 times its EBITDA; the Energy median is 1.23.
Does Murphy Oil pay a dividend?
Yes: its dividend yield is 3.76% and it pays out 67% of its earnings.
How has Murphy Oil stock performed over the last year?
It has risen 44.8% over the last year, excluding dividends. Over the last 52 weeks it has traded between 26.49 and 43.34 USD. Past performance does not guarantee future results.
What do analysts think of Murphy Oil?
14 analysts cover it; their average recommendation is “Hold” and their average target is 40.21 USD (+8.0% versus the price). It is an estimate, not market data.
