MURMurphy Oil Corporation
Is the business good?
The checks split: earnings fully cash-backed (3.9×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 3% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MUR?
Murphy Oil Corporation earns 7.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.0 points below what the capital costs: growth destroys value
- Operating margin
- 19%
Operating margin · Oil & Gas E&P median 25% · 12 months to Q2 2026
- Cash conversion
- 3.92×
Cash conversion · 3.48× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +2.1%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −69% |
| FY2021 | 12% |
| FY2022 | 40% |
| FY2023 | 30% |
| FY2024 | 20% |
| FY2025 | 11% |
Details›
- Operating margin12 months to Q2 2026
- 19%
- Net margin12 months to Q2 2026
- 9.8%
- Free cash flow margin
- 50%
- Revenue, trailing twelve months
- $3.01B
- Free cash flow, trailing twelve months
- $1.52B
- Net income, trailing twelve months
- $294M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.