Murphy USA Inc. Common Stock (MUSA)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Murphy USA as a high-volume, low-margin fuel and convenience retailer. Its stores sell an undifferentiated commodity, so the edge must come from scale, cost discipline, and location convenience, not pricing power. The recent numbers are encouraging: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $6.8B and net income was $209.1M, or $11.27 per diluted share. That compares favorably with fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $5.0B and net income was $145.6M, or $7.36 per diluted share. Yet the annual record is uneven: FY2025 revenue was $19.4B, net income $470.6M, and diluted EPS $24.10, down from FY2024 revenue $20.2B, net income $502.5M, EPS $24.11, and FY2023 revenue $21.5B, net income $556.8M, EPS $25.49. FairStock's Lynch category calls it a Slow Grower, with profit growth of 4.0% a year over five years and revenue growth of 11.5%. Financial health is generally solid: Piotroski 8/9, Altman Z 4.09, trailing free cash flow $541.5M, and FCF yield 5.6%. But the balance sheet uses heavy leverage—D/E 3.53—and returns on equity are flattered by a thin equity base. At the 2026-10-13 close of $523.21, FairStock's P/E is 16.01, P/B 12.29, EV/EBITDA 10.05, and PEG 0.37. The Graham Number is only $176.92, implying a negative margin of safety of 195.73%. That is not a Graham bargain. The market is paying for cash generation and recent momentum, but the long-term record suggests moderation. I would want a wider price cushion before calling this compelling.

In plain English: Murphy USA runs gasoline stations and convenience stores, mostly in the Southeast, Southwest and Midwest, under Murphy USA, Murphy Express and QuickChek. It makes money on very thin fuel margins plus in-store merchandise, and it has been profitable with decent cash flow. At the recent price, the shares look expensive when compared with the company's asset value and a conservative value estimate, while the profit-based measures are less demanding and growth over the past few years has been uneven.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer