Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin17.8%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin13.3%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
C
Years to Pay Off Debt4.6 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$19.9B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$12.9B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book4.37x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$9.6B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income15.1%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$9.4B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Marathon Petroleum Corporation
Marathon Petroleum Corporation, together with its subsidiaries, operates as an integrated downstream energy company in the United States. The company operates through three segments: Refining & Marketing; Midstream; and Renewable Diesel. The Refining & Marketing segment refines crude oil and other feedstocks at its refineries in the Gulf Coast, Mid-Continent, and West Coast regions of the United States; and purchases refined products and ethanol for resale and distributes refined products through transportation, storage, distribution, and marketing services. Its refined products include transportation fuels, such as reformulated gasolines and blend-grade gasolines; heavy fuel oil; and asphalt. This segment also manufactures propane and petrochemicals. The company sells refined products to wholesale marketing customers in the United States and internationally, buyers on the spot market, and independent entrepreneurs who operate primarily Marathon branded outlets, as well as through long-term fuel supply contracts to direct dealer locations primarily under the ARCO brand. The Midstream segment gathers, transports, stores, distributes, and markets crude oil and refined products, including renewable diesel and other hydrocarbon-based products through refining logistics assets, pipelines, terminals, towboats, and barges; gathers, processes, and transports natural gas; and transports, fractionates, stores, and markets natural gas liquids. The Renewable Diesel segment processes renewable feedstocks into renewable diesel, markets, and distributes renewable diesel through its Midstream segment and third parties. It sells renewable diesel to wholesale marketing customers, buyers on the spot market, and through long-term supply contracts to direct dealers under the ARCO brand. Marathon Petroleum Corporation was founded in 1887 and is headquartered in Findlay, Ohio.
Marathon Petroleum Corporation, together with its subsidiaries, operates as an integrated downstream energy company in the United States. The company operates through three segments: Refining & Marketing; Midstream; and Renewable Diesel. The Refining & Marketing segment refines crude oil and other feedstocks at its refineries in the Gulf Coast, Mid-Continent, and West Coast regions of the United States; and purchases refined products and ethanol for resale and distributes refined products through transportation, storage, distribution, and marketing services. Its refined products include transportation fuels, such as reformulated gasolines and blend-grade gasolines; heavy fuel oil; and asphalt. This segment also manufactures propane and petrochemicals. The company sells refined products to wholesale marketing customers in the United States and internationally, buyers on the spot market, and independent entrepreneurs who operate primarily Marathon branded outlets, as well as through long-term fuel supply contracts to direct dealer locations primarily under the ARCO brand. The Midstream segment gathers, transports, stores, distributes, and markets crude oil and refined products, including renewable diesel and other hydrocarbon-based products through refining logistics assets, pipelines, terminals, towboats, and barges; gathers, processes, and transports natural gas; and transports, fractionates, stores, and markets natural gas liquids. The Renewable Diesel segment processes renewable feedstocks into renewable diesel, markets, and distributes renewable diesel through its Midstream segment and third parties. It sells renewable diesel to wholesale marketing customers, buyers on the spot market, and through long-term supply contracts to direct dealers under the ARCO brand. Marathon Petroleum Corporation was founded in 1887 and is headquartered in Findlay, Ohio.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering Marathon Petroleum Corporation at $372.74.
The business passes only 3 of 6 of Graham's defensive criteria — well below his required standard.
At $372.74, the stock trades at a 65% premium to its Graham Number of $225.82. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q3 2026
Q4 2025
Gross Profit %
20.3%▲
8.9%
Operating Margin %
17.8%▲
5.7%
Net Income %
13.3%▲
4.7%
Diluted EPS
26.59▲
5.12
Balance Sheet Highlights
Metric
Q3 2026
Q4 2025
Total Assets
$102.5B
$84.0B
Total Debt
$34.5B▲
$34.4B
Working Capital
$12.9B▲
$5.1B
Years to Pay Debt
4.63
22.38
Cash Flow Highlights
Metric
Q3 2026
Q4 2025
Free Cash Flow
$9.6B▲
$1.9B
Owner Earnings
$9.4B
$3.5B
CapEx % of Net Income
15.1%
76.9%
Income Statement
2026
2025
Tax Effect Of Unusual Items
0
26,741
Tax Rate For Calcs
0
0
Normalized EBITDA
11,389,000
3,410,000
Total Unusual Items
0
169,000
Total Unusual Items Excluding Goodwill
0
169,000
Net Income From Continuing Operation Net Minority Interest
7,447,000
1,535,000
Reconciled Depreciation
836,000
828,000
Reconciled Cost Of Revenue
44,631,000
29,689,000
EBITDA
11,389,000
3,579,000
EBIT
10,553,000
2,751,000
Net Interest Income
-285,000
-360,000
Interest Expense
390,000
400,000
Interest Income
116,000
41,000
Normalized Income
7,447,000
1,392,741
Net Income From Continuing And Discontinued Operation
7,447,000
1,535,000
Total Expenses
46,037,000
30,728,000
Total Operating Income As Reported
10,450,000
Diluted Average Shares
280,000
300,000
Basic Average Shares
279,000
299,000
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
7,447,000
1,534,000
Net Income Common Stockholders
7,447,000
1,534,000
Otherunder Preferred Stock Dividend
1,000
Net Income
7,447,000
1,535,000
Minority Interests
-431,000
-444,000
Net Income Including Noncontrolling Interests
7,878,000
1,979,000
Net Income Continuous Operations
7,878,000
1,979,000
Tax Provision
2,285,000
372,000
Pretax Income
10,163,000
2,351,000
Other Income Expense
453,000
865,000
Other Non Operating Income Expenses
94,000
492,000
Special Income Charges
0
169,000
Gain On Sale Of Ppe
0
169,000
Earnings From Equity Interest
359,000
204,000
Net Non Operating Interest Income Expense
-285,000
-360,000
Total Other Finance Cost
11,000
1,000
Interest Expense Non Operating
390,000
400,000
Interest Income Non Operating
116,000
41,000
Operating Income
9,995,000
1,846,000
Operating Expense
1,406,000
1,039,000
Other Taxes
306,000
203,000
Selling General And Administration
1,100,000
836,000
General And Administrative Expense
1,100,000
836,000
Other Gand A
1,100,000
836,000
Gross Profit
11,401,000
2,885,000
Cost Of Revenue
44,631,000
29,689,000
Total Revenue
56,032,000
32,574,000
Operating Revenue
56,032,000
32,574,000
Balance Sheet
2026
2025
Treasury Shares Number
699,000
Ordinary Shares Number
275,000
294,602
Share Issued
275,000
993,602
Net Debt
20,217,000
29,204,000
Total Debt
34,454,000
34,358,000
Tangible Book Value
11,349,000
5,246,000
Invested Capital
56,231,000
50,190,000
Working Capital
12,947,000
5,102,000
Net Tangible Assets
11,349,000
5,246,000
Capital Lease Obligations
1,432,000
1,482,000
Common Stock Equity
23,209,000
17,314,000
Total Capitalization
56,103,000
47,819,000
Total Equity Gross Minority Interest
29,852,000
24,086,000
Minority Interest
6,643,000
6,772,000
Stockholders Equity
23,209,000
17,314,000
Gains Losses Not Affecting Retained Earnings
-115,000
-105,000
Other Equity Adjustments
-115,000
-105,000
Treasury Stock
62,344,000
56,027,000
Retained Earnings
51,979,000
39,751,000
Additional Paid In Capital
33,679,000
33,685,000
Capital Stock
10,000
10,000
Common Stock
10,000
10,000
Total Liabilities Net Minority Interest
72,662,000
59,869,000
Total Non Current Liabilities Net Minority Interest
43,607,000
40,191,000
Other Non Current Liabilities
2,877,000
1,536,000
Employee Benefits
1,072,000
1,173,000
Non Current Pension And Other Postretirement Benefit Plans
1,072,000
1,173,000
Non Current Deferred Liabilities
5,832,000
5,984,000
Non Current Deferred Taxes Liabilities
5,832,000
5,984,000
Long Term Debt And Capital Lease Obligation
33,826,000
31,498,000
Long Term Capital Lease Obligation
932,000
993,000
Long Term Debt
32,894,000
30,505,000
Current Liabilities
29,055,000
19,678,000
Other Current Liabilities
2,771,000
804,000
Current Debt And Capital Lease Obligation
628,000
2,860,000
Current Capital Lease Obligation
500,000
489,000
Current Debt
128,000
2,371,000
Other Current Borrowings
128,000
2,371,000
Payables And Accrued Expenses
25,656,000
16,014,000
Current Accrued Expenses
358,000
449,000
Interest Payable
358,000
449,000
Payables
25,298,000
15,565,000
Other Payable
1,162,000
1,107,000
Total Tax Payable
3,558,000
1,484,000
Accounts Payable
20,578,000
12,974,000
Total Assets
102,514,000
83,955,000
Total Non Current Assets
60,512,000
59,175,000
Other Non Current Assets
1,504,000
1,422,000
Investments And Advances
7,413,000
6,795,000
Long Term Equity Investment
7,413,000
6,795,000
Goodwill And Other Intangible Assets
11,860,000
12,068,000
Other Intangible Assets
2,525,000
2,714,000
Goodwill
9,335,000
9,354,000
Net PPE
39,735,000
38,890,000
Accumulated Depreciation
-35,678,000
-33,612,000
Gross PPE
75,413,000
72,502,000
Other Properties
75,413,000
72,502,000
Current Assets
42,002,000
24,780,000
Other Current Assets
763,000
662,000
Assets Held For Sale Current
Inventory
10,196,000
10,129,000
Finished Goods
5,681,000
5,350,000
Raw Materials
4,515,000
4,779,000
Receivables
17,434,000
10,317,000
Accounts Receivable
17,434,000
10,317,000
Allowance For Doubtful Accounts Receivable
-8,000
-20,000
Gross Accounts Receivable
17,442,000
10,337,000
Cash Cash Equivalents And Short Term Investments
13,609,000
3,672,000
Other Short Term Investments
804,000
Cash And Cash Equivalents
12,805,000
3,672,000
Cash Flow
2026
2025
Free Cash Flow
9,605,000
1,888,000
Repurchase Of Capital Stock
-3,005,000
-1,001,000
Repayment Of Debt
-2,033,000
-25,000
Issuance Of Debt
2,227,000
0
Issuance Of Capital Stock
1,000
0
Capital Expenditure
-1,127,000
-1,181,000
Interest Paid Supplemental Data
486,000
282,000
Income Tax Paid Supplemental Data
1,174,000
276,000
End Cash Position
12,807,000
3,673,000
Beginning Cash Position
7,768,000
2,654,000
Changes In Cash
5,039,000
1,019,000
Financing Cash Flow
-3,563,000
-1,836,000
Cash Flow From Continuing Financing Activities
-3,563,000
-1,836,000
Net Other Financing Charges
-474,000
-510,000
Cash Dividends Paid
-279,000
-300,000
Common Stock Dividend Paid
-279,000
-300,000
Net Common Stock Issuance
-3,004,000
-1,001,000
Common Stock Payments
-3,005,000
-1,001,000
Common Stock Issuance
1,000
0
Net Issuance Payments Of Debt
194,000
-25,000
Net Short Term Debt Issuance
0
0
Short Term Debt Payments
0
0
Short Term Debt Issuance
0
0
Net Long Term Debt Issuance
194,000
-25,000
Long Term Debt Payments
-2,033,000
-25,000
Long Term Debt Issuance
2,227,000
0
Investing Cash Flow
-2,130,000
-214,000
Cash Flow From Continuing Investing Activities
-2,130,000
-214,000
Net Other Investing Changes
45,000
1,060,000
Net Investment Purchase And Sale
971,000
Sale Of Investment
150,000
Purchase Of Investment
821,000
Net Business Purchase And Sale
507,000
-1,064,000
Sale Of Business
0
Purchase Of Business
-1,064,000
Net PPE Purchase And Sale
-1,127,000
-1,181,000
Purchase Of PPE
-1,127,000
-1,181,000
Operating Cash Flow
10,732,000
3,069,000
Cash Flow From Continuing Operating Activities
10,732,000
3,069,000
Dividend Received Cfo
305,000
398,000
Change In Working Capital
1,287,000
304,000
Change In Other Working Capital
3,193,000
431,000
Change In Inventory
-223,000
-311,000
Change In Receivables
-1,683,000
184,000
Other Non Cash Items
163,000
-179,000
Deferred Tax
-127,000
31,000
Deferred Income Tax
-127,000
31,000
Depreciation Amortization Depletion
836,000
828,000
Depreciation And Amortization
836,000
828,000
Operating Gains Losses
390,000
-292,000
Pension And Employee Benefit Expense
-221,000
52,000
Earnings Losses From Equity Investments
-359,000
-204,000
Gain Loss On Investment Securities
970,000
29,000
Net Income From Continuing Operations
7,878,000
1,979,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $34.8B▲ $56.0B+61.0%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 8.0%▲ 20.3%+12.4pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 28.7%▲ 17.8%-10.9pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 3.9%▲ 13.3%+9.4pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$56.0B/qtr (≈$224.1B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.45x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$9.6B
vs Positive
Operating Cash Flow
$10.7B
Latest quarter · Buffett's cash reality check
ROIC
10.7%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
3.4x
Net Assets: $29.9B
⚠️Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.
Peers & Industry
No auto-detected peers for Oil & Gas Refining & Marketing. You can manually compare MPC against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.34%
Low — management has little skin in the game
Return on Equity (ROE)
32.1%
Excellent — management generates strong returns on equity
Return on Assets (ROA)
7.3%
Strong — management uses assets efficiently
Share Buybacks (Latest Year)
$3.5B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+0.5% YoY
Debt is roughly stable
Leadership Team
Maryann Mannen
President, CEO & Chairman of the Board
Age 62
Pay: $5,157,481
0.069% of net income
Maria Khoury
Executive VP & CFO
Age 54
Brian Worthington
Vice President of Investor Relations
James Wilkins
Senior Vice President of Health, Environment, Safety & Security
Age 58
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
9.55%
26,006,017
Vanguard Capital Management LLC
7.01%
19,074,289
State Street Corporation
6.78%
18,471,905
Vanguard Portfolio Management LLC
5.74%
15,631,265
Geode Capital Management, LLC
3.07%
8,351,157
Morgan Stanley
2.16%
5,887,382
Raymond James Financial, Inc.
2.09%
5,684,963
FMR, LLC
1.99%
5,419,718
Risk Analysis
Beta (Market Risk)
0.51
Low volatility — more stable than the market
Short Interest
3.0% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
1.15x
Moderate leverage
Current Ratio
1.45x
Adequate liquidity
52-Week Price Range
Low: $161.93Current: $372.74High: $493.98
Currently at 63% of 52-week range
Marathon Petroleum Corporation (MPC) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $225.82. Margin of safety: 0%. Gross profit margin: 20.3%. Operating margin: 17.8%. Net margin: 13.3%. Market cap: $101.5B. Sector: Energy. Industry: Oil & Gas Refining & Marketing. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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