Investing in Murphy Oil (NYSE:MUR) Five Years Ago Would Have Delivered You a 92% Gain

Investing in Murphy Oil (NYSE:MUR) Five Years Ago Would Have Delivered You a 92% Gain

如果五年前投資墨菲石油 (紐交所:MUR),您的收益將達到92%。
Simply Wall St ·  06/21 20:58

While Murphy Oil Corporation (NYSE:MUR) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 10% in the last quarter. On the bright side the share price is up over the last half decade. In that time, it is up 64%, which isn't bad, but is below the market return of 99%.

儘管墨菲石油公司(紐交所:MUR)的股東可能普遍感到滿意,但該股最近股價表現不佳,過去一個季度股價下跌了10%。 光明的一面是,股價在過去的五年裏有所上漲。這段時間內,它上漲了64%,這並不算太差,但低於市場回報率99%。

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.


There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.


During the five years of share price growth, Murphy Oil moved from a loss to profitability. That's generally thought to be a genuine positive, so investors may expect to see an increasing share price.


You can see how EPS has changed over time in the image below (click on the chart to see the exact values).


NYSE:MUR Earnings Per Share Growth June 21st 2024
紐交所:MUR 每股收益增長截至2024年6月21日

It is of course excellent to see how Murphy Oil has grown profits over the years, but the future is more important for shareholders. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.


What About Dividends?


It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Murphy Oil the TSR over the last 5 years was 92%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!


A Different Perspective


Murphy Oil shareholders gained a total return of 8.3% during the year. Unfortunately this falls short of the market return. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 14% over five years. Maybe the share price is just taking a breather while the business executes on its growth strategy. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Murphy Oil has 2 warning signs we think you should be aware of.

墨菲石油股東在該年度獲得了8.3%的總回報。不幸的是,這低於市場回報率。這家公司在長期跟蹤記錄方面表現更好,過去五年爲股東提供了14%的年度TSR。也許股價正在等待業務實施其成長策略。我認爲長期來看股價是作爲業務表現的代理非常有趣的 。但爲了真正獲得見解,我們還需要考慮其他信息。例如,接受風險 - 墨菲石油有2個警示標誌,我們認爲您應該了解。

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.


Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.


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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。

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