Stock Analysis

Stock Analysis · Murphy USA Inc (MUSA)

Overview

Murphy USA Inc. operates a large network of retail fuel stations and convenience stores in the United States. The company focuses on value-oriented locations, often near big-box retail traffic, and aims to drive frequent customer visits through competitively priced fuel and everyday convenience items (snacks, beverages, tobacco and nicotine products, and other in-store merchandise).

In simple terms, the business model is built around two repeat-purchase categories: (1) selling high volumes of gasoline and diesel at retail, and (2) selling higher-margin convenience products inside the store. Fuel tends to generate the majority of total revenue because gasoline prices are high per transaction, while in-store merchandise often contributes an outsized share of profit relative to its revenue.

Main sources of revenue (typical structure for this business model, with fuel usually being the largest):

Retail fuel sales (largest portion of revenue; price-driven, lower margin per dollar of sales)
In-store merchandise (smaller portion of revenue; typically higher margin than fuel)
Other income (smaller items such as certain service/commission-type revenues, depending on company disclosures)

The company’s results are influenced by fuel demand, fuel price movements, and the “margin” it earns per gallon (the spread between its selling price and its costs), plus the ability to grow and defend profitable in-store sales.

Across recent years, total revenue has moved meaningfully up and down (a common pattern when fuel prices change), while net income has remained positive each year shown. This highlights how headline revenue can be volatile for fuel retailers even when the underlying business stays profitable.

Key Figures

Metric	Value	Industry ⓘ
Date	Feb 07, 2026
Context
Sector	Consumer Cyclical
Industry	Specialty Retail
Market Cap ⓘ	$7.08B
Beta ⓘ	0.39
Fundamental
P/E Ratio ⓘ	15.67	23.78
Profit Margin ⓘ	2.77%	6.27%
Revenue Growth ⓘ	0.20%	5.20%
Debt to Equity ⓘ	521.54%	103.28%
PEG ⓘ	1.51
Free Cash Flow ⓘ	$374.30M

Murphy USA’s market capitalization is about $7.1B, and the stock’s beta (~0.39) suggests it has historically moved less than the broader market on average (though any individual stock can still be volatile). The current P/E ratio is ~15.7, below the industry median (~23.8). Profit margin is about 2.8% versus an industry median around 6.3%, which is consistent with fuel-heavy retail where a large share of revenue comes from lower-margin gasoline sales. Year-over-year revenue growth is close to flat (~0.2%) versus an industry median near 5.2%. The company shows a high debt-to-equity (~522%) compared with the industry median (~103%), and trailing twelve-month free cash flow is about $374M.

Growth (Medium)

Murphy USA operates in the U.S. convenience store and retail fuel market, a mature industry where long-term growth is usually driven more by execution than by rapid market expansion. Over time, demand is supported by large installed bases of gasoline-powered vehicles and the convenience-driven nature of quick-stop retail. However, the industry also faces gradual long-term pressure from improved fuel efficiency and the shift toward electric vehicles, which may change fuel volumes and alter the economics of the “fuel + store” model over many years.

Within that environment, Murphy USA’s growth efforts typically come from a mix of:

Store network optimization (new sites, rebuilds/relocations, and improving the performance of existing stores)
Richer inside-the-store offer (expanding food and beverage options, improving merchandising, and loyalty initiatives)
Fuel margin and volume management (competitive pricing to maintain traffic while protecting per-gallon profitability)

Revenue growth has been highly variable over the period shown, including strong increases earlier (consistent with periods of higher fuel prices) followed by several quarters of decline and a return to roughly flat growth most recently. For a fuel retailer, this pattern can reflect changes in fuel prices as much as (or more than) changes in store count or customer demand.

Free cash flow has remained positive in each period shown, but has trended down from the early-2022 level (about $562M) to roughly $370M more recently. For long-term monitoring, investors often watch whether free cash flow stabilizes or grows through a combination of steady fuel volumes, resilient in-store profit, and disciplined capital spending.