What does free cash flow margin mean?

Free cash flow (operating cash flow minus capital expenditures) as a percentage of revenue, trailing twelve months. Measures how efficiently revenue converts into discretionary cash.

Murphy Oil MUR Free cash flow margin

Discontinued — last reported Q4 '19

Free cash flow margin at other companies

Occidental PetroleumOXY

16.8%-8.1pp

EOG ResourcesEOG

42.7%-3.6pp

MTD

Matador ResourcesMTDR

64.5%-2.5pp

Permian ResourcesPR

69.1%-2.0pp

CNX ResourcesCNX

18.9%-16.6pp

Antero ResourcesAR

34.5%+11.6pp

Other financials

Income statement

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Revenue$733.6M+10.2%

Gross profit$624.6M-6.9%

Operating income$138.3M-3.9%

Net income$53.0M-27.5%

EPS (diluted)$0.37-26.0%

Balance sheet

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Cash & equivalents$378.8M-3.6%

Total debt$2.3B+4.6%

Total equity$5.1B-0.4%

Total assets$10.0B+2.2%

Cash flow

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Operating cash flow$321.2M+6.8%

Valuation

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Market cap$4.92B+45.9%

Enterprise value$6.84B+33.7%

P/E58.4×+49.8×

P/S1.8×+0.6×

Profitability

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Gross margin100.4%+0.5pp

Operating margin10.7%-9.8pp

Net margin3%-10.4pp

Returns & leverage

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Return on equity1.6%-5.8pp

Debt / equity0.5×0.0×

Current ratio0.8×+0.1×

Where this comes from

Calculated from Murphy Oil’s reported figures.

free cash flow/total revenue=4.9%

Based on trailing twelve months.

The official record: Murphy Oil’s 10-Q, filed November 4, 2021, on SEC EDGAR. View the filing →

Questions, answered.

What does free cash flow margin mean?: Free cash flow (operating cash flow minus capital expenditures) as a percentage of revenue, trailing twelve months. Measures how efficiently revenue converts into discretionary cash.