Is MUR a high-quality business?

AlphaMadera's AlphaQuality grade scores Murphy Oil Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how MUR compares to a Buffett-style quality bar.

What is Murphy Oil Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to MUR based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes MUR a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

MUR - Murphy Oil Corporation

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $39.18 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

C 55.7 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

D+ 41.7

5yr Avg ROIC 8.0% 50/100
Operating Margin Trend -0.89 pp/yr 23/100

Capital Efficiency

Weight: 10%

B- 62.6

5yr Avg ROE 8.1% 50/100
5yr Share-Count CAGR -1.7% 85/100

Growth Quality

Weight: 5%

C- 50.2

5yr Revenue CAGR -1.0% 18/100
5yr EPS CAGR 22.5% 97/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 25%

A 87.1

5yr FCF Margin 22.4% 92/100
5yr FCF/NI Conversion 1.97x 81/100

Balance Sheet

Weight: 25%

C- 48.7

Net Debt / EBITDA 1.38x 79/100
Interest Coverage (EBIT/Int) 2.90x 43/100
Altman Z-Score -7.63 0/100

Stability

Weight: 20%

D 33.1

EPS Volatility (σ/μ) 0.83 7/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 3/5 40/100

3 of 3 gurus held; 1 new buy; 1 added; 1 trimmed.

Holders: 3 +2
Avg Δ position: -73.3%
New buys: 1
Full exits: 0

Dalio new
Greenblatt decreased -73%
Cooperman increased

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.