Murphy USA Inc. is engaged in the marketing of retail motor fuel products and merchandise through a chain of retail stores. The Company operates through the Marketing segment. The Marketing segment includes its retail marketing sites and product supply, and wholesale assets. As of December 31, 2016, its retail stores were located in 26 states, primarily in the Southwest, Southeast and Midwest the United States. Out of the total 1,401 stores, 1,152 were branded Murphy USA and 249 were Murphy Express locations, as of December 31, 2016. Its retail stores under the brand name Murphy USA participate in the Walmart discount program. The Walmart discount program offers a cents-off per gallon purchased for fuel when using specific payment methods as decided by Walmart and the Company. Its business also includes product supply and wholesale assets, including product distribution terminals and pipeline positions.
Business Analysis of Murphy USA
The Retail Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Murphy USA compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Murphy USA to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Murphy USA with an interactive chart.
- Revenue Growth: Murphy USA reported a revenue growth of -8.7% year-on-year during 2016. Specialty Retail Industry grew at -1.6% in the same period
- COGS share of Revenues: As a percentage of revenue, Murphy USA spent 95.5% of its total revenues on COGS. Specialty Retail industry average (COGS share of revenue) in the same period was 76.8%
- R&D share of Revenues: Murphy USA R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Murphy USA spent 1.1% of its total revenues on Sales, Marketing, and General Administration (SG&A). Specialty Retail industry average SG&A spending in the same period was 16.8%
- Inventory share of Revenues: As a percentage of revenue, Murphy USA spent 1.3% of its total revenues on Inventories. Specialty Retail industry average Inventory spending in the same period was 13.8%
- Accounts Payable share of Revenues: As a percentage of revenue, Murphy USA invested 4.1% of its total revenues on Accounts Payable (A/P) Specialty Retail industry average Accounts Payable investment in the same period was 7.5%
- Accounts Receivable share of Revenues: As a percentage of revenue, Murphy USA invested 1.6% of its total revenues on Accounts Receivable (A/R). Specialty Retail industry average Accounts Receivable investment in the same period was 8.4%
- PP&E share of Revenues: As a percentage of revenue, Murphy USA invested 13.2% of its total revenues on Property, Plants, and Equipments (PP&E). Specialty Retail industry average PPE investment in the same period was 11.9%
- Intangibles share of Revenues: Murphy USA Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
- Net Margins: Murphy USA Net Margins in the year 2016 were 1.9%. Specialty Retail industry average Net Margins in the same period were 2.7%
Sector and Industry Association of Murphy USA
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.
Murphy USA is associated with Retail Sector and Specialty Retail Industry.
Retail sector is comprised of the following industries: Broadline Retail; Grocery Retail; Specialty Retail; Apparel Retail; Home Improvement Retail; Specialized Consumer Services. The definitions for each of the industries is as follows:
- Broadline Retail industry includes retail outlets and wholesalers offering a wide variety of products including both hard goods and soft goods.
- Grocery Retail industry includes retail stores that primarily offer non-perishable food that is packaged in cans, bottles and boxes, with some also having fresh produce, butchers, delis, and bakeries
- Specialty Retail industry includes retailers and wholesalers concentrating on a Single Class of Goods, such as electronics, books, automotive parts or closeouts. It also includes automobile dealerships, video rental stores, dollar stores, duty-free shops and automotive fuel stations not owned by oil companies.
- Apparel Retail industry consists of retailers and wholesalers specializing mainly in Clothing, Shoes, Jewelry, Sunglasses and Other accessories.
- Home Improvement Retail industry includes retailers and wholesalers concentrating on the sale of home improvement products, including Garden Equipment, Carpets, Wallpaper, Paint, Home Furniture, Blinds and Curtains, and Building materials.
- Specialized Consumer Services industry includes providers of consumer services such as Auction Houses, Day-care Centers, Dry Cleaners, Schools, Consumer Rental Companies, Veterinary Clinics, Hair Salons and providers of Funeral, Lawn-maintenance, Consumer-storage, Heating and Cooling installation and Plumbing services.
Industry Ranking of Murphy USA
With $11.6 billion revenues, Murphy USA ranked number 6 of all the companies in the US Specialty Retail industry. There were a total of 50 public companies in the US Specialty Retail industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Specialty Retail industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.