Added to YB: 2026-05-04
Pitch date: 2026-04-29
MUSA [bullish]
Murphy USA Inc.
+12.92%
current return
Author Info
Top Corner Investing writes about businesses with competitive advantages that have outperformed the market for a number of years. Sign up for the newsletter.
Company Info
Murphy USA Inc., together with subsidiaries, engages in marketing of retail motor fuel products and convenience merchandise.
Market Cap
$9.6B
Pitch Price
$528.61
Price Target
N/A
Dividend
0.48%
EV/EBITDA
11.29
P/E
21.59
EV/Sales
0.73
Sector
Specialty Retail
Category
growth
Why I Own Murphy USA
MUSA (holding update): Fuel margins (~55% gross profit) benefit from oil volatility; scale advantages vs single-site competitors. Accelerating to ~50 new stores/yr vs ~25 in '23, each targeting ~15% cash-on-cash returns (16% tax-adjusted). Merchandise margins expanding from 16% pre-pandemic to 20.2% in FY25 via larger 2,800 sq ft formats. 50/50 capex/return policy; 8% annual buyback pace. Consensus $1.1B '26 EBITDA likely conservative if fuel margins stay elevated; estimates $1.3B EBITDA by '29-'30 (6% CAGR) + 6-8% buyback tailwind = ~13-15% per share growth. 11.2x fwd EV/EBITDA post-rally.
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