Magellan Midstream Partners L.P. Limited Partnership (MMP) Company Bio
Magellan Midstream Partners LP engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. It operates in three segments: Refined Products, Crude Oil, and Marine Storage. The company was founded in 2000 and is based in Tulsa, Oklahoma.
MMP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MMP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Magellan Midstream Partners LP ranked in the 39th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Magellan Midstream Partners LP ended up being:
Magellan Midstream Partners LP's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 11.01% of tickers in our DCF set.
Magellan Midstream Partners LP's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 22.53% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Energy), Magellan Midstream Partners LP has a reliance on debt greater than only 24.74% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
VLO, PNRG, CLMT, EQNR, and OIS can be thought of as valuation peers to MMP, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
How do you pick the next stock to invest in? One way would be to spend days of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of […]
With yields of roughly 10%, Enterprise Products Partners (NYSE: EPD) and Magellan Midstream Partners (NYSE: MMP) are certainly offering a level of income that will attract dividend-focused investors. The first big question for investors is whether Enterprise and Magellan are even worth looking at, given that oil is in the doldrums. Both of these master limited partnerships generate the lion's share of their operating margins (85% or more) from fee-based businesses.
Magellan Midstream Partners ([[MMP]] +3.2%) opens with strong gains following a positive weekend analysis in Barron's, which notes its 9,800-mile pipeline network provides 50% or more of the refined products in several states.Magellan's fat distribution - currently yielding 10% - appears secure despite the economic downturn that has cut fuel...
The Tulsa company’s main business is operating a 9,800-mile pipeline network that carries gasoline, diesel fuel, and other petroleum products from refineries in Texas and the Midwest throughout the central part of the country. The distribution—the master limited partnership’s form of dividends—appears secure despite the economic downturn that has cut fuel demand. The depressed price reflects in part investors’ distaste for the energy industry and the once-hot pipeline business.