ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Murphy USA's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 15.76%.
As of today (2026-07-05), Murphy USA's WACC % is 3.73%. Murphy USA's ROIC % is 16.63% (calculated using TTM income statement data).
Murphy USA generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Murphy USA (FRA:1MU) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Murphy USA's WACC % is 3.73%. Murphy USA's ROIC % is 16.63% (calculated using TTM income statement data).
Murphy USA generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Murphy USA ROIC % Related Terms
Murphy USA ROIC % Historical Data
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The historical data trend for Murphy USA's ROIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Retail subindustry, Murphy USA's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Murphy USA ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Murphy USA's ROIC % distribution charts can be found below:
* The bar in red indicates where Murphy USA's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Murphy USA (FRA:1MU) has a ROIC % of 15.76% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Murphy USA and its competitors.
Is Murphy USA's ROIC % too high?
Murphy USA's current ROIC % is 15.76%. The Retail - Cyclical industry median ROIC % is 4.38. Murphy USA's value of 15.76% is 260.2% above this industry median. Overall, Murphy USA has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Murphy USA's ROIC % compare to GME and FIVE?
Murphy USA's ROIC % of 15.76% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.38. Murphy USA's value of 15.76% is 260.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.38, based on 1,104 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Murphy USA's current ROIC % of 15.76% is 260.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Murphy USA and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Murphy USA's current ROIC % is 15.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Murphy USA stock overvalued right now?
Murphy USA (FRA:1MU) has a current ROIC % of 15.76%. The stock's GF Value™ is €397.04, compared to a current price of €485.60 — trading 22.3% above its estimated fair value. The current ROIC % is 15.76% and 260.2% above the Retail - Cyclical industry median of 4.38. Murphy USA's overall GF Score™ is 83/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Murphy USA (FRA:1MU), the current ROIC % is 15.76% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Murphy USA (FRA:1MU) Overvalued in 2026?
Based on GuruFocus' analysis, Murphy USA stock appears to be overvalued.
The current stock price of €485.60 is trading 22.3% above its estimated GF Value™ of €397.04.
Key valuation signals for FRA:1MU:
ROIC %: 15.76%
GF Value™: €397.04 vs. price of €485.60 (22.3% above fair value)
Industry Position: 260.2% above the Retail - Cyclical median
No single metric tells the full story. See the FRA:1MU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Murphy USA Inc is mainly engaged in the marketing of retail motor fuel products and convenience merchandise through a network of several retail stores in the Southwest, Southeast, Midwest, and Northeast United States. The majority of Murphy USA's stores are located in proximity to Walmart Supercenters, but it also operates standalone stores that market gasoline and other products under the Murphy USA, Murphy Express, and QuickChek brands. In addition, the company also markets fuel to unbranded wholesale customers through a mixture of company-owned and third-party product distribution terminals and pipeline positions. The firm generates maximum revenue through retail sales of petroleum products, and the rest from merchandise sales and wholesale of petroleum products.
83GF Score
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