What Our Analysts Know About Exxon Mobil

Now trading at a price of $107.46, Exxon Mobil has moved 0.2% so far today.

Exxon Mobil returned gains of 2645.9% last year, with its stock price reaching a high of $119.92 and a low of $80.69. Over the same period, the stock outperformed the S&P 500 index by 1030.0%. More recently, the company's 50-day average price was $107.53. Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas in the United States and internationally. Based in Irving, TX, the large-cap Energy company has 62,000 full time employees. Exxon Mobil has offered a 3.3% dividend yield over the last 12 months.

Overview of the Company's Finances:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $264,938 $181,502 $285,640 $398,675
Gross Margins 21.1% 4.5% 22.7% 25.8%
Operating Margins 100.0% -15.9% 10.9% 15.9%
Net Margins 5.41% -12.36% 8.07% 13.98%
Net Income (MM) $14,340 -$22,440 $23,040 $55,740
Net Interest Expense (MM) -830 -1,158 -947 -798
Net Interest Expense (MM) -$830 -$1,158 -$947 -$798
Depreciation & Amort. (MM) -$18,998 -$46,009 -$20,607 -$24,040
Earnings Per Share $3.36 -$5.25 $5.39 $14.77
EPS Growth n/a -256.25% 202.67% 174.03%
Diluted Shares (MM) 4,270 4,274 4,275 4,043
Free Cash Flow (MM) $5,355 -$2,614 $36,053 $58,390
Capital Expenditures (MM) -$24,361 -$17,282 -$12,076 -$18,407
Net Current Assets (MM) -$113,607 -$123,727 -$104,086 -$68,963
Current Ratio 0.78 0.8 1.04 1.41
Long Term Debt (MM) $24,672 $45,502 $41,667 $40,559
Net Debt / EBITDA 1.07 3.23 0.75 0.11

Exxon Mobil benefits from exceptional EPS growth, low leverage, and growing revenues and decreasing reinvestment in the business. The company's financial statements show decent operating margins with a negative growth trend and generally positive cash flows. However, the firm has slimmer gross margins than its peers. Finally, we note that Exxon Mobil has just enough current assets to cover current liabilities.

A Very Low P/E Ratio but Trades Above Its Graham Number:

Exxon Mobil has a trailing twelve month P/E ratio of 7.3, compared to an average of 7.54 for the Energy sector. Based on its EPS guidance of $9.07, the company has a forward P/E ratio of 11.9. According to the 22.0% compound average growth rate of Exxon Mobil's historical and projected earnings per share, the company's PEG ratio is 0.33. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 10.4%. On this basis, the company's PEG ratio is 0.7. This suggests that its shares are undervalued. In contrast, Exxon Mobil is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.19 is higher than the sector average of 1.68. The company's shares are currently trading 51.2% above their Graham number.

Exxon Mobil Has an Average Rating of Buy:

The 22 analysts following Exxon Mobil have set target prices ranging from $110.0 to $146.0 per share, for an average of $126.65 with a buy rating. As of April 2023, the company is trading -15.1% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Exxon Mobil has a very low short interest because 0.9% of the company's shares are sold short. Institutions own 60.9% of the company's shares, and the insider ownership rate stands at 0.06%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 10% stake in the company is worth $42,222,680,357.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.